A

SYNOPSIS
ON

A STUDY ON FACTORS INFLUENCING USE OF E-PAYMENTS

SUBMITTED TO SANT BABA BHAG SINGH UNIVERSITY

KHIALA, PADHAINA

MASTER OF COMMERCE
(2024)

SUPERVISED BY: SUBMITTED BY:

Dr. Jyoti Kumari Lakhwinder Singh

Roll No: 23030001
 CERTIFICATE

This is to certify that Mr. Lakhwinder Singh has worked and duly completed his Project
Work for the degree of Master in Commerce under the Faculty of Commerce and his project
is entitled, A STUDY ON FACTORS INFLUENCING USE OF E-PAYMENTS under
my supervision. I further certify that the entire work has been done by the learner under
my guidance and that no part of it has been submitted previously for any Degree or Diploma
of any University.

It is his own work and facts reported by his personal findings and investigations.

Name and Signature of

Lakhwinder Singh

Date of submission:
 DECLARATION

I LAKHWINDER SINGH hereby declare that the Project Report entitled A STUDY

ON FACTORS INFLUENCING USE OF E-PAYMENTS systems done by me under

the guidance of DR. JYOTI KUMARI is submitted in partial fulfilment of the

requirements for the award of Master of Commerce.

DATE:

PLACE LAKHWINDER SINGH

 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Sant Baba Bagh Singh University

For their kind encouragement in doing this project and for completing it successfully.

I am grateful to them.

I would like to express my sincere sense of gratitude to my Project Guide DR. Jyoti

Kumari for her valuable guidance, suggestions and constant encouragement paved

way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the

Sant Baba Bagh Singh University who were helpful in many ways for the completion

of the project.

Lakhwinder Singh
 ABSTRACT

This study is aimed at investigating and increasing awareness about various concepts
related to Electronic Payment Systems (EPS) including its advantages, challenges, and
security considerations. The proposed study also evaluates the adoption of e-payment
systems and the resulting impact on economy of a nation.

Methods/Statistical Analysis: In this study, a comprehensive survey on all the aspects

of electronic payment was conducted after analysis of several research studies on online
payment systems. The most recent references and information have been explored to
gain significant information about electronic payments systems.

Findings: From the study conducted, it can be elucidated that despite various issues that
usage of electronic payment systems pose, these are identified as a positive step towards
the economic development of a nation. Nevertheless, its full potential can be realized
only by raising its awareness among people. Applications/Improvements: With the
advancement in technology and popularity of Internet, the perception of making online
transactions is bound to gain momentum. In the future, the payment modes currently
used and supported shall see a declining trend owing to the numerous benefits offered
by electronic payment systems.
 TABLE OF CONTENTS

CERTIFICATE I
DECLARATION II
ACKNOWLEDGEMENT III
ABATRACT IV
CHAPTER NO. TITLE PAGE NO.

1 INTRODUCTION 1
1.1 History of e-payment system 2-4
1.2 Advantages of e-payment 4-5
1.3 Disadvantages of e-payment 5-6
1.4 Industry profile 06
1.5 Product profile 07
2 REVIEW OF LITERATURE 8-9
3 RESEARCH METHODLOGY 10-11
3.1 Need for Study 10
3.2 Objective of Study 10
3.3 Scope of Study 10
3.4 Research Design 11
3.5 Sample Design 11
3.6 Sample Size 11
3.7 Data Collection 11
3.8 Tools 11
3.9 Area of Industry 11
44444

REFERENCES 12
 CHAPTER 1
INTRODUCTION

Person-to-person trade of goods and services between two people dates back before
written history. People represented values in an abstract fashion when trading became
more confusing and complicated over time, progressing from barter to certified notes
of money, cheques, payment orders, debit and credit cards, and now electronic payment
(or E-payment) systems. Cash can be fabricated, checks can bounce, and signatures can
be forged, to name a few well-known difficulties or flaws in traditional payment
systems. Contrary to popular belief, a well-designed electronic payment system can
provide superior security to traditional payment systems while also allowing for greater
flexibility in use.

The convenience of making financial transactions, as well as a more secure and faster
access to information Capital resources, among other things, have propelled the e-
payment system forward in comparison to the previous currency-based system. With
intangible transactions having a greater impact on global economies and their ability to
be transferred quickly at low cost, traditional payment systems have a propensity to be
more expensive than current strategies. Furthermore, in the manual world, internet
processing can be worth less than the smallest estimate of cash. Customers have
benefited from the advancement of electronic payment through a variety of options and
services. The services provided by e-payment systems are quickly becoming the most
popular method of conducting financial transactions.

1.1 HISTORY OF E-PAYMENT SYSTEM

1.1.1 Electronic Clearing Service (ECS) ECS payment was introduced in India by the
RBI during the 1990s. Since, its introduction, the platform has grown more robust and
scaled to 2 handle large volumes. ECS payments are used to handle bulk and repetitive
payment like salary, interest ,dividend payments of companies, corporates and

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 Institutions. Using ECS payment system, a customer accounts can be credited on a
specified date for a specific amount.

1.1.2 National Electronic Funds Transfer (NEFT) The NEFT payment system was
introduced in 2005 to facilitate one to one fund transfers. NEFT payment system can
be used by both individuals and corporates. NEFT system processes payments in
batches at hourly intervals, thus providing near real-time settlement of funds from one
party to another. There is no minimum of maximum limit on the amount of funds that
can be transferred through NEFT.

1.1.3 National Electronic Clearing Service (NECS) During September 2008, the
Bank launched a new service known as National Electronic Clearing Service (NECS),
at National Clearing Cell (NCC), Mumbai. NECS (Credit) facilitates multiple credits
to beneficiary accounts with destination branches across the country against a single
debit of the account of the sponsor bank. The system has a pan-India characteristic and
leverages on Core Banking Solutions (CBS) of member banks, facilitating all CBS bank
branches to participate in the system, irrespective of their location across the country.

1.1.4 Real Time Gross Settlement (RTGS) In the RTGS system, funds are transferred
from one bank account holder to another on a “real time” and on “gross” basis.
Settlement in the RTGS system happens “Real Time” on a one-on-one basis and there
is no bunching or batching like the NEFT system, wherein payments are processed in
batches. Once a payment is processed through the RTGS system, it cannot be undone
and is final and irrevocable. RTGS system has been operational since 2004 and is used
for settling inter-bank payments.

1.1.5 Regional ECS (RECS) Similar to NECS, RECS operates as a miniature of NECS
confined to the bank branches within the jurisdiction of a regional office of RBI. RECS
system is available in Ahmedabad, Bengaluru, Chennai and Kolkata regions. Under the
system, the sponsor bank will upload the validated data through the Secured Web

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 Server of RBI containing credit/debit instructions to the customers. The RECS centre
will process the data, arrive at the settlement, to provide credit/debit to the accounts of
beneficiaries by using the Core Banking System put in place by the bank.

1.1.6 Electronic Clearing Service (ECS) Debit ECS (Debit) system helps with
effecting periodic and repetitive collections of bills from consumers. ECS (Debit)
facilitates consumers to subscribe to services of companies and make routine and
repetitive payments by ‘mandating’ bank branches to debit their accounts and pass on
the money to the companies. There is no limit on the minimum or maximum amount of
payment through the ECS debt system.

1.1.7 Electronic Funds Transfer (EFT) The Electronic Funds Transfer system was
introduced in the late 1990s to enable account holders of a bank to electronically
transfer funds to another account holder. The EFT system has gradually been phased
out for use by the general public and subsumed by the National Electronic Funds
Transfer (NEFT) system.

1.2 ADVANTAGES OF E-PAYMENT

1.2.1 Increased Speed and Convenience

E-payment is very convenient compared to traditional payment methods such as cash

or check. Since you can pay for goods or services online at any time of day or night,
from any part of the world, your customers 4 don't have to spend time in a line, waiting
for their turn to transact. Nor do they have to wait for a check to clear the bank so they
can access the funds they need to shop. E-payment also eliminates the security risks
that come with handling cash money.

1.2.2 Increased Sales

As internet banking and shopping become widespread, the number of people making
cash payments is decreasing. According to Bank rate, more than two-thirds of
consumers carry less than $50 a day, meaning electronic alternatives are increasingly

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 becoming the preferred payment option. As such, e-payment enables businesses to
make sales to the customers who choose to pay electronically and gain a competitive
advantage over those that only accept traditional methods.

1.2.3 Reduced Transaction Costs

While there are no additional charges for making a cash payment, trips to the store
typically cost money, and checks also need postage. On the other hand, there are usually
no fees – or very small ones – to swipe your card or pay online. In the long run, e-
payment could save both individuals and businesses hundreds to thousands of dollars
in transaction fees.

1.3 DISADVANTAGES OF E-PAYMENT

1.3.1 Security Concerns

Although stringent measures such as symmetric encryption are in place to make e-

payment safe and secure, it is still vulnerable to hacking. Fraudsters, for instance, use
phishing attacks to trick unsuspecting users into providing the log-in details of their e-
wallets, which they capture and use to access the victims' personal and financial
information. Inadequate authentication also ails e-payment systems. Without superior
identity verification measures like biometrics and facial recognition, anyone can use 5
another person's cards and e-wallets and get away without being caught. These security
concerns may make some people reluctant to use e-payment systems.

1.3.2 Disputed Transactions

If someone uses your company's electronic money without your authorization, you
would identify the unfamiliar charge and file a claim with your bank, online payment
processor or credit card Company. Without sufficient information about the person who
performed the transaction, though, it can be difficult to win the claim and receive a
refund.

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 1.3.3 Increased Business Costs

E-payment systems come with an increased need to protect sensitive financial

information stored in a business's computer systems from unauthorized access.
Enterprises with in-house e-payment systems must incur additional costs in procuring,
installing and maintaining sophisticated payment-security technologies.

1.4 INDUSTRY PROFILE

With the onset of Liberalization, Privatization, and Globalization, the Indian economy
has grown. This transformation has faced the Indian banking and financial sector with
a challenge to keep up with the pace of new technology. This philosophy allowed them
to form long-term relationships with their clients. As a result, e-payment has become a
major trend in the banking and financial sectors around the world. To address the basic
needs of clients, a variety of advanced products have been introduced. With the
introduction of numerous E-payment systems, a competitive ecosystem has emerged in
various modalities of transaction. In comparison to other online transactions, the
banking sector has a large network of traditional branches to approach their customers.
With the growth of e-commerce companies, digital payments began to pick up speed.
as a result of the advent of digital wallet firms To entice customers, digital wallets
offered enticing discounts and cashbacks to encourage them to use the payment
channel. The digital wallet firms have made their way into the consumer's phone as well
as their pocket, thanks to their simplicity of use, tempting offers, and rising smart phone
penetration.

To broaden their appeal, digital wallets began pushing customers to use them for offline
POS transactions such as those at shopping malls, supermarkets, grocery stores,
restaurants, and gas stations. In the coming years, these POS transactions are likely to
make up the majority of the digital payment’s platform. Clearly, digital wallets are
playing a unique role in the digital payments industry's growth.

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 1.5 PRODUCT PROFILE
1.5.1 Debit / credit card:

Debit cards are substitutes for cash or check payments, much the same way that credit
cards are. However, banks only issue them to you if you hold an account with them.
When a debit card is used to make a payment, the total amount charged is instantly
reduced from your bank balance. Which lets you borrow funds from a pre-approved
limit to pay for your purchases.

1.5.2 E-wallet:

An e-wallet is a form of pre-paid account that allows a user to save money for future
online transactions. E-Wallets allow you to securely store several credit card and bank
account numbers, eliminating the need to manually enter account information when
making a payment. You can make payments faster and with less typing once you've
registered and created E-Wallet profiles.

1.5.3 Net banking:

Net banking, often known as internet banking, is a digital banking technology that uses
the internet to make transactions. It is an electronic system that can be activated and
used for financial transactions by anyone with a bank account.

1.5.4 Unified payment interface:

It allows money to be transferred immediately from one bank account to another via a
mobile phone. Payments can only be made using the app on a mobile device. Money
transfers using UPI are available 24 hours a day, 7 days a week. You must have a bank
account with a member bank to utilise UPI, which means your bank must allow you to
use the service.

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 CHAPTER 2

REVIEW OF LITERATURE

The primary purpose of the literature review is to determine the theoretical framework
and research on factors that influence electronic payments. The term "review of
literature" refers to the process of recognising existing literature in the field of consumer
behaviour to determine what contributions have previously been made so that it can be
used as a foundation for growing the literature. While selecting suitable material to
create the subject matter of the planned study, the researcher screened E-payments have
a high level of consumer preference and satisfaction.
] (Venkatesh et al., 2008) Unified Theory of Acceptance and Use of technology
(UTAUT), theory forms the basis of this study. This theory explains intentions users
have for using an information system and how their user behaviour changes thereafter.

Meira (2009) explains technology as the technical means people use to improve their
surroundings and carry out tasks efficiently.

Sanghita Roy, Dr. Indrajit Sinha (2014) stated that E- payment system in India, has
shown tremendous growth, but still there has lot to be done to increase its usage. Still
90% of the transactions are cash based. Technology Acceptance Model used for the
purpose of study. They found Innovation, incentive, customer convenience and legal
framework are the four factors which contribute to strengthen the E- payment system.

Perceived Security, Mazumder, Jahan, and Das (2015) When customers and
merchants conduct an internet transaction, information security has become a very
important and concerned parameter of modern communication systems, which is
achieved by cryptography functions and techniques.

Sornaganesh. V and Chelladurai .M (2016) this article revealed the scenario at the
time of demonetization in 2016. The researcher has studied about the demonetization
impact and financial technology company in India. The researcher also analyses about
payment service sector during the demonetization period. Digital payment system is the
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 largest move in the mobile internet space from the technology point of view.

Sinha (2017) Customers will be more interested in adopting an electronic payment and
clearing system if they perceive that the services of an electronic payment system are
simple to use.

Yuvaraja S & Eveline. N Sheila (2018) have highlighted that majority of consumers
prefer credit/debit card as the convenient mode for cashless transactions. They revealed
that privacy, security, and convenience are the key factors which influence consumers
towards the cashless transactions.

Ali Shawket Thiab & Zeratul Izzah Mohd.Yusoh, 2019 It is concerned with the
individual assessment of the effort put forth in the technological process. According to
several empirical investigations, perceived simplicity of use has an impact on e-
payment uptake.

C.E Rudresha. (2019) in his study found that cybercrime and illegal access to
customer’s account is some serious concern for cashless transactions. He has suggested
to strengthen the internet security in this regard.

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 CHAPTER 3

RESEARCH METHODOLOGY

3.1 NEED FOR STUDY:

 The study provides information to those interested in the financial activities,

especially concerning E-payment.

 It provides insight into the challenges and potential benefits of adopting E-

payment.

 It will benefit all banks and financial institutions in undertaking E-payment

activities and procedures.

3.2 OBJECTIVE OF STUDY:

 To study the electronic payment current scenario.

 To identify the influencing factors for the usage of E-payment.

 To know the problems faced by respondents while using E-payment.

3.3 SCOPE OF STUDY:

 The study restricted to the E-payment users of the SBBSU.

 This study doesn’t focus across the nation.

 The study measures data only through questionnaire.

 Data will be collected during Jan. 2025 to Feb. 2025.

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 3.4 RESEARCH DESIGN:

 Descriptive research is a study designed to depict the participants in an accurate

way. More simply put, descriptive research is all about describing people who
take part in the study.

3.5 SAMPLE DESIGN:

 The sampling technique undergone for this study is Convenience sampling.

Convenience sampling is a type of non-probability sampling in which sample
being drawn from that part of the population that can be reached.

3.6 SAMPLE SIZE:

 A questionnaire will be circulated in 100 responded for the study.

3.7 DATA COLLECTION:

 Primary data will be collected by giving questionnaire to student of University.

 Secondary data used will be used for the purpose of attaining knowledge on
the topic.

3.8 Tools:

 In this study, it has various statistical tools like percentage analysis and
statistical test like chi – square test & Independent sample T-Test.

3.9 AREA OF INDUSTRY

 Sample size: 100

 Location: Sant Baba Bhag Singh University, Jalandhar.
 Target people: Student of University.
 Type of industry: Education.

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 REFERENCES

1. Rudresha,C.E.,Manjunatha, H.R.,& Chandrashekarappa,U.(2018).Consumer’sPerception

Towards Online Shopping [Review of Consumer’s Perception Towards Online
Shopping]. International Journal of Scientific Development and Research (IJSDR),
03(11),147–153. [6] Osei-Frimpong, K. (2019).

2. Ali Shawket Thiab, & Zeratul Izzah Mohd. Yusoh. (2019). Factors influencing adoption
of electronic payment system: Case study on Iraq. Journal of Engineering and Applied
Sciences, 14(12), 4235–4241.

3. Yuvaraj, D. S., & Eveline, S. (2018). N, Consumers ‘Perception towards Cashless

Transactions, and Information Security in the Digital Economy. International Journal of
Mechanical Engineering and Technology, 9(7).

4. Sanghita, R., & Indrajit, S. (2017). Factors affecting customers’ adoption of electronic
payment: An empirical analysis. IOSR Journal of Business and Management (IOSR-
JBM), 19(12), 76-90.

5. Sinha, N. (2017) Consumer Preference and Satisfaction of M-Wallets: A Study on North

Indian Consumers. International Journal of Bank Marketing, 35, 944-965.

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