CONSUMER’S PERCEPTION AND SATISFACTION

ON
“SERVICES OF ESEWA”

By
Ashmi Neupane
Exam Roll No.: 20170/17
TU Regd. No.:7-2-388-3-2017

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
In partial fulfillment of the requirements for the degree of
Bachelor of Business Administration

at the
Kantipur College of Management and Information Technology 
Tribhuvan University
Purano Baneshwor, Kathmandu
 STUDENT’S DECLARATION

I hereby humbly declare that the Summer Project entitled “Consumer’s

Perception and Satisfaction on Services of Esewa” is prepared and
completed by me under the supervision and guidance of Ms. Suvanu
Joshi in partial fulfillment of the requirements for the degree of Bachelor
of Business Administration at Faculty of Management, Tribhuvan
University.
The report is my independent & original work. It has not been submitted
elsewhere for any other purposes.
Ashmi Neupane
2077/7/7

……………….
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “Consumer’s

Perception and Satisfaction on Services of Esewa” is an academic
work done by “ASHMI NEUPANE” submitted in the partial fulfillment
of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Tribhuvan University under
my guidance and supervision. To the best of my knowledge, the
information presented by him/her in the summer project report has not
been submitted earlier.
....................................
Signature
Miss Shubhanu Joshi
Kantipur College of Management and Information Technology
Date:
 ACKNOWLEDGEMENT
This summer project work report has been prepared to fulfil partial requirement of the
degree of Bachelor of Business Administrator (BBA).
I would like to express sincere thanks to my respectable teacher Miss Shubhanu Joshi
who have provided her valuable suggestions in the preparation of this report without
her support and guidance,this report wouldnot come in this form.

Furthermore, I would like to especially thank my friends who helped me throughout

this report and all respondents, who spent their valuable time in filling out the
questionnaire. Finally I undertake full responsibility for any deficiencies that may
remained in the study. I believe that the experience and knowledge I have gained from
this institution will help shape me and contribute much to my achievements in my
future career

Last but not the least I would like to give my vote of thanks to all my friends who

inspired me for selecting this topic and help me in writing this report with
creative and valuable suggestions.

Thank you.
 EXECUTIVE SUMMARY

E-Sewa, one of the major services provided by F1soft.com is Nepal-based Company

mainly focused on electronic payment system. It is one of the well-known name for
safer and easier way to pay online.

The study aims to analyze how customers perceive and their level of satisfaction
towards E-Sewa service and factor influencing the use of eSewa. Research design
used in this research was descriptive research design and sample taken was 75
respondents among E-Sewa users. Non-Probability sampling was used under which
convenience sampling was selected. The data had been generated by primary sources.
For collecting the data through primary source questionnaire method had been used to
know the customers perception and level of satisfaction towards E-Sewa service.
In this research customer perception is measures in terms of benefits, trust, ease of use
and security. On the other hand customer level of satisfaction is measure in terms of
web page and mobile app, safety in transaction, speed and overall service provided by
e-Sewa. After analyzing the result of questionnaire, the researcher concludes that the
customers using e-Sewa are satisfied with the e-Sewa service and have positive
attitude in terms of benefits, trust, ease of use and security.
 CHAPTER I

INTRODUCTION
1.1 Context Information

An electronic payment (e-payment), in short, can be simply defined as paying for goods or
services on the internet. It includes all financial operations using electronic devices, such as
computers, smart phones or tablets.
An e-payment system is a way of making transactions or paying for goods and services
through an electronic medium, without the use of checks or cash. As the world advances
more with technology development, we can see the rise of electronic payment systems and
payment processing devices. Shon and Swatman (1998) define e-payment as any exchange
of funds initiated via an electronic communication channel, while Gans and Scheelings
(1999) define e-payment as payments made through electronic signals linked directly to
deposit or credit accounts. E-payment represents any kind of non-cash payment that does
not involve a paper cheque. This study adopts these definitions and refers e-payment to the
transfer of an electronic value of payment from a payer to payee through an e-payment
mechanism which allows customers to remotely access and manage their bank accounts
and transactions, executed through an electronic network (Lim et al., 2006). The payment
mechanisms include those identified under the two major e-payment systems used in
Malaysia.
E-payment requires internet connection to work, similar to the use of other e-environments
such as electronic banking (e-banking), electronic shopping (e-shopping), or electronic
learning (e-learning). Since e-payment refers to financial exchange. It is one of the major
functions of e-banking. It could also possibly serve as a main payment mechanism for e-
shopping, but not necessarily for e-learning or some e-services where payment can also be
made through other payment channels.

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E-payments come with various methods, like credit or debit card payments or bank
transfers. Note that one of the most popular and common online payment methods
nowadays are credit cards.
Others Electronic payment methods:
i. Credit Card — A form of the e-payment system which requires the use of the card
issued by a financial institute to the cardholder for making payments online or
through an electronic device, without the use of cash.
ii. E-wallet — A form of prepaid account that stores user’s financial data, like debit
and credit card information to make an online transaction easier.
iii. Smart card — A plastic card with a microprocessor that can be loaded with funds
to make transactions; also known as a chip card.
iv. E-check — A digital version of an old paper check. It’s an electronic transfer of
money from a bank account, usually checking account, without the use of the paper
check
v. Stored-value card — A card with a certain amount of money that can be used to
perform the transaction in the issuer store. A typical example of stored-value cards
are gift cards (Muddassir Massihuddin2017).
Customer satisfaction has long played an important role in the survival and success in
today`s market. Customer satisfaction has attracted the most attention in the marketing
literature, since it has an important impact on customers` behaviors and purchase
intentions. Customer satisfaction is an emotional or cognitive reaction with a certain focus
(expectation, product, consumption experience, etc.) at a certain time (after consumption,
after selection, based on experience.The consumer perception of electronic payment has a
significant and positive as well as negative impact on adoption of digital payment. In a
categorization, regarding the perception, customer perception is affected by different
variables that results on the use of electronic payment system. The factors affecting the
perception are benefits (includes the easier, less time, low cost, convenient and fast), trust
(includes the privacy protection, less chance of fraud, confidentiality and low risk),
easiness (includes understandable website, easy to use), security(includes self-aware about
the transaction and reliability).

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Perception is the phase of operation that takes place after the information being received
but one that is well-high indistinguishable from it. Thus perception has been defined in a
variety of ways; it basically refers to the manner in which a person experiences the world
(Blair j. Kolasa).
Customer satisfaction is a marketing term that measures customer's expectation. Customer
satisfaction is important because it provides business owners with a metric that they can
use to manage and improve their businesses.
In Nepal there has been increasing demand for electronic payments in recent years. Due to
rapid demand and interest in newer technology there has been positive impact as it has ease
our daily life. eSewa is Nepal-based Company mainly focused on electronic payment
system. It is one of the major services provided by f1soft.com which is the well- known
name for safer and easier way to pay online. It offers a state-of-art payment gateway
solution that incorporates some of the latest integrated techniques developing a secured,
fast, and real-time gateway. It has been growing as trusted company because of its quality
service to its customers.
Established with an aim to help and support e-commerce business, eSewa allows payments
and money transfers through internet and serves as an electronic alternative to the
traditional complicated paper methods such as cheques and money orders. eSewa - Type of
Application eSewa is available in two modules: Business to Business and Business to
Customers. eSewa specialize in Secure Real-time transaction processing service and
support. eSewa has evolved as a dynamic and interactive platform for electronic payment.
The payment gateway can change the business processes as well as customer’s culture and
lifestyle. Many corporate houses who are really enthusiastic to elaborate and speedup their
business are completed to execute traditional payment module due to lack of a robust
payment gateway can play the key role to transform the business (www.eSewa.com).
It has changed the way of payment, gradually replacing the traditional way of payment. Its
success has been remarkably acknowledged by more people in urban areas where there is a
good infrastructure for internet and network services. It is expected that the way eSewa is
emerging will definitely serve the people ensuring more security, reliability and efficiency
in the coming days (Tamrakar & Pradhan, 2014)
1.1.1About eSewa

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eSewa is a mobile wallet that allows you to make online and offline payments to
merchants, transfer funds to banks and much more. Also it can be defined as digital
Payment Portal which allows people to make online and offline payments. It is in operation
since 2009 and has recently been licensed by Nepal Rastra Bank as Payment Service
Provider.
eSewa is Nepal-based Company mainly focused on electronic payments system. It is one of
the major services provided by f1soft.com which is the well known name for safer and
easier way to pay online. It offers a state of art payment gateway solution that incorporates
some of the latest integrated techniques developing a secured fast and real time gateway.
Customers can register and get mobile money account instantly, cash-in to their wallet
from Agents and partner banks and start making payments. Customers can pay for utilities,
recharge their mobile, pay internet bills, EMI, buy airlines ticket, school fees, credit card
bills, etc. from their mobile.
Similarly, merchants, service providers and retail outlets can receive payments for goods
and services in their wallet instantly.

1.2 Purpose of the Study

The purpose of the study was to analyze the satisfaction and perception of customers
towards eSewa.
 To identify how customer perceives and the degree of customers’ level of
satisfaction towards eSewa service.
 To analyze the factors that influences the use of eSewa.

1.3 Problem of statement

The research conducted has helped to identify several problems since less research has
been conducted in this area. Currently, more number of people are using the services of
Esewa .

1.4Significance of Study
The study shows the perception towards the eSewa and the customer satisfaction
towards it. The existing and potential use of eSewa can identify the services and

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 performances of eSewa. This study also help to know whether the existing services
are really satisfying the customers’ needs and also helps to know the factors that
influences the perception of using it.

1.5 Literature Review

E-payment systems are important mechanisms used by individual and organizations
as a secured and convenient way of making payments over the internet and at the
same time a gateway to technological advancement in the field of world economy
(Slozko & Pello, 2015).

It has also become the major facilitating engine in ecommerce through which electronic
business success relied upon. Electronic payment system had also brought about efficiency,
fraud reduction and innovativeness in the world payment system (Oladeji, 2014).
E-payment system tends to bring many electronic modes of payments through which
financial institutions offer different e-payment opportunities and services to their customers
such as the credit cards, debit cards, on-line banking and mobile banking (Premchand &
Choudhry, 2015).
Dennis (2004) defines e-payment system as a form of financial commitment that involves
the buyer and the seller facilitated via the use of electronic communications.
Briggs and Brooks (2011) sees e-payment as a form of inter-connections between
organizations and individuals aided by banks and inter-switch houses that enables monetary
exchange electronically.E-payment systems are payments made in electronic commerce
environment in the form of money exchange through electronic means.
Teoh, Chong, Lin, and Chua (2013) viewed epayment as any transfer of an electronic value
of payment from a payer to payee through an epayment channel that allows customers to
remotely access and manage their bank accounts and transactions over an electronic
network. In a nutshell, going by the above definitions, e-payment system can simply be
defined as a collection of components and processes that enables two or more parties to
transact and exchange monetary value via electronic means.
Perception is the phase of operation that takes place after the information being received
but one that is well-high indistinguishable from it. Thus perception has been defined in a
variety of ways. It basically refers to the manner in which a person experiences the world.
Perception is the process of becoming aware of situations of adding meaningful
associations to sensations.(B. Hon Haller Gilmer)

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Perception is the process by which individual organized and interpret their sensory
impression inorder to give meaning to their environment.(Stephen P. Robbins)
Perception toward e-payment
Davis (1989) finds that a user’s overall attitude toward a specific information technology
(IT) and its applications is a major factor determining whether an individual uses that
system. Accordingly, attitude toward use is also determined by perceived ease of use of
that IT application. Abrazhevich (2001) confirms this theory in his study where users’
perception of e-payment has a significant effect on its acceptance, which is highly
dependent on users’ attitudes. Eastin (2002) further states that prior adoption of IT had an
identifiable impact because customers will usually adopt a new service only when they
have similar experiences before. In addition, the feasibility of technology in terms of
security, trust and efficiency will also affect users’ decision to use e-payment. Based upon
these premises, attitude toward e-payment is operationalized in this study in terms of the
perception that it is better than the traditional payment channels, that it can be trusted and is
secure, easy to use, and efficient.
Literature indicates that factors such as benefits, trust, ease of use, and security influence
consumers’ perception towards e‐payment. (Wendy Ming‐Yen Teoh, Siong Choy Chong,
Binshan Lin, Jiat Wei Chua, 2013).
Benefits
Chou et al. (2004) identify benefits as a significant driver for e-payment systems
acceptance and use. Similarly, Eastin (2002) who studied four e-commerce activities
(online shopping, banking, investing, and e-payment systems) found that prior to
adoptation, perceived convenience and financial benefits predict adoption decision.
Perceived economic benefits to include fixed and transaction costs in adopting e-payment.
Fixed costs refer to the cost of installing payment equipment such as card readers and
payment software, while transaction costs are those incurred by customers and merchants
every time they carry out a business transaction (Chou et al., 2004). Accordingly, users can
enjoy the benefits of low cost when they involve in online transactions as they only
need to pay a nominal fee to their respective banks for the services used ( San-Martin and
Lo´pez-Catala´n, 2013).
Trust
Trust is defined as a function of the degree of risk involved in financial transactions, and
the outcome of trust is reduced perceived risk, leading to positive intentions toward e-
payment adoption (Yousafzai et al., 2003). Prior studies found trust to be a significant
determinant influencing customers’ willingness to conduct e-commerce transactions and
engage in online exchanges of money. As a matter of fact, trust has long been a catalyst for
buyer-seller transactions that provide consumers with high expectations of satisfying
exchange relationships (Peha and Khamitov, 2004). Because of this, many researchers

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maintain that trust is essential for understanding interpersonal behavior and economic
exchanges which affects customers’ perception

toward e-payment systems (Abrazhevich, 2001; Chou et al., 2004; Tsiakis and
Sthephanides, 2005). That trustworthiness is vital to e-payment success (Abrazhevich,
2004). Without an adequate system that users can trust, it would be extremely difficult for
e-payment to achieve widespread usage (Lim et al., 2006).
Ease of use
Numerous studies have confirmed that a technology will be perceived as more useful when
it is easier to use (Venkatesh and Davis, 2000)point out that ease of use of a computer
system favors trust levels. This is because greater usability reduces the likelihood of error,
which is a key aspect when providing financial services online. In addition, greater
usability favors minor searching costs and a better comprehension of the contents and tasks
in a web site. Because of this, Guriting and Ndubisi (2006) found that perceived ease of use
had a significant positive effect on the behavioral intention of Malaysians to use online
banking services and hence e-payment in Malaysia.
Security
Security is a set of procedures and programs to verify the information source and guarantee
the integrity and privacy of the information (Tsiakis and Sthephanides, 2005). With regards
to e-payment, security can be categorized into three areas. They are systems security,
transaction, and legal. This is because e-payment can only be considered as confidential
when all phases of the transaction process are capable of satisfying users’ needs and their
security expectations. In the internet’s context, security refers to the perception regarding
payment means and mechanisms for storing and transmission of information (Lim et al.,
2006). Sathye (1999) finds security to be a significant obstacle to online banking usage,
which affects the use of e-payment systems. This is true because although consumers’
confidence on their chosen bank is strong, their confidence in technology remains weak.
Users generally want to control the kind of data collected and for what purpose their data
are processed. It is for these reasons that security could be a determinant of users’ decision
to utilize e-payment systems (Abrazhevich, 2001).

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1.6Conceptual Theoretical Framework
Independent variable
Dependent variable

Benefits
tTTrust
Customers satisfaction
eaEase of use

Figure 1 Theoritical Framework

Benefits: There is positive relationship in between benefits and customers satisfaction .

More benefits of E-sewa will provide higher satisfaction and vice versa.
Trust : There is negative relationship in between trust and satisfaction. Lower the trust
lower will be the satisfaction and vice versa.
Brand: There is positive relationship in between ease of use and satisfaction..Higher the
ease of use higher will be the satisfaction.

1.7 Research Methodology

Methodology refers the steps that will be adopted this study. The more systematic method
gives the more actual results for the study. The method of this study includes research plan
and design, description of sample, data collection procedure and data analysis plan. The
methodology used for this research listed below:

1.7.1 Research Design

A research design is the planned specification of methods and procedures for acquiring the
information needed to structure to solve the problems. The research design used in this
study is descriptive. Descriptive research includes surveys and fact-finding enquires of
different kinds. The major purpose of descriptive research is description of the state of
affairs as it exists at present. The descriptive research design is selected for the study to

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learn the profile of the respondents, presentation and description of data collection, and
describe the customers perception and satisfaction towards the eSewa service.

1.7.2 Sample Design

Sampling is the selection of a subset (a statistical sample) of individual from within a
statistical population to estimate characteristics of the whole population. Convenience
sampling has been used to select the samples from the population in this research process.
The customer’s using eSewa in Kathmandu valley are sample unit of study. The samples
size was 75 customers using eSewa from different part of Kathmandu valley.

1.7.3 Method of Data Collection

Data collection is the process of gathering and measuring information on targeted variables
in an established systematic fashion, which then enables one to answer relevant questions
and evaluate outcomes. Questionnaire has been used to collect primary data. In order to
collect the data from the respondents, five point likert scales has been used and the
questionnaire has been filled by respondents themselves.

1.7.4 Method of Data Analysis

Under this study MS-Excel has been used for creating tables, pie charts, data processing.
Statistical tools are used to analyze the collected data. Various tools can be used to analyze
the collected data to draw the reliable conclusion. Following tools are used for this study:
• Arithmetic Mean:
The simple or arithmetical average of a range of value or quantities, computed by dividing
the total of all values by the number of values is mean. The arithmetic mean or simple
mean is the sum of the sample values divided by the number of items in the sample. The
arithmetic mean is the most commonly used and readily understood nature of central
tendency. In statistics, the term average refers to the any of the measure of central
tendency. The arithmetic mean is defined as being equal to the sum of the numerical values
of each and every observation divided by the total number of the observation.

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Arithmetic mean of a given set of observations is their sum divided by the number of
observation. In general, if X1, X2, X3...............Xn are the given observations, then
arithmetic mean usually denoted by X is given by,

X = X1, X2, X3...............Xn

N
Where, N = number of observation
• Coefficient of Variation:
The coefficient of variation (CV) is the ratio of the standard deviation to the mean. Higher
the coefficient of variation, greater will be the level of dispersion around the mean. It is
generally expressed as a percentage. Without units, it allows for comparison between
distributions of values whose scales of measurement are not comparable.
When we are presented with estimated values, the CV relates the standard deviation of the
estimate to the value of this estimate. Lower the value of the coefficient of variation, the
more precise the estimate.

.Coefficient of Variation= Standard Deviation

Expected Return

1.8 Limitations of Study

There were some limitations of doing the study:
 This study is based on the willingness of the consumer to provide the necessary
information. So, it depends on their feelings and desires to share and give
information.
 The information and data in completion of this report are limited by time and
resources.
 The view expressed by the consumers may not be fully accurate.
 Since the study is done within a small population size the study report may not be
accurate.

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