FINAL PROJECT
FINAL PROJECT
FINAL PROJECT
SUBMITTED BY
CERTIFICATE
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
Place: AMBILI P. V
Date: Reg No: ZKASBCM010
CONTENTS
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
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.
We all have witnessed that the traditional payment modes have been
replaced by various types of e-payments that are quick and efficient.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
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
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
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
SAMPLE UNIT
Sample unit of my study is Vatakara Taluk.
SAMPLE TECHNIQUE
Convenience sampling.
SAMPLE SIZE
Sample size is 100 youngsters in Vatakara taluk.
9
LIMITATIONS OF THE STUDY
o The accuracy of the findings is depends upon the data given by the
respondent.
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
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.
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.
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
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).
19
PHASES IN E-PAYMENTSYSTEM
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
20
from the issuer before the payer sending the payment information to the
payee.
21
ADVANTAGES OF E-PAYMENTSYSTEM
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.
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
23
RISKS IN E-PAYMENTSYSTEM
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.
24
Impulse Buying
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!
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.
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.
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.
28
Trust your instinct
29
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
30
Table 4.1
Male 65 65
Female 35 35
Graph 4.1
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
Up to SSLC
Business
20-22
23-25
26-28
29-30
Plus Two
Male
Student
Housewife
Employees
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
Male 65 53 82 12 18
Female 35 19 54 16 46
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
SSLC 1 1
Plus Two 20 28
80
70
60
50
40
30
20
10
0
SSLC Plus Two Degree and above
I NTERPRETATION
34
Table: 4.5
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
35
Table No: 4.6
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
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
120
100
80
60
40
20
0
Online Air ticketing Railway Business Others Total
shopping ticketing transactions
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
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
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
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
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
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.
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
47
APPENDIX
QUESTIONNAIRE
Name:
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 ☐
Yes ☐ No☐
49
c) Railway ticketing ☐
d) Business transactions ☐
e) All of the above ☐
f) Others ☐
6. Do you think that using e-payment system makes your life easier?
Yes. ☐ No☐
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 ☐
Yes ☐ No ☐
Yes ☐ No ☐
11. What are the benefit you get while using e payment system?
a) Time saving ☐
b) Convenience ☐
51
c) Reduction in Cost ☐
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☐
52
f) Waiting ☐
g) Other ☐
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 ☐
53
e) Waiting ☐
f) Others ☐
54