A STUDY ON USAGE OF E PAYMENT SYSTEM

AMONG YOUTH WITH REFERENCE TO

VATAKARA TALUK
The Project Work Submitted In Partial Fulfillment of the Requirement for the Award
of B.Com Degree (CUCBCSS) In Finance to the University Of Calicut

SUBMITTED BY

AMBILI .P. V ZKASBCM010

UNDER THE GUIDANCE OF

Mrs. HARITHA P K

(Assistant professor in department of commerce & management studies)

DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

KADATHANAD ARTS AND SCIENCE COLLEGE, VADAKARA
(Affiliated to Calicut University)
April 2021
 KADATHANAD ARTS AND SCIENCE COLLEGE,
VATAKARA
(Affiliated To University of Calicut)

(Kadathanad hills, Mandarathur Post, Vadakara,673105)

CERTIFICATE

This is to certify that the project entitled “A STUDY ON USAGE OF

E-PAYMENT SYSTEM AMONG YOUTH WITH

R EFERENCE TO VATAKARA TALUK” has been submitted
by AMBLI P V (Reg No:ZKASBCM010) in partial fulfilment of
the requirements for the award of B.com degree in finance by University of
Calicut during the academic year 2018 to 2021.

Mrs. HARITHA P. K Asst. Prof: BABITHA K. C

Internal Guide Head of the Department

Submitted for the examination held on: ……………….

External Examiners

1.
2.
 ACKNOWLEDGEMENT

The success of the complete report lies in the hands of any person who have
helped and guided me in completing this my heart is filled with the guidance
for the person who have helped me.
I take this opportunity to express my deep sense of gratitude towards our
Principal Dr. P.C RETHI THAMPATTY and HOD Assistant Professor
BABITHA.K.C for giving me an opportunity and encouragement in doing
my thesis. I would like to thank my guide Mrs. HARITHA P.K whose
guidance has helped me to complete this.
I would like to thank all the respondents who gave our necessary data,
which was helpful for the successful completion of my project. Finally, I
would also like to express my sincere thanks to our family and friends for
their valuable help, co-operation and encouragement for the successful
completion of this report.

Place: AMBILI.P.V
Date : (REG NO. ZKASBCM010)
 DECLARATION

I hereby declare that the project titled “A STUDY ON USAGE

OF E- PAYMENT SYSTEM AMONG YOUTH WITH

REFERENCE TO VATAKARA TALUK” being submitted in
partial fulfilment for the award of degree of commerce, in the
department of commerce Kadathanad arts and science college,
Vadakara under the supervision and guidance of assistant
professor Mrs HARITHA P K, the report has not presented for the
award of any degree or diploma, or other similar title to any other
university.

Place: AMBILI P. V
Date: Reg No: ZKASBCM010
 CONTENTS

CHAPTER CONTENTS PAGE

NO: NO:

1 INTRODUCTION 1-10
2 REVIEW OF LITERATURE 12-16
3 THEORETICAL FREAME WORK 17-29
4 DATA ANALYSIS AND 30-41
INTERPRETATION
5 FINDINGS,SUGGESTIONS AND 42-45
CONCLUSION
APPENDIX AND BIBILOGRAPHY 46-54
 LIST OF TABLES AND CHART

TABLE TITLE PAGE

NO: NO
GENDER OF RESPONDENTS
4.1 31
FREQUENCY ANALYSIS OF
4.2 32
DEMOGRAPHIC VARIABLES
USERS AND NON USERSOF E-PAYMENT
4.3 33
SYSTEM
EPS USERS BASED ON EDUCATIONAL
4.4 34
QUALIFICATION
NO. OF USERS OF E- PAYMENT SYSTEM
4.5 BASED ON INTERNETUSAGE 35

NO. OF USERS OF E- PAYMENT SYSTEM

4.6 BASED ON MONTHLY INCOME 36
THE VARIOUS USES OF E-PAYMENT
4.7 37
SYSTEM AMONG YOUTH
THE MOSTLY USED PURPOSE OF E-
4.8 PAYMENT SYSTEM AMONG YOUTH 38

THE REASON FOR NOTUSING E- PAYMENT

4.9 39
SYSTEM

THE SECURITY PROBLEMS FACED BY E-

4.1 40
PAYMENT USERS

THE LEVEL OF SATISFACTION IN

4.11 USING E-PAYMENTSYSTEM 41
 CHAPTER-1
INTRODUCTION

1
 INTRODUCTION

Ease of purchasing and selling products over the Internet has helped
the growth of electronic commerce and electronic payment services.
Electronic payments are a convenient and efficient way to do financial
transactions. Current e-payment technologies depend on using traditional
methods that are common to no electronic payments. E-payment is a subset
of an e-commerce transaction to include electronic payment for buying and
selling goods or services offered through the Internet. E-payment system
is also called online payment system.

E-payment has given access to various financial platforms like debit

card, credit card, net banking, digital wallets, etc. Cash has become a less
common mode of transaction as the appearance of e-payment has allowed
consumers and buyers with greater convenience, but at the same time it has
raised a doubt or a threat as there has always been increasing issues
regarding the fraud and privacy concern that has been the top fear in the
minds of internet users.

We all have witnessed that the traditional payment modes have been
replaced by various types of e-payments that are quick and efficient. In e-
payment process both buyer and seller uses digital modes to send or receive
money, it is an automatic process where seller and the buyer can avoid
visiting their bank. It eliminates the physical cash that is risky to handle at
times. Today consumers can make payment through electronic modes by

2
using cards and other platforms that are made available through all types
of smart devices. As the availability of the various modes help the
consumer to choose that is suitable or available to them as well.

The electronic payment system has grown increasingly over the last
decades due to the growing spread of Internet based banking and shopping.
As the world advances more with technology development, we can see the
rise of electronic payment systems and payment processing devices. Ever
since the introduction of e-payment in India the banking sector has
witnessed growth like never before. In the case of India the RBI has played
a pivotal role in facilitating e-payments by making it compulsory for banks
to rout high value transactions through Real Time Gross
Settlement(RTGS) and also by introducing NEFT(National Electronic
Funds Transfer) and NECS(National Electronic Clearing services) which
has encouraged individuals and business to switch to electronic methods
of payment.

3
 STATEMENT OF THE PROBLEM

Nowadays young generations are the trend changers, they will show the
way to others. They are now widely using their smart gadgets for making
online payment and showing others, How to use e-payment mechanisms
without losing privacy. So it is important to study the usage of e-payment
system among youth as they are using their knowledge and experience
about e- payment gadgets and working mechanism to spread its use. The
present study is conducted to know about the usage of e-payment system
among youth.

4
 OBJECTIVE OF THE STUDY

 To study the usage of e-payment system among youth

 To find out the awareness and preference of the youth among e-

payment system

 To study the challenges faced by the customers while using e-

payment system

 To identify various factors influencing e-payment system

5
 SCOPE OF THE STUDY
The study is based on the usage of e-payment system among youth
in Vatakara taluk of Calicut district by taking 100 people as sample size.
In the present scenario this study has wide role and scope, because the
number of persons who using e-payment system is growing gradually.

6
 SIGNIFICANCE OF THE STUDY

Enormous research has been done in all over the world on the use of
e-payment system. But a few has been conducted on studying the use of e-
payment system among youth. So our study is to find out how youth use e-
payment system , is there any security problems, different reasons which
made someone for not using it and also to provide the precautions and
safety measures for the better use of e-payment system.

The study seeks to bring into light how youth use e-payment system,
security issues relating to such use and the reason for not using e- payment
system. A short, but thorough study of the use of e-payment system among
youth has been undertaken and presented in the most concise manner for
easy understanding. As we know youth are the backbone of every country,
so conducting a research on youth will be better than anything else.

7
 RESEARCH METHODOLOGY
Research methodology is the expansion and justification of various
methods for conducting throughout the research process for conducting
this study; we have gathered a great deal of information from primary and
secondary sources.

POPULATION

Population refers to 100 persons from the total number youth who
may or may not use e-payment system.

RESEARCH DESIGN

This study is designed as Descriptive in nature.

SOURCES OF DATA

Sources of data means, the place where the data is gathered from
different sources. The source of data for this study was through primary
and secondary sources. Those are as follows;

PRIMARY DATA

Primary data were collected through questionnaires completed by both

male and female in youth who uses e-payment system and those who are
not using e-payment system. A questionnaire approach is considered to be
the most effective method for collecting primary data from the youth
directly for the study.

8
SECONDARY DATA

Secondary data are those data which is collected and gathered by someone
else. This is also called second hand source. Here the secondary data
consist of websites and Lecture books.

SAMPLE DESIGN

In this study purposive sampling method was used for select

respondent in the method of sampling. Sample was selected based on the
purposive of both researcher and respondent.

SAMPLE UNIT
Sample unit of my study is Vatakara Taluk.
SAMPLE TECHNIQUE
Convenience sampling.

SAMPLE SIZE
Sample size is 100 youngsters in Vatakara taluk.

TOOLS FOR DATA COLLECTION

Questionnaire is the main tool for collecting data. Here the
questionnaire is used for the collection of primary data.

TOOLS FOR DATA ANALYSIS

Percentage
analysis Chart
and tables Pie
diagram

9
 LIMITATIONS OF THE STUDY

o The study is limited to small geographical areas.

o The accuracy of the findings is depends upon the data given by the
respondent.

o Personal bias from the part of respondents.

10
 CHAPTERIZATION

Chapter I : Introduction
Chapter II : Review of literature
Chapter III : Theoretical background
Chapter IV : Data analysis and interpretation
Chapter V : Finding, suggestion and conclusion

11
 CHAPTER-2
REVIEW OF LITERATURE

12
 REVIEW OF LITERATURE

A.L HANEY (March 2008):- He conducted a study on “Electronic Payment

System” which is sponsored by Federal Reserve System and published on
March 2008. The objective of his study is to develop a database and report
summary based on the results of a survey of industry sources to determine the
aggregate dollar values for the different payment instruments in the United
States during the year. It includes general purpose credit cards, private label
credit cards, PIN debit cards, signature debit cards, Automated Clearing
House (ACH), Electronic Benefits Transfer (EBT) cards and Emerging
Payment Instruments.

The methodology for identifying organizations contacted for their study

was consistent with the 2001 and 2004 EP studies. Organizations engaged in
the business of originating, switching and processing electronic payment
instruments and remittances were identified based on industry directories and
dove consulting knowledge. As their study focuses on payments made in the
United States in 2006, only unique payment instruments and their final
settlement were counted for the purpose of computing totals. Therefore
organizations were selected on the basis of their ability to monitor transaction
and dollar value data on a non-duplicative counting basis.

The author determined that in 2001 and 2004 most of the emerging
payment types are a new front-end payment method to the consumer, but use
traditional funding and settlement systems behind the scenes. From his study
he found out the changes in use of different e- payment system instrument

13
from the year 2003 to the year 2006. He also found out the growth in the
dollar value of each instrument from 2003 to 2006.

M.H KHAN, MANIK CHANDRA (March 2012):- He conducted a study on

“Secure Payment System for Electronic Transaction”. His study was done to
find out secure way for making electronic payments. In their study, they
discussed some attacks and the important security requirements that payment
system must satisfy to be considered secure system. They review Secure
Payment System for Electronic Transaction. Secure electronic payment
system uses different cryptographic algorithms and techniques to achieve:
privacy, integrity, authentication and non- repudiation.

Secure Electronic Payment Schemes through SSL, SET and secure

communication tunnel have been reviewed in this paper. The security
techniques are used to provide security to the customers. Main advantages of
payment system for internet transaction are: it uses strong cryptography and
authenticity checking models; the merchant is prevented from seeing payment
information. The literature shows that with the security principle for secure
communication channels, a significant level protection provide to unsecure
communication channel.

DELALI K UMAGA (December 2010):- He conducted a study on “The

challenges of implementing Electronic Payment Systems”. His study
investigates the challenges of implementing and using electronic payments.
In addition, it also attempts to assess the degree of card based payment
system. The primary objective of his thesis is to investigate and increase
awareness of

14
current challenges of implementing and using electronic payments. This also
seeks to evaluate or measure the degree or level of usage of e-payments.

In his study, it revealed that security is not an issue for e-zwitch but
may be an issue for debit cards which use PIN for authentication. The
challenges as discussed in his study can be categorized into four main groups
i.e. security, infrastructure, legal and regulatory issues as well as socio-
cultural issues. Another major finding revealed that several initiatives have
been taken to reduce the unbanked population using e-switch especially in
rural areas where the unbanked are mainly located.

DENNIS ABRAZHEVICH (2004):- He conducted a study on “Electronic

Payment System”. The objective of his study is to assist in the creation and
improvement of electronic payment system based on user- centered approach
and human computer interaction, rather than suggesting how to position,
market, and promote EPS as commercial products. His research seeks not
only design solutions, but also how to provide a scientific foundation for such
solutions. His research aims to define the ways in which user acceptance and
consequently, the success of new EPS can be improved. In his research, it
suggests that there are lots of factors that determine the success or failure of
payment systems, and not all of them are of a technical nature.

In his research important aspects of electronic payment systems have

been identified. It is clear that the current state of online EPSs is far from ideal
and that there are problems that can affect user acceptance of EPS. Another
important observation is that it makes little sense to focus on payment
mediation services, because they are trying to compensate for problems that

15
should be resolved in the existing payment systems. His research justifies the
relevance and importance for user acceptance of the characteristics of EPS. It
was not aimed to model the decision process of users, but to identify which
factors affect user acceptance of EPSs and to use this knowledge to inform
design of EPS.

16
 CHAPTER-3

THEORETICAL FRAMEWORK

17
 HISTORY OF ELECTRONIC PAYMENTSYSTEM

Despite Western Union‟s revolutionary ETF the method

of transferring money electronically remained unchanged for close to sixty
years. Then, in 1918, the Federal Reserve of America began transferring
money via telegraph. The next years saw the advent of charge cards and
credit accounts.

In 1950 Diner‟s Club International became the first independent

credit company, followed by American Express in 1958. A year later
American Expressed introduced the first card made of plastic.

With the advancement of technology, banks and consumers became

more reliant on computers to conduct transactions. Electronic transfers
were happening in such huge numbers that in 1972 the Automated Clearing
House (ACH) was developed to process large volumes of transactions in
batches. Two years later, NACHA established operating rules for ACH
payments.

ELECTRONIC PAYMENT SYSTEM

Electronic payment system is a way of paying for a goods or services

electronically, instead of using cash or a check, in person or by mail.
Today, many users make payments electronically rather than in person.
Hundreds of electronic payment systems have been developed to provide
secure Internet transactions. Electronic payment systems are generally
classified into four categories: credit card and debit cards; electronic cash;
micropayment

18
systems; and session-level protocols for secure communications. A secure
electronic financial transaction has to meet the four requirements: ensure
that communications are private; verify that the communications have not
been changed in transmission; ensure that the client and server are who
each claims to be; and ensure that the data to be transferred was, in fact,
generated by the signed author. To meet these objectives, every electronic
payment system developed depends on some type of encryption and/or
utilization of digital certificates. Using an encryption algorithm, the
plaintext (also known as the original text) is changed into cipher text,
which is decrypted by the receiver and transformed into clear-text. The
encryption algorithm utilizes a key, a binary number often ranging in
length from 40 to 128 bits. After being encrypted, the information is
considered to be coded and therefore “locked.” The recipient uses another
key to “unlock” the coded information, restoring it to its original binary
form. Electronic payments involve a payer and a payee. A payer (buyer or
customer), is an entity who makes a payment. A payee (seller or merchant),
is an entity who receives a payment. The main purpose of an electronic
payment protocols is to transfer monetary value from the payer to the
payee. The process also involves a financial institution (bank or mint).

Fig: Electronic Payment System

19
 PHASES IN E-PAYMENTSYSTEM

An electronic payment system involves the following phases:

Registration

This phase involves the registration of the payer and the payee with
the issuer and acquirer respectively. Most electronic payments designed
require registration of payers and payees with their corresponding banks so
there is a link between their identities and their accounts held at the bank.
Invoicing In this phase, the payee obtains an invoice for payment from the
payee. This is accomplished by either browsing and selecting products for
purchase from the merchant‟s (payee‟s) website in case of purchases made
through the internet or obtaining an electronic invoice using other
electronic communication medium like e-mail. This phase typically is
performed in an unsecured environment and normally excluded while
designing payment protocols. The importance of this phase is that, it sets
the mandatory and optional data variables that should be included in a
payment protocol.

Payment

Selection and processing: In this phase the payer selects type of

payment, (card based, e-cash, e-cheque etc.,) based on the type of payment
the payee accepts. Based on the selection, the payer then sends the relevant
payment details like account number, unique identifiers of the payer to the
payee along with accepted amount based on the invoice. Certain protocols
might also require the payer to obtain preauthorized token (like bank
drafts)

20
from the issuer before the payer sending the payment information to the
payee.

Payment Authorization And Confirmation

In this phase, the acquirer on receiving payment details from the

payee authorizes the payment and issues a receipt containing the success
or failure of the payment to the payee. The payee based on the message
may also issue a receipt of payment to the payer.

21
 ADVANTAGES OF E-PAYMENTSYSTEM

E-payments have several advantages, which were never available

through the traditional modes of payment. Some of the most important are:
Convenience

Perhaps the greatest advantage of e-payments is the convenience.

Individuals can pay their bills and make purchases at unconventional
locations 24 hours a day, 7 days a week, and 365 days a year. There is no
waiting for a merchant or business to open. Vacationers and others away
from home need not worry that they forgot to drop off the payment for the
utilities or mail the check for their credit card bill. They can simply pull up
their account online and pay their bills on the road.

Less in time
E-payments have reduced the amount of time spent on bill
management or payment by about 60%. This has given busy individuals
more time to spend doing those things they enjoy.
Day Sales Outstanding (DSO) Improvements
For suppliers, an electronic payment system can immediately
improve DSO numbers by allowing them to electronically receive and
process payments from commercial customers.

Processing Cost Reduction

A feature-rich electronic payment system lowers associate process time by

automatically initiating and processing payments.

22
Minimize Overdue Payments
Best-in-class electronic payment system accelerates credit and
collections by giving customers, collections groups and internal customer
service department‟s greater visibility into payment status.
Simplify Dispute Management
With an electronic payment system, companies enjoy improved data
accuracy and automated disbursement, receipt and payment processing to
streamline vendor dispute management.
Increased Compliance
An electronic payment system makes it easier to track and monitor data to
ensure adherence to complex compliance regulations and all business
rules. Enhanced Security
An electronic payment system is highly secure, safeguarding
cardholder data and preventing payment fraud better than paper-based
payments can achieve.
Improved Workflow Efficiencies

Increased automation is a key feature of a robust electronic payment

system, enabling less reliance on time-consuming and costly manual
business processes.

Greater Visibility into Financial Supply Chain

With access to reports and comprehensive corporate financial
history, an electronic payment system gives management and other
authorized users easy access to snapshots and detailed reports to improve
decision-making and process efficiency.

23
 RISKS IN E-PAYMENTSYSTEM

Electronic payment is a popular method of making payments

globally. It involves sending money from bank to bank instantly regardless
of the distance involved. Such payment systems use Internet technology,
where information is relayed through networked computers from one bank
to another. Electronic payment systems are popular because of their
convenience. However, they also may pose serious risks to consumers and
financial institution. It includes the following:

Tax Evasion
Businesses are required by law to provide records of their financial
transactions to the government so that their tax compliance can be verified.

Electronic payment however can frustrate the efforts of tax collection.

Unless a business discloses the various electronic payments it has made or
received over the tax period, the government may not know the truth,
which could cause tax evasion.
Fraud
Electronic payment systems are prone to fraud. The payment is done
usually after keying in a password and sometimes answering security
questions. There is no way of verifying the true identity of the maker of the
transaction. As long as the password and security questions are correct, the
system assumes you are the right person. If this information falls into the
possession of fraudsters, then they can defraud you of your money.

24
Impulse Buying

Electronic payment systems encourage impulse buying, especially online.

You are likely to make a decision to purchase an item you find on sale
online, even though you had not planned to buy it, just because it will cost
you just a click to buy it through your credit card. Impulse buying leads to
disorganized budgets and is one of the disadvantages of electronic payment
systems.

Payment Conflict

Payment conflicts often arise because the payments are not done
manually but by an automated system that can cause errors. This is
especially common when payment is done on a regular basis to many
recipients. If you do not check your pay slip at the end of every pay period,
for instance, then you might end up with a conflict due to these technical
glitches, or anomalies.

25
 PRECAUTIONS FOR SAFER USE OF E-
PAYMENT SYSTEM

The internet is a scary place. Like the real world, it‟s full of malice,
deceit and people looking to make a fast buck. But unlike the real world,
criminals can run their operations from the safety and anonymity of a
keyboard. Like spiders waiting for flies to their webs, there people out there
waiting for you to enter your credit card information into false and insecure
payment forms. Don‟t fall victim to their schemes!

Believe it or not, it‟s actually relatively easy to guard yourself

against many online scams. As long as you take a few simple precautions,
you can help avoid attacks from most fraudsters. The following are the
precaution measures for the safer use of e-payment system.

Use credit, not debit

The first rule of keeping your payments safe is to always use a credit
card. They come with better consumer protections against fraud, and your
liability‟s capped at $50. Many cards also have zero-liability policies,
so you‟re even better protected.

Debit cards aren‟t quite as comprehensive, and depending on when

you report the card missing, you could be on the hook for the entire
amount. Stick to credit. If you have doubts about a transaction, you can
even use a

26
one-time use credit card to generate a random card number linked to your
actual account. This will make it harder for criminals to steal information.
Check for the „s‟ When it‟s time to enter your information, make sure the
page‟s address starts with https:// rather than http://. The extra “s” indicates
the site uses an encryption system to scramble your information. The “s”
doesn‟t necessarily guarantee the transaction is 100% safe, but it‟s a fast and
easy check that can give you another layer of confidence.

Don‟t shop in public

This should be obvious. Don‟t conduct online transactions in public

places. Websites often save login information, and you don‟t want
to accidentally leave your accounts open for the next person who hops on
the computer. Even if you‟re good about always logging out, it is possible
for hackers to install key logger information to record your keystrokes.
That will give them your usernames, passwords, credit card numbers and
personal information.

Using your own personal laptop or tablet? You‟re still not safe.
A good hacker can snag your information using the public Wi-Fi. Make
your online shopping only from your own computer (or that of a trusted
friend) with a private Wi-Fi connection. If you tend to make transactions
in public places, consider getting a VPN.

27
Never give out your social

You never need to give out your social security number to make a simple
purchase. Don‟t do it. If a website seems to be asking for more information
than is normal, leave immediately and don‟t look back.
Check for a seal
Again, this isn‟t a perfect guarantee of a flawless security system, but it
can help you feel better about your purchase. Most legitimate websites will
carry some sort of seal of approval from an organization like McAfee, the
Better Business Bureau, VeriSign or TRUST. This lets consumers know
someone has taken the time to verify the trustworthiness of the vendor. Of
course, these seals can be faked, but if there is no seal at all, you may want
to reconsider entering your information.

„12345‟ is not a good password

A strong password is essential. You should always have a mix of numbers

and letters, both uppercase and lowercase characters and at least one
symbol like @ or %. Don‟t use obvious words like your name, your social
security number or the word “password.” Make it unique and custom and
don‟t use the same password for multiple accounts. If someone figures out
one of your passwords, you don‟t want them to have instant access to
everything.

28
Trust your instinct

If a website seems shady, don‟t use it. You‟ll probably be safe on

websites like Amazon and BestBuy.com. You can usually trust big names.
Smaller, lesser-known website should be treated with suspicion. If a site
looks outdated or poorly designed, proceed with caution. If you receive an
email with a link to a website, never shop directly through that link–even
if it is a big, well-known company. Instead, navigate to the site through
your web browser. You can go directly to the site if you know the address
or bring it up on Google if you don‟t. This will help you avoid clicking
through to fraud lent links.

29
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

30
 Table 4.1

TABLE SHOWING GENDER OF RESPONDENTS

Gender No. of respondents Percentage

Male 65 65

Female 35 35

Total 100 100

Graph 4.1

GRAPH SHOWING GENDER OF RESPONDENTS

65

35

MALE FEMALE

INTERPRETATION

The above graph shows that out of 100 respondents 65 are males
and 35 are females.

31
 Table No: 4.2
TABLE SHOWING FREQUENCY ANALYSIS OF DEMOGRAPHIC
VARIABLES

Variables Category Frequency Percentage

Gender Male 65 65
Female 35 35
20-22 35 35
23-25 23 23
Age 26-28 26 26
29-30 16 16
Up to SSLC 3 3
Plus Two 32 32
Educational
Degree and above 65 65
Level
Student 37 37
Employees 16 16
Occupation Business 28 28
Housewife 16 16
Others 3 3

Graph No: 4.2

GRAPH SHOWING FREQUENCY ANALYSIS OF

DEMOGRAPHIC VARIABLES
Percentage
70
60
50
40
30
20
10
0
Others
Female

Up to SSLC

Business
20-22

23-25

26-28

29-30

Plus Two
Male

Degree and above

Student

Housewife
Employees

Gender Age Educational Level Occupation

INTERPRETATION
The above table shows that about 65% of respondents are male and
35% of them are female. Among them most of them belongs to the age
group of 20-22, which includes about 65% degree and above qualified
respondents.
32
 Table No: 4.3
TABLE SHOWING USERS AND NON-USERS OF E-PAYMENT
SYSTEM BASED ON GENDER

Gender No. of No. of Percentage No. Non Percenta

Users of users of ge
respondents EPS
EPS

Male 65 53 82 12 18

Female 35 19 54 16 46

Graph No: 4.3

GRAPH SHOWING USERS AND NON-USERS OF E-PAYMENT

SYSTEM BASED ON GENDER

Male
Female

NTERPRETATION

The above graph shows that out of 65 male respondents 53 were using
e- payment system. It means 82% of males are using e-payment system. On
the other hand out of 35 female respondents only 19 are using e-payment
system. It means only 54% of females are using e-payment system.

33
 Table No: 4.4

TABLE SHOWING EPS USERS BASED ON

EDUCATIONAL QUALIFICATION

Educational No. of users percentage

qualification

SSLC 1 1

Plus Two 20 28

Degree and above 51 71

Graph No: 4.4

GRAPH SHOWING EPS USERS BASED ON EDUCATIONAL

QUALIFICATION

80

70

60

50

40

30

20

10

0
SSLC Plus Two Degree and above

No. of users percentage

I NTERPRETATION

The above diagram shows that only about 1% of respondents with

educational qualification of SSLC are using EPS while 28% of plus two
and 71 % of degree and above people are using e-payment system.

34
 Table: 4.5

TABLE SHOWING NO.OF USERS OF E-PAYMENT SYSTEM

BASED ON INTERNET USAGE

Internet usage No. of EPS users Percentage

Less than 1 hour 13 18
1-3 hour 31 43
3-5 hour 16 22
5 and above 12 17
Graph: 4.5

GRAPH SHOWING NO.OF USERS OF E-PAYMENT SYSTEM

BASED ON INTERNET USAGE

Percentage
50
45
40
35
30
25
20
15
10
5
0
Less than 1 hour 1-3 hour 3-5 hour 5 and above

NTERPRETATION

The above graph reveals the users of e-payment system in relation to

internet usage. It shows that the percentage of e-payment users is
increasing in accordance to their internet usage time.

35
 Table No: 4.6

TABLE SHOWING OF USERS OF E-PAYMENT SYSTEM BASED

ON MONTHLY INCOME

Monthly income No. of EPS Percentage

users
Less than 15000 34 47
15000-30000 17 24
30000-50000 13 18
Above 50000 8 11
Total 72 100

Graph No: 4.6

GRAPH SHOWING NO.OF USERS OF E-PAYMENT SYSTEM

BASED ON MONTHLY INCOME

Percentage

50
45
40
35
30
25
20
15
10
5
0
Less than 15000 15000-30000 30000-50000 Above 50000

I NTERPRETATION

From the above it can be inferred that people with high income are using
e- payment system more than that of people with low income.

36
 Table No: 4.7
TABLE SHOWING THE VARIOUS USES OF E-PAYMENT
SYSTEM AMONG YOUTH
Various uses No. users Percentage
Online shopping 42 58
Air ticketing 6 8
Railway
10 14
ticketing
Business
9 13
transactions
All of the above 4 6
others 1 1
Total 72 100

Graph No: 4.7

GRAPH SHOWING THE VARIOUS USES OF E-PAYMENT

SYSTEM AMONG YOUTH

70
60
50
40
30
20
10 No. of users
Percentage

I NTERPRETATION

From the above graph it is found that about 58% youth are using E-
payment system for online shopping, 8% of them are using it for air
ticketing purposes, 14 % of them for railway ticketing, 13% of them for
business and about 6% of them are using it for all of the purposes.

37
 Table No: 4.8

TABLE SHOWING THE MOSTLY USED PURPOSE OF E-

PAYMENT SYSTEM AMONG YOUTH

various uses of EPS No. EPS Users Percentage

Online shopping 32 44
Air ticketing 4 6
Railway ticketing 13 18
Business transactions 21 29
Others 2 3
Total 72 100

Diagram No: 4.8

GRAPH SHOWING THE MOSTLY USED PURPOSE OF E-

PAYMENT SYSTEM AMONG YOUTH

120

100

80

60

40

20

0
Online Air ticketing Railway Business Others Total
shopping ticketing transactions

No. EPS Users Percentage

I NTERPRETATION

From the above it is clear that a majority of E-payment users are using it
for online shopping ,after that most of them using it for business then for
railway ticketing and a few of them were using it for air ticketing.

38
 Table No: 4.9

TABLE SHOWING THE REASON FOR NOT USING E- PAYMENT

SYSTEM

Various reasons Frequency Percentage

Internet illiteracy 11 39
Lack of accessibility 5 18
Security problem 11 39
others 1 4
Total 28 100

Graph No: 4.9

GRAPH SHOWING THE REASON FOR NOT USING E-

PAYMENT SYSTEM

45
40
35
30
25
20
15
10
5
0
Internet illiteracy Lack of accessibility Security problem others

Frequency Percentage

INTERPRETATION

From the above it is found that internet illiteracy and security issues in e-
payment system are the main reason for not using e-payment system.
Lack of accessibility is also another important reason for not using e-
payment system.
39
 Table No: 4.10

TABLE SHOWING THE SECURITY PROBLEMS FACED BY E-

PAYMENT USERS

Pesos Value Percentage

No. of users faced security problems 70 97

No. of users not faced security problems 2 3

Diagram No: 4.10

PIE DIAGRAM SHOWING THE SECURITY PROBLEMS FACED

BY E-PAYMENT USERS

No. of users
faced security
problems
No. of users not
used security
problems

INTERPRETATION

From the above it is found that only about 97% of EPS users are faced by
any security problems while the remaining 3% of them are not faced any
such security problems.
40
 Table No: 4.11

TABLE SHOWING THE LEVEL OF SATISFACTION IN USING E-

PAYMENT SYSTEM

Level of satisfaction Frequency Percentage

Not at all satisfied 0 0
Slightly satisfied 6 8
Moderately satisfied 21 29
Very satisfied 32 44
Extremely satisfied 13 19
Total 72 100

Graph No: 4.11

GRAPH SHOWING THE LEVEL OF SATISFACTION IN USING

E- PAYMENT SYSTEM

45
40
35
30
25
20
15
10
5
0
Not at all Slightly Moderately Very satisfied Extremely
satisfied satisfied satisfied satisfied

Frequency Percentage

INTERPRETATION

The graphical representation of clustered cylinder shows that out of 72

respondents, 8% of them are slightly satisfied, 29% are moderately
satisfied, 44% are very satisfied and 19% are extremely satisfied.

41
 CHAPTER-5
FINDINGS, SUGGESTIONS AND
CONCLUSION

42
 FINDINGS
 About 72% of youth are using e-payment system
 Majority of the male respondents make use of e-payment system as
compared to female respondents.
 Internet illiteracy, lack of accessibility and security issues are the
main reason for the non-use of e-payment system.
 Majority of EPS users are the daily users of internet.
 Youth uses e-payment system mainly for shopping, air ticketing,
railway ticketing and for business transactions.
 Majority of the youth uses e-payment system for online shopping,
after that they uses it for business purpose and then slightly for
railway ticketing and air ticketing
 Respondents having high income uses e-payment system more than
that of people with less income.
 People who have high educational qualification use e-payment
system more than people who have less educational qualification.
 Students use e-payment system mainly for online shopping.
 Majority of respondents face internet illiteracy on using e payment
system but only above 29% of them facing lack of accessibility
while using it.
 EPS users receive a number of benefits such as time saving,
convenience, and reduction in cost and provide high speed for
making payments.
 Through this study it is found that 8% of EPS users are slightly
satisfied, 29% of them are moderately satisfied, 44% of them are
very satisfied and the remaining 19% were extremely satisfied with
the e- payment system.

43
 SUGGESTIONS

 Give awareness programs to those people who all are illiterate on

e- payment system.

 Promote e-payment system in between less income and low

educated people to motivate them to use its benefits.

 Ensure the security issues while using e-payment system to

improve its circulation among youth.

 Advertise the benefits of the e-payment system among govt.

sectors to increase the value of its facility.

 Make sure the availability of the electronic devices which is

capable to do the e-payment system among youth.

44
 CONCLUSION
Based on the research, it is concluded that about 72% of youth use
e- payment system and the remaining 28% are not using e-payment system
due to lack of accessibility, Internet illiteracy and due to some other
security issues. Majority of the youth uses e-payment system for online
shopping, after that they use it for business purposes and then slightly for
railway ticketing and air ticketing. Respondents having high income uses
e-payment system more than that of people with less income. There is a
high positive correlation between educational qualification and number of
EPS users.

Hence we can say that e-payment system provide a number of

benefits over traditional payment methods such as time saving,
convenience, reduction in cost and provide high speed for making
payments. Thus most of its users are highly satisfied with it.

45
APPENDIX AND BIBLIOGRAPHY

46
 BIBLIOGRAPHY

WEBSITES

o https://www.rbi.org.in

o https://securionpay.com/blog/e-payment-system/

o https://www.wikipedia.edu

o https://www.google.com

BOOKS

 Dr. Venugopalan and Dr. Abdul Assis Koroth : Banking

and Insurance

 Donal O‟Mahony , Hiesh Tewari and Michael Peirce :

Electronic Payment Systems

47
 APPENDIX
QUESTIONNAIRE

“A Study On Usage Of E-Payment System Among Youth

With Reference To Vatakara Taluk”
Dear respondent,

This questionnaire aimed A Study On Usage Of E-Payment System

Among Youth With Reference To Vatakara Taluk. Your response will be
deal with strict confidentiality and it will be used only for academic
purpose. Thank you for spending your valuable time to fill this
questionnaire.

Name:

Gender: Male ☐ Female ☐

Age:
a) 20 to 22☐
b) 23 to 25☐
c) 26 to 28☐
d) 29 to 30☐

Educational

qualification

a) SSLC ☐
b) Plus two ☐
c) Degree and above ☐

Occupation
a) Student ☐
b) Employee ☐

48
 c) Business ☐
d) Housewife ☐
e) Other ☐

Average monthly
income
a) Less than 15000 ☐
b) 15000 to 30000☐
c) 30000 to 50000☐
d) Above 50000 ☐

1. Do you use e-payment system?

Yes ☐ No☐

2. If yes, how often do you use e-payment system?

a) Daily ☐
b) Weakly ☐
c) Monthly ☐
d) Yearly ☐
e) Frequently ☐
f) Rarely ☐

3. For what purpose do you use the e-payment system?

a) Online shopping ☐
b) Air ticketing ☐

49
 c) Railway ticketing ☐
d) Business transactions ☐
e) All of the above ☐
f) Others ☐

4. Are you satisfied by using e-payment system?

a) Not at all satisfied ☐
b) Slightly satisfied ☐
c) Moderately satisfied ☐
d) Very satisfied ☐
e) Extremely satisfied ☐

5. What are your reasons for choosing e-payment system?

a) Convenience ☐
b) Low service charge ☐
c) Saves time ☐
d) 24 hours accessibility ☐
e) Others ☐

6. Do you think that using e-payment system makes your life easier?

Yes. ☐ No☐

7. Which type of e-payment system do you use more often?

a) Credit card ☐

50
 b) Debit card ☐
c) Smart card ☐
d) Electronic cheque ☐
e) Electronic cash ☐

8. What are the security measures that could secure you against various
kinds of e-payment attack?
a) Self awareness in security ☐
b) Installing anti-virus software ☐
c) Limiting online activities ☐
d) User education ☐
e) I don‟t know ☐

9. Do you believe e-payment are better than traditional methods of

payment?

Yes ☐ No ☐

10. Will you suggest e-payment services?

Yes ☐ No ☐

11. What are the benefit you get while using e payment system?

a) Time saving ☐

b) Convenience ☐

51
 c) Reduction in Cost ☐

d) High speed for making payment ☐

12. If you never used the e-payment system what are the main reason?
a) Internet illiteracy ☐
b) Lack of accessibility☐
c) Security problem ☐
d) Others ☐

13. What are the major problem that you face while using e-payment
system?
a) No problems☐
b) Don‟t trust the bank security☐
c) Don‟t have a secure computer ☐
d) Finding the technology difficult ☐
e) Doesn‟t provide all services ☐
f) Others☐

14. what are the main disadvantages of visiting a bank branch?

a) No disadvantages ☐
b) Distance ☐
c) Opening time☐
d) Quality of service ☐
e) Dealing with people ☐

52
 f) Waiting ☐
g) Other ☐

15. Do you use any security protection installed on your phone or

computer?
a) Anti-virus software ☐
b) Firewall application ☐
c) Adware☐
d) Yes, but I‟m not sure what type of security protection ☐
e) None ☐

16. Do you have internet facility at your residence?

Yes ☐ No ☐

17. How often do you access the internet for e-payment usage?
a) Less than 1 hour ☐
b) 1-3 hour☐
c) 3-5 hour☐
d) 5 and above ☐

18. What are the main disadvantages of visiting a bank branch?

a) Distance☐
b) Opening time ☐
c) Quality of service ☐
d) Dealing with people ☐

53
 e) Waiting ☐
f) Others ☐

19. Do you check monthly statement provided by e-payment

service provider?
Yes ☐ No☐

54