A STUDY ON

CONCERNS AND PREFERENCES IN CASHLESS PAYMENTS

By

Kavin Krishna K N
18MBA095
Rathish Kumar M
18MBA115
Sivadarsini K G
18MBA130

Under the guidance of

Dr. P Nalini
Assistant professor
KCTBS

A PROJECT REPORT
Submitted
In partial fulfilment of the requirements for the award of the
Degree of

MASTER OF BUSINESS ADMINISTRATION

Kumaraguru College of Technology

(An autonomous institution affiliated to Anna University, Chennai)
Coimbatore - 641 049

April 2019
 BONAFIDE CERTIFICATE

Certified that this project report titled “A study on concerns and preferences in
cashless payments ” is for course completion of Research Methodology,
P17BACP201 is the bonafide work of Kavin Krishna K N (18MBA095), Rathish
Kumar M (18MBA115) and Sivadarsini K G (18MBA130) who carried out the project
under my supervision. Certified further, that to the best of my knowledge the work
reported herein does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any other
candidate.

Faculty guide Head of the Department

Dr.P.Nalini Dr. Nedunchezhain V. R
Assistant Professor KCTBS
KCTBS

Hard and Soft copy Submitted for the Project Viva-Voce examination held on

________________

Internal Examiner External Examiner

(Signature with date) (Signature with date)

2
 DECLARATION

I, hereby declare that this Research project report entitled as, “A study on concerns and
preferences in cashless payments” has been undertaken for academic purpose for the course
submitted to Anna University in partial fulfilment of requirement for the award of degree of
Master of Business Administration. The project report is the record of the original work done
by me under the guidance of Dr. P Nalini, Assistant professor, KCT-BS during the academic
year 2019.

I, also declare hereby, that the information given in this report is correct to the best of my
Knowledge and behalf.

Place: Coimbatore Name and Signature

Date: VIVA DATE STUDENTS NAME

3
 ACKNOWLEDGEMENT

I express my sincere and heart-felt gratitude the Management of KCT Business

School, for their prime guidance.

I express my thanks to Dr. Nedunchezhain V. R, Head of the department, KCTBS

for implementing this project and providing under the supervision in its execution. I am

indebted to my Institution and my faculty members without whom this project would have been

a distant

reality.

I also would like to give my sincere thanks to my Project guide, Dr. P Nalini, Assistant
professor, KCTBS, for giving me support and guidance for this project from inception to
closure.

4
 ABSTRACT

We are in the world of evolution, where it all started with barter system, which
then evolved into exchange of money and which is currently evolving into
cashless economy. However, these evolutions had to go through a tough phase
where it could either grow rapidly or be destroyed completely. In the current
world, rapid digitalization is increasing the use of cashless payment methods.
Even though these methods are the latest technology and easier, they have their
own flaws such as security, people’s lack of tech know-how etc… Overcoming
these means, finding the main reasons why people use these systems and services
and as well as the main reasons of why these people don’t use these cashless
payment systems and services. Cashless payment methods like Paytm,
GooglePay, Net Banking etc… are widely used among people all over the place.
Over 130 respondents were selected, and the following results were obtained.

Most of the respondents don’t feel comfortable issuing their personal details to
these 3rd party applications. The occupation and gender of the people does not
have any impact on their preference of these apps. The income and residing area
of the respondents show that they impact their preference towards these online
payment services. Hence it shows how the preference of people towards these
cashless payment apps is dependent on these extern factors.

5
 LIST OF TABLES

Table no Description Page no.

3.1 Reliability statistics 21
4.1 Gender frequency table 22
4.2 Age frequency table 23
4.3 Occupation frequency table 24
4.4 Income frequency table 25
4.5 Residing area frequency table 26
4.6 Usage of payment apps 27
4.7 Concerns in cashless payments 28
4.8 Preferred mode of payment 28
4.9 Information shared online 29
4.10 Reason for preference 30
4.11 Independent value T-Test 31
4.12 Independent value T-Test 32
4.13 ANOVA 33
4.14 ANOVA 34
4.15 Model summary (Regression) 35
4.16 ANOVA 36
4.17 Coefficients 36
4.18 Correlations 38

6
 LIST OF FIGURES

Figure no. Description Page no.

4.1 Gender frequency chart 22
4.2 Age frequency chart 23
4.3 Occupation frequency chart 24
4.4 Income frequency chart 25
4.5 Residing area frequency chart 26

7
 LIST OF ABBREIVATIONS

TAM - Technology acceptance model

RTGS - Real-time gross settlement systems.

NEFT - National Electronic Funds Transfer.

IMPS - Immediate Payment Service.

UPI - Unified Payment Interface.

USSD - Unstructured Supplementary Service Data

8
 TABLE OF CONTENT
CHAPTER CONTENTS PAGE NO
ABSTRACT
LIST OF TABLES
LIST OF FIGURES
LIST OF ABBREVIATIONS
I 1 INTRODUCTION
1.1 About the study 10
1.2 Need for study 11
1.3 Research questions 11
1.4 Objectives of the study 11
1.5 Proposed model 12
1.6 Scope of the study 12
1.7 Limitations 12
II REVIEW OF LITERATURE
III RESEARCH METHADOLOGY
3.1 Introduction 17
3.2 Research design 17
3.3 Tools for data collection 18
3.4 Pilot study 21
IV DATA ANALYSIS
4.1 Introduction 22
4.2 Primary data analysis 22
4.3 Independent T- Test 30
4.4 ANOVA test 33
4.5 regression analysis 35
4.6 Correlation analysis 37
V FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 Findings 39
5.2 Suggestions 40
5.3 Scope for future research 41
5.4 conclusion 41
PLAGIARISM REPORT
BIBLIOGRAPHY 42

9
 A study on concerns and preferences in cashless payments

CHAPTER – I

INTRODUCTION

1.1 ABOUT THE STUDY

A cashless economy describes an economic state whereby financial transactions are not
conducted with money in the form of physical banknotes or coins, but rather through the
transfer of digital information (usually an electronic representation of money) between the
transacting parties. Cashless societies have existed from the time when human society came
into existence, based on barter and other methods of exchange, and cashless transactions have
also become possible in modern times using digital currencies such as bitcoin. Mobile
payment, also referred to as mobile money, mobile money transfer, and mobile wallet,
generally refer to payment services operated under financial regulation and performed
from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a
consumer can use a mobile to pay for a wide range of services and digital or hard goods.
Although the concept of using non-coin-based currency systems has a long history, it is
only recently that the technology to support such systems has become widely available.
While payment systems like cash and credit and debit cards still dominate the
payment landscape, the latest trend among retailers is mobile payment. A mobile payment
app lets you send money from your phone, either to other people or to a payment terminal to
buy something in a store. A mobile wallet is an app that contain your debit and credit card
information so that users can pay for goods and services digitally by using their mobile devices.
The most popular mobile payment apps in 2019 are PayPal, Venmo, Square cash, Zelle, Google
wallet and Facebook messenger. However, in India very few of these apps are used by people.
The highly used payment apps in India are Paytm, Amazon Pay, Google pay, Phonepe,
Mobikwik, Yono by SBI, Citi masterpass, ICICI Pockets and Bhim Axis Pay.

10
1.2 NEED FOR STUDY

There are various types and modes of digital payments include the use of debit/credit cards,
internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI)
service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile
banking, etc. This study mainly focuses on Generation Z (1994-2015) cluster and their
preference towards digital payment systems. This study helps to analyse the satisfaction level
and understand the preference of the latest generation of people. It will also help the payment
app companies to adapt and improvise their user interface and other factors in order to satisfy
the youth customers.

1.3 RESEARCH QUESTIONS

 What is the preference of Public towards online payment applications?

 What are the factors impacting them to use Digital payment apps?

1.4 OBJECTIVES OF THE STUDY

 To identify the major concerns among the users of Cashless payment system
 To understand the preferred mode of cashless transactions
 To find various factors influence in using cash less transaction

1.5 PROPOSED MODEL

Analysing the attitude and preference of people can be done through several aspects such as
interacting and surveying. Interacting with people and surveying using questionnaires and
google forms with college students will help us find out the problems faced by the users while
using these apps.

11
1.6 SCOPE OF THE STUDY

The study gives a detailed view on the preference of people on payment apps. This study will
be useful for the companies developing the payment apps to satisfy the people’s needs. This
will help them to improve marketing and sales promotional to make an awareness of future
products.

1.7 LIMITATIONS

We were provided a few days span of time to collect the data and our presence in college is
also compulsory it has made it difficult for us to collect data. And since our resources are
geographically restricted, our sample is taken only inside Coimbatore and cannot cover other
areas to broaden our research.

12
 CHAPTER – II

REVIEW OF LITERATURE

2.1 Internet banking adoption among mature customers: Early majority or laggards?
(Mattila, Minna, Pento, Tapio Karjaluoto, Heikki)

In this paper, they examined develop clients' Internet banking conduct. Web banking was the
third famous method of instalment among develop clients. Family unit pay and instruction were
found to significantly affect the selection of the Internet as a financial channel, so that more
than 30 percent of rich and accomplished develop guys make e-banking their essential method
of making instalments. Seen trouble in utilizing PCs joined with the absence of individual
administration in e-banking were observed to be the principle obstructions of Internet banking
selection among develop clients. Web banking was likewise observed to be more unbound
among develop clients than bank clients when all is said in done.

The data of this research were collected by means of a questionnaire sent by mail to 3000
individual bank customers in Finland. They survey sample consisted of three consumer
segments (non-users, new users and old users) that differed in terms of internet banking. The
aftereffects of this paper affirm that mature clients are late adopters of web banking. The
performed factor investigation demonstrates four fundamental explanations behind this:
Practical issues in utilizing e-banking, worries about costly start-up, security and absence of
individual administration.

2.2 Service quality evaluation in internet banking: an empirical study in India

(Mohammed Sadique Khan and Siba Sankar Mahapatra)

One of the essential worries of this paper is to recognize the vital parameters influencing the
administration nature of I-banking. To decide the elements of I-banking and their associations
with the general administration quality, a poll study was led. The survey is settle utilizing center
gathering dialog with ten I-banking client and a point by point discourse with the supervisors
of four banks including open part, private segment and remote banks.

13
It is seen that clients are happy with the unwavering quality of the administrations given by the
banks however are not especially happy with the measurement 'Ease of use'. The outcome
demonstrates that the two measurements, viz. 'Protection/Security' and 'fulfilment' are not
contributing fundamentally towards the general administration quality. This is a suggestion that
the clients feel that investors bomb in giving the administrations on these two measurements
tastefully.

2.3 INTERNET BANKING IN INDIA – CONSUMER CONCERNS AND BANK

STRATEGIES. (P.K. Gupta, Jamia Millia Islamia)

The survey includes in major cities of India, instrument being questionnaires filled up from the
consumers and personal interaction, discussions with the front-line executives of online
banking divisions of the major players, particularly their marketing and customer servicing
departments and the banking experts, personal visits at Automated Teller Machine (ATMs),
Point of Sale (POS) counters of major banks.

This paper concludes by saying that Internet banking in India is only at its primitive stage
0dominated by the Indian private and foreign banks. The use of Internet banking is confined to
a few consumer segments. The risks associated with Internet banking are many, which the
banks must model using sophisticated systems and extensive use of technology. The legal
framework as its exits requires an updating to streamline and handle the issues associated with
Internet banking.

2.4 Emerging Trends on Functional Utilization of Mobile Banking in Developed Markets

in Next 3-4 Years (Shripad Ramakant Vaidya)

Versatile Banking would be progressively utilized from "Building client relations, decreasing
expense, accomplishing new income stream" and so forth to that of "interfacing with the new
client fragments, upgrading client connections to improve dependability and lessen wearing
down, make better approaches to produce lead during the time spent prospecting, ongoing
knowledge of bi-directional client experience and so forth." And obviously the mechanical
upset would assume a noteworthy job in days to come.

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2.5 An Empirical Study about the Awareness of Paperless E-Currency Transaction like
E-Wallet Using ICT in the Youth of India (Pawan Kalyani)

Consumers’ intention to use the mode of e-currency in terms of online transaction through
website or mobile devices is largely depend upon the services available to the customers by
banks and mobile service providers their own apps or Internet through the smartphones. If all
the conditions are full filed then the customer is very ease to buy or sell anything with a single
“click” or “touch”.

In India, there are lots of changes in environment, “change” is only truth in this world. It is
advisable to accept and adapt according to it for survival. Modern financial system has gone
through many changes in terms of payment processing system from traditional banking system
to ATM/ Debit card, Credit card online payment, wire transfer, NEFT, RTGS etc. and the latest
feather in the cap is digital wallet or E-wallet, this paper is an effort to explore the awareness
of this new payment processing system in youth.

2.6 Consumer acceptance of online banking: An extension of the technology acceptance

model (Pikkarainen, Tero, Pikkarainen, Kari, Karjaluoto, HeikkiPahnila, Seppo)

It is been proved that online banking channel is the cheapest delivery channel for banking
products. Banks have reduced their branch networks and has raised self-service channels in the
way to save time and effort of the customers. the main reason underlying online banking
acceptance are cost saving and freedom from place.

Traditional banks have been the vanguard of online banking channel development and control
lion’s share of total market. One of the most utilized models in studying information system
acceptance is the technology acceptance model (TAM). Extended the original TAM by
introducing the second generation of the model labelled TAM 2 to explain how subjective
norms and cognitive instrumental processes affect perceived usefulness and intentions.
Development of TRA started in 1950's and the first research concerning TRA was published
in 1967.TRA has proved the prediction and explaining behavior across wide variety of
domains.

15
2.7 A model of trust in online relationship banking: (Mukherjee, Avinandan, Nath,
Prithwiraj)

The new economy has opened up paradigms, structures, and strategies for retail banking
through internet. online banking for customers refers to several types of banking activities
through which bank customers can request information and carry out most retail banking
services such as balance reporting, inter - accounts transfers, bill payments.

Trust in online banking is new and emerging area of interest in the field of management
research. The main variables of online banking are one of the primary contributions of this
research and they are extendibility and applicability. The antecedents of trust in this research
is shared value, communication and opportunities behavior. The consistency in high level
customer concern about privacy is being noted as a trust in online banking. There is a risk of
loss of confidentiality, which is a significant factor in building trust among online customers
in online banking.

2.8 Decision Factors for the Adoption of an Online Payment System by Customers:(He,
Fang Mykytyn, Peter P.)

The online payment system has gained in popularity because vendors and creditors realize its
growing importance as a foundation to improve their information infrastructure and to achieve
“paperless” operating efficiency. possible decision factors including perceived risk, perceived
benefits, vendor’s system features, and customers’ characteristics on the intention to use an
online payment system by customers. It is complemented by the fact that there has been a
growth of 115.5% in internet use between 2000 and 2005. consequently, the online payments
methods have become popular, as it has been increasingly important for financial sectors to
improve their information infrastructure. It also has addressed the electronic payment and or
internet payment made via credit cards or debit cards. Recent empire studies have investigated
the impact of key factors on the customer adoption process of various e-commerce activities
such as consumer shopping, entertainment, and stock trading.

16
 CHAPTER – III

RESEARCH METHODOLOGY

3.1 INTRODUCTION

To study about the users of payment apps and their level of knowledge and awareness about
online payment services, few relevant research papers were selected from the internet and
review of literature was made. With reference to these papers, a questionnaire with the use of
google forms was made and data was collected with it. The data is collected primarily from
college students and validated and with several tests the analysis is done, and results are
interpreted.

3.2 RESEARCH DESIGN

Descriptive research design is used for this research. This method involves observing and
describing the behaviour of a subject without influencing it in any way.

3.2.1 Method of obtaining information

Primary data is collected for the study by sending questionnaires made with google forms via
WhatsApp, Instagram and E-Mail.

3.2.2 Respondents

The respondents for the study are the people who use at least 1 online payment application or
service.

3.2.3 Period of study

The period taken for our study is expected to be 2 months.

3.2.4 Sampling method

Convenience sampling method is used here. A convenience sample is a type of non-probability

sampling method where the sample is taken from a group of people easy to contact or to reach.

17
3.3 TOOLS FOR DATA COLLECTION

Questionnaire.

Concerns

S.No Particulars 1 2 3 4 5
I Why would you adopt a cashless payment system?
1 Convenience
2 Discounts/cashback rewards
3 Easy tracking of spends
4 Shortage of currency notes
II What is your biggest concern around cashless payments
1 Security (risk of identity theft)
2 Poor Internet connectivity
3 Merchant acceptance
4 Costs
5 Lack of tech knowhow

6 The risk of being hacked

III | How often do you change device passwords, PIN of debit/credit cards?
1 Once in 6 months
2 Once in a year
3 Every month
4 Never
IV What can be safely shared when you do cashless
transactions?

1 Aadhaar
2 PAN
3 Bank account number
4 Credit/Debit card number
5 All of these
6 None of these

Preference

V Which digital payment mode suits you?

1 DEBIT / CREDIT CARD

2 RTGS / NEFT
3 IMPS

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4 UPI
5 USSD
6 E-WALLET

VI Most preferred reason for using cashless transactions

a) For buying snacks
b) Paying bills
c) Online shopping
d) Banking purposes
e) Booking movie tickets
f) Mobile recharge
g) Pay insurance premium
h) Booking bus, train or flight tickets

VII What has been your preferred mode of payment?

1 Net Banking
2 Credit /debit card
3 Cash
4 E-wallet/Mobile app
5 Cheque

VIII For high-value transactions, what is your preferred mode of

payment?

Net banking
Credit /debit card
Cash
E-wallet/Mobile app
Cheque

Demographic

1. Have you installed antivirus or malware protection on your phone?

 Yes
 No

2. Do you store card details on your phone or laptop?

 Yes
 No

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 3. Gender

a) Male b) Female

4. Age

a) Below 18 b) 18-23 c)24-29 d) 30 and above

5. Income

a)0 b) 0-10k c)10k-50k d)50k and above

6. Occupation

a) Student b) Employed part-time c) Employed for salary d) Unemployed e) Homemaker

f) Retired

7. Residing area

a) Urban b) Rural c) Semi-urban

Select all the payment apps that you use.

1- Very High 2- High 3- Not used 4- Low 5- Very Low

Particulars 1 2 3 4 5
a) Paytm
b) Google Pay
c) PhonePe
d) Amazon Pay
e) E-wallets like free-charge and mobikwik
f) Official app of your bank
g) Airtel money

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Do you feel comfortable issuing your bank details and personal details to these 3rd part
applications?

a) Yes b) No

Have you ever faced any struggles while using these services? If yes, describe.

_________________________________________________

3.4 PILOT STUDY

A pilot study was made after collecting 20 samples with the research questionnaire.

Table 3.1: Reliability Statistics

Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items

.888 .882 59

Interpretation:

The pilot study is done to analyse the reliability of the tool that we use to collect the data for
our research. Here, reliability statistics table shows that Cronbach’s Alpha is 0.88. Which
means this questionnaire is 88% reliable and hence we can carry on collecting furthermore data
for the research.

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 CHAPTER – 4

DATA ANALYSIS

4.1 Introduction

This chapter intends to accomplish the objectives of the study on concerns and preferences in
cashless payments by analysing the impact of every factors on the concerns and preferences of
the users of cashless payment systems.

4.2 Primary data analysis

The primary objective of this study is to find the concerns and preferences in cashless payment
systems among its users. So, a sample of 130 data was collected randomly from 130 different
people. The data are demographically classified below.

4.2.1 Gender analysis

Since gender had only two categories, it was taken as dummy variable (boy = 1 and
girl = 2). Out of the 130 respondents, 82 were boys (63.07%) and 48 were girls
(36.93%).

Table 4.1: Gender frequency table

Cumulative
Frequency Percent Valid Percent Percent

Valid female 48 36.9 36.9 36.9

Male 82 63.1 63.1 100.0

Total 130 100.0 100.0

22
 Fig 4.1: Gender analysis chart

4.2.2 Age group analysis

The age group had four categories, it was taken as dummy variable (below 18 = 1, 18-23 = 2,
24-29 = 3 and above 30 = 4). Out of the 130 respondents, 121 were 18-23 years old, and 7 were
24-29 years old and 2 were below 18.

Table 4.2: Age frequency table

Cumulative
Frequency Percent Valid Percent Percent

Valid Below 18 2 1.5 1.5 1.5

18-23 121 93.1 93.1 94.6

24-29 7 5.4 5.4 100.0

Total 130 100.0 100.0

23
 Fig 4.2: Age group analysis chart

4.2.3 Occupation analysis

The occupation had four categories, it was taken as dummy variable (Student = 1, Employed
for salary = 2, Employed part-time = 3 and unemployed = 4). Out of the 130 respondents, 115
were students, and 4 were employed part-time and 11 were employed for salary.

Table 4.3: Occupation frequency table

Cumulative
Frequency Percent Valid Percent Percent

Valid student 115 88.5 88.5 88.5

Unemployed 11 8.5 8.5 96.9

employed for salary 4 3.1 3.1 100.0

Total 130 100.0 100.0

24
 Fig 4.3: Occupation analysis chart

4.2.4 Income analysis

The income of the respondents were categorized into 4, it was taken as dummy variable (0 =
1, 0 – 10k = 2, 10k – 50k = 3 and 50k and above = 4). Out of the 130 respondents, 94 were
not earning money, and 21 were below 10k rupees, 13 were earning from 10k – 50k rupees
and 2 were earning above 50k rupees.

Table 4.4: Income frequency table

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 94 72.3 72.3 72.3

0-10k 21 16.2 16.2 88.5

10k-50k 13 10.0 10.0 98.5

50k above 2 1.5 1.5 100.0

Total 130 100.0 100.0

25
 Fig 4.4: Income analysis chart

4.2.5 Residential area analysis

The residential are of three categories, it was taken as dummy variable (Urban = 1, Rural = 2,
Semi-urban = 3). Out of the 130 respondents, 98 are from urban, 16 each from rural and semi
urban.

Table 4.5: Residing Area frequency table

Cumulative
Frequency Percent Valid Percent Percent

Valid Urban 98 75.4 75.4 75.4

Rural 16 12.3 12.3 87.7

Semi-urban 16 12.3 12.3 100.0

Total 130 100.0 100.0

26
 Fig 4.5: Residential area analysis chart

4.2.6 Usage of payment apps

A list of payment apps were given and the respondents used a scale of 1-5 (Very high – Very
low) to expose their level of usage of these apps. The results show that the users highly uses
Google pay, formerly known as Tez and least prefer the official app of their bank.

Table 4.6: Usage of payment apps

N Minimum Maximum Mean

Paytm 130 1 5 3.14

Google Pay 130 1 5 2.48

PhonePe 130 1 5 3.80

Amazon Pay 130 1 5 3.82

E-wallets 130 1 5 4.02

Official App of the Bank 130 1 5 4.04

Airtel Money 130 1 5 3.06

Valid N (listwise) 130

27
4.2.7 Concerns around cashless payments

A list of concerns were given and the respondents used a scale of 1-5 (Very high – Very low)
to relevantly rate the scales. The descriptive statistics shows that the users are highly concerned
about the risk of identity theft and are least concerned about the lack of tech know-how.

Table: 4.7 Concerns around cashless payments

N Minimum Maximum Mean

Security (risk of identity theft) 130 1 5 2.24

Poor internet connectivity 130 1 5 2.58

Merchant acceptance 130 1 5 2.81

Costs 130 1 5 2.92

Lack of tech know-how 130 1 5 3.14

Valid N (listwise) 130

4.2.8 Preferred mode of payment

A list of payment modes were given and the respondents used a scale of 1-5 (Very high – Very
low) to expose their level of usage of these modes of payments. From the descriptive statistics
we understand that Debit/Credit card is highly preferred, and cheques are the least preferred.

Table 4.8: Preferred mode of payment

N Minimum Maximum Mean

Net banking 130 1 5 2.58

Credit/Debit card 130 1 5 1.96

Cash 130 1 5 2.12

E-Wallets/Mobile apps 130 1 5 2.75

Cheque 130 1 5 3.72

Valid N (listwise) 130

28
4.2.9 Information shared online

A list of documents were given and the respondents used a scale of 1-5 (Very high – Very low)
to expose their comfort issuing these information to other 3 rd party applications. We can infer
that people agree that issuing your bank a/c no, aadhar. PAN, Credit or debit card number is
safe.

Table 4.9: Information shared online

N Minimum Maximum Mean

Aadhar 130 1 5 2.81

PAN 130 1 5 2.86

Bank a/c number 130 1 5 2.70

Credit/Debit card number 130 1 5 2.79

All of these 130 1 5 3.13

None of these 130 1 5 3.52

Valid N (listwise) 130

4.2.10 Reason for using cashless transactions

A list of reasons were given and the respondents used a scale of 1-5 (Very high – Very low) to
expose their main reason for using the cashless transaction methods. They highly use it for
online shopping and mobile recharge and least use it for paying insurance and banking
purposes.

29
 Table 4.10: Reason for preference

N Minimum Maximum Mean

For buying snacks 130 1 5 2.97

Paying bills 130 1 5 2.15

Online shopping 130 1 5 2.02

Banking purposes 130 1 5 2.28

Booking movie tickets 130 1 5 2.02

Mobile recharge 130 1 5 2.07

Paying insurance
130 1 5 3.24
premium

Booking bus, train or

130 1 5 2.05
flight tickets.

Valid N (listwise) 130

4.3 Independent sample T-Test

Testing the impact of Mean differences in the impact of Preferences on Adoption, Suitability,
Satisfaction, Security and concerns across the demographic variables.

4.3.1 Testing the difference in finding the impact of Gender on preferred reason of using
cashless transactions.

In the questionnaire, the 2 gender groups and were given dummies for analysis purpose, Female
(1) and Male (2). The constructs used for preferred reason are For buying snacks, Paying bills,
Online shopping, Banking purposes, Booking movie tickets, Mobile recharge, Paying
insurance, premium Booking bus, train or flight tickets.

30
 Table 4.11: Independent sample T-Test

Levene's Test for

Equality of Variances

Mean Std. Error

F Sig. t df Sig. (2-tailed) Difference Difference

For Equal variances assumed 2.547 .113 .296 128 .768 .082 .276
buying
Equal variances not assumed
.288 90.571 .774 .082 .284
snacks

Paying Equal variances assumed 1.934 .167 .417 128 .678 .086 .207
bills .407 91.894 .685 .086 .212
Equal variances not assumed

Online Equal variances assumed .131 .718 -1.380 128 .170 -.289 .209
shoppi
Equal variances not assumed
-1.388 100.132 .168 -.289 .208
ng

Bankin Equal variances assumed 2.975 .087 .352 128 .725 .077 .219
g Equal variances not assumed
purpos .338 86.448 .736 .077 .229
es

Bookin Equal variances assumed .343 .559 .495 128 .622 .108 .218
g
Equal variances not assumed
movie .483 91.165 .630 .108 .223
tickets

Mobile Equal variances assumed 3.294 .072 1.288 128 .200 .287 .223
rechar
Equal variances not assumed
1.243 88.072 .217 .287 .231
ge

Paying Equal variances assumed 3.521 .063 .912 128 .363 .216 .237
insura
Equal variances not assumed
nce
.878 87.486 .382 .216 .246
premiu

Bookin Equal variances assumed 1.367 .244 .773 128 .441 .179 .231
g bus,
Equal variances not assumed
train or

flight .752 90.352 .454 .179 .238

tickets.

31
 Inference:

H0 – Null hypothesis is accepted

Since none of the two tail values are below 0.05, the null hypothesis is accepted. This means
Gender does not affect the reason for preference of cashless transactions of users.

4.3.2 Testing the difference in finding the impact of using antivirus and the highest
concerns in using cashless transactions.

In the questionnaire, the users were grouped into those who use antivirus (1) and those who
don’t use antivirus apps (2). They were tested against the 3 mains concerns Risk of identity
theft, Internet connectivity and risk of being hacked.

Table 4.12: Independent Samples Test

Levene's Test for Equality

of Variances t-test for Equality of Means

95% Confidence Interval

Sig. (2- Mean Std. Error

F Sig. t df tailed) Difference Difference Lower Upper

Security (risk of Equal variances

.335 .564 -1.601 128 .112 -.448 .280 -1.002 .106
identity theft) assumed

Equal variances not

assumed -1.685 34.005 .101 -.448 .266 -.989 .092

Poor internet Equal variances

2.804 .096 -.446 128 .656 -.129 .290 -.702 .444
connectivity assumed

Equal variances not

assumed -.516 38.440 .609 -.129 .250 -.636 .378

The risk of being Equal variances

3.006 .085 -2.697 128 .008 -.748 .277 -1.296 -.199
hacked assumed

Equal variances not

-2.921 35.204 .006 -.748 .256 -1.267 -.228
assumed

32
Inference:

The two tail values of Security (.112) and internet connectivity (.656) are clearly higher than
.05. This shows that the antivirus apps have no relationship between security and internet
connectivity. Which means,

H0 – Null hypothesis is accepted.

However, the two-tail value of the variable, risk of being hacked is 0.008, which is significantly
lower than 0.05. This shows that presence of antivirus does impact the concern of risk of being
hacked among the users. Therefore,

H0 – Null hypothesis is rejected

4.4 ANOVA

4.4.1 Testing the difference in impact of age group on the reason for adopting cashless
payment methods.

In the questionnaire, the age of the users are grouped and given dummies, below 18(1), 18-
23(2), 24-29(3) and above 30(4). The constructs used for reason of adoption are, Convenience,
easy tracking of spends, discounts and cashbacks and shortage of currency notes.

Table 4.13: ANOVA

Sum of
Squares df Mean Square F Sig.
Convenience Between Groups 3.116 2 1.558 1.250 .290

Within Groups 158.276 127 1.246

Total 161.392 129

Discounts/Cashback Between Groups 10.011 2 5.005 3.823 .024
rewards
Within Groups 166.297 127 1.309

Total 176.308 129

Easy tracking of spends Between Groups 1.627 2 .813 .606 .547
Within Groups 170.342 127 1.341

Total 171.969 129

Shortage of currency Between Groups 4.000 2 2.000 1.124 .328
notes
Within Groups 226.031 127 1.780

Total 230.031 129

33
Inference:

The two tail values of convenience (.292), Easy tracking of spends (.547) and Shortage of
currency notes (.328) are clearly higher than .05. This shows that the age of the users has no
relationship between reason for adoption of cashless payments. Which means,

H0 – Null hypothesis is accepted.

However, the two-tail value of the variable, Discounts and cashbacks is 0.024, which is
significantly lower than 0.05. This shows that age does have a relationship with
discounts/cashbacks being a reason for adoption. Therefore,

H0 – Null hypothesis is rejected

4.4.2 Testing the difference in impact of income and suitable mode of cashless payment
method.

In the questionnaire, the income category is divided into 4 main groups and were given
dummies for analysis purpose, 0 (1), 0-10k (2), 10k-50k (3) and above 50k (4). The constructs
used are Debit/ Credit card, RTGS/NEFT, IMPS and UPI.

Table 4.14: ANOVA

Sum of Squares df Mean Square F Sig.

Debit/Credit card Between Groups 5.495 3 1.832 1.461 .229

Within Groups 158.013 126 1.254

Total 163.508 129

RTGS/ NEFT Between Groups 20.203 3 6.734 4.068 .009

Within Groups 208.605 126 1.656

Total 228.808 129

IMPS Between Groups 23.428 3 7.809 4.697 .004

Within Groups 209.465 126 1.662

Total 232.892 129

UPI Between Groups 14.456 3 4.819 2.300 .080

Within Groups 263.921 126 2.095

Total 278.377 129

34
Inference:

The two tail values of Debit/ Credit card (.229) and UPI (.080) are clearly higher than .05. This
shows that the income of the users has no relationship between suitability of Debit/Credit card
and UPI type of transaction. Therefore,

H0 – Null hypothesis is accepted.

However, the two-tail value of the variables, RTGS/NEFT (0.009) and IMPS (0.004), which is
significantly lower than 0.05. This shows that income does have a relationship with suitability
of RTGS/NEFT and IMPS. Therefore,

H0 – Null hypothesis is rejected

4.5 Regression analysis

Keeping the total concerns as dependent variable and all other variables being lack of tech
know-how, security, shortage of currency notes, poor internet connectivity, merchant
acceptance and costs taken from the construct as independent variables, the regression was
performed.

Table 4.15: Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .718a .515 .491 .38049

a. Predictors: (Constant), Lack of tech know-how, Security (risk of

identity theft), Shortage of currency notes, Poor internet connectivity,
Costs, Merchant acceptance

35
 Table 4.16: ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 18.900 6 3.150 21.757 .000a

Residual 17.807 123 .145

Total 36.707 129

a. Predictors: (Constant), Lack of tech know-how, Security (risk of identity theft), Shortage of
currency notes, Poor internet connectivity, Costs, Merchant acceptance

b. Dependent Variable: Total Concerns

Table 4.17: Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 1.509 .126 12.018 .000

Shortage of currency notes .074 .026 .185 2.802 .006

Security (risk of identity theft) .077 .030 .177 2.582 .011

Poor internet connectivity .113 .030 .267 3.732 .000

Merchant acceptance .032 .039 .064 .829 .408

Costs .110 .034 .249 3.280 .001

Lack of tech know-how .077 .033 .176 2.346 .021

a. Dependent Variable: Total Concerns

Interpretation

From the above calculation the alpha value being constant calculates to 1.509 and the beta
values i.e. the independent variable’s values are Shortage of currency notes - .074, Security
(risk of identity theft) - .077, Poor internet connectivity - .113, Merchant acceptance - .032,
Costs - .110 and Lack of tech know-how - .077.

The regression equation, Y = a + bx would be formed by,

Y = Total concerns

a = 1.509 (constant)

36
b1 = Shortage of currency notes - 0.074

b2 = Security (risk of identity theft) - .077

b3 = Poor internet connectivity - .113

b4 =Merchant acceptance - .032

b5 = Costs - .110

b6 = Lack of tech know-how - .077

Xn =

Total concerns = 1.509 + .074x + .077x + .113x + .032x + .110x + .077x

From the above equation and looking into R Square value 51.5% in the Model summary table
it is clear that the independent variables such as Shortage of currency notes, Security (risk of
identity theft), Poor internet connectivity, Merchant acceptance, Costs and Lack of tech know-
how have an impact and influence of 51.5% on the concerns faced by the users of cashless
payment method.

4.6 Correlation analysis

Correlation analysis is done to understand the relation between factors used for measuring
concerns. The factors used here are, Convenience, Discounts/Cashback rewards, shortage of
currency notes and easy tracking of spends.

37
 Table 4.18: Correlations

Discounts/Cash Shortage of Easy tracking of

Convenience back rewards currency notes spends

Convenience Pearson Correlation 1 .537** .149 .593**

Sig. (2-tailed) .000 .091 .000

N 130 130 130 130

Discounts/Cashback Pearson Correlation .537** 1 .296** .528**

rewards Sig. (2-tailed) .000 .001 .000

N 130 130 130 130

Shortage of currency notes Pearson Correlation .149 .296** 1 .339**

Sig. (2-tailed) .091 .001 .000

N 130 130 130 130

Easy tracking of spends Pearson Correlation .593** .528** .339** 1

Sig. (2-tailed) .000 .000 .000

N 130 130 130 130

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation

The correlation table reveals that,

 Convenience and discounts are positively correlated as the Pearson’s value is .537.
They are significantly related to each other as the 2-tail value is less than 0.05. Hence
null hypothesis is rejected.
 Discounts/Cashback rewards and easy tracking of spends are positively correlated as
the Pearson’s value is .528. They are also significantly related as the 2-tail value is less
than 0.05. Hence null hypothesis is rejected.
 Easy tracking of spends and convenience are positively correlated as the Pearson’s
value is .593. They are also significantly related as the 2-tail value is less than .05.
Hence null hypothesis is rejected.

38
 CHAPTER - V

FINDINGS, SUGGESTIONS AND CONCLUTION

5.1 FINDINGS

 From the data collected from the questionnaire, descriptive statistics were performed
and found that the users of cashless transactions highly prefer Google Pay and least
prefer the official bank app.
 The descriptive statistics also revealed that the users of cashless payment services
highly prefer it for Online shopping and prefer it the least for paying insurance premium
and other banking services.

 The users are highly concerned about the risk of theft of personal information and are
least concerned about the lack of technology knowledge. This current generation has
no reason to be outdated.
 The users agree that issuing information like bank a/c no., PAN card details, Aadhar
card details and Credit/Debit card details on the internet is safe.
 The reason for usage of these cashless payment apps does not change based on the
gender of the users.
 The presence of antivirus software in electronic devices does affect the user’s concern
of risk of information theft.
 Discounts/Cashbacks being a reason for adoption of cashless payment services, will
differ based on the age group of the users. Not every person will adopt cashless payment
services for discount/cashbacks. They might have different reasons.
 Income of the users play a vital role in determining the suitability of cashless payment
services. Especially NEFT/RTGS and IMPS.

 The regression analysis shows that the independent variables such as Shortage of
currency notes, Security (risk of identity theft), Poor internet connectivity, Merchant
acceptance, Costs and Lack of tech know-how have an impact and influence of 51.5%
on the concerns faced by the users of cashless payment method.
 The correlation analysis shows that the concerns such as convenience,
discounts/cashbacks, easy tracking of spends and shortage of currency notes.

39
5.2 SUGGESTIONS

 The study shows that users are highly using google pay rather than any other apps. This
helps other apps to higher their standards and compete with google.
 The users highly prefer these payment services for online shopping. It would be better
if other platforms also provided more options for cashless payment transactions.
 The risk of identity theft is a major concern among the users. The online payment
services should use more encryption systems in order to protect the data of the users
from both the ends.
 The lack of technology knowledge is the least concern of the current generation.
However, the banks and other institutions should conduct camps and awareness
programs regarding the use of cashless payments technology which will encourage the
people to use more of these methods.
 Even though the users feel safe issuing information like Bank a/c no., PAN details,
Credit/Debit card details and aadhar in the internet, they must be assured that the
information provide by them will not be exploited.
 The users who installed antivirus software are also concerned about the risk of identity
theft. This is a major concern in mobile phones as there is no good antivirus software
for mobiles.
 Different age groups prefer cashless payment systems for different reasons. These
companies must target all the age groups by providing different types of attractions.
 The major concerns faced by the users of cashless payment methods are merchant
acceptance and security risk. The security risk can be eliminated by improving the
encryption system of the apps, but the merchant acceptance can only be increased by
good marketing.

40
5.3 SCOPE OF FUTURE RESEARCH

The data that was collected for the study is taken only from a age group. For the future study,
data can be collected from all age groups which would give accurate results.

The data was collected only within Coimbatore District, which could be extended to a wider
locality, thus covering a larger population.

This research can be done in a wider geographical location and with a large data which will be
helpful for the companies who own or regulate online payment services. It can be used to
understand their users and improve their applications and services.

5.4 CONCLUSION

Thus, the research has been done with freshly collected data. Several tests were done such as
the T-Test, ANOVA, Regression, Reliability analysis, Frequency analysis and descriptive
statistics. The research questions were clearly answered, and the objectives of the study has
been attained. The preference of cashless payment services depends upon occupation, income,
residing area, reason of usage, availability of cash and few other factors. The major concerns
for the users are, theft of information risk, risk of being hacked, merchant acceptance etc…
The users are more comfortable with new methods such as google pay. The world is moving
towards digitalization and it is wise to adapt with it.

41
PLAGIARISM REPORT

42
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Authors - Mohammed Sadique Khan and Siba Sankar Mahapatra

3. Title - Internet banking in India – consumer concerns and bank strategies.

Authors - P.K. Gupta, Jamia Millia Islamia

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Markets in Next 3-4 Years
Author - Shripad Ramakant Vaidya

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like E-Wallet Using ICT in the Youth of India
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Authors - Mukherjee, Avinandan, Nath, Prithwiraj

8. Title - Decision Factors for the Adoption of an Online Payment System by Customers
Authors - He, Fang Mykytyn, Peter P.

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