CHAPTER 1

INTRODUCTION
Around the globe the word cashless is inclining among the billions of people. Indians are
contagious by cashless syndrome which is seen in global texture. A cashless economy is an
economy where the usage of hard money is limited and higher percentage of transactions are
done through means of electronic gateways. Cash continues to be a predominant mode of
transaction but, in few sectors exchange of currency have been limited by the usage of
electronic means of transaction where money is transferred not by physical form. Though
digitalisation was forced the adoption was rapid. Online payment system took birth in the year
of 1990s. Individual around the globe began exploiting the trading strategy. Advancement in
electronic payment system gave birth to numerous creative technology related innovation in
the field of monetary transaction. Every market will change according to the sentiments of
consumers, here the acceptance of digital payment system is only because of the change in
economy. Where the efforts of government’s actions and by the heavy pressure of hiking
mobile usage made the economy harm, which was a space creation for digital payment drift in
Indian economy. Indian digital market will be grown for one trillion us dollar by 2023. As per
studies the growth will be because of mobile payment means like electronic wallets and UPIs.

Before leaning towards today’s economic condition let us look back to the history of
transaction modes. Oldest means of transaction is quoted as barter system (selling goods for
goods or service for service, where extra goods are sold to get scars ones) from exchanging
“goods for goods” to electronic currency payments mankind kept on evolving. After barter
regime, concept of money came. Earliest form of currency was cowrie shells which was
found in Indian Ocean it was referred as ‘kaudi’ and were used even until the early 18th
centuries. Later these cowrie shells moved the way for currency in form of gold, silver and
other metals which was of ‘punch-mark’ (inscribed metal plated coins). End of 18th century
gold and silver coins became less and they gave way to bonds, shares, hundi etc… which was
paper currency. Semi-government as well as private banks were given rights to print these
paper currencies. After world war 1st India became distorted and need of an apex money
authority was shadowed as a question mark above Indian economy. Central legislative
assembly a royal commission of Indian currency and finance (1926) they were acting as a
recommendation committee, this gave birth for prestigious Reserve bank of India. The aim
behind the movement is to separate the control above currency and credit of government and
an institution which regulate banking and note issuance of entire country. RBI came in to
picture in 1935. Currency of five rupee was the first printed note and followed up by one, two
and ten thousand rupee notes. After announcing India as a republic nation the portrait of
George VI on currency notes were renewed by Ashoka pillar. In 1996 Indian currency notes
changed their cover picture, Mahatma Gandhi was the person. These notes were unchanged
until the storm of demonetisation (2016). In the act of demonetisation Government of India
announced that the higher valued currency like five hundred and thousand rupee notes will
not be a legal tender. They retrieve eighty six percentage of currencies with few months and
they issued new currency notes and they introduced two hundred rupee notes which were not
pre-existed like two thousand. Thousand rupee notes were replaced by two thousand rupee
notes and five hundred rupee note were reissued. The new currencies were different in colour
tone as two thousand is pinkish rose, five hundred in stone grey, two hundred in flash
yellow(similar to orange), hundred rupee note in flash green, fifty in bright blue, ten in brick
brown. And the main difference rather than colour difference are the size is been reduced and
the alignment is also been changed, as the image of mahatma Gandhi is changed from right to
left.

Electronic revolution can be called as a silent revolution, if you search for the roots of the
electronic payment system then we must be shocked. Evolution of banking was the starting of
everything. Evolution of banking system made everything easier, though the payment and
saving was in different form the money used was same. Till the point of evolution of banking
system changes in payment method was creepy in nature. But the story after it was not like
that, Later for the convenience in payment banking sector introduced a termed called “cheque”
it was a kind of revolutionary instrument, for the long time cheque was the major instrument.
Growth in the field of information and communication technology was surprising, by the grey
shade of world revolution India also made some changes in its economy. Where cheque system
was a single step towards today’s payment revolution the road map was “plastic money”,
plastic money are those plastic cards which in form of plastic and used of putting as well as
withdrawing currency on other hand It is a term mainly being used to denote all forms of credit
cards, debit cards, retailer cards, diner cards and other types of plastic cards which we use daily
instead of actual currency notes (but, in some countries they have their own plastic currencies
are there, which is in form of plastic and which is highly durable, lasting in nature). Banks are
developing card product and strategies to attractiveness to the new demographic while cards
vie with the quick growth of newer payment modes just as the Unified Payments Interface.
Client behaviour towards cards has modified and other people now not need to hold a large
billfold filled with debit and credit cards.
Digital payment is not a single instrument where it is a bunch of similar kind instruments which
are used in different ways. It comprises of few unavoidable instrument in the current scenario
of every economy. In the case of Indian we have a lot of instrument such as electronic wallets,
UPI, debit cards credit cards, etc…

 Credit card
Credit cards are the most regularly used mode of payments, where these are cards which
is provided by banking institution to give freedom to its consumers. Mostly credit cards
are like OD(over crafts) where we can buy even for money we do not have in our
account, and usually we are required to pay back these taken amount with huge
additional rates also.
 Debit card
It is as same like credit card, the only different is that we need are only allowed for
spending what we have on other hand we would not be getting other privileges in terms
of cash related.
 Mobile payments
Here in this is what where most of the creative innovations are taken place. This is
where e-wallets and upi is involved.
 Net banking
This was a major tool to which was mostly used by some demography. In one time this
was considered as one of the most advanced technology involved mode of transaction.
This was came in to play after the intervention of internet, because this is where the
money is transferred and received with the help of internet.

Everything changed after the disruptive penetration of Reliance Jio in telecom sector. Before
their entrance Airtel was leading the market and the charges were too high, not only airtel
charged huge but also every telecom company followed same, as it is an oligopoly market.
After the arrival of Jio each and every telecom company are forced to adopt the charges of
Jio. The reason why Jio is involved in India’s revolutionary change is that the change is that
they made a cheap platform for customers, especially in internet accessibility. By the
entrance of Jio common people were able to use the connectivity of internet. All of a sudden
demonetisation hit.
JOURNEY FROM DEMONETISATION TO POTENTIAL CASHLESS ECONOMY

It was a calm Tuesday evening, darkness of atmosphere mirrored in each eyes of Indians and
majority of them was apologising each other what they have heard, but what they have heard
was not a prank or a joke. Yes in their hands they were holding just a paper piece which had
written as 500 and 1000 rupees.

In late 70’s, the wanchoo committee (a direct tax regulation committee) recommended
demonetisation as a strategy to unearth countless black money. Later in 1978 the Janata party
coalition government’s party leader Morarji desai insisted demonetisation by the high
denomination bank act (demonetisation act) to withdraw deemed notes of 1000, 5000 and
10000 . RBI governor I G Patel disagreed. Modi’s measure resembles Desai’s. But here the
difference was the support from RBI governor Urjit patel. The summed up amount which was
circulating in Indian economy as denominated 500 and 1000 rupee notes were valued 15.4
trillion, it was about 86.9% of whole currency in which was circulating in India.

Demonetisation wasn’t a new concept in India, it has been done in India but this time the depth
was extreme. In 1978 10,000 rupees note was demonetized at that time the very rich people
had these notes as result the effect was less in economy because genera

Two years of demonetisation showed a push towards digitalisation, Indian government water
the plant of their concept cashless economy by digital India scheme. Obviously the aim of
demonetisation were to reduce black money and corruption and on flipside the Indian
government had one more aim ,that was to develop E-governance in India. E-governance
means to govern electronically, in all means. As a pre step Indian government acquired details
regarding each and every citizen by the means of Adhar card. Lately each and every one was
forced to attach everything with adhar card. This was a strategic forecasted step towards
demonetisation. The aim was to monitor each and every person’s bank account transaction and
it was done properly before demonetisation. As demonetisation and digitalisation was both
sides of a same coin, Modi government used the sharpened weapon (adhar card).

Indian government were planned to do some changes in Indian financial economy. For that
they made a plan, it all started as a mega show the curtain raiser was demonetisation and
followed by digitalisation in every sector the major tool was Electronic governance on other
hand all activities of government in online and digital basis to avoid corruption and increase
transparency, the next step was to introduce GST and restructure Indian tax system and Indian
economy. If we take till today’s details these policies pulled Indian economy little down even
though we can expect that in long run these policies may productive for the economy.

Demonetisation is the policy that made Indians to look the world in different angle. Through
this policy the Indian Government wants to go cashless in all means, As we all know it’s not
that much easy to make an economy which carries 99.17% as hard money and introducing
more stringent monetary policies and forcing people to use bewildering way of transactions
weren’t only options for the government. As the number shows the job wasn’t easy one. So
they took new policies by giving permission for more electronic transaction based firms.
Google took this as a green signal and they introduced TEZ (now called as google pay), which
is an application that was only for India, and the firms like Paytm, mobikwik etc. (which was
there in pre-demonetisation period) deepen their roots in all means and later few of the firms
like Paytm has entered in to the sector of UPI transactions.

A payment gateway is associate e-commerce system that helps support trendy retail or
alternative sorts of sales of merchandise and services, over the web or at brick-and-mortar
stores. Payment gateways authorize mastercard payments so as to support location systems. A
payment entree will be settled in a completely digital atmosphere, wherever mastercard data is
routed in from a cart web content, or from in-store pill systems or different physical location
systems in brick-and-mortar retail locations and different temporary sale locations. Information
goes to the payment entree, and mastercard data is encrypted for delivery. Payment gateways
also can facilitate verify payments at the bank.

Payment entree services could also be subscription-based, or they will charge fees for every
group action. In general, they assist merchants to additional effectively serve customers by
providing a middleman service for the money data that's thus sensitive and necessary to shield
throughout these transactions for instance, a payment entree is nice for any e-commerce store,
however it conjointly may be employed in an occasion like a concert, wherever tickets and
concessions are purchased outdoors removed from location infrastructure.

Online transactions were done either by offering debit and credit card details or over internet
banking interfaces. While there were issues of security, which kept improving, the payment
interface and experience were not very user-friendly. With the shadow of smartphone
revolution Indian economy had a sprig of e-wallets and along with the hot breeze of
demonetisation UPI (unified Payment Interface) and the effort from government made the
digitalisation possible. The Digital India program is a flagship agenda of the government of
India with a vision and mission of converting India into a digitally legitimized society. Today
we can vaunt of a firm retail payments framework in the country matching to that of any
advanced country, and perhaps even better than few of them in terms of the diversity and
efficiency where the economy is touching new heights year by year

Evolution of e wallets and upi

Growth of digital payments are revolutionary, partially Indian are forced to use digital means
but the trance of digitalisation ran furiously in the veins of young generation. Tough it was
forced it creeped like a forest fire. At the beginning stage even youngsters used digital platform
fearfully, as like everything that became habitual and fear melt like camphor. If we ask about
this before three decades it will an odd thing. But nowadays even we forgets to take wallets
also we do not forget to take our mobile phones so wallet in mobile phone is a simple creative
idea and it bloomed by the sunlight of demonetisation.

Electronic-wallets is similar to ordinary wallet where we can add money from the bank account
and use it for any purposes. In short it is a virtual wallet. Normally e-wallet is a service where
individual as well as business institution can pay and receive money by the use of smartphones
are any electronic equipment which has the accessibility of internet. Both ends should have
account in same e-wallet on other hand e-wallet is a platform where money can be sent and
received with the help of internet and electronic devices. Mobile phones are the payments
instrument of selection. Ancient exploit models can get no continuous, and new-age acquirers
can provide price more services to merchants so as to form exploit business economically
viable

Major players in electronic wallet sector are Google and Apple, we know Google and their tons
of products almost everyone is unique in nature. They comes with innovative product which
can cause disruption. In 2011 Google came with their own mobile wallet which gave the utility
to buy products and chance to earn loyalty points which can be redeemed. Even though the
idea was innovative lack of accessibility of internet and by less merchant’s acceptance it could
not perform well though it was a revolutionary move from the side of Google. In succeeding
year (2012) Apple came with their Apple pass book, which was an application aimed on
boarding passes, coupons, tickets etc…payments are was in form of digital money instead of
actual money. In 2014 they launched Apple pay along with Apple iPhone 6.In early days it was
only available in United States only later it was established in chin also.
On the context of India it is estimated that about around 200 million accounts are registered by
the stores in only top two leading e-wallet operators in the country. E-wallets was launched by
basic features like recharging phones, paying bills etc… later they came up as a real wallet
where we can add money from bank we can credit to bank account, money can be paid for most
of the people because payment operators like paytm, mobikwik has a wide spread of network

While the technology underlying UPI, that allows instant payments from one checking account
to a different, is path-breaking, there's friction in creation of the virtual payment address
(VPA)—the alias that is employed to transfer cash on UPI. Shoppers notice it cumbersome to
go browsing their web or mobile banking app to form the VPA. However, third party suppliers
UN agency have engineered payment apps on prime of UPI victimisation open Apis
(application program interface) have created this method convenient, virtually invisible. We
have a tendency to believe this can change more shoppers to induce on-boarded on to UPI and
use it for peer-to-peer payments.

Deployment of QR code technology for digital payments at businessperson shops eliminates

the employment of high-priced EDC (electronic information capture) machines or (near field
communication) NFC (near-field communication) devices, and improves the political economy
of businessperson exploit. We have a tendency to believe that riding on this, quite ten million
merchants can settle for non-cash payments within the next number of years.

List of major E-wallet application in India

 Paytm
 Freecharge
 Momoe
 PayUMoney
 Mobikwik
 Citrus
 State Bank Buddy
 ICICI Pockets
 HDFC Chillr

Indian digital payments are controlled by few instruments or systems. As per statistics the
major payments are done by cash only but the economy has taken digitalisation much more
seriously after demonetisation, major portion of hard money is taking place in rural areas where
digitalisation is not been poked. There is no surprise about digitalisation even there are so many
villages are still there in India where electricity is just a fantastical story. So coming back to
digitalisation urban sector of India has almost digitalised in some means most of the
transactions are done through digital means. Major instruments used are net-banking, ATM
(Automated Teller Machine), Debit and credit cards, E-wallets, UPI platforms etc...

According to various study ATM is the biggest means of transaction where it is an easy means
and the accessibility is also good in nature. To reduce the usage and to give motivation to other
digital means government asked RBI to regulate some policies so that the transaction through
ATM may decrease. Few strategies are control on withdrawal, incensement in minimum
balance per account, limitation in number of withdrawals etc… This is what the story of ATM
and where Debit card and credit card is also falls in different page of same book so the story is
as same as ATM. Where E-wallets became more popular after demonetisation though they
were pre-existed but those days only tech savvy generation were the only targeted demography
for them. May be they forecasted that the India will be digitalised in one day. After the hit of
demonetisation these Electronic wallet firms increased their marketing strategies and sold their
idea in the shade of stormy demonetised atmosphere. They recognised their role in proper time
and noticed that their target demography is not just tech savvy generation they can even enter
in the demography were of aged people. As strategy they made as possible partnerships with
huge firms and they compete to acquire merchants and were horny to spread their network of
merchants and acceptation end. One thing is sure that this age is not ruling by electronic wallets
this is the kingdom of UPI application. Where they are real time payment system which is a
peer to peer technology where one bank account is directly connected to another. It is not like
E-wallets where there is no separate wallet which is filled and emptied, here there is no such
interface segment where here the transactions are made from the bank account of bank account.
Yes UPi is ruling, though it was there in India before demonetisation but it can be considered
as a baby of demonetisation or it can be considered as a supporting ingredient of
demonetisation. Indian government planned to demonetise and digitalisation was a hidden
agenda so there sharpened some tools even before demonetisation one of them was UPI.
Immediately after demonetisation UPI application could not hike well, on those days E-wallets
were blooming because people got to know these application because of their easiness and
accessibility later only they UPI took their wings out, after the full fletch electronic wallets
could not resist because of high completion created by UPI. After one year of demonetisation
UPI applications over took e-wallets and most of these electronic wallet companies also add
UPI service in their menu card.
List of major UPI based application india

 PhonePe
 Paytm
 BHIM app
 MobiKwik
 Airtel Payments Bank
 Google pay
 Uber
 Chillr
 Paytm Payments Bank
 SBI Pay
 iMobile
 Axis Pay

ADVANTAGES

ELECTRONIC WALLETS

 Security
Currency is notoriously simple to be lost, possibilities currency to be lost is theft or
carelessness. We are all so concerned about our money even though most of us are not
much aware about our spending until nothing is left in our wallets, even the way these
valuable paper pieces are flown is cannot be recollect able. Security of these thing is
much more required one. Here the possibilities of being lost is not there, because every
transactions are recorded and can be monitored through Electronic wallets and the best
feature is that we do not have to carry our wallet anymore and everything will be in our
mobiles which will be always with us.
 Convenience
Lots of people are accepting the benefit of convenience that e-wallets have providing.
We can pay money to anyone without having money in our hand and can carry a whole
bunch of currency without carrying it. Convenience in the sense that we can pay to
anyone with few seconds to anywhere.
 Simple to manage
We do not need to learn more to use electronic wallets where this can be operated by
any common man who has basic knowledge about smart phones. Transferring fund is
 simple and paying money for what we have purchased s also so simple. As its virtual
means activities involved or the interface is much simpler.
 Budget tool
Electronic wallets can be used as budget tool, where we will be getting details regarding
our spending so we can easily track expenses and income (which means inputs).

UPI (unified payment interface)

 Smooth transaction
Compare to any other digital means of transactions UPI applications are much simpler
and the easiness of transaction is awesome. It only takes thirty seconds to transfer
money from one account to another
 Easy registration process
It is easy to get registered in UPI the user has to get a smart phone and need to install
the application which is available in Google playstore and apple playstore ,after that the
user need to dial the number which is already linked with the bank account and wait for
the OTP(one time password) ,enter it. For security the application will ask for password
which is needed for every transaction.
 No KYC needed
In UPI applications KYC (know your customer) is not required
 Account details will be safer

There are rumours that if anyone is using UPI wallets they need to disclose their details
regarding accounts. It is not necessary to disclose our details regarding account to
operate an UPI account

 Instant transaction
The process of any UPI is very fast and we can transfer funds within 30 seconds. The
best example is that technical giants Google named its UPI application as Tez which
means fast(in Hindi), this application as only introduced for India and later they
changed the name as google pay so that rest of the world could know it is not an Indian
application and its form Google.
 Multiple account with single ID
We can open multiple accounts using only one ID, which means if a person has more
than one bank account he can create more than account using only one ID.
E-wallets and UPI

E-wallets UPI

Transaction cost nil Below 0.45

Transfer limit Non-KYC verified users Between 50 to 1 lakh

can hold up to rupee
10,000; up to rupee 1 lakh
for verified one
Transfer to individuals / Possible but depends on the Yes
Companies type of wallet, open or
closed or semi-closed
Payment at physical store Very few allow this Yes

Online payment Yes Yes

Cash backs / discounts Yes Few have

Request for payments Very few have is feature Yes

 CHAPTER 2
BACKGROUND AND OBJECTIVES
INDUSTRIAL BACKGROUND

The last one year has seen a pointy rise with four major shifts within the international landscape
growing penetration of smartphones and net, non-banking establishments providing payment
services, shoppers exacting one-touch payments etc...

India stands on ranks second in the number of mobile users, as figures shows above 1 billion
users are there, within 1 billion around 240 million users are using smart phones and studies
says that this figure will hike to 520 million by 2020. Few statistics shows 640 million instead
of 520 million by supporting growth in telecom sector as by 2020 telecom sector will move
further generation. According to Google BCG report digital industry in India would advance
to $500 billion by 2020, which will be 15% of GDP of the nation. After demonetisation most
of the merchants were ready for adopting electronic means of transactions, they showed
courage to take an important decision. By this decision people were also ready to take the web
of electronic means of fund transfer and it spread like a fresh wave in parched economy.

Increase in adoption of digital instruments has been power-assisted by the rise in merchandiser
retailers, in addition as proliferation of UPI that gives a straightforward and convenient thanks
to transfer cash across bank accounts. The quantity of merchants accepting card payments has
quite doubled within the last two years to cross three million, and therefore the range of UPI
transactions nearly touched two hundred and fifty million in June 2018. Overall, the proportion
of money transactions within the total shopper disbursement within the country has return down
from seventy eight in 2015 to sixty eight in 2017.

E-wallets

Electronic wallets is a kind of prepaid virtual wallet where we can stack money. As ordinary
wallet, from these wallets we can transfer money. Mostly electronic wallets are linked with
phone number. There are three types of electronic wallets are there

o Open wallets
o Closed wallets
o Semi-closed wallets
 Open wallets: these kind of electronic wallets are only issued by banking institution
and partners which are linked with baking institution, which is used to transfer funds
and it allows to withdraw cash as like debit and credit card.
  Closed wallets: As the name suggest closed wallets are given by the institutions where
this can only be used within the chain of respective institution for example reliance
group of company need any platform to easy transaction of funds, so they will be going
for a closed wallets technology where they can transfer fund like an intra network
 Semi-closed wallets: As the name implies this is a kind of half-closed where the
institution can transfer fund to vary institutions, for example amazon is willing to
operate fund transaction with their dealers or suppliers where they can set up semi-
closed where they can transfer between within company and suppliers.

Following are the curial player in Electronic wallet industry:

PAYTM

Paytm is an India based which is the largest Electronic-commerce company in India. Paytm is
possible in ten Indian dialects and offers on-line use-cases like portable energizes, service
charge instalments, travel, motion pictures, and occasions appointments still as in-store
instalments at supermarkets, foods grown from the ground retailers, eateries, stopping, tolls,
drug stores and instruction foundations with the Paytm QR code. Brilliant State based for the
most part PayPal had recorded a body of evidence against Paytm inside the Indian trademark
work environment for utilizing a seal equivalent to its own on eighteen Gregorian schedule
month 2016. As of January 2018, Paytm is esteemed at $10 billion.

According to the corporate, more than seven million shippers crosswise over Asian nation
utilize this QR code to simply acknowledge instalments straightforwardly into their financial
records. The corporate conjointly utilizes notices and paid special substance to get incomes.

Paytm was launched in the month of august 2010. Its seed capital was $2 million. Vijay shekar
sharma founder of paytm found the facility of special economic zone and developed his idea
in Noida. It began with direct to home (DTH) recharge platform, pre-paid mobile recharge and
eventually they added land line bills, data cards and post mobile recharges etc..

In 2014 only they became successful to launch their e-wallet. At first uber(taxi aggregator) ad
Indian railway added paytm as a payment option. Later 2015 they affixed services like payment
of bills of water, electricity, gas etc…

In 2016, Paytm came up with events, movies and amusement parks price tagging similarly as
flight ticket bookings with Paytm QR. Later same year, they launched railway ticket bookings
and gift cards. Paytm's registered user base grew from eleven to eight million in August 2014
to 104 million in August 2015. Its travel business crossed five hundred million American dollar
in annualised GMV run rate, whereas booking a pair of million tickets per month. In 2017,
Paytm became India's initial payment application to cross over a hundred million application
downloads. The identical year, it launched Paytm Gold. A product that allowed users to shop
for as very little as one rupee of pure gold on-line. It additionally launched the Paytm Payments
Bank and ‘Inbox’, a electronic communication platform with in-chat payments among different
merchandise. By 2018, it started permitting merchants to just accept Paytm, UPI and Card
payments directly into their bank accounts at zero charge. It additionally launched the ‘Paytm
for Business’ app, permitting merchants to trace their payments and every day settlements
instantly. This junction rectifier its merchandiser base to grow to over seven million by March
2018.

MOBIKWIK

Mobikwik is an Indian based electronic commerce company which was established in 2009.It
is also a mobile based payment and digital wallet. In 2013 only they got permission from
reserve bank to function as mobile wallets. In 2016 they started to provide micro loans for
consumers and in same year they launched their lite version of application (mobikwik lite) in
the month of November. They have user base of 55 million users and 1.5 million of merchant
presence in their chain of action.the intreseting story behind this indian application is that this
is a an application which was created by an inidan husband and wife (Bipin Preet Singh and
Upasana Taku). The person behind idea behind was bipin singh who was is a graduate of IIT
Delhi, he imagined an opportunity to upgrade mobile recharging process. Seed capital for the
company was $250 thousand (his own money). Primary service they provided was a closed
website wallet proficiency. Eventually they extended their service range and became an
electronic wallet service providing firm. In 2012 they started working as an e-wallet firm and
within 2014 they added strength to their service range accumulating few new features. As per
surveys in 2017 eighty percentage of India’s mobile wallets services was done by market
leading firms Paytm, mobikwik and ITZ cash. Major competitor for mobikwik is Paytm,
nowadays they are struggling to compete with paytm because of the wide spread network of
paytm. They made partnership with uber in 2015. We can transfer from rupee one to one lakh
Indian rupee at a time, and the maximum number is twenty on one day.
UPI

UPI is another manner by which you can electronically exchange assets or make instalmentss.
Started and actualized by the National Payments Corporation of India (NPCI), UPI will be
founded on the Immediate Payment Services (IMPS) foundation. Right now, advanced mobile
phone utilization in India is pegged at 30 crore and UPI will help tap this potential portion to
get on to computerized keeping money.

 IMPS enables you to promptly exchange cash from a bank/wallet to different records.
 UPI will be an upgraded form of IMPS, where you can send and ask for and get cash.
 Under UPI you will have a solitary character and secret key for utilizing numerous
ledgers.
 It will be essentially for cell phones.

Following are the crucial application in UPI payment industry:

BHIM

BHIM is an application which is developed by NPCI (national payments corporation of India)

by the guidelines from Indian government. In BHIM UPI (unified payment interface) is used
as a platform. It was launched by Indian Prime Minister Narendra modi at Digi Dhan mela in
New Delhi Dec 2016. It support most of the banks which has the accessibility of UPI facility.
The main aim behind this application was to facilitate fast and easy fund transfer between one
bank account to another bank account, and the difference made here was the easiness because
only by a smartphone with internet access anyone than do the head aching asked on their
fingertips. Currently in BHIM there are thirteen languages are there and it is expected that in
future it will be twenty two. In union budget minister arun jaitley said that BHIM has hundred
and twenty five lakh citizens of India, he stated that Indian government will launch two more
strategies to support and promote BHIM application.

Google pay

Google pay (earlier called as Google Tez ) is a mobile payments service provided by Google.
It can be operated on majority of the smartphones that are available in the market. This
application hardly takes a minute to transfer money and all the transaction history is recorded
along with the reason for transfer. Moreover this application may familiar to all those who use
e-wallets, Google launched Tez on Sept 18th 2017 in India. Tez, as the name specifies this
application is the one of the fastest e-payment applications.(Tez is a Hindi word which’s
meaning is “fast”). It is a mobile wallet kind of interface which is based on the Unified Payment
Interface (UPI). UPI is a platform created by the National Payments Corporation of
India(NPCI). It acts like a common chatting application where we can find our contact list and
we can share and receive money. Through this we can see transfer history in an organized way
(like a conversation).

Tez was a great gift from Google to Indian people, the reason why Google first launched it in
India is because of demonetization. Before demonetization India’s digitalization was very low.
After this movement India’s majority of transaction have been done digitally. Millions of bank
accounts opened and major mode of transactions are electronic. RBI became liberal in terms
of licensing of wallets after the success story of government initiative BHIM (Bharat interface
for money), this break the way for e-wallets into Indian market

In Google pay, it is not required to stack money in the application, it help to make payments
through bank account itself, because Google pay works as a different window to one’s bank
account. Here the benefit is we don’t lose money and will get proper bank interest for the un-
used money. It allows us to pay for electricity, gas, water, DTH, post-paid mobile, and more,
just few taps to pay bills. Across the country through Google pay we can pay the bills. Paytm,
Mobikwik, Payumoney, Oxigen, Ola money, SBI money, Itzcash, Ftcash etc… Are charging
transaction charges as , 4%, 2.9%, 3%, 4%, 1%, 0.6%, 0.99% respectively. Where Google pay
is charging 0%. They says that one of the disruptive feature of Tez is that it includes “cash
mode” which we can send money without needing the recipient’s number or QR codes, instead
we can use an audio matching system, But it can’t be considered as disruptive feature earlier
in India itself (approx. 1 year), TONETAG had already done this.

It has launched by fancy reward and referral bonus. Attracting feature was that the reward
earned credited directly to the bank account. If you invite your friend and (s)he uses the
application by your invitation you will get 51 rupees as referral reward. A Scratch Card system
where we can Earn Scratch Cards by just transferring money to others and can win up to rupees
thousand with each transaction and be eligible to win rupee one lakh every week with Lucky
Sundays. But nowadays it seems to be “better luck try next time” in every cards. The reason
for this is google pay earned its popularity among all demography.so they are not give back
reward money as much as earlier.
Shield is the security system which secures the application. It gives 24/7 customer care helpline
for users .Every transactions are secured with the UPI PIN and the app is secured with a Google
PIN or screen lock method such as pattern or fingerprint.

Google went one more step ahead by adding chat facility and is slowly rolling it out to its 13.5
million active users. By the facility Goggle allows customers to not only send money to each
other but also opens up an option for conversing around the transaction. Not all users have yet
got this facility of chatting option since the company is slowly rolling out the product. This
step can be referred as a strategy to compete with e-wallet giant Paytm who launched their
Paytm inbox in November 2017

Initially they were concentrated on peer-to-peer transactions which gave them strong deep-root
in e-wallet market. Now they are slowly moving towards smaller merchants and traders and
they are working on integrated system for larger merchants. Without having specific merchant
features, Google pay is being used by more than five lakhs self-declared merchants for small
payments and trade support.

They are planning to release the application in other emerging countries including Indonesia
Vietnam and Thailand and Smartphones by brands such as Nokia, Micromax, Panasonic, Lava,
and Xolo will appear with Google pay app preloaded and some of these companies Panasonic
for example, will also roll out the app on "most of their existing Android smartphones,

PONEPE

Phonepe is a Bangalore based financial technology company founded in 2015 December.

Phonepe is one of the leading electronic commerce firm in the field of UPI(unified payments
interface). They got licenced in august 2014 and started its operation in December 2015.
Phonepe was taken over by Flipkart in the year 2016 (April), in the same year month od august
they made a tie-up with Yes bank by providing UPI platform to the users of yes bank. They
faced few legal challenges one of them was from ICICI bank, they blocked operation of
phonepe transactions by stating that the guidelines of NPCI is not followed by phonepe, this
incident was happened in the year of 2017(14th January). After five days (19th January) NPCI
asked ICICI to remove the ban of phonepe. Immediately after one day (20th January) Airtel
also hindered transaction of phonepe, NPCI renounced the previous instructions citing the
reason that PhonePe indeed violated the UPI norms. As post action in 2016 (august) phonepe
stoped its activities on flipkart website, and they updated verdict from NPCI by 2017(february)
and later they solved the problem with ICICI
OBJECTIVES OF THE STUDY

1. To know about the effectiveness of UPI and E-wallets in current scenario

2. Comparative advantages of UPI and E-wallets over traditional method
3. To analyse the impact of customer education on usage of digital payment
4. To know what are the various issues and challenges faced by the customers while using
this application.

STATEMENT OF THE PROBLEM

UPI and E-wallets dominate over conventional transaction method. Nevertheless there are
certain security threats associated with it. These include data breach, hacking, etc. Owing to
this some of the users are reluctant to use these applications. Therefore this study helps to
determine how above mentioned scenario affects customers in choosing these applications over
the traditional ones

NEED FOR THE STUDY

Nowadays the importance of UPI and E-wallets are mushrooming day by day, so it is of highly
important in the competitive environment. It is expected that there will be considerable increase
in users in the further coming years. As of now this sector is growing and will be expanding
further.
RESEARCH METHODOLOGY

The study is based on primary data that was collected from 50 respondents from different parts
of central Bangalore. A well-structured questionnaire was designed to collect the information
from the respondents, the questionnaire was designed to study the perception of customer
towards adoption of digital payment mode. Likert five point scales is used for obtaining
responses. Questionnaire are circulated through google forms, as the topic is based on
technology so the respondents are well aware about this form of data collection. Some
responses are collected by means of face-to-face interview, and observation. In this study data
is collected by convenient sampling method, where only the respondents who are using digital
payment system (especially electronic wallets and unified payment interface palliation users)
are included. Descriptive research design is used as it is the most suitable research design for
the respective study.

DATA COLLECTION METHOD

The data will be collected using both by primary data collection method as well as secondary
source.

Primary data

Most of the information will be gathered through Primary source the method that will be used
to collect primary data are

1. Questionnaires.

2. Interviews.

Secondary data

The secondary will be collected through.

1. Websites.

2. Journals.
 CHAPTER 3
TRAINING METHOD AND ACTIVITIES
 There was an orientation class organised by our faculty coordinator for all those
students who were undertaking project, He informed about the where about of project
and what are the guidelines to be followed. And that was mandatory for all the students
to follow the strict guidelines
 We have sought the help of our respective guides whenever we came across confusions.
She gave the idea about what steps to be follow and she guide us in each any every
portion of research study
 Our guide helped use to choose what research is to be conducted and how many samples
are to be considered etc…
 Problem solving skills can be analyse the data that we collected. Variables are marked
on the axis X and Y and the graph is plotted. Basic skills in excel helped me to draw
the graph.
 CHAPTER 4
LEARNING AND OUTCOMES
LEARNING AND OUTCOMES

Based on the topic (“Role of UPI and E-Wallets in Post-Demonetisation Period in Central
Bangalore”) it is helpful to learn following things

 This study help to understand how e-wallet software influencing the customers in
transactions.
 Post demonetisation the UPI and e-wallets have created a huge impact on indain
economy, the study helps to understand what impact it has created on indian
economy.
 The study states that this application and banking reforms can be used by everyone
and education of a person doesn’t have a huge influence on it.
 The study helps to understand whether the third party applications like paytm is
effective or the banking function like UPI is more effective.
 The study helps to understand whether Paytm or UPI got more advantage in
perspective of consumer view.
 CHAPTER5
DATA ANALYSIS AND INTERPRETATION
Table 1: RESPONDENT PROFILE- Gender

No of respondents Percentage
Male 27 54
Female 23 46
50 100

Graph 1: graphical representation of responses

56

54
54

52

50

48

46
46

44

42
Male Female

INTERPRETATION

54% of the respondents were male and 46% were female

Table 2: RESPONDENT PROFILE- Age group of respondents

No of respondents Percentages
18 – 21 6 12
22 – 28 24 48
29 – 35 8 16
36 – 49 7 14
Above 50 5 10
50 100

Graph 2: graphical representation of responses

Above 50 10

36 -49 14

29 - 35 16

22 - 28 48

18 - 21 12

0 10 20 30 40 50 60

INTERPRETATION

48% of respondents were in between 22 and 28 age group, 16% of respondents were in between
29 and 38 age group, 14% of respondents were in between 36 and 49 age group, 12% of
respondents were in between 18 and 21 age group and 10% of respondents were in between
age group of above 50 years
Table 3: RESPONDENT PROFILE- Educational qualification

No of respondents Percentage
Less than PUC 9 18
Graduation 13 26
Post-graduation 28 56
50 100

Graph 3: graphical representation of responses

9
8.2
8

4
3.2
3

2
1.4

0
Less than PUC Graduation Post-graduation

INTERPRETATION

In 50 respondents 28 were fall under the category of post-graduation which means 56% , 13
respondents were graduates which reflects as 26% and 9 were under or equal to PUC which is
18%.
Table 4: RESPONDENT PROFILE- Occupation

No of respondents Percentage
Students 24 48
Business 4 8
Professional 8 16
Housewife 7 14
Self-employed 4 8
Farmer 2 4
Retired 1 2
50 100

Graph 4: graphical representation of responses

60

50 48

40

30

20
16
14

10 8 8
4
2
0
Student Business Professional Housewife Self-employed Farmer Retired

INTERPRETATION

48% of respondents were students, 16% of respondents were professionals, 14% of respondents
were housewives, 8% of respondents were involved in business, 8% of respondents were self-
employed, 4% of respondents were farmers and 2% of respondents were ritired.
Table 5: Do you use digital payment modes?

No of respondents Percentage
Yes 50 100
No 0 0
50 100

Graph 5: graphical representation of responses

120

100
100

80

60

40

20

0
0
yes no

INTERPRETATION

100% of respondents which were collected use digital payments, as the study was conducted
about digital payment system the questionnaire were passed only for those you are using digital
payment.
Table 6: What are the different digital payment modes are you aware of ?

No respondents Percentage
UPI 34 out of 50 68
E-wallets 30 out of 50 60
Net banking 22 out of 50 44
Debit/credit cards 36 out of 50 72
NEFT 4 out of 50 8

Graph 6: graphical representation of responses

72
66
44

68

0 10 20 30 40 50 60 70 80

NEFT Debit/credit card Net banking E-wallets

INTERPRETATION

36 out of 50 respondents are using debit/ credit cards which reflects 72%, 34 out of 50
respondents are using UPI applications which is 68%. 30 out of 50 respondents are using E-
wallets which is 60%, 22 out of 50 respondents are using net banking which is 44% and only
4 out of 50 respondents are using NEFT which is 8%.
Table 7: How many transactions do you use digital modes?

No of respondents Percentage
75% - 100% 13 26
50% - 74% 23 46
25% - 49% 8 16
Less than 25% 6 12
50 100

Graph 7: graphical representation of responses

50
46
45

40

35

30
26
25

20
16
15 12
10

75% -100% 50% - 74% 25% - 49% Less than 25%

INTERPRETATION

46% of respondents replied that they falls under 50% to 74%, 26% of respondents replied that
they falls under 75% to 100%, 16% of respondents falls under 25% to 49% and only 12% of
respondents falls under less than 25%.
Table 8: How often do you use digital payments?

No of respondents Percentage
Once in a month 7 14
Monthly 10 20
Weekly 17 34
Twice a week 6 12
Daily 10 20
50 100

Graph 8: graphical representation of responses

40

35 34

30

25
20 20
20

15 14
12

10

Once in a month Monthly Weekly Twice a week Daily

INTERPRETATION

34% of respondents are using digital payment mode in weekly basis, 20% of respondents are
using digital payment mode in monthly basis, 20% of respondents are using digital payment
mode in daily basis, 14% of respondents are using once in a month and 12% are using in twice
a week.
Table 9: Which all are the E-wallet Supportive apps that you are aware of?

No of counts Percentage
Paytm 47 out of 50 94
Freecharge 10 out of 50 20
Mobikwik 16 out of 50 32
Oxigen wallets 9 out of 50 18
Jio money 9 out of 50 18
out of 50 100

Graph 9: graphical representation of responses

18

18

32

20

94

0 10 20 30 40 50 60 70 80 90 100

Jio money Oxigen Mobiwkik Freecharge Paytm

INTERPRETATION

94% 0f respondents are using Paytm, 32% of respondents are using Mobikwik, 18% of
respondents using Oxigen wallets and 18% of respondents are using Jio money.
Table 10: Rank the factors which influence you to use E-wallets

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Convenience 23 6 8 4 6
Time saving 6 22 7 9 3
Discount / cash back 3 8 25 7 4
Easy tracking of cash 5 11 5 25 1
Cost effectiveness 10 0 2 2 33

Graph 10: graphical representation of responses

35 33

30

25 25
25 23
22

20

15
11
10
10 9
8 8
7 7
6 6 6
5 5
5 4 4
3 3
2 2
1
0
0
Convenience Time savings Discount /cashback Easy transfer Cost effectiveness

rank 1 rank 2 rank 3 rank 4 rank 5

INTERPRETATION

Out of 50 respondents 23 were ranked convenience of e-wallets as rank 1, rank 2 to rank 5 were
6, 8, 4, 6 respectively. Out of 50 respondents 6 ranked time savings as rank 1, rank 2 to rank 5
were 22, 7, 9, 3 respectively. Out of 50 respondents 3 ranked discounts and cash back offers as
rank 1, rank2 to rank 5 were 8, 25, 7, 4 respectively. Out of 50 respondents 5 were ranked easy
transfer as rank 1, rank 2 to rank 5 were 5, 11, 5, 25, 1 respectively. Out of 50 respondents 10
were ranked cost effectiveness as rank 1, rank 2 to rank 5 were 0, 2, 2, 33 respectively.
Table 11: Rate your satisfaction level of using E-wallets?

No of respondents Percentage
Highly satisfied 10 20
Satisfied 27 54
Neutral 12 24
Dissatisfied 1 2
Highly dissatisfied 0 0
50 100

Graph 11: graphical representation of responses

60
54

50

40

30
24
20
20

10

2
0
0
Highly satisfied Satisfied Neutral Dissatisfied Hghly dissatisfied

INTERPRETATION

54% of respondents are satisfied with e wallets, 24% stated as neutral, 20% are falls under
highly satisfied and 2% are dissatisfied.
Table 12: What is the biggest concern for using E-wallets?

No of respondents Percentage
Security 10 20
Poor internet connection 4 8
Additional cost 5 10
Lack of technical knowledge 10 20
Merchant acceptance 12 24
Transaction failure 9 18
50 100

Graph 12: graphical representation of responses

25

20 20
20
18

15

10
10
8

security Poor internet connect Additional cost Lack of technical knowledge Transaction failure

INTERPRETATION

24% of respondents stated that acceptance by merchant is the their concern while using e-
wallets, 20% said lack of technical knowledge is their concern, 20% were concerned about
security, 18% respondent that transaction failures are their concern, Only 8% of respondents
are concerned by poor internet connection.
Table 13: Where do you mostly use E-wallets for?

No of respondents Percentage
Money transfer 7 14
Mobile recharge 11 22
Utility and grocery store 13 26
Payment of bills 4 8
All the above 15 30
50 100

Graph 13: graphical representation of responses

35

30
30
26
25
22

20

15 14

10 8

0
Money transfer Mobile recharge Utility and grocery Payment of bills All the above
store

INTERPRETATION

30% of respondents are using e-wallets for money transfer, mobile recharge, utility and grocery
stores and payment of bills, 26% of respondents are using e-wallets only for utility and grocery
stores, 22% of respondents are using e-wallets only for mobile recharge, 14% of respondents
are using e-wallets only for money transfer and 8% of respondents are using e-wallets for
payments of bills only.
Table 14: Which all are the UPI Supportive apps that you are aware of ?

No of counts Percentage
BHIM 28 out of 50 56
Google pay 38 out of 50 76
Phonepe 25 out of 50 50
Mobikwik 10 out of 50 20
SBI buddy 15 out of 50 15
ICICI pocket 10 out of 50 10

Graph 14: graphical representation of responses

15

20

50

76

56

0 10 20 30 40 50 60 70 80

ICICI Pocket SBI buddy Mobikwik Phonepe Google pay BHIM

INTERPRETATION

76% of respondents are using Google pay, 56% of respondents are using BHIM, 50% of
respondents are using phonepe, 20% of respondengts are using mobikwik, 15% of respondents
are using SBI buddy, 10% of respondents are using ICICI Pocket.
Table 15: Rank the factors which influences you to use UPI?

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Convenience
Cash back offers
Quickness in transaction 6
Merchant acceptance
Cost effectiveness
28 2 8 4 5
3 21 13 7 3
15 20 5 1
2 7 5 28 4
7 2 1 3 34

Graph 15: graphical representation of responses

40

34
35

30 28 28

25
21
20
20
15
15 13

10 8
7 7 7
6
5 5 5
4 4
5 3 3 3
2 2 2
1 1
0
Convenience Cash back offers Quickness in Merchant Cost effectiveness
transaction acceptance

rank 1 rank 2 rank 3 rank 4 rank 5

INTERPRETATION

Out of 50 respondents 28 were ranked convenience of UPI as rank 1, rank 2 to rank 5 were 2,
8, 4, 5 respectively. Out of 50 respondents 3 ranked cash back offers as rank 1, rank 2 to rank
5 were 21, 13, 7, 3 respectively. Out of 50 respondents 6 ranked quickness in transaction as
rank 1, rank2 to rank 5 were 15, 20, 5, 1 respectively. Out of 50 respondents 2 were ranked
merchant acceptance as rank 1, rank 2 to rank 5 were 7, 5, 28, 4 respectively. Out of 50
respondents 7 were ranked cost effectiveness as rank 1, rank 2 to rank 5 were 2, 1, 3, 34
respectively.
Table 16: Rate your satisfaction level of using UPI?

No of respondents Percentage
Highly satisfied 12 24
Satisfied 26 52
Neutral 11 22
Dissatisfied 1 2
Highly dissatisfied 0 0
50 100

Graph 16: graphical representation of responses

60

52
50

40

30
24
22
20

10

2
0
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

INTERPRETATION

52% of respondents are satisfied with UPI , 24% stated as highly satisfied, 22% are falls under
neutral and 2% are dissatisfied.
Table 17: What is the biggest concern for using UPI?

No of respondents Percentage
Security 18 36
Poor internet connection 2 4
Additional cost 1 2
Lack of technical knowledge 8 16
Merchant acceptance 12 24
Transaction failure 9 18
50 100

Graph 17: graphical representation of responses

40
36
35

30

25 24

20 18
16
15

10

5 4
2

0
Security Poor internet Additional cost Lack of technical Merchant Transaction
connection knowledge acceptance failure

INTERPRETATION

36% of respondents stated that security is the their concern while using UPI, 24% said merchant
acceptance is their concern, 18% were concerned about transaction failure, 16% respondent
that lack of technical knowledge is their concern, Only 4% of respondents are concerned by
poor internet connection, only 2% of respondents are concerned with additional cost.
Table 18: Where do you mostly use UPI for?

No of respondents Percentage
Money transfer 21 42
Mobile recharge 1 2
Utility and grocery store 8 16
Payment of bills 10 20
All the above 10 20
50 100

Graph 18: graphical representation of responses

45 42

40

35

30

25
20 20
20
16
15

10

5 2

0
Money transfer Mobile recharge Utility and grocery Payment of bills All the above
store

INTERPRETATION

42% of respondents are using UPI for transferring money, 20% of respondents are using UPI
for paying bills, 20% of respondents are using UPI for transferring money, paying bills, utility
and grocery stores and mobile recharge, 16% of respondents are using UPI for utility and
grocery store and only 2% of respondents are using UPI for mobile recharge.
Table 19: UPI transactions are more secure & reliable than that of other modes?

No of respondents Percentage
Strongly agree 10 20
Agree 27 54
Neutral 12 24
Dis-agree 1 2
Strongly dis-agree 0 0
50 100

Graph 19: graphical representation of responses

60
54

50

40

30
24
20
20

10

2
0

Strongly agree Agree Neutral Dis-agree Strongly dis-agree

INTERPRETATION

54% of respondents agree that UPI is safer than E-wallets, 24% of the respondents stated that
both are same (neutral), only 2% respondents disagree that UPI is secured than e-wallets.
Table 20: Do you find any difference using UPI & E-wallets?

No of respondents Percentage
Yes 22 44
No 28 56
50 100

Graph 20: graphical representation of responses

60
56

50
44

40

30

20

10

0
Yes No

INTERPRETATION

56% of respondents are said that there is difference in UPI and E-wallets. And 44% of
respondents said that there is no difference.
 CHAPTER 6
KEY FINDINGS AND CONCLUSIONS
FINDINGS

 54% of the respondents were male and 46% of respondents were female
 48% of respondents were in between 22 and 28 age group, 16% of respondents were in
between 29 and 38 age group, 14% of respondents were in between 36 and 49 age
group, 12% of respondents were in between 18 and 21 age group and 10% of
respondents were in between age group of above 50 years
 In 50 respondents 28 were fall under the category of post-graduation which means 56%
, 13 respondents were graduates which reflects as 26% and 9 were under or equal to
PUC which is 18%.
 48% of respondents were students, 16% of respondents were professionals, 14% of
respondents were housewives, 8% of respondents were involved in business, 8% of
respondents were self-employed, 4% of respondents were farmers and 2% of
respondents were retired.
 100% of respondents which were collected use digital payments, as the study was
conducted about digital payment system the questionnaire were passed only for those
you are using digital payment.
 36 out of 50 respondents are using debit/ credit cards which reflects 72%, 34 out of 50
respondents are using UPI applications which is 68%. 30 out of 50 respondents are
using E-wallets which is 60%, 22 out of 50 respondents are using net banking which is
44% and only 4 out of 50 respondents are using NEFT which is 8%.
 46% of respondents replied that they falls under 50% to 74%, 26% of respondents
replied that they falls under 75% to 100%, 16% of respondents falls under 25% to 49%
and only 12% of respondents falls under less than 25%.
 34% of respondents are using digital payment mode in weekly basis, 20% of
respondents are using digital payment mode in monthly basis, 20% of respondents are
using digital payment mode in daily basis, 14% of respondents are using once in a
month and 12% are using in twice a week.
 94% 0f respondents are using Paytm, 32% of respondents are using Mobikwik, 18% of
respondents using Oxigen wallets and 18% of respondents are using Jio money.
 Out of 50 respondents 23 were ranked convenience of e-wallets as rank 1, rank 2 to
rank 5 were 6, 8, 4, 6 respectively. Out of 50 respondents 6 ranked time savings as rank
1, rank 2 to rank 5 were 22, 7, 9, 3 respectively. Out of 50 respondents 3 ranked
discounts and cash back offers as rank 1, rank2 to rank 5 were 8, 25, 7, 4 respectively.
 Out of 50 respondents 5 were ranked easy transfer as rank 1, rank 2 to rank 5 were 5,
11, 5, 25, 1 respectively. Out of 50 respondents 10 were ranked cost effectiveness as
rank 1, rank 2 to rank 5 were 0, 2, 2, 33 respectively.
 54% of respondents are satisfied with e wallets, 24% stated as neutral, 20% are falls
under highly satisfied and 2% are dissatisfied.
 24% of respondents stated that acceptance by merchant is the their concern while using
e-wallets, 20% said lack of technical knowledge is their concern, 20% were concerned
about security, 18% respondent that transaction failures are their concern, Only 8% of
respondents are concerned by poor internet connection.
 30% of respondents are using e-wallets for money transfer, mobile recharge, utility
and grocery stores and payment of bills, 26% of respondents are using e-wallets only
for utility and grocery stores, 22% of respondents are using e-wallets only for mobile
recharge, 14% of respondents are using e-wallets only for money transfer and 8% of
respondents are using e-wallets for payments of bills only
 76% of respondents are using Google pay, 56% of respondents are using BHIM, 50%
of respondents are using phonepe, 20% of respondengts are using mobikwik, 15% of
respondents are using SBI buddy, 10% of respondents are using ICICI Pocket.
 Out of 50 respondents 28 were ranked convenience of UPI as rank 1, rank 2 to rank 5
were 2, 8, 4, 5 respectively. Out of 50 respondents 3 ranked cash back offers as rank 1,
rank 2 to rank 5 were 21, 13, 7, 3 respectively. Out of 50 respondents 6 ranked quickness
in transaction as rank 1, rank2 to rank 5 were 15, 20, 5, 1 respectively. Out of 50
respondents 2 were ranked merchant acceptance as rank 1, rank 2 to rank 5 were 7, 5,
28, 4 respectively. Out of 50 respondents 7 were ranked cost effectiveness as rank 1,
rank 2 to rank 5 were 2, 1, 3, 34 respectively.
 52% of respondents are satisfied with UPI , 24% stated as highly satisfied, 22% are
falls under neutral and 2% are dissatisfied
 36% of respondents stated that security is the their concern while using UPI, 24% said
merchant acceptance is their concern, 18% were concerned about transaction failure,
16% respondent that lack of technical knowledge is their concern, Only 4% of
respondents are concerned by poor internet connection, only 2% of respondents are
concerned with additional cost.
 42% of respondents are using UPI for transferring money, 20% of respondents are using
UPI for paying bills, 20% of respondents are using UPI for transferring money, paying
bills, utility and grocery stores and mobile recharge, 16% of respondents are using UPI
 for utility and grocery store and only 2% of respondents are using UPI for mobile
recharge.
 54% of respondents agree that UPI is safer than E-wallets, 24% of the respondents
stated that both are same (neutral), only 2% respondents disagree that UPI is secured
than e-wallets.
 56% of respondents are said that there is difference in UPI and E-wallets. And 44% of
respondents said that there is no difference.
CONCLUSION

Though economy has emerged a lot in the sector of technology people are so fond to use ATM
machines as major mode of transacting funds. Demonetisation was the key factor of that
changed everything, Indian government have taken out smart plan, which made things easy.
They started with demonetising high value notes and they implement digital india policy which
worked out well. The supporting hidden factor to digitalisation was the intervention of Jio in
to telecom sector. In post-demonetisation period e-wallets was in hiking, they emerged in
economy with the help of wide spread usage of smartphones. Starting period e-wallets had high
growth and market share but later this kept on decreasing and UPI application overtook e-
wallets. Advancement of UPI application increase competence which forced e-wallet
applications to enter in to UPI segment as adding UPI feature in their menu.
RECOMMENDATIONS

 On the basis of study 72% of respondents are using debit/ credit facility, that means still
users are so fond of using ATMs and card swiping instruments, this may be because of
the convince in it or may be because of unwillingness to change to new technology or
they are fond of using this kind of modes of transaction
 UPI application has been overtook e-wallets. Asper data what have collected e-wallet
applications are performing lesser than UPI and they have to add few more attractive
features, as UPI acquired market share by introducing cash rewards.
 Most of the respondents are said that they are using 50% to 74% of their transactions
in digital modes, which is a good sign and by little more motivation from government
side and companies side can improve the figure or can uplift it to 80% or more
 Paytm is the mostly used application as e-wallet, so they have to maintain their market
share and other e-wallets are like disappearing from the market they have to come up
with marketing strategies for improve their market share
 Only above half respondents are satisfied with e-wallet application so that all of them
except paytm have to increase their marketing strategy
 Most of the respondents stated that the reason for they are not using is that the
application is not accepted by the merchants where because of tax issues and kyc they
all are less likely to accept money, so e-wallet company has to come with intresting
offers for merchants and other major issue was failure in login or the pplication is been
logged out frequently this is where technical strategy are failing so they have to make
sure these kind of technical issue would not be their .
 Bhim has to come with new features and offers so that thye can compete with google
pay, as google pay is leading in the sector od UPI and phonepe is also became a major
player by their marketing strategies
 Most of the respondents stated that they main issue that they are facing is the technical
knowledge for using UPI application, It is not like they mention the reason is that the
UPI application has to be little more popular and they have to give awareness and spread
the usage as well as the easiness of using it. UPI application’s interface is simpler and
they can be performed by any basic knowledge people so they have to market it properly
 CHAPTER 8

REFERENCE

BOOKS

 India’s readiness for digital economy: cashless economy by Ajit Roy

 Demonetization , digital India and governance by Niranjan Sahoo.
 “Black money and demonetization knocked india out” by Rahul Deodhar

JOURNAL

 “Indian journal of finance volume 11 issue number :5” by Narayanasamy &

Muthulakshmi

WEBSITES

 https://indianexpress.com/article/technology/tech-news-technology/upi-vs-mobile-
wallets-heres-why-everyone-has-got-this-wrong/
 https://www.bankbazaar.com/ifsc/upi-payment-
app.html?ck=Y%2BziX71XnZjIM9ZwEflsyDYlRL7gaN4W0xhuJSr9Iq7aMYwRm2
IPACTQB2XBBtGG&rc=1
 https://www.livemint.com/Money/A1bTvyBsfMmZeNu6oSfozJ/4-reasons-why-UPI-
may-overtake-mobile-wallets-soon.html
 https://yourstory.com/search?q=evolution%20of%20e%20wallets%20and%20upi%20
in%20india
 https://yourstory.com/search?q=upi%20and%20e%20wallets%20eveolution
 https://scholar.google.co.in/scholar?hl=en&as_sdt=0%2C5&q=upi+and+e+wallets+c
omparitive+study&btnG
 http://www.forbesindia.com/article/fintech-supermarket/upi-2.0-bhim-and-the-new-
shape-of-payments/51195/1
 https://www.bluefin.com/bluefin-news/mobile-wallets-united-payments-interface-upi/
 https://www.entrepreneur.com/article/285768
 https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/upi-is-stealing-a-
march-over-mobile-wallets-now/articleshow/66079406.cms