Malaya Journal of Matematik, Vol. S, No.

2, 3586-3589, 2020

https://doi.org/10.26637/MJM0S20/0924

Digital payment: empirical study on usage of digital

platform in making digital payments
N. Divyapriya1 and R. Velanganni2

Abstract
The dynamic payment landscape is widening and changing, and digital payment platforms are continuing to
evolve robustly. The market has seen a great deal of trends and influences over the past few years, making India
the world’s most thrilling payment centre. UPI has become a significant Indian payment choice. Cantered on
reduced pain in conventional services such as NEFT and RTGS, banking services are made more available
to a larger audience. With UPI it depends on a virtual address — UPI ID. Sending and receiving money. The
present study has carried out with an objective of determining the usefulness of digital payments in Chennai
city. Convenient random technique has been used for data collection from 100 digital banking users. Study
reveals debit cards are the highest means for digital payments by users of digital transactions. Advancement
and Technological Banking Factor is the eminent aspect in digital payment satisfaction, this factor holds aspects
like Retrieve payment profile, Under regulation of Banks norms, Setup billing agreements. The usage of digital
banking is emerging by leaps and bound hence common man need to adopt digitalisation.
Keywords
Digitalisation, Payments, Technological and Banking.
1,2 Department of Commerce & Economics, Bharath Institute for Higher Education and Research, Selaiyur, Chennai-600073, Tamil Nadu, India.
Article History: Received 01 October 2020; Accepted 10 December 2020 c 2020 MJM.

Contents Digital payment is a form of payment made by means of

digital means. In digital payments, both payers and payees use
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3586 digital means to send and receive money. That is sometimes
2 Digital payment methods . . . . . . . . . . . . . . . . . . . . . . . . 3587 referred to as electronic payment. Digital money is payments
carried out on the Internet and on mobile telephones and can
3 Objective of the study . . . . . . . . . . . . . . . . . . . . . . . . . . . 3587
also be referred to as any payments sent electronically or by
4 Review of literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3587 mobile computers and internet-enabled smartphones.
5 Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . . 3587
6 Data analysis and interpretation . . . . . . . . . . . . . . . . . 3587 The sale of services like financial services was highly af-
6.1 Personal profile . . . . . . . . . . . . . . . . . . . . . 3587 fected by technology and the Internet. Banks are increasingly
delivering customer experience to promote strategic market-
7 Major findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3588
ing alliance goals through technologies around the service.
8 Limitation of the study . . . . . . . . . . . . . . . . . . . . . . . . . . . 3589 These developments have contributed to the advent of a mod-
9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3589 ern banking era, dubbed ”e-banking.” The e-banking has to be
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3589 carried out in an electronically-focused manner. Indian con-
sumers and utilities are new to e-bank facilities. Indian banks
are now involved extensively in technology such as branch
1. Introduction automation and computerisation, core banking, tele-banking,
“The challenge for banks isn’t becoming “digital” it’s provid- mobile banking (M), internet banking. ICTs have modified
ing value that is perceived to be in line with the cost or better the environment of the banks in India in recent years. Bank-
yet, providing value that consumers are comfortable paying ing services are provided today by the public sector and the
for” private sector. The effect of COVID-19 has further enhanced
the change in payment choice due in part to convenience and
By Ron Shevlin in part to the guidance and focus on avoiding cash from being
 Digital payment: empirical study on usage of digital platform in making digital payments — 3587/3589

furnished where appropriate. Whatever the rations are, digital The computer networked pay-maker is the automated fee sys-
payments do not vanish, and only become more common in tem. In other words, e-charging is a way in which a person
the coming years. Cards are still the favored option of pay- can charge products and deals electronically, no matter where
ments worldwide, which outweigh cash, but mobile wallets they are and how long, without physical changing of coins
are increasingly growing in popularity with the industry. and checks. In this sense, this test is now unavoidable to make
We might see social media payments, voice-enabled payments, electronic payments at any moment via the internet, to navi-
blockchain, biometric payments and face recognition all being gate the e-business world without delay.. India is at the stage
prevalent in the not-for-professional future. One argument of demonetization. The purpose of these findings has been to
is that in the near future, though, electronic payments and learn about the challenges and complicated circumstances of
mobile wallets will begin to attract mass penetration and it electronic charging systems and to provide some answers to
is worth paying attention to developed countries, which will increase electronic prices. The e-fee scheme now provides not
possibly be major contributors. A safe and fast payment so- the most realistic additional chances but even various risks.
lution would consider the use of NFC and QR codes. Other NiinaMallat [3] Examines consumer approval of cellular pur-
countries, especially the US, have slowed down the payment chases by a new digital pricing supplier. The scientific details
process despite the prevalence of QR codes in China. How- were applied by the arrangement of six focus periods for the
ever, the cost-effectiveness of the business now needs less exploratory observation. The findings demonstrate that the
infrastructure to handle purchases and is supposed to boost relative advantages of mobile bills include time and region
consumer comfort. independence, responsiveness, far-reaching transactions, and
queue prevention. Interviewees located cellular fees to be well-
2. Digital payment methods adjusted for supplies and carrier transactions for simulated
content and to supplement small cost coins. It is important
The Digital India program is a government of India flagship to note that the relative blessings of the cell payment, along
program intended to make India a technologically connected with lack of various payment methods or urgency, rely on
nation and a knowledge-based economy. ’Facial, Paperless, some situational factors. However, the acceptance of mobile
Cashless’ is Digital India’s professed position. payments, along with high bill price costs, remain limited,
fee processes are complicated, and there are no significant
3. Objective of the study identification of service providers, and there are perceived
hazards.
1. To examine the personal profile of the digital payment
users.
5. Research methodology
2. To understand mode of payment used in digital pay-
ment. The research bases its impressions on the use of digital pay-
ments by primary data gathered from 100 digital payment
3. To analysis customer satisfaction about cashless trans- consumers using a well-structured questionnaire. The ques-
action in India. tionnaire have two, section one deals with personal profile
and opinion on digital payment usage and section two deals
4. To examine factor determining satisfaction of respon-
with aspects of digital payment satisfaction aspects. Five
dent while using digital payment platform.
point likert scale has been used to measure 18 digital payment
5. To identify problems and difficulties faced by respon- satisfaction aspects.
dent while using digital payments.
6. Data analysis and interpretation
4. Review of literature The present study adopted number of statistical tools in ana-
Vidyashree DV [1] has analysized digital payment at age To- lyzing the data and bring the supportive results.
day uses digital wallets filled with vouchers and offers to reach
a new speed of payment system. Today’s most busy society 6.1 Personal profile
has little time to sat down and rest and then work, including Majority of the digital payment users are unmarried young
charging the telephones, paying power rates, taxes, shopping, males with UG qualification and earning an annual income
etc. So, we launched a new application to liberate people of more than 2 lakhs. Common number of them living in
from tension, i.e. You’re paying tm or cash. People with their nuclear families and working in private organizations. Sizable
mobile phones use this software more frequently to make it number of them prefer to do mobile banking and purchase
easy for them to do their work. The present research paper products from online modes. Substantial number of users
focuses on the consumer influence and observed challenges prefer digital banking on weekly basis and find it convenience
of these new digital payment systems. in its operations. Majority of digital payment users agree
Sujith T S and Julie C D [2] The transition to digital space with importance of cashless transactions in promoting digital
has been examined. India is attempting to move into e-pricing. payments.

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Table 1. Relative importance of Digital Transactions

S.no Digital Transactions Mean Std Deviation T df P value
1 Debit Card 4.54 0.558 81.342 99 0.000∗∗
2 Credit Card 3.47 1.314 26.410 99 0.000∗∗
3 Payment Banks 3.94 0.874 45.075 99 0.000∗∗
4 Online payment 4.40 0.550 79.930 99 0.000∗∗
5 Mobile Apps 4.47 0.717 62.334 99 0.000∗∗
F=2 8 . 4 0 8, df: 4 9 5 and P value =0 . 0 0 0

Table 1 shows that with the lower standard deviation val- explains 17.479% of variance in those DPS variables and it
ues, the mean values of digital transaction are the strong contains 3 DPS variables namely Safety, Privacy and Conve-
measures of them. The digital transaction assumption levels nience in the order of their relative correlations it has been
are rated high with average mean score is more than 3.5. Item labelled as Customer Supportive Banking Factor (CSBF).
1 of digital transaction was rated high by common size of
the respondent as grand mean is (4.54). It shows how dig-
ital transaction highly used through Debit cards. Usage of 7. Major findings
debit card among bank customer is most common and easy
1. Sizable number of them prefer to do mobile banking
to perform banking transaction with debit cards. Simple inde-
and purchase products from online modes. Substantial
pendent T-test has been applied to examine the significance
number of users prefer digital banking on weekly basis
of difference of each Digital Transaction. The assessment
and find it convenience in its operations. Majority of
of mean values was also computed using one sample T-test,
digital payment users agree with importance of cashless
the result reveals that there was statistically significant differ-
transactions in promoting digital payments.
ence among respondent groups on the response given to all
5 Digital Transactions variables are Debit Card, Credit Card,
Payment Banks, Online payment and Mobile Apps.the differ- 2. Digital transaction was rated high by common size of
ences among the different opinions of the Digital Transactions. the respondent as grand mean is (4.54). It shows how
The most important digital transaction are Debit Card, Credit digital transaction highly used through Debit cards. Us-
Card, Payment Banks, Online payment and Mobile Apps. The age of debit card among bank customer is most com-
table 2 shows descriptive summary of Digital Payment Sat- mon and easy to perform banking transaction with debit
isfaction (DPS) variables, the mean values are greater than cards.
their standard deviations values, hence mean values are strong
measure of their standard deviations. Communalities value of 3. 18 DPS variables have been grouped into three inde-
0.557 to 0.762 shows factor analysis can be applied to those pendent dominant factors which all together explaining
18 DPS variables.KMO – MSA value of 0.903 and Bartlett’s 68.033% of total variance in them. The most dominant
Test of Sphericity indicates chi-square value of 1326.981 with factor1 explains 29.855% of variance in those DPS vari-
Df of 153 and P value of 0.000 reveals factor analysis can be ables and it contains 9 DPS variables of Retrieve pay-
applied to those 18 DPS variables.18 DPS variables have been ment profile, Under regulation of Banks norms, Setup
grouped into three independent dominant factors which all billing agreements, Cloud based payment solution, Sup-
together explaining 68.033% of total variance in them. The portive payment experience, Virtual Currency, Mobile
most dominant factor1 explains 29.855% of variance in those point of sales, Provide more offers and coupons and
DPS variables and it contains 9 DPS variables of Retrieve Record keeping in the order of their relative importance
payment profile, Under regulation of Banks norms, Setup and correlations it has been labelled as Advancement
billing agreements, Cloud based payment solution, Support- and Technological Banking Factor (ATBF).The second
ive payment experience, Virtual Currency, Mobile point of most dominant factor 2 explains 20.699% of variance
sales, Provide more offers and coupons and Record keeping in those DPS variables and it contains 6 DPS variables
in the order of their relative importance and correlations it has namely Easily Available, Queue avoidance, Retail inno-
been labelled as Advancement and Technological Banking vation, Options of multiple payments, Time and place
Factor (ATBF).The second most dominant factor 2 explains independence and Payment Timing in the order of their
20.699% of variance in those DPS variables and it contains relative correlations it has been labelled as Availability
6 DPS variables namely Easily Available, Queue avoidance, and Renovation Factor (ARF).The third most dominant
Retail innovation, Options of multiple payments, Time and factor 3 explains 17.479% of variance in those DPS
place independence and Payment Timing in the order of their variables and it contains 3 DPS variables namely Safety,
relative correlations it has been labelled as Availability and Privacy and Convenience in the order of their relative
Renovation Factor (ARF).The third most dominant factor 3 correlations it has been labeled as Customer Supportive
Banking Factor (CSBF).

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Table 2. Dominant Dimension of Digital Payment Satisfaction

Factor
Factor DPS variables Mean SD Communalities
Loading
Retrieve payment profile 0.772 4.170 0.711 0.689
Under regulation of Banks norms 0.763 4.120 0.844 0.676
Advancement Setup billing agreements 0.756 4.170 0.779 0.706
and Cloud based payment solution 0.707 4.110 0.709 0.718
Technological Supportive paymentexperience 0.674 4.210 0.715 0.727
Banking Factor Virtual Currency 0.646 4.130 0.761 0.573
Mobile point of sales 0.624 4.240 0.740 0.647
Provide more offers and coupons 0.612 4.090 0.877 0.620
Record keeping 0.522 4.370 0.720 0.557
Easily Available 0.823 4.530 0.559 0.762
Queue avoidance 0.772 4.550 0.609 0.653
Availability and Retail innovation 0.707 4.250 0.642 0.740
Renovation Options of multiple payments 0.632 4.360 0.659 0.692
Factor Time and place independence 0.591 4.420 0.622 0.720
Payment Timing 0.565 4.390 0.601 0.652
Customer Safety 0.737 4.130 0.837 0.757
Supportive Privacy 0.700 4.130 0.837 0.744
Banking Factor Convenience 0.689 4.480 0.627 0.612

8. Limitation of the study of the respondent. It shows how digital transaction highly
used through Debit cards. Usage of debit card among bank
1. The information collected is based on the perceptions customer is most common and easy to perform banking trans-
of the respondents. action with debit cards. In long run upliftment of technology
in current scenario push the usage of digital banking among
2. Validity and trustworthy of the data based on the truth-
young consumers. Android phones on the other hand bring
fulness of the responses from the digital payment users.
banking in one mobile phones.
3. The sample size is very minor comparative to the popu-
lation, and therefore does not signify the entire popula- References
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empirical in nature and used statistical results for its finds ?????????
and hypothesis. The results show Substantial number of users ISSN(P):2319 − 3786
prefer digital banking on weekly basis and find it convenience Malaya Journal of Matematik
in its operations. Majority of digital payment users agree with ISSN(O):2321 − 5666
importance of cashless transactions in promoting digital pay- ?????????
ments. Digital transaction was valued high by sizable number

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