Different Payment methods by consumer behaviour_PPT.pptx

Related to consumer behaviour of different payment methods

1. “ Digital payment methods preferred by consumer and awareness about security measures while use it .”

2. INTRODUCTION OF DIGITAL PAYMENT SYSTEM IN INDIA Digital payment is a type of cashless payment where the payment is made through digital nodes. These digital nodes are used by both, the payer and payee. It is also called electronic payment in which physical form of cash is not used. Digital payments are entirely made online and they are convenient, instant and time saving. 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. As part of promoting cashless transactions and converting India into less-cash society, various modes of digital payments are available. These modes are Banking cards, USSD-Unstructured supplementary service data , AEPS-Aadhar enabled payment system, UPI, Mobile wallets, Bank pre-paid cards, Point of sale, Internet Banking, Mobile Banking and Micro ATMs.

3. HISTORY OF DIGITAL PAYMENT The origin of e-payment is related to the beginning of the internet, which revolutionized the world. Without the origin of World Wide Web, we can not imagine the existence of online store and e-services. In 1994 Stanford Federal Credit Union was established the first financial institution which offered online internet banking services to all of its members. However, first online payment system were not user friendly at all and required specialized knowledge of encryption or data transfer protocol and not adopted to the constant changing of user’s number and their transactions. In the beginning, the main players on the e-payment market were Millicent, Ecash and Cybercoin . The majority of the first online services were using micro payment systems and their common attribute was the attempt to implement the electronic cash alternatives. Moreover, in 1994, Amazon is founded and Pizza Hut starts accepting online food ordering. Most of the modern payment systems are easy to use with the payment process minimized to just a few simple steps. They are website or app-based, which means there is no need to install a distinct software or buy special equipment, which was the case a few years ago. Nowadays systems are available from any device connected to the internet.

4. The online and offline payments are interpenetrating and the distinction between these two becomes more and more blurred each year. It is related mainly to the dynamic growth of technologically advanced mobile devices with the internet connection, and retailers who allow you to pay in their brick-and-mortar stores with your smartphone are nothing exceptional nowadays. A growing number of online buyers is noticeable and smart technologies will be becoming more popular than conventional banking.

5. DIGITAL PAYMENT METHODS Banking Cards 2. USSD - Unstructured Supplementary Service Data 3. AEPS - Aadhar Enabled Payment System 4. UPI - Unified Payment Interface 5. Mobile Wallets 6. Banks Pre-Paid Cards 7. Point Of Sale 8. Internet Banking A . NEFT - National Electronic Fund Transfer B. RTGS - Real Time Gross Settlement C . ECS - Electronic clearing system D . IMPS - Immediate Payment service 9. Micro ATMs 10. Mobile Banking

6. INTRODUCTION TO NPCI AND ITS VARIOUS PRODUCTS Rupay Cards IMPS NACH – National Automated Clearing House ABPS - Aadhaar Payment bridge AEPS - Aadhaar Enabled Payment System NFS - National Financial Switch UPI - Unified Payment Interface NETC - National Electronic Toll Collection Bharat Bill Payment System

7. CYBER SECURITY FOR DIGITAL PAYMENT Strong passwords should be enabled on the users phone, tablets and other devices before mobile banking apps can be used. Additional layers of security provided by these devices should be used. Bank account number or PIN should not be stored on the user’s mobile phone. The user should report the loss of mobile phone to the bank for them to disable the user’s PIN and his access to the bank’s account through mobile banking app. Bank’s mobile app should download from the trusted source such as app store on iphone and ipod touch or android market. User can check the website of bank for the details of the ways to receive app download URL, whether in the response to his SMS or email to the bank and then install the application. The app from any other third party source should not be downloaded. Most of the smart-phone enable its users to lock the device with a PIN. It is advisable for users to enable encryption, remote wipe abilities and anti-virus software on the phone. Encryption shields ones data stored on the phone or in the memory card.

8. Stay away from suspicious websites when browsing because it may lead to malicious websites that can affect the smart phone severely. Think twice before jail-breaking or root your phone to gain access to some application or services. It makes your phone highly vulnerable to cyber attacks as all the security of your phone strips away while jail-breaking your phone. Install new application with caution. Update apps as often as possible. Update OS of mobile phone. If Bluetooth is visible, all alerts attackers to find your device and make an unwanted connection. So it is always better to select the ‘invisible’ mode and remain invisible to unauthenticated devices. Leaving interfaces like Bluetooth, WiFi , infrared ‘on’ when they are not in use can make it easy for attackers to exploit vulnerabilities of software. So disable interface when not in use. Avoid unknown WiFi networks. Use social media networking applications carefully. Delete data before discarding device.

9. CAPACITY BUILDING AND AWARENESS OF DIGITAL PAYMENT Digishala :- The Digishala is an education and non-commercial TV channel on DD free dish with aim to : A. Impart education related to the digital payment ecosystem, its tools, benefits and process. B. Inform and educate citizens about Digital India. C. Encourage citizens in rural and semi urban areas to use digital payments as well as other Products and services offered by Digital India. Range of educational programmes on Digital India in multiple regional languages sessions with focus on: A. Step by step demos of making digital payments using UPI, USSD, Aadhaar , e-wallets, cards etc.. B . Talk shows and panel discussions with experts. C . Case studies on business transformation using digital payments D . Information about products and services under the Digital India programme .

10. 2 . Digital finance for rural India :- This scheme has launched by Ministry of Electronics and IT for creating awareness and access through common service centres -CSCs under Digital Saksharta Abhiyan with objectives to enable the CSCs to become digital financial hubs, by hosting awareness sessions on government policies and digital finance options available for rural citizens as well as enabling various mechanism of digital financial services such as IMPS, UPI, Bank POS machine etc… 2 lakhs common service centres to provide capacity building, awareness access for digital payment methods to around 1 crore rural citizen and 25 lakhs merchants across India. Each CSC would reach out to 40 households in the catchment area, covering one person from each household. It also target 10 Merchants per Panchayat to facilitate them in getting POS machines or Digital payment mechanism.

11. 3 . Vittiya Saksharta Abhiyan :- The purpose of the “ Vittiya Saksharta Abhiyan ” is to actively engage the students of Higher education institution to encourage and motivate all payers and payees to use a digitally enabled cashless economic system for transfer of funds. All heads of educational institutions should plan for a cashless campus within a limited timeframe for all transactions within the campus. To begin with the faculty, staff and students are engine of change, need to dispel the commonly held belief that digital transactions are complex and necessarily require a smart phone and internet connectivity. They need to further educate their family members and people in their immediate surroundings and motivate them for digital transactions. NCC/NSS volunteers of an institute may take up a major market and interact with shop owners, vendors and their association with an objective of developing a cashless market focusing on each point of sale.

12. PROMOTING DIGITAL PAYMENT WITHIN GOVERNMENT Ministry of Electronics and IT has notified guideline for electronic payments and receipts intended for central public sector undertakings, state governments, Government of India Autonomous bodies and Municipalities for expeditiously implementing appropriate mechanism to enable Electronic payment and receipts- EPR. The objective of this guideline is to provide guidelines for departments to: 1. Assess various services involving payments and receipts by types of services and level of electronic payment enablement. 2. Provide actionable instructions for universal adoption of electronic payment modes for each type of service through various payment channels. 3. Provide guidelines on engagement with various payment service providers.

13. STEPS TAKEN BY GOVERNMENT FOR PROMOTING DIGITAL PAYMENTS AMONG PEOPLE Introduced BHIM UPI App. Lucky Grahak Yojna and Digi dhan vyapar Yojna Launched a toll free number 14444 to address consumer queries on digital payments. Public sector banks not to charge fees for transactions settled on IMPS and UPI in excess of rates charged for NEFT for transactions above RS. 1000 with service tax being charged at actual; for USSD transactions above RS. 1000 a further discount of RS. 0.50 on these rates shall apply.   Banks and prepaid payment instrument not to levy any charges on customers for transactions upto RS. 1000 made through IMPS,USSD and UPI system.   Central government announced a package of incentives and measures for promoting digital payments.   Nil Excise duty on POS device and all goods for manufacture of POS devices.  

14. OBJECTIVE OF STUDY Primary objective:-   To know which digital payment methods more preferable by consumer. To study of awareness level in people about security measures while using any digital payment mode. Secondary objective :-   To get sufficient information about various digital payment modes. To know about cyber security measures for digital payments. To study about steps taken by government for promoting digital payments.  

15. RESEARCH METHODOLOGY Research Design :- Descriptive research design will be used for research study.   Source of Data :-   Primary source :- Data will be collected by survey using questionnaire.   Secondary source :- The secondary data include information from reports, magazine, journals, bulletin published by RBI, other banks and questionnaire.   Sampling method :- convenient sampling.   Sample size :- 200 Responses  

16. DATA ANALYSIS AND INTERPRETATION Gender:- 2. Age group:-

17. 3. Occupation:- 4. Education:-

18. 5. What is your annual family income? 6. Do you prefer digital payment?

19. If Yes, why do you prefer digital modes? If No, why are you don’t prefer digital payment?

20. 7. Which digital payment method do you use?

21. 8. Are you having sound knowledge about all digital payment methods?   9. For what purpose do you use digital payment modes ?

22. 10. Are you aware of security measures while using digital payments methods ?  

23. 11. Are you become a Victim of Online payment Fraud ?

24. If Yes, 1. Are you lost faith in digital payment methods ? If Yes, 2.Have you filed a complaint regarding fraud to cyber crime department?

25. If Yes, 3. Have you got back money lose From Fraud?

26. RESEARCH FINDINGS Gender does not make any difference in adoption of digital payment system and awareness about security measures. Digital payment modes used by all the age group people. People having different occupation like students, business man, employee, homemaker and working women prefer digital payment. There is no relation between education level and use of digital payment. There is no relation between education level and become victim of online payment fraud. People become victim due to the temptation to make money soon, less technical knowledge, less information about cyber security measures, unable to identify fake link for getting benefit of attractive discount offer etc… People from all income group prefer digital payment. There is no relationship between income and preference for digital payment. Digital payment are more convenient and speedy. People have great user experience. People also have some financial gains in using digital payment modes. These reasons increase digital payment users. Many people don’t prefer digital payment because they are concerned about security. Lack of knowledge about digital payment is also one of the reasons for not using digital payment.

27. UPI is more preferable method among all. It is more convenient method for Homemaker. People are not much aware about AEPS, USSD, Bank prepaid card and Micro ATMs. People use digital payment modes for various purpose like utility bill payments, B2B transactions, shopping and Ticket bookings. Graduates and Post Graduates are more aware about security measures compare to Under Graduate, while using digital payment methods. 56% respondent learned from their mistakes while becoming victim of online fraud and not lost faith in digital payment methods. People are not afraid for filed complaint regarding online fraud. Improvement is needed in cyber security measures and advancement in technology for recovery of money.

28. SUGGESTION Many respondent feel that there should fast resolution of complaint if anyone face discrepancies in any digital payment mode. There are various benefits of digital payment, security threat is also there. So the government should ensure convenience and secure transaction. Additional charges on digital payment should be reduced. This will help in increase of digital payment system. Many people find that service charges discourage digital payment. So service charges should not be imposed. Awareness program for various modes of digital payment and cyber security measures should be done in rural areas.

29. CONCLUSION Digital payment has become an integral part of Indian Banking sector. Internet accessibility and technology advancement enhancing digital transaction. Government of India taken various steps to boost digital payment. National payment corporation of India developed UPI system which is more convenient method of Digital payment. Private sector in India has taken a giant leap to drive digital payment adoption. Business transaction done speedily through digital payment methods. Nowadays, digital payment are preferred for all kinds of transaction. Awareness level of various modes of digital payment also increases.

30. The government, financial institutions and private companies have been working to make their services more user friendly with 24/7 support teams to deal with any queries. Going digital will help in keeping track of the monetary transactions taking place and will pose more security on individual’s wealth. Digital payments will also be a step for an eco friendly environment as the usage of paper reduces. Along with the efforts by the government and RBI, private ventures are also investing heavily in the digital payment sector. Many startups are leveraging advanced technologies to facilitate digital payments. Demonetization and Covid plays vital role in increase digital payment transaction. Digital payment industry becoming an attractive destination for foreign investors keen to establish a foothold in India, it can be concluded that the country’s near future is all about Digital India.