A Study of Usage Security of The Mobile Payments Services in India

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A Study of Usage & Security of the Mobile Payments Services in India
Technical Report · July 2018

DOI: 10.13140/RG.2.2.32971.90401
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A
COMPREHENSIVE PROJECT REPORT
ON
A Study of Usage & Security of the Mobile Payments
Services in India
SUBMITTED TO
PARUL INSTITUTE OF MANAGEMENT AND RESEARCH
Submitted in partial fulfillment of the requirement for the
Award of the degree of
MASTER OF BUSINESS ADMINISTRATION

BATCH (2016-18)
Submitted by
Joshi Pulkit Shailak Jani Purva Karangiya
MBA Semester IV MBA Semester IV MBA Semester IV
160617200034 160617200028 160616200015
Under the Guidance of

Prof. Amita Garg
(Ass. Professor)
PARUL UNIVERSITY
FACULTY OF MANAGEMENT STUDIES
P.O. Limda, Tal. Waghodia, District Vadodara-391760
DECLARATION
We Pulkit Joshi, Shailak Jani, Purva Karangiya Enrollment No. 160617200034,
160617200028, 160616200015 From Parul Institute Of Management And Research (MBA),
Semester IV Of the Parul University , Vadodara hereby declare that the Comprehensive Project
entitled “A Study Of Usage & Security Of The Mobile Payments Services In India” is an
original work and the same has not been submitted to any other Institute for the award of any other
degree.
Date: : < / / > Signature of the Students
I
INSTITUTE CERTIFICATE
It is hereby certified that the Comprehensive Project Report entitled “A Study Of Usage &
Security Of The Mobile Payments Services In India” is submitted in partial fulfillment of
Master of Business Administration at Parul Institute Of Management And Research, Vadodara by
Pulkit Joshi, Shailak Jani, Purva Karangiya Enrollment No. 160617200034, 160617200028,
160616200015 has been completed under my guidance and is satisfactory.
Date: < / / >
Signature of the Guide Signature of the Director

Prof. Amita Garg Dr. Bijal Zaveri
<Ass. Professor> <Director>
II
ACKNOWLEDGEMENT
We take immense pleasure in thanking Dr. Bijal Zaveri , Head of the Department for having
permitted us to carry out this project work.
We wish to express my deep sense of gratitude to our Internal Guide, Prof. Amita Garg for her
guidance and useful suggestions, which helped us in completing the project work, in time. By her
uncompromising demand for quality and her insistence for meeting the deadlines, she has always
shown us a way to pursue excellence.
Finally, yet importantly, We would like to express our heartfelt thanks to our beloved parents for
their blessings, our friends/classmates for their help and wishes for the successful completion of
this project.
With sincere regards,
Pulkit Joshi
Shailak Jani
Purva Karangiya
III
PREFACE
The development of the Internet and the arrival of e-commerce fostered digitalization in
the payment processes by providing a variety of electronic payment options including payment
cards, digital and mobile wallets, electronic cash, contactless payment methods etc. Mobile
payment services with their increasing popularity are presently under the phase of transition,
heading towards a promising future of tentative possibilities along with the innovation in
technology. Total transaction value in the "Digital Payment" segment in India amounts to USD
2.5 billion in 2016 and is expected to show an annual growth rate of 18.36% resulting in the total
amount of USD 5.5 billion in 2020.The report takes a look at various companies providing the
mobile payments solutions (private & public) and different products offered by them. It also
provides information regarding the various methods that are available for mobile payments
solutions. However, around the world, spread of electronic banking has resulted in thousands of
cybercrimes and monetary thefts by cybercriminals. The security risks related to electronic
transactions through mobile payments are high due to various technological and other reasons. In
order to prevent yourselves from this, it is significant that you use a secure mobile payment
solution. This study focuses on evaluating the security of the mobile payments solutions. The
issues faced by the users of these mobile payments system are identified in this work. These user
issues are then analyzed to identify the risk associated with it, based on the RBI guidelines &
BASEL norms. The research provides useful information to evaluate the security of your mobile
payments solution and identify its risk level as comparison with other. This research provides a
conclusion on the security level of mobile payments solutions in India in accordance with the
principles.
IV
Executive Summary
After the digitization wave hit India, there is a tremendous growth witnessed in the Mobile
Payments Industry. Mobile phones, as a medium for extending banking services, have attained
greater significance because of their ubiquitous nature. The rapid growth of mobile users in India,
through wider coverage of mobile phone networks, have made this medium an important platform
for extending banking services to every segment of banking clientele in general and the unbanked
segment in particular. Besides the new entrants, the traditional players have modernised
themselves with the time to give a stiff competition in the Industry. There is a constant rise in the
number of customers using mobile payments services mostly due to easy access to the Internet. At
such a time the security of the mobile payments services holds a great significance.
The reason for conducting this study is to identify security measures implemented by the mobile
payments services used & see to it whether they suffice the guidelines issued by the regulators in
India. This research aims to evaluate the security of the mobile payments services, based on its
practices & regulations in India. Further this research focuses on classifying/categorizing the
various mobile payments services in India. The research also provides insights regarding the usage
of the mobile payments services in terms of frequency, monthly usage, & purpose of using the
mobile payments services. The study follows a descriptive research design. The work includes a
quantitative research which identifies whether there is relationship between gender of the users &
the usage of mobile payment services. It also identifies the important factors which infuences or
dissuades an individual in using the mobile payments services, as well as, the most popular mobile
payments services among the users. The primary data for the research is collected from 300
respondents using online surveys like surveymonkey, one to one questionnaire requests, e-mails,
& social networking sites like FB. For secondary data various articles, websites, journals, &
magazines were refferred. After collecting the data through a structured questionnaire, it was
coded into the SPSS to perform data analysis. Independent sample t test is used to examine whether
there is any significant difference in the usage of the mobile payments services of the users based
on their gender. To evaluate the security, a conceptual framework is prepared based on the RBI
guidelines & Basel norms. The model identifies whether the mobile payments service has the
required security measures or not.
The findings of the research based on data analysis suggests that all the mobile payments services
have security concerns based on one or more security principles. The mobile payments services in
India are categorized in four categories viz. Mobile Wallets, Appliations linking to Bank account,
Bank’s Application for A/C holders, & basic USSD (*99#) service. Although emerging as the
most secure type of mobile payment option, the basic USSD service is prefferred by the least
number of people, while the Mobile wallets like PayTm were most popular. It was found that
there was no significant difference in the usage frequency of the mobile payments services based
on their gender, while there was a significant difference in the money spent monthly using the
mobile payments services based on their gender.
V
Table of Contents
DECLARATION ................................................................................................................................... I
INSTITUTE CERTIFICATE ………………………………………………………………………………………………………………… II
ACKNOWLEDGEMENT.................................................................................................................... III
PREFACE ………………………………………………………………………………………………………………………………. IV
EXECUTIVE SUMMARY .................................................................................................................... V

1) ABOUT THE MOBILE PAYMENTS INDUSTRY ......................................................................... 01
2) ABOUT THE MAJOR COMPANIES IN MOBILE PAYMENT INDUSTRY.................................... 04
2.1) BANK ................................................................................................................................... 04
2.1.1) STATE BANK OF INDIA ................................................................................................. 04
2.1.2) CENTRAL BANK OF INDIA ............................................................................................ 05
2.2) PRIVATE PLAYERS ............................................................................................................... 06
2.2.1) ONE97 COMMUNICATIONS ........................................................................................ 06
2.2.2) AMAZON ...................................................................................................................... 08
2.3) PUBLIC PLAYERS ................................................................................................................. 09
2.3.1) NATIONAL PAYMENTS CORPORATION OF INDIA ....................................................... 09
2.3.2) MOBILE PAYMENT FORUM OF INDIA ......................................................................... 10
3) MAJOR PRODUCTS ………………………………………………………………………………………………………. 11
3.1) Amazon Pay ........................................................................................................................ 11
3.2) Paytm .................................................................................................................................. 11
3.3) PhonePe ............................................................................................................................. 12
3.4) BHIM ................................................................................................................................... 12
3.5) National Unified USSD Platform(*99#) ............................................................................. 13
3.6) SBI Anywhere Personal ...................................................................................................... 14
3.7) Cent Mobile ........................................................................................................................ 15
4) INTRODUCTION TO STUDY .................................................................................................... 16
4.1) LITERATURE REVIEW .......................................................................................................... 16
4.2) BACKGROUND OF THE STUDY ........................................................................................... 26
VI
4.3) PROBLEM STATEMENT/RATIONAL OF THE STUDY .......................................................... 26
4.4) OBJECTIVES OF THE STUDY ............................................................................................... 26
4.5) HYPOTHESIS ....................................................................................................................... 27
5) RESEARCH METHODOLOGY .................................................................................................. 28
5.1) RESEARCH DESIGN ............................................................................................................ 28
5.2) SOURCES OF DATA ............................................................................................................ 29
5.3) DATA COLLECTION METHOD ........................................................................................... 29
5.4) POPULATION ..................................................................................................................... 29
5.5) SAMPLING METHOD ......................................................................................................... 29
5.6) SAMPLING FRAME……………………………………………………………………………………………………30
5.7) DATA COLLECTION INSTRUMENT ……………………………………………………………………………30
6) DATA ANALYSIS & INTERPRETATION ………………………………………………………………………………………..31
6.1) ON CATEGORIZATION OF THE MOBILE PAYMENT SERVICES ………………………………………31

6.2) ON SECURITY OF THE MOBILE PAYMENT SERVICES ……………………………………………………32
6.3) ON USAGE OF THE MOBILE PAYMENT SERVICES ………………………………………………………..35
7) RESULTS AND FINDINGS …………………………………………………………………………………………………45
8) LIMITATIONS OF THE STUDY ………………………………………………………………………………………….48
9) CONCLUSION …………………………………………………………………………………………………………………49
REFERENCES …………………………………………………………………………………………………….………………..50
APPENDIX ……………………………………………………………………………………………………….………………….52
VII
A Study Of Usage & Security Of The Mobile Payments Services In India
CHAPTER - 1
About the Mobile Payments Industry
India is amongst one of the most cash-intensive economies of the word with cash to GDP ratio of
12%, this figure is around three to four times than the comparable economies for similar economies
like Brazil and South Africa. The ratio of the amount of money in circulation in cash compared to
that of what is in the banks in about 51% in India, whereas the ratio is 8 to 9 percent for most of
the countries. Total transaction value in the "Digital Payment" segment in India amounts to USD
28,961.6 million in 2016 and is expected to show an annual growth rate (CAGR 2016-2020) of
18.36% resulting in the total amount of USD 56,837.5 million in 2020. In China, it has reached
USD 833,358.4 million in 2016. The “Digital Payment” market's largest segment in India is
"Online B2C Commerce" with a total transaction value of USD 28,718.5 million in 2016. With
the increasing sales of smart phones year after year and the average time that the users are spending
online, this figure is likely to increase significantly in the coming few years. To support this
growth, the online payment services are also witnessing tremendous growth trajectory.
M-wallet market segment, which currently account for a minuscule part of Digital Payments
includes transferring of money, banking transactions, shopping, ticketing, recharging, and bill
payments is projected to grow at a CAGR of around 30% in the next five years from 2015-2019.
As depicted in Fig 1.1 the highest 38% market share is captured by money transfer businesses,
followed by recharge by 30% and bill payments, and utility areas by 12% while others enjoy 20%
market share. Some of the major m-wallet players are Airtel Money, mRupee, Vodafone m-Pesa,
Oxigen Wallet, PayTM, Mobikwik and Idea Money.
India is witnessing an exponential growth in the area of digital payment in recent times. With ever-
increasing internet and mobile penetration, the country is all set to witness a massive surge in the
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adoption of digital payments in the coming years. Furthermore, flagship government initiatives
such as Digital India will act as key catalysts and enablers of this transformation.
At present, mobile payments form a minuscule part of the overall digital payments industry in
India. However, the contribution from phones and tablets is expected to increase to 30 per cent by
2020. Mobile payments in India are estimated to grow from $86 million in 2011 to $1.15 billion
in 2016, with a compounded annual growth rate (CAGR) of 68 per cent, according to estimates.
The m-wallet segment includes transfer of money, services related to banking transactions, value-
added services such as shopping, ticketing, recharging, and bill payments. In this segment, the
highest, 38 per cent market share is captured by money transfer businesses, followed by recharge
and bill payments, and utility areas by 30 per cent and 12 per cent, respectively. The Digital
Payment Systems Market in India market will witness a CAGR of 58.90% during the forecast
period FY2017-FY2023.
Indian payments industry is largely dominated by cash-based transactions. The banking industry
in the country was majorly branch-based till 2014. Later, there was a considerable growth in the
branch-less channels of banking, which has further explored into digital payments in both rural
and urban regions. Indian digital payments industry is expected to reach $700 billion by 2022 in
terms of value of transactions. It is expected that more than 80% of the urban population in India
will adopt digital payments as a part of their routine by 2022, and 70% of the retail chains will
adopt the same. The reduced transaction charges and the degree of ease of cash transfers associated
with the electronic fund transfers and mobile banking will further drive the growth of digital
payment systems in India.
Also, the Indian Government is bringing positive policy framework such as Goods and Services
Tax (GST), financial inclusion, improving digital infrastructure, launching payment systems such
as aadhar enabled payments, UPI, and others which are supporting the digital payments industry.
In 2016, Indian Government made a significant move, i.e. demonetization, to curb black money
circulation within the country and to increase digital payment penetration. It is a phenomenal step
made by India towards improving cashless economy, resulting in sharp increase of several digital
payment channels in the country.
The market is segmented by digital payment system types and regions. The digital payment system
types include mobile wallets, internet banking, mobile banking, PoS, and others. The regions are
urban and rural regions; currently, urban region segment holds the major market share followed
by rural segment. Mobile Wallets; India's mobile wallet ecosystem is yet to be competitive,
however major e-commerce and telecom companies are fueling this industry through business
expansion. Also, a strong regulatory support is yet to come into force for the exponential growth
of digital payments ecosystem in India.
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The changing customer behavior, increasing internet penetration rate, and government policies are
fueling the industry which is indirectly supported by the growing demand for P2P payments, e-
commerce platforms, utility bill payments, and others. The development of digital infrastructure
in India stands out by providing a strong technological ecosystem for the digital payments
industry. The increasing internet penetration, changing customer behavior, and government
regulations towards financial inclusion have created a positive future forecast for the Indian digital
payments ecosystem. This industry is at its starting stage where users and merchants are adopting
the internet facilities and gaining knowledge about digital and electronic modes of payments. The
market has got a significant advantage from the government’s financial move, which has increased
the competitiveness among mobile wallet providers and electronic (POS) payment mode
providers.
The opportunities for digital payments sector are immense. People are adapting to cashless and
internet banking environment due to the increased use of plastic money (debit cards, credit cards,
virtual prepaid cards, and others), other facilities have become necessary offerings from every
financial institution and there is a boom in the digital payments sector. The mobile banking is
representing significant share in the digital payments industry in India. This will show a robust
growth throughout the forecast period, followed by POS and internet banking transactions.
From a stake sale to an acquisition to capital infusion and to ambitions of becoming an all in one
platform, India’s digital payment players each had a unique tale to tell for 2017. And the reason
behind this is simple. The Indian digital payments industry is projected to reach $500 Bn by
2020, contributing 15% to India’s GDP, as per a recent report by Google and Boston Consulting
Group.
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CHAPTER - 2
About Major Companies in Mobile Payments Industry
BANKS
2.1 State Bank of India
State Bank of India (SBI) is an Indian multinational, public sector banking

and financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India,
which is India's largest Bank merged with five of its Associate Banks (State
Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila
Bank with itself. This is the first ever large scale consolidation in the Indian Banking Industry.
With the merger, State Bank of India will enter the league of top 50 global banks with a balance
sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and more than 24,000
branches and 59,000 ATMs. SBI's market share will increase to 22 percent from 17 per cent. It has
198 offices in 37 countries; 301 correspondents in 72 countries. The company is ranked 232nd on
the Fortune Global 500 list of the world's biggest corporations as of 2016.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,
in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank
of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the
State Bank of India in 1955. Government of India owned the Imperial Bank of India in 1955,
with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.
State Bank of India has 20% market share in deposits and loans among Indian commercial banks.
SBI provides a range of banking products through its network of branches in India and overseas,
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including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India.
SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was ₹2.005
trillion (US$31 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in
August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which
included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks. It has branches in Singapore,
Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles,
the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units
in the Bahamas and Bahrain, and representative offices in Myanmar, Bhutan and Cape Town.
SBI acquired the control of seven associate banks in 1960. These seven banks were State Bank of
Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State
Bank of Patiala (SBP), State Bank of Travancore (SBT), State Bank of Saurashtra (SBS) and State
Bank of Indore (SBI - Indore). The State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore,
and Bharatiya Mahila Bank were merged with State Bank of India with effect from 1 April 2017.
SBI is one of the largest employers in the country with 209,567 employees as on 31 March 2017.
Around 13,000 employees have joined the Bank in FY 2016-17. Each employee contributed a net
profit of ₹511,000 (US$8,000) during FY 2016-17.
2.2 Central Bank Of India
Central Bank of India is a government-owned bank. It is one of the oldest and largest commercial
banks in India. It is based in Mumbai which is the financial capital of India and capital city of state
of Maharashtra. The bank has 4730 branches, 5319 ATM's and 4 extension counters across 27
Indian states and three Union Territories. At present, Central Bank of India has overseas office
at Nairobi, Hong Kong and a joint venture with Bank of India, Bank of Baroda, and the Zambian
5|Page
government. The Zambian government holds 40 per cent stake and each of the banks has 20 per
cent. Recently it has also opened a representative office at Nairobi in Kenya.
Central bank of India is one of 20 Public Sector banks in India to get recapitalization finance from
the government over the next 24 months. Central Bank of India has approached the Reserve Bank
of India (RBI) for permission to open representative offices in five more locations
- Singapore, Dubai, Doha and London. As on 31 March 2015, the bank's reserves and surplus
stood at ₹ 283030 million. Its total business at the end of the last fiscal amounted to ₹ 45, 05,390
(approx.) million. Central Bank of India was one of the first banks in India to issue credit cards in
the year 1980 in collaboration with MasterCard. Central Bank of India announces that the financial
results for the year ended 2013, Total Business ₹ 402000 Cr. And Net Profit ₹ 1015 Cr.
PRIVATE PLAYERS
2.3 One 97 communications
It was founded by Vijay Shekhar Sharma in August 2010.It launched is a consumer brand called
Paytm, it is an acronym for "Payment Through Mobile”. The company employs over 13,000
employees as of January 2017 and has 3 million offline merchants across India. It also operates
the Paytm payment gateway and the Paytm Wallet.
Paytm, One97's flagship brand, is India's largest digital goods and mobile commerce platform -
inspired and driven by a commitment to great consumer experience. In 2015 Paytm received a
license from Reserve Bank of India to start one of India's first payments banks, called "Paytm
Payments Bank Limited". At the time, the bank intended to use Paytm’s existing user base for
offering new services, including debit cards, savings accounts, online banking and transfers, to
enable a cashless economy. The payments bank would be a separate entity in which the founder
Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be
held by a subsidiary of One97 and Sharma.
One97 delivers mobile content and commerce services to millions of mobile consumers through
India’s most widely deployed telecom applications cloud platform. In May 2017 Paytm Launched
Paytm Payments Bank For Paytm E-Wallet Users. Also in May 2017, Paytm was reported to be in
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talks to pump in $30 million in Insider.in for a majority stake. In July 2017, Paytm acquired a
majority stake in Insider.in, allowing its users to book events instantly. By June 2017, Paytm Mall,
the recently launched online marketplace of the organization, has confirmed that it is digitizing the
catalogues of more than 1,000 cars and two-wheeler dealerships to increase online usage and
offline sales. In June 2017, The Economic Times reported that Paytm was seeking a license to set
up a money market fund to enable its users to store cash and earn interest on it. They were awaiting
an approval having already applied to India's central Reserve Bank of India to start the fund.
Headquartered in New Delhi, One97 is more than 4,500 people strong with regional offices in
Mumbai, Bengaluru, Pune, Chennai and Kolkata with global presence in Africa, Europe, Middle
East and Southeast Asia. We are backed by marquee investors like Alibaba Group, Ant Financial
(AliPay), SAIF Partners, Mediatek, Sapphire Venture and Silicon Valley Bank. One97 also invests
in early stage mobile companies through the One97 Mobility Fund (OMF).
One97 Communications Limited provides telecommunications value added services to telecom

service providers, consumers, and enterprises in India, Afghanistan, Nigeria, and Bangladesh. It
offers network component services, which include Short Message Service Centers that facilitate
the delivery of SMS messages; USSD gateways that enable a subscriber to obtain information on
sports results, stock quotes, and the amount of unused prepaid balance on a SIM card; and call
management systems, such as pre-call announcements, call forwarding, and call block services.
The company also provides customer lifecycle management services, including self-care and
service provisioning portals, loyalty programs, and customer churn management services; and toll-
free infolines, customer communication tools, tagged-SMS, missed-call back services, and USSD
inserts. In addition, it offers marketing solutions, such as pre-call inserts and profiled post-call
notifications; incomplete call announcements; and an analytics-driven customer communications
platform. Further, the company provides a range of mobile content, including music-based,
picture-based, text-based, and segmented content on voice and text, as well as contests, quizzes,
and puzzles; applications, such as security and data backup, and social networking site for mobile
phones; and commerce services to consumers through SMS, voice, and WAP.
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2.4 Amazon
Amazon.com, Inc., doing business as Amazon, is an American electronic commerce and cloud
computing company based in Seattle, Washington that was founded by Jeff Bezos on July 5, 1994.
The tech giant is the largest Internet retailer in the world measured by revenue and market
capitalization, and second largest after Alibaba Group in terms of total sales. The amazon.com
website started as an online bookstore and later diversified to
sell video downloads/streaming, MP3downloads/streaming, audiobook downloads/streaming, sof
tware, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also
produces consumer electronics—Kindle e-readers, Fire tablets, Fire TV, and Echo—and is the
world's largest provider of cloud infrastructure services (IaaS and PaaS). Amazon also sells
certain low-end products like USB cables under its in-house brand Amazon Basics.
Amazon has separate retail websites for the United States, the United Kingdom and Ireland,
France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and
Mexico. In 2016, Dutch, Polish, and Turkish language versions of the German Amazon website
were also launched. Amazon also offers international shipping to certain other countries for some
of its products
Amazon India, which has now completed four years of operations in

India. Mint reported on 13 April that Amazon India had already received the
RBI approval to launch its own digital wallet service in India. The PPI
license from RBI allows Amazon India to launch its own digital wallet service, but it is not clear
whether the company will launch a new payments service altogether or expand the nature of its
existing Pay Balance service in India.
Currently, about 75% of Amazon India’s new customers come from lower-tier cities, while 65%
of its active customers are new users, Agarwal said. Amazon India currently sells more than 100
million products and the company is adding nearly 100,000 products on its marketplace every day,
he added.
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From entertainment to food to wallets, the ecommerce giant is leaving no stone unturned to
penetrate the Indian market. Earlier this week, the company received the final nod from the
government for its proposed $500 MN investment in food retail in India.
Earlier this month, the US-based ecommerce giant poured in about $260 MN (INR 1,680 Cr) in
Amazon Seller Services. This took the total money invested in the Indian unit to about $2.1 BN
(INR 13,800 Cr).In June 2017, it launched its sixth Fulfilment Centre (FC) in Mumbai. With this
new launch, it now has eight FCs in Maharashtra, with close to 2.5 MN cubic feet of storage space.
In the same month, the company further fueled $32 MN (INR 207 Cr) in Amazon Transportation
Services, the logistics arm of the company.
As reported earlier, Amazon Pay is all set to scale up its wallet business in India by planning to
enter strategic partnerships with government bodies such as electricity and insurance companies.
The push to ecommerce can also help in the growth of its digital payments platform Amazon Pay.
However, amidst all these speculations and capital infusions the date of launch for the digital
payments is uncertain. The fast-approaching festive season will prove to be a litmus test for the
ecommerce entities to decide who emerges on top.
PUBLIC PLAYERS
2.5 National Payments Corporation of India
National Payments Corporation of India (NPCI) is an umbrella organization

for all retail payments system in India. It was set up with the guidance and
support of the Reserve Bank of India (RBI) and Indian Banks’ Association
(IBA). The RBI, after setting up the Board for Regulation and Supervision of Payment and
Settlement Systems (BPSS) in 2005, released a vision document incorporating a proposal to set up
an umbrella institution for all the RETAIL PAYMENT SYSTEMS in the country.
The core objective was to consolidate and integrate the multiple systems with varying service
levels into nation-wide uniform and standard business process for all retail payment systems. The
other objective was to facilitate an affordable payment mechanism to benefit the common man
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across the country and help financial inclusion. NPCI has ten promoter banks namely, State Bank
of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of
India, ICICI Bank, HDFC Bank, Citibank and HSBC. It offers following Product and Services:
1. Bharat Interface for Money (BHIM)

2. Unified Payments Interface (UPI)
3. Immediate Payment Service (IMPS)
4. *99# USSD Service
5. National Automated Clearing House (NACH)
6. Aadhaar Enabled Payment System
7. RuPay
8. Bharat Bill Payment System (BBPS)
2.6 Mobile Payment Forum of India
Mobile Payment Forum of India (MPFI) has been set up with the joint initiative of the Institute for
Development and Research in Banking Technology (IDRBT), Hyderabad and Rural Technology
Business Incubator (RTBI), IIT Madras in 2006 with a mission to enable mobile payments and
mobile financial services by everyone in digital India through secure, efficient and low cost
transactions. It has following objectives:
 To provide a forum to share and discuss learnings, opportunities, and constraints (including
regulatory issues) in enabling mobile payments in India.
 To identify and advise the enablers for implementing mobile payment systems.
 To create awareness among enablers/users through educational workshops.
 To guide banks, telecom organizations, support service providers, government and others
for providing mobile payments in an inter-operable and heterogeneous environment
including the rural masses.
 To take up commonly agreed upon initiatives on behalf of the members.
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CHAPTER - 3
Major Products
3.1 Amazon Pay
Amazon Pay is an online payments processing service that is owned by

Amazon.com, Inc. Launched in 2007, Amazon Pay uses the consumer base
of Amazon.com and focuses on giving users the option to pay with their
Amazon accounts on external merchant websites. As of June 2017 the
service is available in the U.S., France, Germany, Italy, Japan, Spain, India
and the UK.
Amazon Pay provides the option to purchase goods and services from
websites and mobile apps using the addresses and payment methods stored
in the Amazon account, such as credit cards or direct debit bank account.
Amazon Pay Express is a payments processing service for simple E-commerce use cases on
websites. Built on Amazon Pay but without requiring a full E-commerce integration. It uses a Java
button code generator to create a button that can be copied and pasted onto a website or added via
WordPress Plug-in. It is best suited for merchants selling a small number of products and with a
single item in each order, such as a digital download.
3.2 PayTM
Paytm is India's largest mobile payments and commerce platform. It

started with online mobile recharge and bill payments and has an online
marketplace today. In a short span of time, it has scaled to over 250 MN
registered users.
Service is available through a browser, and an app is available on the Android, Windows and iOS
operating systems. Paytm is also approved as an operating unit for Bharat Bill Payment System,
allowing multiple payment modes for consumers. The Paytm Wallet application enables users to
book air tickets and taxis, mobile recharge, and payment of DTH, broadband and electricity bills
11 | P a g e
among others. The money transfer feature is only available for mobile users, not for desktop. Users
can also pay for fuel at Petrol pumps and buy movie tickets at PVR Cinemas through the wallet.
A whole lot of products can be bought from Paytm in categories including electronics, home
appliances, mobile phones, and clothing with good cashback scheme for users. Booking bikes,
cars, digital gold have been added recently in 2017.
3.3 PhonePe
PhonePe is a Fin-Tech company headquartered in Bangalore, India. Founded in

December 2015, it provides online payment system based on Unified Payments
Interface (UPI), which is a new process in electronic funds transfer launched
by National Payments Corporation of India (NPCI).It is licensed by the Reserve
Bank of India for issuance and operation of a Semi Closed Prepaid Payment
system. By April 2016, it was acquired by Flipkart. In August 2016, the company partnered
with Yes Bank to launch a UPI-based mobile payment app.
The selling point of the UPI platform is that your money never leaves your account before your
transaction is complete. There is no intermediate step where a third party receives access to your
money. In short, UPI transactions are direct bank account to bank account transactions. The way
PhonePe works, you just need the payee’s bank linked mobile number to make a transaction,
provided that they are a PhonePe user too. This removes the need to share confidential details like
bank account number and IFSC number.
3.4 Bharat Interface for Money
BHIM (Bharat Interface for Money) is a mobile app developed

by National Payments Corporation of India (NPCI), based on
the Unified Payment Interface (UPI). It was launched by Narendra
Modi, the Prime Minister of India, at a Digi Dhan mela at Talkatora
Stadium in New Delhi on 30 December 2016. It was named after Dr.
Bhimrao R. Ambedkar and is intended to facilitate e-payments directly through banks as part of
the 2016 Indian banknote demonetization and drive towards cashless transactions.
12 | P a g e
The app supports all Indian banks which use that platform, which is built over the Immediate
Payment Service infrastructure and allows the user to instantly transfer money between bank
accounts of any two parties. It can be used on all mobile devices. BHIM allow users to send or
receive money to or from UPI payment addresses, or to non-UPI based accounts (by scanning
a QR code with account number and IFSC code or MMID (Mobile Money Identifier) Code).
Unlike mobile wallets (PayTM, MobiKwik, mPesa, Airtel Money etc.) which hold money, the
BHIM app is only a mechanism which transfers money between different bank accounts.
Transactions on BHIM are nearly instantaneous and can be done 24/7 including weekends and
bank holidays. BHIM also allows users to check the current balance in their bank accounts and to
choose which account to use for conducting transactions, although only one can be active at any
time. Users can create their own QR code for a fixed amount of money, which is helpful in
merchant-seller-buyer transactions. Users can also have more than one payment address. If the 12-
digit Aadhaar number is listed as a payment ID, the BHIM app will not require any biometric
authentication or prior registration with the bank or Unified Payment Interface (UPI). Version 1.3
allows users to use mobile numbers from their contact book to send money and also save payment
addresses for future use without needing to type the address again. User can also check the
transaction history, which only shows transactions through BHIM. At present, there is no charge
for transactions from ₹1 to ₹1 lakh.
3.5 National Unified USSD Platform (*99# Service)
One of the innovative payment service launched by NPCI includes *99#

service, which works on Unstructured Supplementary Service Data
(USSD) channel. This service was launched envisioning the potential of
Mobile Banking and the need for immediate low value remittances which
will help in financial deepening and inclusion of underbanked society in
the mainstream banking services.*99# service was dedicated to the nation
by the Honorable Prime Minister of India Shri Narendra Modi on 28th August 2014 as part of
Pradhan Mantri Jan Dhan Yojana (PMJDY).
*99# service has been launched to take the banking services to every common man across the
country. Banking customers can avail this service by dialing *99#, a “Common number across all
13 | P a g e
Telecom Service Providers (TSPs)” on their mobile phone and transact through an interactive
menu displayed on the mobile screen. Key services offered under *99# service include, interbank
account to account fund transfer, balance enquiry, mini statement besides host of other services.
*99# service is currently offered by 43 leading banks & all GSM service providers and can be
accessed in 12 different languages including Hindi & English. *99# service is a unique
interoperable direct to consumer service that brings together the diverse ecosystem partners such
as Banks & TSPs (Telecom Service Providers).
It is a common technology platform developed by NPCI which allows the Banks and TSPs to
seamlessly integrate with each other to provide banking services to the customers at large over the
mobile phones (basic as well as smartphone). This USSD-based communication can be used for
checking your account balance, generating mini statement, fund transfer via MMID (a code
allotted by banks on mobile banking registration), IFSC code or Aadhaar number. Some of the
other services that NUUP offers are generating OTPs, M-PIN, and VAS such as query service on
Aadhaar mapper which checks the seeding status of your Aadhaar with your bank account.
TRAI has set a maximum ceiling of ₹1.5 per transaction for accessing NUUP. It is important to
remember that NUUP uses IMPS platform for fund transfer, which is an immediate transfer
service, so once a transaction is initiated it cannot be stopped or cancelled. This is unlike an online
transaction done via a laptop or mobile where it can be cancelled after initiation.
3.6 SBI Anywhere Personal
State bank of India Anywhere Personal is State Bank of India Retail banking
application offered on Mobile. The application is available at Google Play store,
Apple App store for Android, Windows and Apple smartphones. SBI Retail Internet
Banking Users can download the application from respective application market
places and access the application with his/her internet banking username and
password.
The non-financial services offered include m-Passbook, ATM cum Debit card hot listing, Debit
Card Blocking, Cheque Book Request, Generate/cancel/retrieve MMID, TDS Enquiry, Online
Nomination and Aadhaar Linking/LPG consumer ID linking. While the financial services include
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Fund Transfers within SBI & other Banks to already

registered beneficiaries using NEFT/RTGS/IMPS modes, Quick Transfer without having to
register beneficiary, Post-paid bill payment, Mobile Top -Up and DTH Recharge, Utility Bill
payments, mCash Facility, Credit card ( VISA ) transfer with /without one time password (OTP),
and Merchant Payments through Bharat QR.It helps customers to conduct banking transactions
24x7 at his/her convenience from any place (Anywhere Banking) just by the use of a mobile phone.
This service is available to all SBI customers having an operative savings bank or current account.
All the accounts linked to the CIF number will be automatically linked. State Bank Anywhere is a
secure and robust application.
3.7 Cent Mobile
Cent Mobile is Mobile Banking application offered by Central Bank of India.

Users can access most of the banking services anywhere any time through
internet enabled handsets. Pre login features are accessible to all without
registration, which includes Branch and ATM Locations, Interest rates for time
Deposits, Interest rates for Retail Loan Schemes, Forex rates, Contact details of
Admin Offices, Link for Corporate website and Official social media pages, Missed Call service
for getting Account Balance or last few Transactions over SMS (available to, Customers registered
for this service), Apply for new Saving Account, Retail Loan or Credit Card, Real time
Notifications/Alerts regarding new launch/offers/modification in schemes etc., Information
banners related to products and services of bank, Frequently asked Questions (FAQ) . Post login
features can be accessed by customers of Central Bank of India after completing one time
registration process, which include Account Balance Enquiry, Account Details, Mini Statement,
Fund transfer to accounts with Central Bank of India, Fund transfer to other banks through
NEFT/IMPS, Open New Time Deposit Account, Request for personalized ATM (Debit) Card,
Request for ATM (Debit) Card Blocking, Link Account to Aadhar Number, Donation to selected
Institution, Request for Cheque Book, Request for Stop Payment, Request to Revoke Stop
Payment, Cheque Status Enquiry, Registration for getting Account Statement over Email, &
NEFT Status Enquiry.
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CHAPTER - 4
Introduction to Study
4.1 Literature Review
N Journal/Conference Title Author Yea Conclusion/Results
o r
1 Second International Mobile Kruttika Febr In this paper, a mobile payment processing
Conference on Mobile payment Sutrave, uary, model is presented and each type of mobile
and Secure Services security, Christen 2016 payment systems is introduced. It also
(MobiSecServ) threats, and Hahn, summarizes the security services desired in
challenges Yong mobile payment systems and also the security
Wang mechanisms which are currently in place. It
further identifies and discusses three security
threats, i.e., malware, SSL/TLS vulnerabilities,
and data breaches, and four security challenges,
i.e., malware detection, multi-factor
authentication, data breach prevention, and
fraud detection and prevention, in mobile
payment systems.
Information An Sumit Janu The findings of the study reveal the important
2 Technology for exploratory Gupta, ary, role of perceived risk and control in influencing
Development study on Hee- 2017 customers’ intention to adopt mobile banking.
mobile Woong Moreover, perceived risk and control
banking Kim, significantly influenced mobile banking
adoption in Heng adoption by customers in urban areas but only
Indian Xu,Haeju perceived control significantly influenced
metropolita ng Yun mobile banking adoption by customers in
n and urban metropolitan areas. Additional analysis show
areas that customers’ risk and control perceptions
differ according to level of security.
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o r
3 Journal of Mobile Ravi Although the number of Internet Banking users
Organizational Banking: Lonkani, have grown rapidly in recent years, not all
Computing and Exploring Chuleepo customers are ready to accept mobile banking
Electronic Commerce Determinan rn services. This study examines the factors that
ts of its Changchi impact acceptance of the use of mobile banking.
Adoption t,Jomjai A total of 309 subjects participated in this study.
Sampet Data was collected via a survey instrument.
After multiple regression analysis of the data,
findings suggest the factors that bank should
consider when implementing mobile banking
services, thus allowing them to design services
that meet the needs of their customers.
4 Organizacija, Volume User Aleksand Nov The goal of the research was to analyze user
49 Experience ra Svilar, emb opinions about the current situation: how users
with Joze er, perceive security and how the authentication
Security Zupancic 2016 methods they are using affect user experience.
Elements in Data was collected using an online survey
Internet among the users of 15 banks, and statistical
and Mobile methods were applied to analyze them. The
Banking results indicate that the use of mobile banking
is relatively low, as only 30 percent of
respondents use mobile banking along with
Internet banking. Users perceive security to be
the most important factor in mobile and online
banking, closely followed by reliability. 69% of
respondents selected the correct authentication
method. The opinion of 88% of respondents
was that authentication methods do not limit
them when using mobile and Internet banking.
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o r
5 Emerging Trends in Role  Purusho
of Febr A cashless economy is a system where any type
Multi-Disciplinary National ttam uary, of money transactions are done through digital
Research National Payments Arvind 2017 means like debit cards, electronic fund transfer,
Conference, Sangli, Corporatio Petare, mobile payments, internet banking, mobile
Maharashtra. n of India wallets, and other newly evolved payment
 Mugdha
(NPCI) for channels, this will leave very little scope for
Joshi,
cash less flow of hard cash in economy. Further this
Nikita
economy paper includes the various products & services
Nille
given by the National Payments Corporation of
India (NPCI) such as Bharat Interface for
Money (BHIM), Unified Payments Interface
(UPI), Immediate Payment Service (IMPS),
*99# Service, National Automated Clearing
House (NACH), Aadhaar Enabled Payment
System, RuPay, Bharat Bill Payment System
(BBPS) etc.
6 IEEE International Evaluation Dr. J June, As mobile technologies and services are in
Conference on Services Of Mobile Venkates 2013 stable development, many wonder on whether
Computing (SCC), Payment h, or not mobile payments will be a sin qua non
System Mr. D function for mobile commerce. To have an
And It's Sathishku improved consideration of the market, present
Service mar there is a requirement to inspect not only the
Providers technology but also the different players that are
implicated. This paper investigates the use of
mobile payment systems, technologies and
security issues. In this paper we can understand
the methodologies, number of network
providers and payment technologies provided
by the Mobile networks in India.
18 | P a g e

o r
7 National Conference on Mobile Deepti Mar This paper proposes new mobile payment
Communications payment Kumar, ch, architectures that support interoperability. A
(NCC), 2010 architecture Timonthy 2010 key technical aspect of the mobile payment
s for India Gonsalve process is to lookup customer details, for which
s,Ashok the following three design options are proposed:
jhunjhun (1) a central database, (2) a peer-to-peer query,
wala, or (3) a hierarchical lookup. These options were
Gaurav evaluated using relevant metrics such as the
Raina complexity of implementation and scalability
with respect to system size. Based on the
evaluation it is recommended that initially the
peer-to-peer design is chosen, and once the
technology is more widespread, the central
database option should be adopted.
8 International Journal of Towards a Fergel Dece This paper derives a theoretical framework for
Bank Marketing framework Liam mber consideration of both the technologically driven
for the Carton, , dimensions of mobile payment solutions, and
evaluation Jonas 2016 the associated value proposition for customers.
of mobile Hedman, Banks promote traditional payment instruments
payments JB whose value proposition is the management of
integration McCarth risk for both consumers and merchants.
y, Adopting the purchase and payment process as
Jam the unit of analysis, the current mobile payment
Damsgaa landscape is reviewed with respect to the
rd creation and consumption of customer value.
From this analysis, a framework is derived
juxtaposing customer value, related to what is
being paid for, with payment integration,
related to how payments are being made.
19 | P a g e

o r
9 Journal of Business and “Rechargin Dr. Janu The case study possesses a strategic question
Management (IOSR- g: the Right Karmind ary, whether it is a better strategy to develop a
JBM) Way??” A er 2016 unique positioning on the basis of single key
e-ISSN: 2278-487X case study Ghuman, service or it’s better for an organization to offer
on e- CS Shruti multiple services. To answer this fundamental
payment Shrivasta question, the present study employs the case
giants: va example of two leading e-platforms: Freecharge
Freecharge and PayTM that are employing diametrically
& PayTM opposite strategies in order to scale up their
ventures. It also examines the role of Push and
Pull strategies in a single industry, thus drawing
the reader to take a position, which is better and
why.
1 13th International Mobile Gabriel June, It identified 4 categories where the studies
0 Conference on Payment: A Machado 2016 forum concentrate, namely: adoption of mobile
Information Systems & systematic Braido, payment (Theory of Innovation), trust ship
Technology review of Amarolin (Theory of Transfer of Confidence), intention to
Management- the da Zanela use technology (Unified Theory of Acceptance
CONTECSI 2016 literature Klein and Use of Technology) & acceptance of
technology (Technology Acceptance Model).
1 Journal of Mobile Ravi May, This study examines the factors that impact
1 Organizational Banking: Lonkani, 2017 acceptance of the use of mobile banking. A total
Computing and Exploring Chuleepo of 309 subjects participated in this study. Data
Electronic Commerce Determinan rn was collected via a survey instrument. After
ts of its Changchi multiple regression analysis of the data,
Adoption t, Jomjai findings suggest the factors that bank should
Sampet consider when implementing mobile banking
services, thus allowing them to design services
that meet the needs of their customers.
20 | P a g e

o r
1 National Multi- Digital Mrunal 7 The stated role of Digital India is "Faceless,
2 disciplinary conference Payment Chetanbh Octo Paperless, and Cashless". To support Cashless
on Digital Payments System: A ai Joshi ber, as a part of Digital India Campaign government
Systems and Rural Feat 2017 has initiated with different modes of digital
India by North Forward of payment system. This paper studies the trend in
Maharashtra India various modes of digital payments like NFS
University, Jalgaon Inter Bank ATM Cash Withdrawal, NACH,
CTS, IMPS, AEPS, BBPS, UPI, BHIM (UPI)
and NETC in last three years. In this study it is
found that in previous two years (2015-16 and
2016-17) and especially during the year 2017-
18 (up to July 2017) there is remarkable growth
in digital payment in volume and value both.
1 International Journal of Heuristic Ashu Apri Information Technology sector in India is
3 Engineering Research Analysis of Prakash l, making progress at rates way beyond what was
and Technology, "Growth of 2017 expected 30 years back. A company like
Volume 6, Issue 4, PayTM" PayTM has covered the entire online market of
April 2017 edition India. The number of transactions through the
gateway of PayTM is second highest in the
country after IRCTC. This paper analyses the
all-round growth of the company in the e-
commerce sector of India. PayTM started in
2010 as a mobile recharge company and
currently it is everywhere in the commercial
market. It has its own payments bank approved
by the Reserve Bank of India and is currently
the largest commercial market on the web in the
country of 1.2 billion people.
21 | P a g e

o r
1 Information Perception Umesh Janu This research addresses a pre-requisite for
4 Technology for of Trust in Chandras ary, mobile payment adoption in India-the factor of
Development Mobile ekhar, 2016 trust. For large-scale adoption of mobile
Payment R payments, customers must be assured that these
Usage Nandgop payments should have minimal environmental
Intent in al risks (abuse of billing and usage information,
India: An misuse, oversight) for them, operators
Explorator reputation (fairness and honesty) must be good
y Study and no risk of operator opportunism (delivering
promises, right charges and confidentiality of
information should be present. In addition, easy
error mitigation in case of mistakes/refunds
should be possible.
1 International Journal for Analysis of A Janu The research has also lent evidence to the fact
5 Scientific & the Nagendra ary, that there will be huge scope and opportunities
Engineering Research inception, , B Shah, 2017 for digital payment players to increase their
(IJSER) acceptance D.S. market size. It was learnt that the introduction
and future Ullatil of UPI mobile app will overcome challenges
of e-wallets that banks are currently facing. From the
primary research it was observed that the
awareness of UPI is quite negligible in
comparison to E-wallets amongst the users.
This will have a positive impact and will
encourage E-wallet companies, banks as well as
other payment service providers to launch more
initiatives. The findings indicate that E-wallets
in the future will be able to solve some of the
existing problems, and face new challenges
from banks.
22 | P a g e

o r
1 IFRSA’s International J The Munish Octo The researcher with the help of a questionnaire
6 ournal Of Adoption Sabharwa ber inquired from the branch heads of selected
Computing|Vol2|issue Computer l 2012 banks and compared the responses with the
4 Informatio desired state using GAP Analysis Worksheet.
| n System The study indicated that the most of the banks
Oct Security selected by the researcher in his research
2012 Standards backup its data at a Remote offsite location,
by Indian have a BCP / DRP Plan available with them on
Banks software but they do not apply Disaster
Management System as per RBI -“Guidelines
on information security, Electronic Banking,
Technology risk management and cyber frauds”
and other international standards.
1 International Journal of Mobile Emmelin Febr The purpose of this paper was to harness the
7 Retail & Distribution payment e Taylor uary learning from the implementation of self-
Management technologie 2016 checkout and combines it with available
s in retail: a information relating to mobile scanning and
review of mobile point-of-sale (MPOS). With the market
potential being flooded with software and products,
benefits retailers are exposed to a compelling case for
and risks mobile payment, but it was found that they are
not as cognizant of the potential risks. Research
Further research is needed on the different
permutations of mobile POS and how it impacts
on the customer journey and rates of internal
and external theft. Suggestions for future
empirical research on the risks and
vulnerabilities that moving to mobile payment
can usher in are provided.
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o r
1 International Journal of User Florian  Octo This study distinguished security in two
8 Man-Machine Studies Acceptance Urmetzer ber, dimensions: objective and subjective security.
and Mobile , 2014 Objective security represents the user's
Payment Isabelle perception of existing technical safety
Security Walinski mechanisms. Subjective security is intangible,
based on the user's feelings and perception
towards security (trust). The study showed that
despite the financial crisis banks are still the
preferred providers for mobile payment
services, where over 80% of the respondents
would like to receive the service from a bank.
In contrast, only 20% would like to receive such
a service from a mobile phone producer.
Additionally objective security does not
substantially increase subjective security; hence
the user trusts the provider rather than the
technology itself.
1 Journal of Internet Payment Deepank Aug The paper shows areas for improvement in the
9 Banking and Systems in ar Roy, ust efficiency in existing payment systems in India
Commerce India: Amarend 2016 and the other countries especially in regard to
Opportuniti ra Sahoo the liquidity risk, operational risks, access
es and criterion, transparency etc. In the end, the paper
Challenges makes a modest attempt to identify
opportunities and challenges for India.
Numerous major changes in the payment
system would take place at a quicker pace as e-
commerce becomes more prevalent in the
economic activities in the country.
24 | P a g e

o r
2 Department of Cashless Ashish Febr While trying to look for the reasons of poor
0 Mathematics, Indian Payment Das, uary, usage of payment cards, this paper studies the
Institute of Technology System in and 2013 costs involved in India by holding independent
Bombay, Mumbai- India-A Rakhi interactions with all players in the system. With
400076, India Roadmap Agarwal the rationalization in costs, the banks and card
companies would continue to gain, as revenues
would increase due to increase in usage and user
base. Additionally, for the Government, with
the new pricing the gain will be twofold—
firstly there will be sizable reduction in the
growth of currency management cost, and
secondly, the system will generate volumes of
data on spending behavior of individuals that
can be used by the government for
developmental planning.
2 Handbook of Research Overview Sanghita Janu The payment systems have numbers of
1 on Cultural and of Roy ary requirements: e.g. security, acceptability,
Economic Impacts of electronic 2015 convenience, cost, anonymity, control, and
the Information payment traceability. Therefore, instead of focusing on
Society, pp.391-418 system: A the technological specifications of various
special electronic payment systems, the researcher has
reference distinguished electronic payment systems based
to India on what is being transmitted over the network;
and analyzed the difference of each electronic
payment system . To sustain in the competition
more banks are following e-commerce and
especially using e-payment mechanism.
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4.2 Background of study
This research is focused on options available for the mobile payments. As discussed, the mobile
payments industry is one of the fastest growing industries in India, its security is of great
significance. This research analyses the security measures provided by various mobile payments
services in India, to determine whether they follow the reulations or principles for the security of
the services. The research is based on primary data collected from 280 respondents using stuctured
questionnaires distributed using e-mails, online survey websites, social networking websites & one
to one questionnaire requests. The secondary data mainly includes RBI’s the operating guidelines
for mobille payments, as well as The Basel Committee on Banking Supervision’s principles to
control and reduce the risks associated.
4.3 Rationale of Study
The reason for conducting this study is to identify security measures implemented by the mobile
payments services used & see to it whether they suffice the guidelines issued by the regulators in
India. In this way the security of the mobile payments service provider is evaluated. Besides this
research also categorizes the mobile payments services available in India, based on their features.
Further this research also provides insights regarding the usage of the mobile payments services
in India.
4.4 Objectives
I. Primary Objectives
 To classify various Mobile Payments services available in India.

 To evaluate the security of various Mobile Payments services.
 To investigate the relationship between gender of the users & the usage of mobile payment
services.
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II. Secondary Objectives
 To find out which mobile payments services are most popular among the users.
 To identify the important factors which infuences the usage of mobile payments services.
 The find out factors which dissuades the individual from using the mobile payments
services.
 To find out the most common reason for usage of the mobile payments services.
 To find out the frequency in the usage & the monthly spent money using the mobile
payments services.
4.5 Hypothesis
 H1: There is no significant difference in the Usage Frequency of the mobile payment
services based on their gender.
 H2: There is no significant difference in the Monthly Spent Money of the users of the
mobile payment services based on their gender.
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CHAPTER - 5
Research Methodology
5.1 Research Design
The study follows a descriptive research design. It is concerned with describing the charactericstics
of the security as well as the usage of the mobile payments services. The study is about the mobile
payments services in India. It is made to evaluate the security, identify the usage & categorize the
various Mobile Payments Services. The data for the research is collected from primary &
secondary sources. The secondary data is collected from various journals, websites, & articles. For
Primary data collection a structured questionnaire is used to collect responses from 280
participants. The questionnaire survey followed a non probabilistic sampling technique,
convinience sampling, in which the questionnaire was distributed using personal e-mails, online
survey tools like surveymonkey & questionpro, social networking sites like facebook, as well as,
one to one questionnaire requests.
For identifying the relationship between the usage of the mobile payments services & the gender
of the users, independent sample t test is performed on the primary data collected which is
presented in the next chapter. For categorizing the mobile payments services the help of secondary
data sources is taken which is mentioned in the literature review . And in order to evaluate the
security of the mobile payments services, a conceptual model is prepared with the help of
secondary data mentioned in the literature review. This model is then used for evaluating the
security of the mobile payments services. The secondary data is used to determine the variables
(in this model) to measure the security of the mobile payments services. The Primary data collected
has inputs to these variables, which evaluate the security. Thus, the secondary data is used to
constuct the conceptual model & primary data is used as an input in that model to evaluate the
security of the mobile payments services. In this research we have evaluated the security of the top
two of the most preffered mobile payments services in each of the categories identified, which is
presented in the next chapter.
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5.2 Sources of Data
The sources of data can be divided in two kinds:
1. Primary Data Sources: Some data specifically was produced for the purpose of research,
which was collected from various sources like
a) Online Survey Tools
b) One to One Questionnaire Requests
c) Personal E-mails
d) Social Networking Site Forums
2. Secondary Data Sources: Some existing publications related to the mobile payments
services were also refferred in this research, mainly for the two purposes viz. categorizing
the mobile payments services & determining the variables for evaluating its security. Their
sources are
a) Journals
b) Websites
5.3 Data Collection Method
The primary data for the research was collected by using the survey method. The secondary data
for the objective of evaluating the security was collected with the priority of the government
regulations in India & for the objective of categorizing the mobile payments services was collected
considering the latest trends in the mobile payments industry.
5.4 Population
The Population for the research includes the users of the mobile payments services in India.
5.5 Sampling Method
The research work included collecting primary data from different sources as mentioned above.
For that purpose a non-probabilistic sampling technique was adopted. The sampling method
adopted was Judgemental Sampling with the purpose of prior identification of the respondent to
be the user of the mobile payments services.
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5.6 Sampling Frame
The sample size for the research consisisted of 280 respondents. The sampling frame from each
primary data sources are 79, 89, 58, & 64 respondents respectively.
5.7 Data Collection Instrument
A Structured Questionnaire is used as the data collection instument for gathering inputs form the
users of the mobile payments services, which served as the primary data for the reseach.
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CHAPTER - 6
Data Analysis & Interpretation
6.1 On Categorization of the Mobile Payments Services
Based on the secondary data analysis the mobile payments services in India can be classified into
four broad categories:
Category Charactericstic Service providers

Mobile Wallets Prepaid Payments Instrument PayTM, FreeCharge, M-paisa,
(PPI)issuers ; User can store/save Citrus Pay, Oxygen,
money in it from their bank account, MobiKwik, Lime, mRupee,
besides performing transactions. Jio Money, My Airtel,
Appliations linking to User can perform transaction using BHIM, PhonePe, Google Tez,
Bank account this platform but cannot save money. PayPal, Ultracash,
RechargeItNow.com.
Bank’s Application for Provided only to bank’s account ICICI Pockets, Cent Mobile,
A/C holders holders for accessing account & SBI Quick, HDFC’s Chillr,
perform transactions. Pay Zapp, Axis Pay,Axis
Mobile, SBI Buddy, U-mobile
Basic USSD (*99#) Doesnot need internet connectivity *99#
service & can perform transactions.
Table 1: Categories of Mobile Payments Services
Mobile wallets is the first category & they are very popular amongst the users. Mobile wallet
companies have to work as per the RBI guidelines for the prepaid payments instrument (PPI)
issuers. Besides performing transactions, users can store money in the wallet from their bank
account. PayTM, Freecharge, M-paisa, Citrus Pay, Oxygen, MobiKwik, Lime, mRupee, Jio
31 | P a g e
Money, My Airtel, etc are some of the popular choices amongst the users. BHIM, PhonePe,
Google Tez, PayPal, Ultracash, RechargeItNow.com.
The second category is the applications linking to bank account of the user, in which the user can
only perform the transaction using this platform but cannot save money. The third category of the
mobile payments services are the applications which are provided by the banks only to the bank’s
account holders for accessing the account & performing the transactions. The fourth category
includes the basic USSD service which can be accessed through any mobile phone to perform
transaction & does not need an internet connection or service.
6.2 On Security of the Mobile Payments Services
The apps were evaluated on the RBI guidelines6 and BASEL norms7 for secure digital financial
transactions as below:
i. Confidentiality: The transaction, bank account details, and wallet balance of the user
should be confidential and not accessible to unauthorized users or third-party vendors. To
evaluate this aspect in the apps, we investigated whether the data (in-transit or saved data)
was accessible only to intended stakeholders
(Adopted from Basel e-transaction Security Controls principle-10 and RBI guidelines’ 1st
property)
ii. Transaction non-repudiation management: In the case of mobile payments, transactions
are confirmed using notifications, SMS and emails containing essential details (amount,
time of transaction, sender, receiver, app vendor name and comments) and confirmation of
the transaction to both sender and receiver, and these ought to be logged and tracked to
prevent false denial.
To evaluate this aspect, we investigated whether
a) The transaction logs were maintained and if the data in the logs could be used in
case of transaction repudiation
b) The app tracked and warned in cases of unusual transaction patterns – for example,
multiple transactions being carried out in quick succession (within a few seconds)
(Adopted from RBI guideline’s 4th property)
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iii. Authentication of the identity of the customers: It is very important for mobile apps,
during a transaction, to ensure that it is the authenticated account holder who is transferring
the money. Authentication can be achieved by the use of unique passwords or biometrics
of the user.
To evaluate this aspect, we investigated
a) Whether every transaction was authenticated, and conducted with explicit consent
b) The strength of login and logout process authentication. If this process is not
sufficiently authenticated, it would be similar to leaving the door open for any
intruder to enter the house at any time.
(Adopted from Basel e-transaction Security Control principle-4 and RBI guideline’s
3rd property)
iv. Data and transaction integrity: The transaction details and wallet amounts shown to the
customers in app notifications and statements should be consistent with actual details. To
evaluate this aspect, we investigated whether the
a) Data maintained and displayed were accurate and consistent
b) Transaction confirmation processes followed the norms of a reliable and consistent
transaction
(Adopted from Basel e-transaction Security Control principle-8 and RBI guideline’s
2nd property)
v. Access and availability: In case of mobile payment services, the network forms a key
feature for the availability of the services to the customer. Some apps and USSD systems
work through SMS or voice calls from the mobile phone, thus being available to customers
who do not have internet or data connections on their mobile devices.
To evaluate this aspect, we investigated the
a) Variety of modes in which the services were available
b) Reliability of the service (such as availability of information on ombudsman,
security and more)
(Adopted from Basel e-transaction Legal and Reputational Risk Management

principle-13).
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vi. Privacy of customer information: The payment app or service should not ask for
customer data that violates privacy or increases risk of identity theft. This principle is
particularly prominent during app installation when the user needs to give access
permissions to the app for a multiple number of fields.
To evaluate this aspect, we investigated whether the requested privileges were justified
(whether the functionality of the app could be compromised without access to the
privileges).
(Adopted from Basel e-transaction Legal and Reputational Risk Management principle-
12)
Conceptual Framework to evaluate Security of the mobile payment services:

From the RBI guidelines & Basel Norms discussed above, a framework is prepared to evaluate the
security in the mobile payments services which is mentioned below. In the frame work,
V1 = Variable 1 which denotes ‘Confidentiality’

V2 = Variable 2 denoting ‘Non Repudiation’
V3 = Variable 3 which denotes ‘Authentication’
V4 = Variable 4 which denotes ‘Integrity
V5 = Variable 5 which denotes ‘Access & Availibility’
V6 = Variable 6 which denotes ‘Privacy’
‘A’ indicates that all the respondents agree to a particular mobile payments service satisfying in
the given variable of the framework;
‘B’ indicates that not all the respondents agree to a particular mobile payments service satisfying
in the given variable of the framework;
‘C’ indicates that no respondents agree to a particular mobile payments service satisfying in the
given variable of the framework.
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Mobile Payment Service V1 V2 V3 V4 V5 V6
PayTM B A B B A B
Freecharge B A B B B B
BHIM A A A B B B
PhonePe B A B B B C
SBI Buddy B A A A A B
Axis Pay B A A A B B
Chillr B A B A B B
Google Tez A A A B B C
M-paisa, B A A B B B
Citrus Pay B A A B B B
Oxygen B A B A B B
My Airtel B A A B B B
ICICI Pockets B A A A B B
mRupee B A B B B C
Paypal A A B B B B
Jio Money B A B A B B
Cent Mobile B A A A B B
MobiKwik B A B B B B
USSD (*99#) A A A B A A
Table 2: Security of Mobile Payments Services
6.3 On Usage of the Mobile Payments Services
Descriptive Statistics : The primary data for the research was collected from 300 respondents
using the structured questionnaire. Out of them, 54.6 % are the male respondents & 45.4 % are
female respondents. Table 3 indicates the demographic profile of the repondents. Majority (38.66
%) of the repondents are falling into the age category of 21 to 25 years followed by 26 to 30 years
(17.33 %). Further looking at the experience in using the mobile payments services shows that
majority (41.33 %) of the respondents have 1 to 2 years & 6.67 % of the repondents had no
35 | P a g e
experience in using the mobile payments services. Besides 39.66 % of the respondents have job or
service, followed by 27.33 % of the respondents who are Students.
Particulars Respondents Percentage

Gender
Male 164 54.6
Female 136 45.4
Occupation
Business 46 15.33
Student/ Research Scholar 82 27.33
Service/Job 119 39.66
Other 34 11.33
Unemployed/ Not working 19 6.33
Usage Experience
Nil 20 6.67
Less than 1 year 81 27
More than 1 year upto 2 years 124 41.33
More than 2 years 75 25
Age
Less than equal to 20 16 5.33
21 to 25 116 38.66
26 to 30 52 17.33
31 to 35 33 11.00
36 to 40 24 8.00
41 to 45 18 6.00
46 to 50 27 9.00
Greater than 50 14 4.66
Total 300 100
Table 3: Demographic Profile of respondents
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Analysis of Mobile Payments Users
Most Used Mobile Payments services: The primary data shows that majority of the
respondents uses PayTM (31.43 %) followed by other mobile payments services (17.86 %).
Besides freecharge is also popular among users with 15.36 % respondents using it, followed by
SBI Buddy (13.93 %) & Phone Pe (12.5 %). Only 8.93 % of the repondents are using the BHIM
application. Table 4 shows the ranks of the mobile payments services based on their popularity
amongst users.
Rank Mobile Payments Respondent Percentage

Service
1 PayTM 88 31.43
2 Freecharge 43 15.36
3 SBI Buddy 39 13.93
4 PhonePe 35 12.5
5 BHIM 25 8.93
6 Others 50 17.86
Total 280 100
Table 4: Most Famous Moble Payments Services
Most important factors influencing the users of the Mobile Payments services:
Table 5 illustrates the factors that influence the adoption of the mobile payments services. It is
identified that the users consider 24 x 7 access most important with the highest rank, followed by
user friendly interface and third as Exchange platforms. Respondents rank least to Discounts &
Rewards for influencing them in using the mobile payments services.
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Rank Factor Respondent Percentage

1 24x7 Access 106 37.9
2 User friendly Interface 84 30.0
3 Exchange platforms 59 21.1
4 Discounts & Rewards 31 11.0
Total 280 100
Table 5: Factors for infuencing the users of Moble Payments Services
Frequency of usage of the Mobile Payments services : It is identified that majority of

the respondents use the mobile payments services at least once in a month, followed by respondents
using it at least once in a week. While only 14.3 % respondents use it at least once in a year, 17.79
% of the respondents use it on a regular basis.
Usage Frequency Respondent Percentage

Daily 50 17.9
Weekly 71 25.4
Monthly 119 42.5
Yearly 40 14.3
Total 280 100
Table 6: Usage frequency of Moble Payments Services
Most Common Purpose for using the Mobile Payments services: Table 7
represents the purpose for which the mobile payment services are used most of the times by the
respondents. It is observed that 32.5 % of the respondents generally use mobile payments services
for purchasing or shopping, followed by 27.1 % for bill payments. The 22.9 % of the respondents
mostly use it for the purpose of transferring funds, while 12.5 % respondents commonly used it
for Balance inquiry or account statement.
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Rank Reason Respondent Percentage

1 Purchasing/shopping (Online websites, Restuarants, 91 32.5
Cinema, etc)
2 Bill Payments (Electicity, Phone, DTH, Gas) 76 27.1
3 Funds Transfer 64 22.9
4 Balance Enquiry/ Account Statement 35 12.5
5 Others 14 5.0
Total 280 100
Table 7: Reason for using Moble Payments Services
Monthly Expenditure using the Mobile Payments services: The money spent using
mobile payments services in a month by the respondents are illustrated in Table 8. It is found that
majority (32.1 %) of the respondents fall in the category of 500 rs to 1000 rs, followed by 26.1 %
users who spend more than 2000 rs . While 18.2 % respondents spend less than 500 rs ina month
using the mobile payments services.
Transaction value Respondent Percentage

Less than 500 INR 51 18.2
500 to 1000 INR 90 32.1
1001 to 1500 INR 35 12.5
1501 to 2000 INR 31 11.1
More than 2000 73 26.1
Total 280 100
Table 8: Money Spent using Moble Payments Services
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Difference between male & female Mobile Payments users
a) T-Test for Usage Frequency vs Gender

It is intended to examine whether there is any significant difference in the frequency of the
usage of the mobile payments services by the users based on their gender For this an
independent sample t-test has been used with Gender as independent variable and Usage
Frequency as dependent variable. By performing the test following null hypothesis has
been tested.
H0: There is no significant difference in the frequency of usage of the mobile payment
The group statistics for the T test is illustrated in the table 9. The mean for the male gender
is 2.65 with the standard deviation of 0.89, while the mean for the female gender is 2.62
with the standard deviation of 0.99. This suggests that there is less difference in the
frequency of using the mobile payment services amongst male as compared to female
gender.
Group Statistics
Male or N Mean Std. Std. Error
Female Deviation Mean
Number of times Male 164 2.6524 .89713 .07005
used Female 116 2.6207 .99263 .09216
Table 9: Group Statistics for Gender & Usage frequency
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Independent Samples Test

Levene's Test t-test for Equality of Means
for Equality
of Variances
F Sig. t df Sig. Mean Std. 95% Confidence
(2- Differ Error Interval of the
tailed) ence Differe Difference
nce Lower Upper
Equal
Usage .0317
variances 3.374 .067 .279 278 .780 .11377 -.19222 .25572
Frequency 5
assumed
for the
mobile
Equal
payments
variances 231. .0317
services .274 .784 .11577 -.19634 .25984
not 705 5
assumed
Table 10: Independent sample T Test for Gender & Usage frequency
Table 10 illustrates the data from the independent sample T test performed with Gender as the
grouping variable and Usage Frequency for the mobile payments services as the test variable. The
f value (3.374) is also above 0.05, so we would see the first column. From the table we can see
that p value (0.780) is greater than 0.05, which means that we accept the null hypothesis & there
is no significant difference in the frequency of usage of the mobile payments services based on
their gender.
This suggests that the frequency of using the mobile payment services is not dependent on the
gender of the user as there is no significant difference in the frequency of using the mobile payment
services amongst the male & female users.
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b) T-Test for Monthly Spent Amount vs Gender

It is intended to examine whether the gender has any influence on the monthly amount
spend using the mobile payments services. For this an independent sample t-test has been
used with Gender as independent variable and monthly money spent as dependent variable.
By performing the test following null hypothesis has been tested.
H0: There is no significant difference in the monthly expense of the users of the mobile
payment services based on their gender.
The group statistics for the T test is illustrated in the table 13. The mean for the male gender
is 3.42 with the standard deviation of 1.50, while the mean for the female gender is 2.27
with the standard deviation of 1.16. This suggests that there is less difference in the monthly
money spent using the mobile payments services amongst female as compared to male
gender.
Group Statistics
Male or N Mean Std. Std. Error
Female Deviation Mean
Average monthly Male 164 3.4207 1.50657 .11764
expenditure Female 116 2.2759 1.16907 .10855
Table 11: Group Statistics for Gender & Monthly Expense
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Independent Samples Test

Levene's Test t-test for Equality of Means
for Equality of
Variances
F Sig. t df Sig. (2- Mean Std. 95% Confidence
tailed) Differenc Error Interval of the
e Differen Difference
ce Lower Upper
Money Equal
spent variance 36.05 1.4737
.000 6.853 278 .000 1.14487 .16706 .81601
monthly s 3 3
using the assumed
mobile Equal
payment variance 275.57 1.4599
7.152 .000 1.14487 .16007 .82976
s s not 8 8
services assumed
Table 12: Independent sample T Test for Gender & Monthly Spent Money
Table 14 illustrates the data from the independent sample T test performed with Gender as the
grouping variable and Money spent monthly using the mobile payments services as the test
variable. The f value (36.053) is also above 0.05, so we would see the first column. From the table
we can see that p value (.00) is less than 0.05, which means that we reject the null hypothesis &
there is a significant difference in monthly amount spend by the users of the mobile payments
This suggests that and the money spent monthly using the mobile payment services is dependent
on the gender of the user as there is significant difference in the money spent monthly using the
mobile payment services amongst the male & female users.
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Analysis of Non-Users of Mobile Payments
Table 13 illustrates the reasons due to which some of the respondents were bot using the mobile
payments services. There were 20 respomdents out of 300 who do not use the mobile payments
services, of which 8 were males & 12 were females. They were asked about the reasons for not
using the mobile payments services. Majority (45 %) of those respondents did not possess smart
phone, while 25 % the respondents cited lack of knowledge as the reason for not using the mobile
payments services.
Rank Reason Respondents Percentage

1 Donot possess smart phone 9 45
2 Lack of knowledge/ Not Techsavvy 5 25
3 No need 4 20
4 Security Concerns/ No Trust 2 10
Total 20 100
Table 13: Factors discouraging adoption of Moble Payments Services
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CHAPTER - 7
Results & Findings

The mobile payment services is classified into four categories, from analysing the secondary data,
for the objective of classification of the various mobile payments services available in India
(Section 4.4.1.1) . These are mobile wallets, applications linking to user’s bank account, bank’s
own appliaction for account holders, & basic USSD service (*99#). The study suggests that the
usage of mobile wallets are more prevelent, followed by the bank’s applications for the account
holders. While USSD service is the least used category of the users of the mobile payments
services .
The secondary data was analyzed to prepare a conceptual model to evaluate the security of the
mobile payments services (Section 4.4.2.2). The findings of the research based on data analysis of
the primary data suggests that all the mobile payments services have security concerns based on
one or more security principles.
Potential for confidentiality breaches was a problem observed for all the mobile payment methods,
except USSD. Some apps have an unusual and unreasonable access to the one-timepassword sent
by a partner bank. There was no evidence of systematic analysis of transaction patterns with a
warning to users of unusual or problematic transactions in any of the applications. Data and
transaction integrity was quite sound for most of the apps. There are serious privacy concerns with
all the services studied, except USSD service as it does not ask for other privileges such as access
to identity, media etc. All the apps demand access to private data of the user, on the phone, without
providing a clear rationale as to why this is needed.
The mobile payments services are widely accepted by the people as a payment method in India.
This result is based on analysis of the primary data shown in table 3 in which shows that out of
300 respondents , only 20 respondents (6.67 %) were not using the mobile payments services while
280 repondents (93.33 %) were the users of the mobile payments services. . Majority of these
respondents are students or individuals with service/job who are aged between 20 to 30 years.
As a result for the objecive of detemining the most popular mobile payment services amongst the
users (Section 4.4.2.1) , PayTM emerged as the most popular amongst the users of the mobile
45 | P a g e
payment sevices with 31.43 % respondents choosing it as first choice, followed by Freecharge
with 15.36 % respondents choosing it as first choice , SBI Buddy with 13.93 % respondents
choosing it as first choice, PhonePe with 12.5 % respondents choosing it as first choice, & BHIM
with 8.93 % respondents choosing it as first choice.
For the objective of determining the factors that infuence the users of the mobile payment services
(Section 4.4.2.2), 24 x 7 access can be ranked first as 37.9 % respondents found it as in important
factor in using the mobile payment service. User friendly Interface is ranked second with 30 %
,Third is Exchange platforms with 21.1 %, & Discounts & Rewards with 11% is fourth important
factor in using the mobile payment service preferred by the user.
For the objective of determining the factors which prevents the individual from using the mobile
payments services (Section 4.4.2.3), the ananlysis of the non-users of mobile payments was done. It
was found that absense of smart phone was a prominent reason (45 %), followed by lack of
knowledge (25 %).
For the objective of determining the frequency in the usage of the mobile payments services (Section
4.4.2.4), it was found that 42.5 % of the users use the mobile payments services atleast once in a
month, while 25.4 % users use it atleast once in week & 17.9 % respondents use it atleast once
daily.
For the objective of determining the most common reason for usage of the mobile payments services
(Section 4.4.2.5), it was found that majority of the users mostly use the mobile payments services
for purchasing or shopping with 32.5 % of the respondents, followed by the purpose of bill
payments with 27.1 % users.while 22.9 % users mostly use the mobile payments services for funds
tranfer.
While analysing data for the objective of determining the monthly spent money using the mobile
payments services (Section 4.4.2.6), it was found that 32.1 % of the users spend between 500 to
1000 rs monthly using the mobile payments services. 26.1 % users spend more than 2000 rs
monthly, while 18.2 % users spend less than 500 rs monthly using the mobille payments services.
Data obtained from the study provided information regarding the usage pattern of the users of the
mobile payments services in terms of the frequency of usage, monthly money spent, & most
46 | P a g e
common purpose which was analyzed for the objective to investigate relationship between the
gender of the user & the usage of the mobile payment services. (Section 4.4.1.3)
It was found from the study that both both male & female users have the same frequency in using
the mobile payment services, while male users spend more in a month as compared to the female
users using the mobile payment services. In other words, there was no relationship between the
gender of the user & the usage frequency, while there was significant relationship between the
gender of the user & the money spent monthly using the mobile payments services.
47 | P a g e
CHAPTER - 8
Limitations of Study
As the Mobile Payments Services is in the field of technology, it is in the process of constant
modification.Hence the responses of the users might be limited to the period of 28 th January 2018 to 25th
March 2018, after which may be some of the security concerns might have been adrressed by the mobile
payments services providers. Another limitation related to this study is that the primary data is collected on
a ordinal scale, hence limited statistical tests could be applied when testing a hypothesis. Additionally while
preparing the sampling frame a non-probabilistic sampling technique was adopted which restricts its
validity on the population, while applying inferential statistics for hypothesis testing.
48 | P a g e
CHAPTER - 9
Conclusion/Suggestion
It can be concluded from the study that the mobile payments services are widely accepted by the
people as a payment method in India. The mobile payment services available in India can be
classified into four categories, viz. mobile wallets, applications linking to user’s bank account,
bank’s own application for account holders, & basic USSD service (*99#).
From the findings regarding the security of the mobile payments services we can conclude that the
security in not upto the mark in any of the mobile payments services. Improvements in terms of
security of the mobile payments services will enhance the trust of the users in the mobile payments
services.
From the analysis of the mobile payment users we can conclude that the most popular mobile
payments services amongst the users is PayTM. Besides the most important factor influencing the
users of the Mobile Payments services is 24 x 7 access. Most of the users use the Mobile Payments
services at least once in a month, while Shopping or purchasing in Stores, Restuarants, Cinema,
Online websites, etc remains the Most Common Purpose for using the Mobile Payments services.
Most of the users spent monthly 500 rs to 1000 rs using the Mobile Payments service.
From the analysis of the non users of the mobile payment services we can conclude that most
common factors preventing the usage of the mobile payment services are not possessing a smart
phone & lack of knowledge.
As far as relationship between the gender of the users & the usage pattern of the mobile payments
services is concerned, we can conclude that there is no association between the gender of the users
and the usage frequency of the mobile payment services but there is a significant relationship
between the gender of the users and money spent monthy using the mobile payments services.
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REFERENCES
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APPENDIX
Survey Questionnaire
1. Mention your Gender: Male or Female

2. Select your age group: A) < 20 B) 20 to 25 C) 26 to 30 D) 31 to 35 E) 36 to 40 F) 41 to 45
G) 46 to 50 I) > 50
3. Select your occupation: A) Business B) Student/ Research scholar C) Job/service D) Not
employed
4. What is your experience in using the mobile payments services: A) < I year B) 1 to 2 years
C) > 2 years D) Nil (No experience)
5. Which mobile payments service do you mostly use : _________
6. Does the app provide confirmation using SMS, email, notification?
A) Yes B) No C) Don’t know
7. Does the app track & warn user, in case of unusual transaction pattern?
8. Does the app have auto/session logout feature ?
9. Whether every transaction is carried using unique password/biometrics & with explicit
consent?
10. Does the app provide account Statement ?
11. Can each transaction be identified by transaction_id ?
12. Is the app available in other language except English ?
13. Are other modes like SMS or voicecall available to customers who do not have internet
facility?
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14. Do you think that the apps ask for access permissions to more number of fields during
installation?
15. According to you which is the most important factor in using the mobile payments services?
A) 24x 7 access B) Discounts & Rewards C) User friendliness D) E) Other _______
16. What is the most common purpose for using the mobile payments services?
A) Shopping/Purchasing B)Bill Payments C) Funds Transfer D) Account Statement/
Balance Inquiry E) Other_______
17. How many times at least do you use the mobile payment services?
A) Daily B) weekly C) Monthly C) Yearly
18. How much money do you spend monthly using the mobile payments services?
A) < 500 B) 500 to 1000 C) 1001 to 1500 D) 1501 to 2000 E) > 2000
19. For non users, what is the reason for not using the mobile payments services?
A) Lack of knowledge B) Unavailibility of smartphone C) No need D) Security concerns
E) Other___________
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A Study of Usage Security of The Mobile Payments Services in India

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A Study of Usage & Security of the Mobile Payments Services in India

Technical Report · July 2018

Mobile Payments Systems and Services View project

Evaluation of Mobile Payments Systems in India View project

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MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

We Pulkit Joshi, Shailak Jani, Purva Karangiya Enrollment No. 160617200034,

160617200028, 160616200015 From Parul Institute Of Management And Research (MBA),

Date: : < / / > Signature of the Students

Security Of The Mobile Payments Services In India” is submitted in partial fulfillment of

Master of Business Administration at Parul Institute Of Management And Research, Vadodara by

160616200015 has been completed under my guidance and is satisfactory.

Date: < / / >

Signature of the Guide Signature of the Director

permitted us to carry out this project work.

shown us a way to pursue excellence.

With sincere regards,

EXECUTIVE SUMMARY .................................................................................................................... V

6.1) ON CATEGORIZATION OF THE MOBILE PAYMENT SERVICES ………………………………………31

About Major Companies in Mobile Payments Industry

2.1 State Bank of India

State Bank of India (SBI) is an Indian multinational, public sector banking

2.2 Central Bank Of India

2.3 One 97 communications

One97 Communications Limited provides telecommunications value added services to telecom

Amazon India, which has now completed four years of operations in

2.5 National Payments Corporation of India

National Payments Corporation of India (NPCI) is an umbrella organization

1. Bharat Interface for Money (BHIM)

2.6 Mobile Payment Forum of India

 To create awareness among enablers/users through educational workshops.

 To take up commonly agreed upon initiatives on behalf of the members.

3.1 Amazon Pay

Amazon Pay is an online payments processing service that is owned by

Paytm is India's largest mobile payments and commerce platform. It

PhonePe is a Fin-Tech company headquartered in Bangalore, India. Founded in

3.4 Bharat Interface for Money

BHIM (Bharat Interface for Money) is a mobile app developed

3.5 National Unified USSD Platform (*99# Service)

One of the innovative payment service launched by NPCI includes *99#

3.6 SBI Anywhere Personal

Fund Transfers within SBI & other Banks to already

3.7 Cent Mobile

Cent Mobile is Mobile Banking application offered by Central Bank of India.

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4.2 Background of study

4.3 Rationale of Study

 To classify various Mobile Payments services available in India.

II. Secondary Objectives

5.1 Research Design

5.2 Sources of Data

The sources of data can be divided in two kinds:

5.3 Data Collection Method