A Study on Cashless Society – with Reference to Usage of Paytm Services in Chennai City

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A Study on Cashless Society – with Reference to Usage of Paytm Services in Chennai City

Dr. E. Nirupama1

1Associate Professor

PG Department of Commerce

M.O.P Vaishnav College for Women (Autonomous), Chennai

Abstract: Things around us have changed drastically with technological advances.The form required for the payment system also needs to change, forcing the system to go digital, with e-commerce and online purchases. Man's comfort and comfort are provided by technology. The market of mobile payment services is currently undergoing a transition with many tried and tested solutions and a prospect of promising and yet uncertain prospects with potential innovations in technologies. The digital or e-wallet refers to an electronic payment system based on the Internet, which stores both financial and personal information. Such electronic payment systems enable customers to use integrated hardware and software systems to pay for goods and services and transfer money to others online. In contrast to credit cards, preloaded money is e-wallets. It's more like a debit card, therefore. The Indian government's three innovation strategies include: make in India, start-up India and skills India. Paytm was one idea which emerged as a replacement for cash. It is well ahead of other online payment wallets in India, growing to be the most popular mobile e-wallet and commerce platform, achieving a cost-effective and efficient balance. The main purpose of this research is to give insights about Paytm gateway along with the services offered by Paytm. It also tries to shed some light on Paytm's preferences and problems among users.

Key Words: Technology, Innovations, E-Wallets, Online Payment, Paytm

  1. INTRODUCTION:

    Things around us have changed dramaticall with advances in technology. The form required for the payment system, also required for changing, will be digitalized when electronic commerce and online purchases occur. Technology provides the convenience and comfort of man. Mobile commuting services market is in transition, with a history of several tried and failed solutions and a future with potential new technological innovations that are promising but still uncertain. Electronic or digital wallet (electronic wallet) refers to an electronic payment system based on the internet that stores financial value and personal information. These electronic payment systems enable a customer to pay online for goods and services by means of integrated hardware and software, including transferring funds to others. In contrast to credit cards, pre- charged money is the E-wallet. This is more like a debit card, therefore. Make in India, Start-up India, and Skill India are three of the Indian government's innovation strategies. Paytm was one such idea that arose as a substitute for cash transactions. It is well ahead of other online payment wallets in India,growing to be the most popular mobile e-wallet and commerce platform, achieving

    a cost-effective and efficient balance.The main purpose of this research is to give insights about Paytm gateway along with the services offered by Paytm. It also tries to shed some light on Paytm's preferences and problems among users.

  2. LITERATURE REVIEW:

    DS Soegoto & MP Tampubolon (2020) in their research work,E-wallet as a payment Instrument in the millennial era explained that E – wallet does have a role in the public transaction activities lately due to the effectiveness and efficiency of transaction and the security services provided to them. It is said thattheroleofE- walletasafastandsecurepaymentsolutionisrightontargettothe public.

    In their study 'E-wallet determinants for the payment of transaction payment between university students' Kustono, Alwansri, Nanggala and Iman (2020) had stated that their perceived usefulness had a positive effect on their attitude with respect to using the e-wallet app. It shows that the quality of the E-wallet application does not affect the perceived usefulness and that the e- wallet suppliers benefit from increasing the use of E-wallet.

    In their research article "E-Wallet Impact for Current Generation" Kolandaisamy, Raenu& Subramanian (2020) states that e-wallet has an incredible impact on the current generation because of the convenience or the payments of this busy age, but most clients prefer cash in hand because they think that cash in hand is more secure than e-wallets. Cash in hand is more secure. Current generation.

    Rajeshwari M (2018) studied that Paytm is one of the best mechanical advances of this century and that it is a major contributor to the digitalisation of India. The study also concluded that Paytm is an Indian demonetization solution. In daily living, it is important to reduce the burden of work and facilitate work.

    Abhijit M Tadse (2017) concluded that Paytm supports its customers in making it easier for them to transfer payments using their mobile phones. Compared to other mechanical devices, Paytm makes downloading easier. The study has shown that 70% of people have a payment gateway problem so that the Paytm services are better able to meet the requirements of the maximum number of customers.

  3. OBJECTIVES OF THE STUDY:

    • To Identify Paytm services offered

    • To assess the level of user satisfaction with respect to Paytm services

    • To understand the problems faced in Paytm

  4. METHODOLOGY:

    The study is based on basic data collected using a structured questionnaire. Responses were collected based on the convenient Sampling Methodology from 100 respondents in Chennai. A range of articles, magazines and website have collected secondary data. For the analysis of the data statistical tools were used, such as percentage analysis.

  5. DATA ANALYSIS:

    Table-1a: Demographic Profile of Paytm Users

    Particulars

    No.

    %

    Particulars

    No.

    %

    Age

    Income

    Below 18 Yrs

    14

    14

    Below 10,000

    29

    29

    18 30 Yrs

    54

    54

    10,000

    20,000

    16

    16

    31 50 Yrs

    24

    24

    20,000

    30,000

    18

    18

    51 65 Yrs

    8

    8

    Above 30,000

    37

    37

    Source: Computed

    Table-1b: Demographic Profile & Satisfaction Level of Paytm Users

    Particulars

    No.

    %

    Particulars

    No.

    %

    Occupation

    Gender

    Student

    30

    30

    Male

    50

    50

    Salaried

    32

    32

    Female

    50

    50

    Business

    18

    18

    Satisfaction Level

    No.

    %

    Home Maker

    10

    10

    Highly Satisfied

    16

    16

    Retired

    10

    10

    Satisfied

    39

    39

    Usage Frequency

    Neutral

    33

    33

    Once

    22

    22

    Dissatisfied

    8

    8

    Twice

    24

    24

    Highly Dissatisfied

    4

    4

    Thrice

    17

    17

    More

    37

    37

    Source: Computed

    Table-2: Services Preferred & Products Purchased inPayt

    Services Preferred in Paytm

    Products Purchased

    Services

    No.

    %

    Products

    No.

    %

    Mobile Recharge

    14

    14

    Grocery

    24

    24

    Movie Tickets

    7

    7

    Mobiles

    8

    8

    Utility Bills

    15

    15

    Cosmetics

    14

    14

    Booking Tickets

    11

    11

    Electronics

    13

    13

    Shopping

    18

    18

    Home Appliances

    13

    13

    Money Transfer

    16

    16

    Toys & Kids Fashion

    5

    5

    Other Services

    8

    8

    Others

    23

    23

    DTH

    11

    11

    Source: Computed

    Table-3: Problems Faced by Paytm Users

    Descriptive Statistics

    Problems Faced

    N

    Min

    Max

    Mean

    Std. Dev

    Lack of Security

    100

    1

    5

    3.22

    1.124

    Long Procedure

    100

    1

    5

    3.43

    0.977

    Non-availability of International Transactions

    100

    1

    5

    3.29

    0.977

    Poor Net Connectivity

    100

    1

    5

    3.25

    1.058

    Lack of Technical Know how

    100

    1

    5

    2.94

    1.135

    Delay in Time

    100

    1

    5

    2.89

    1.100

    Disclosure of Persona Information

    100

    1

    5

    3.00

    1.163

    Hacking Risks

    100

    1

    5

    2.97

    1.132

    Valid N (Listwise)

    100

    Source: Computed

    The problems faced by the users of Paytm are measured on a five point scale. The above table depicts the various types of problems faced by users at all levels. From the above table it is identified that Delay in Time, Hacking Risks and Lack of Technical Know-how are the least faced problems by the users, whereas Poor internet connectivity, Non-availability of International transactions, Long procedures are the problems frequently faced by the users. Security aspects need to be taken care to induce more customers to use Paytm.

    Table-4: Level of Satisfaction of Users towards Services Offered by Paytm

    Table-5: Correlation

    Descriptive Statistics

    Services Offered

    N

    Min

    Max

    Mean

    Std.

    Deviation

    Goods Delivered on Time

    10

    0

    1

    5

    3.80

    0.953

    After Sales Service

    10

    0

    1

    5

    3.60

    0.974

    Tracking Information

    10

    0

    1

    5

    3.58

    1.065

    Easy Exchange Offers

    10

    0

    1

    5

    3.83

    0.933

    Proper Package

    10

    0

    1

    5

    3.60

    0.853

    Discount Offer

    10

    0

    1

    5

    3.34

    0.997

    Cash Back

    10

    0

    1

    5

    3.18

    1.114

    Valid N (List wise)

    10

    0

    Source: Computed

    The above table exhibits the level of satisfaction on a five point scale of various services offered by Paytm. From the above table it can be inferred that users are highly satisfied with timely delivery of goods and easy exchange offers, while their level of satisfaction is less with regard to cash back services and discount offers.

    Table-5: Correlation

    P 1

    P 2

    P 3

    P4

    P 5

    P 6

    P 7

    P 8

    S 1

    S 2

    S 3

    S 4

    S 5

    S 6

    P 1

    P.C

    or

    1

    .400**

    .235*

    0.157

    .216*

    .355*

    *

    .395*

    *

    .537*

    *

    0.013

    0.084

    -0.057

    0.05

    1

    -0.116

    0.02

    3

    Sig. 2 (t)

    0.000

    0.018

    0.118

    0.03

    1

    0.00

    0

    0.00

    0

    0.00

    0

    0.896

    0.405

    0.572

    0.61

    7

    0.250

    0.82

    3

    N

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    P 2

    P.C

    or

    1

    .439**

    .472**

    .351*

    *

    .373*

    *

    .336*

    *

    .286*

    *

    0.147

    .203*

    0.182

    0.07

    5

    -0.029

    0.02

    5

    Sig. 2 (t)

    0.000

    0.000

    0.00

    0

    0.00

    0

    0.00

    1

    0.00

    4

    0.143

    0.043

    0.069

    0.45

    7

    0.778

    0.80

    7

    N

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    P 3

    P.C

    or

    1

    .427**

    .398*

    *

    .266*

    *

    .349*

    *

    0.16

    3

    0.041

    0.099

    0.112

    0.17

    7

    .283**

    0.10

    5

    Sig. 2 (t)

    0.000

    0.00

    0

    0.00

    7

    0.00

    0

    0.10

    5

    0.684

    0.327

    0.265

    0.07

    8

    0.004

    0.29

    8

    N

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    P 4

    P.C

    or

    1

    .475*

    *

    .304*

    *

    .250*

    .251*

    .220*

    0.074

    0.186

    0.14

    6

    0.139

    .244*

    Sig. 2 (t)

    0.00

    0

    0.00

    2

    0.01

    2

    0.01

    2

    0.028

    0.463

    0.064

    0.14

    8

    0.168

    0.01

    4

    N

    100

    100

    100

    100

    100

    100

    100

    100

    100

    100

    P 5

    P.C

    or

    1

    .459*

    *

    .423*

    *

    .211*

    0.101

    0.152

    0.060

    0.09

    0

    -0.079

    0.04

    5

    Sig. 2 (t)

    0.00

    0

    0.00

    0

    0.03

    5

    0.319

    0.130

    0.552

    0.37

    5

    0.432

    0.65

    7

    N

    100

    100

    100

    100

    100

    100

    100

    100

    100

    P 6

    P.C

    or

    1

    .545*

    *

    .552*

    *

    0.046

    0.065

    0.027

    – 0.07

    1

    -0.114

    0.00

    9

    Sig. 2 (t)

    0.00

    0

    0.00

    0

    0.653

    0.519

    0.792

    0.48

    1

    0.258

    0.93

    1

    N

    100

    100

    100

    100

    100

    100

    100

    100

    P 7

    P.C

    or

    1

    .362*

    *

    -0.060

    .198*

    0.090

    – 0.10

    1

    0.107

    0.19

    1

    Sig. 2 (t)

    0.00

    0

    0.555

    0.048

    0.371

    0.31

    6

    0.291

    0.05

    7

    N

    100

    100

    100

    100

    100

    100

    100

    P 8

    P.C

    or

    1

    -0.052

    0.062

    -0.176

    0.07

    1

    -0.036

    0.09

    9

    Sig. 2 (t)

    0.605

    0.539

    0.080

    0.48

    2

    0.725

    0.32

    9

    N

    100

    100

    100

    100

    100

    100

    S 1

    P.C

    or

    1

    .484**

    .457**

    .435*

    *

    .523**

    .274*

    *

    Sig. 2 (t)

    0.000

    0.000

    0.00

    0

    0.000

    0.00

    6

    N

    100

    100

    100

    100

    100

    S 2

    P.C

    or

    1

    .413**

    .282*

    *

    .375**

    .302*

    *

    Sig. 2 (t)

    0.000

    0.00

    4

    0.000

    0.00

    2

    N

    100

    100

    100

    100

    S 3

    P.C

    or

    1

    .365*

    *

    .508**

    .318*

    *

    Sig. 2 (t)

    0.00

    0

    0.000

    0.00

    1

    N

    100

    100

    100

    S 4

    P.C

    or

    1

    .603**

    .387*

    *

    Sig. 2 (t)

    0.000

    0.00

    0

    N

    100

    100

    S 5

    P.C

    or

    1

    .516*

    *

    Sig. 2 (t)

    0.00

    0

    N

    100

    S 6

    P.C

    or

    1

    ** Correlation is Significant at the 0.01 Level ( 2 tailed) ; * Correlation is Significant at the 0.05 Level ( 2 tailed)

    Source: Computed

    *. P.Cor-Pearson Correlation; *. Sig.2 (t) Sig.(2-tailed)

    In the above table P1 denotes Lack of Security, P2- Long Procedure, P3-Non-Availability of International Transactions, P4-Poor Internet Connectivity, P5-Lack of Technical Know-how, P6-Disclosure of Personal Information, P7-Delay in Time and P8- Hacking Risks.S1 denotes Goods delivered on Time, S2- Easy Exchange Offers, S3- AfterSales Services, S4- Proper Package, S5- Tracking Information and S6 denotes Discount Offers.

    The above table shows the Pearson correlation is greater and lesser than significant value(0.05), which implies that there, exists and does not exist significant relationship between the variables under level of satisfaction on the services rendered and the variables under problems faced while using Paytm gateway.

  6. FINDINGS:

    8. CONCLUSION:

    Even before the use of online payment gates prevailed, but the recent demonetization effect in India has highlighted the awareness of several online payment gates. The study is therefore based on one of these Payment Ports, i.e. Paytm. The study aims to analyse Paytm's services and the preference of individuals for those services. Paytm is increasingly popular among young people as per the study, but Paytm's success depends on the awareness among all the kinds of people that paves the way for a cashless economy. Most respondents prefer Paytm, as it is practical and time-saving. Paytm currently provides customers with satisfactory services, but improvements are still required in certain aspects such as security, customer feedback response and simple login procedure. This allows innovations to enhance satisfaction of customers.

    • The majority (54%) of respondents are in the 18-30 year age group.

    • The majority (68%) of respondents can be found to be in the category of students.

    • It has been found that the majority of

      respondents (37%) are above 30 000 on a monthly basis.

    • Most of the respondents (37%) use Paytm more than three times a week.

    • Most respondents used Paytm to shop It has been found

    • The majority of respondents can be stated that Paytm is used for food purchases.

    • The majority of respondents have been found to be satisfied with Paytm's overall services.

      7. SUGGESTIONS:

    • Most of the respondents are concerned about the disclosure of personal information, hence Paytm need to strengthen their security system to create trust among the customers for increased usage of Paytm.

    • Login Procedures should be made simple

      for the customers to use Paytm frequently.

    • Paytm should concentrate on customer

      retention by offering more discount and cash back offers.

    • Awareness programme about usage and benefits of Paytm should be conducted.

REFERENCES:

  1. D.S Soegoto, E-Wallet as a Payment Instrument in the Millennial Era, Journal of IOP Conference series Material Science and Engineering, Volume 879, 2020, ISSN: 012139.

  2. Alwan Sri Kustono, Determinants of the use of E-wallet for Transaction Payment among College Students, Journal of Economics, Business and Accountancy Ventura Volume 23, 2020, ISSN: 2087-3755.

  3. Kolandaisamy, Raenu, Subramaniam&Kasturi, The Impact of E- Wallets for Current Generation-Journal of Advanced Research in Dynamical and Control Systems. Volume-12, 2020, SP1/20201126.

  4. DR.M.Rajeshwari, A Study On Paytm Services In Promoting Cashless Economy After Demonetization In India And An Outline On Its Support Towards Making India Digital International journal of pure and applied mathematics Volume 119, No.7, 2018, 263-278.

  5. Abhijit.M.Tadse, A Study on usage of Paytm,Pune Research Scholars, Volume 3, issue 2, April May 2017.

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