Project Report on

A STUDY ON “CONSUMER PREFERENCE ON THE USAGE OF DIGITAL

PAYMENTS”

GITAM INSTITUTE OF MANAGEMENT

GITAM UNIVERSITY
(Established U/S of UGC Act, 1956)
VISAKHAPATNAM (2019-2020)

Submitted by MBA (IBF) Students:

Sravya Adibhatla -121924101012

P.Srikar-1219124101009

S.Sai Samanth-121924101011
 G.Pavani-121924101004

Under The Guidance of Course Director-

Dr.R.Venkateswarlu
Professor
ABSTRACT:
The consumer perception towards e-payment has a significant and positive impact on adoption of
digital wallets . ( to be continued)

INTRODUCTION:
The Digital India programme is a flagship programme of the Government of India with a vision
to transform India into a digitally empowered society and knowledge economy. “Faceless,
Paperless, Cashless” is one of professed role of Digital India. However, digital payments are not
one instrument but rather an umbrella term applied to a range of different instruments used in
different ways. Electronic pre-paid payment system, mobile-first used in purchasing items on-
line with a computer or a smartphone at a store. An individual's account is required to be linked
to the digital wallet to load money in it.

The definition of an electronic payment system is a way of paying for goods or services
electronically, instead of using cash or a cheque, in person or by mail. An example of
an electronic payment system is Google Pay. An example of an electronic payment system is the
use of a credit card.

OBJECTIVES:

a). To study the frequency of digital payments used within the selected sample

b) To assess the consumer preference towards the digital payments

c) To find out if gender has any impact on the use of digital payments

d) To analyse the comforitiblity level of security difference among genders.

Research Methodology:

This study has been carried out on E-Payment System. Data used in this study is collected
basically from primary sources. Primary data is collected through survey method sending it
across via google links to a sample size of 102 .They are selected by using convenience sampling
technique. An exhaustive questionnaire will be structured to gather as much primary information
as possible and hence, the most common form of research, descriptive research will be used.
Likert five point scales were used for obtaining responses.

Research Design : In this survey we have taken parameters like Paytm, Phonepe credit cards
Googlepay and digital wallets as the independent variables and convenience sampling is used as
it is a non-probability sampling that involves the sample being drawn from that part of
population that is close to hand.
Sample Design: The method of convenience sampling has been used to collect the data from the
respondents. Non random sampling technique has been chosen for the research.

Sample Size: The sample size is 102.

Sampling unit: This call is for defining the target population to be surveyed. In this research the
sampling unit was mainly students and employees who have been using the digital payment
modes.

Sampling procedure: We adopted survey method for collection of primary data, as it is not
possible to take appointment from a large number of respondents or visit them personally.
Purpose of this research was told to respondents and questions were explained to them in case
there was any need for understanding any particular question. There was no personal bias or
distortions while recording the responses.

Statistical Tools Employed: The research and statistical tools employed in this study were CHI-
Square, Crosstab functions,One variable and Independent variable T-Test and frequency analysis.
SPSS 22 was used to perform statistical analysis. Frequency analysis is the main factor under this
study which indicates how frequently these digital payments are used by the respondents. Also
how comfortable are the respondents with the security of the digital payment has been tested.
Frequency analysis

In this analysis we tested the frequency levels with respect to the education of the respondents
within the sample. 58.7% of these respondents are post graduates, 37.5% are under graduate
students, and only 5% of the respondents combine Intermediate and 10th grade students.

The next selected analysis was between the gender, where 65.4% of the sample size were males
who use digital payments and 33.7% are females.0.9%. Also belong to other genders whose uses
payment systems.
 The above graph specifies the most commonly used payment method.45.2% of the total
sample uses Googlepay, other 26% uses phonepay,19.2% uses paytm and credit cards and digital
wallets are used by a very low percentage.

The analysis shows for payment of which services do they use online payments most frequently.
The survey shows that 70.9% of the sample uses online payments for online shopping, 13.6% use
online wallets for electricity bill payments, 12.6% pay online for transportation. The remaining
percentage pay for DTH services.
CROSS TABS It is an SPSS procedure that cross-tabulates two variables, thus displaying
their relationship in tabular form. In contrast to Frequencies, which summarizes information
about one variable, Crosstabs generates information about bivariate relationships.
Crosstabs creates a table that contains a cell for every combination of categories in the two
variables.

Gender * Which payment method you prefer to use Crosstabulation

Count

Which payment method you prefer to use

Credit card Digital wallets google pay paytm phonepay Total

Gender 0 3 1 15 7 7 33

1 4 1 32 11 20 68

Total 7 2 47 18 27 101

This table is with respect to the gender where a comparison was made between the mode of
payment and the gender.

This tables indicates 47 people out of 101 use Google pay among which 32 are male and the
other 15 are females.

This table also indicates that out 102 sample size 68 respondents are males and the other 33 are
females who are using online payments.
Gender * How comfortable are you with the security issues of above payment
services Crosstabulation
Count

How comfortable are you with the security issues of above payment

services

1 2 3 Total

Gender 0 0 6 27 33

1 2 6 60 68

Total 2 12 87 101

The above table confirms how comfortable each gender is with the security of digital payments.
In this table:
Gender column is reflected as:
0 defines females
1 defines males.
Services column is reflected as:
1 defines (1-2) which is graded as not satisfied on the likert scale.
2 defines (3) which is graded as satisfied on the likert scale.
3 defines (4-5) which is graded as high satisfied on the likert scale.
Within the sample of 101:

68 are males among which only 2 are not comfortable with the security level, 6 are moderately
comfortable and the other 60 are highly comfortable with the security.

33 are female respondents out of which none are uncomfortable with the security, whereas 6 of
the respondents are moderately comfortable and the other 27 highly satisified with the security of
digital payment apps.
Chi-Square Test: The Chi-Square Test of Independence determines whether there is an
association between categorical variables (i.e., whether the variables are independent or related).
It is a nonparametric test. This test is also known as: Chi-Square Test of Association. This test
utilizes a contingency table to analyze the data. The Chi-Square Test of Independence is
commonly used to test the following. Statistical independence or association between two or
more categorical variables.

Chi-Square Tests
Asymptotic

Value df Significance (2-sided)

Pearson Chi-Square 2.715a 2 .257

Likelihood Ratio 3.225 2 .199

Linear-by-Linear Association .154 1 .695

N of Valid Cases 101

a. 3 cells (50.0%) have expected count less than 5. The minimum expected count is .65.

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

The convenience of using the above 102 3.93 1.180 .117

payment methods [Google pay]

The convenience of using the above 102 3.79 1.155 .114

payment methods [phone pay]

The convenience of using the above 102 3.58 1.138 .113

payment methods [paytm]

The convenience of using the above 102 3.46 1.208 .120

payment methods [Digital wallets]

The convenience of using the above 102 3.32 1.321 .131

payment methods [Credit cards ]

One-Sample Test
Test Value = 3

95% Confidence

Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower

The convenience of using the above 7.975 101 .000 .931 .70

payment methods [Google pay]

The convenience of using the above 6.945 101 .000 .794 .57

payment methods [phone pay]

The convenience of using the above 5.132 101 .000 .578 .35

payment methods [paytm]

The convenience of using the above 3.853 101 .000 .461 .22

payment methods [Digital wallets]

The convenience of using the above 2.473 101 .015 .324 .06

payment methods [Credit cards ]

One-Sample Test
Test Value = 3

95% Confidence Interval of the Difference

Upper

The convenience of using the above payment methods [Google pay] 1.16

The convenience of using the above payment methods [phone pay] 1.02

The convenience of using the above payment methods [paytm] .80

The convenience of using the above payment methods [Digital wallets] .70

The convenience of using the above payment methods [Credit cards ] .58

Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
The convenience of using the above Female 33 3.82 1.074 .187

payment methods [Google pay] Male 68 3.97 1.233 .150

The convenience of using the above Female 33 3.61 1.088 .189

payment methods [phone pay] Male 68 3.87 1.183 .143

The convenience of using the above Female 33 3.67 1.137 .198

payment methods [paytm] Male 68 3.51 1.139 .138

The convenience of using the above Female 33 3.48 1.253 .218

payment methods [Digital wallets] Male 68 3.43 1.188 .144

The convenience of using the above Female 33 3.39 1.171 .204

payment methods [Credit cards ] Male 68 3.26 1.389 .168

Independent Samples Test

t-test for

Equality of

Levene's Test for Equality of Variances Means

F Sig. t

The convenience of using the above Equal variances assumed .058 .810 -.607

payment methods [Google pay] Equal variances not assumed -.637

The convenience of using the above Equal variances assumed .009 .924 -1.069

payment methods [phone pay] Equal variances not assumed -1.101

The convenience of using the above Equal variances assumed .001 .974 .629

payment methods [paytm] Equal variances not assumed .630

The convenience of using the above Equal variances assumed .220 .640 .227

payment methods [Digital wallets] Equal variances not assumed .223

The convenience of using the above Equal variances assumed 2.047 .156 .461

payment methods [Credit cards ] Equal variances not assumed .489

Independent Samples Test

t-test for Equality of Means

df Sig. (2-tailed) Mean Difference

The convenience of using the above Equal variances assumed 99 .546 -.152

payment methods [Google pay] Equal variances not assumed 71.994 .526 -.152

The convenience of using the above Equal variances assumed 99 .288 -.262

payment methods [phone pay] Equal variances not assumed 68.501 .275 -.262

The convenience of using the above Equal variances assumed 99 .531 .152

payment methods [paytm] Equal variances not assumed 63.604 .531 .152

The convenience of using the above Equal variances assumed 99 .821 .058
payment methods [Digital wallets] Equal variances not assumed 60.529 .824 .058

The convenience of using the above Equal variances assumed 99 .646 .129

payment methods [Credit cards ] Equal variances not assumed 74.108 .626 .129

Independent Samples Test

t-test for Equality of Means

95% Confidence Interval of the Difference

Std. Error Difference Lower Upper

The convenience of using the above Equal variances assumed .251 -.651 .346

payment methods [Google pay] Equal variances not assumed .239 -.630 .325

The convenience of using the above Equal variances assumed .245 -.747 .224

payment methods [phone pay] Equal variances not assumed .238 -.736 .213

The convenience of using the above Equal variances assumed .242 -.327 .631

payment methods [paytm] Equal variances not assumed .241 -.330 .634

The convenience of using the above Equal variances assumed .257 -.451 .568

payment methods [Digital wallets] Equal variances not assumed .261 -.464 .581

The convenience of using the above Equal variances assumed .281 -.427 .686

payment methods [Credit cards ] Equal variances not assumed .264 -.398 .656