Synopsis

On
“A Study on PhonePe Services in Promoting Cashless Economy in
Ramtek city”.
A report submitted in partial fulfilment of the requirement for the
Award of
Degree of
BACHELOR OF BUSINESS ADMINISTRATION
BY
Arvind Tiwari
BATCH-2022-2023
Under the Guidance of
Miss. Seema Gaikwad
(PROJECT GUIDE)

DEPARTMENT OF COMMERCE AND MANAGEMNT

KAVIKULGURU KALIDAS SANSKRIT UNIVERSITY,
National Accreditation and assessment council (NAAC) has awarded
A+ grade, Mauda
Road, Nagpur, Ramtek, Maharashtra 441106
2022-2023

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KAVIKULGURU SANSKRIT UNIVERSITY,

RAMTEK -441106

CERTIFICATE

This is to certify that the “PROJECT SYNOPSIS” on “A Study on Phone

pe Services in Promoting Cashless Economy in Ramtek city”.
submitted by Mr Arvind Tiwari. Work done by him and submitted during
2022-2023 academic year in the partial fulfilment of the requirement for the
award of the degree of BACHELOR OF BUSINESS ADMINISTRATION
AND MANAGEMENT DEPARTMENT, KAVIKULGURU KALIDAS
SANSKRIT UNIVERSITY, RAMTEK

Miss. Seema Gaikwad Dr. AMOL MANDEKAR

PROJECT GUIDE (HEAD of department)

DATE:

ACKNOWLEDGEMENT

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I express my profound gratitude and behind every successful work

there are some sorts of impetus provide by some my research, Miss.
Seema Gaikwad Ma'am (co-ordinator) has help me immensely an
accomplishing their research project.

I Acknowledge my sincere thanks to Dr. AMOL MANDEKAR Sir

(HOD) for providing me all possible help and facility with are
available at their disposal.

The work could have been complete without the active support and
encouragement of my professor and my friends. I express my sincere
thanks to you all.

Place: KKSU, Ramtek Mr. Arvind Tiwari

(BBA 6TH SEM)

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PROJECT TITLE:- “A Study on Phone pe Services in Promoting

Cashless Economy in Ramtek city”.

1. INTRODUCTION

It has been said that every disruption creates opportunities and one such disruption was the
announcement of demonetization by Prime Minister Mr. Narendra Modi on 08 November
2016.

A cashless economy is a monetary mechanism in which digital media are used to

purchase and pay for goods and services instead of physical currency. The term "cashless
economy" refers to a financial system in which electronic payment methods such as debit
cards, credit cards, e-wallets, electronic checks, and direct wire transfers between accounts are
the norm rather than physical cash.

Demonetization created huge growth opportunity for digital payment in India and the digital
wallet companies garbed the opportunities with both the hands to expand their market share.
Demonetization has presented a unique platform for adoption of digital payment, as an
alternative to cash for Indian consumers. Adoption of cashless transaction has been
significantly pushed by Prime Minister Mr. Narendra Modi as part of government reforms
after demonetization of high value currency of Rs. 500 and 1000 (86% of cash circulation).
The demonetization resulted in unprecedented growth in digital payment. By February this
year, digital wallet companies had shown a growth of 271 percent for a total value of US$2.8
billion (Rs. 191 crores) [1], Indian government and private sector companies such as Phonepe,
Freecharge and Mobikwik had been aggressively pushing several digital payment
applications, including the Aadhaar Payment app, the UPI app, and the National Payments
Corporation of India (NPCI) developed the Bharat Interface for Money (BHIM) app. Digital
transfers using apps has brought behavioral change and helped in the adoption of digital
payment. This has resulted in ease of transfer of money in rural areas which was not touched
earlier by the digital payment method. Now many foreign investors want to invest in digital
payment industry which is new attractive destinations because of scope of tremendous
expansion in India. There are number of facilitators which are leading to the growth of digital

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payment and transition from cash economy to less cash economy. These facilitators include
penetration of internet connectivity on smart phones, non-banking financial institution
facilitating digital payment, one touch payment, rise of financial technology sector and push
by government either by giving incentives or tax breaks. These all factors are creating
positive atmosphere for growth of digital payment in India.

2. Digital Payment Modes in India

There are several mode of digital payment available in India. These are:

2.1Online or mobile wallets: They are used via the internet and through smartphone
applications. Money can be stored on the app via recharge by debit or credit cards or net-
banking. Consumer wallet limit is Rs. 20,000 per month and the merchant wallet limit is Rs.
50,000 per month after selfdeclaration and Rs. 100,000 after KYC verification.

2.2 Prepaid credit cards: Pre-loaded to individual’s bank account. It is similar to a gift card;
customers can make purchases using funds available on the card -and not on borrowed credit
from the bank. Can be recharged like a mobile phone recharge, up to a prescribed limit.

2.3 Debit/RuPay cards: These are linked to an individual’s bank account. Can be used at
shops, ATMs, online wallets, micro-ATMs, and for ecommerce purchases. Debit cards have
overtaken credit cards in India. The number of debit cards in December 2015 increased to 630
million compared to 22.75 in 2014.

2.4 AEPS: The Aadhaar Enabled Payment System uses the 12-digit unique Aadhaar
identification number to allow bank-to-bank transactions at PoS.

AEPS services include balance enquiry, cash withdrawal, cash deposit, and Aadhaar to
Aadhaar fund transfers.

2.5 USSD: Stands for Unstructured Supplementary Service Data based mobile banking. It is
linked to merchant’s bank account and used via mobile phone on GSM network for payments
up to Rs. 5,000 per day per customer.

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2.6 UPI: The United Payments Interface (UPI) envisages being a system that powers multiple

bank accounts onto a single mobile application platform (of any participating bank). Merges
multiple banking features, ensures seamless fund routing, and merchant payments. It
facilitates P2P fund transfers.

Phonepe

Phonepe is an Indian e-commerce payment system and digital wallet company, based out of
Noida Sez, India. Phonepe is available in 10 Indian languages and offers online use-cases like
mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store
payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies
and education institutions with the Phonepe QR code. California based PayPal had filed a
case against Phonepe the Indian trademark office for using a logo similar to its own on 18
November 2016. As of January 2018, Phonepe is valued at $10 billion. As per the company,
over 7 million merchants across India use this QR code to accept payments directly into their
bank account. The company also uses advertisements and paid promotional content to
generate revenues.

3. History:

Phonepe was founded in August 2010 with an initial investment of $2 million by its founder
Vijay Shekhar Sharma in NOIDA, a region adjacent to India's capital New Delhi. It started off
as a prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile
and landline bill payments in 2013

By January 2014, the company launched the Phonepe Wallet, and the Indian Railways and
Uber added it as a payment option. It launched into Ecommerce with online deals and bus
ticketing. In 2015, it unveiled more usecases like education fees, metro recharges, electricity,
gas, and water bill payments. It also started powering the payment gateway for Indian
Railways. In 2016, Phonepe launched movies, events and amusement parks ticketing as well
as flight ticket bookings and Phonepe QR. Later that year, it launched rail bookingsand gift
cards.

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Phonepe's registered user base grew from 11.8 million in August 2014 to 104 million in
August 2015. Its travel business crossed $500 million in annualised GMV run rate, while
booking 2 million tickets per month.

In 2017, Phonepe became India's first payment app to cross over 100 million app downloads.
The same year, it launched Phonepe Gold, a product that allowed users to buy as little as ₹1
of pure gold online. It also launched the Phonepe Payments Bank and ‘Inbox’, a messaging
platform with in-chat payments among other products. By 2018, it started allowing merchants
to accept Phonepe, UPI and Card payments directly into their bank accounts at 0% charge. It

also launched the ‘Phonepe for Business’ app, allowing merchants to track their payments
and day-to-day settlements instantly. This led its merchant base to grow to more than 7
million by March 2018.

The company launched two new wealth management products - Phonepe Gold Savings Plan
and Gold Gifting to simplify long-term savings. It launched into gaming and investments,
partnering with AGTech to launch a mobile games platform Gamepind, and setting up
Phonepe Money with an investment of Rs.9 Crores to bring investment and wealth
management products for the Indians.

Advantages of Payment through Phonepe.

 Saves time: Digital wallets hold the amount in the electronic form so as to ease the
payment process where users can make online payments without entering any card details.
 Ease of use: As digital wallet is like one click pay without filling details about card
viz card number and passwords every time, It allows user to link digital wallet to accounts
and pay right away so that the consumers face no issues to enter the details every time a
transaction happen.
 Security: There is a good amount of security when payments are made through e
wallets since the wallet does not pass the payment card details to the website. These virtual
wallets allow users to lock their wallet.
 Convenient and information stored under one roof: As digital wallets helps to
eliminate need to carry the physical wallet they are highly convenient. Also a better

management is possible as there is synchronization of data from multiple platforms like bank
accounts, credit and debit cards, mobile accounts and billing portals.

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 Attractive discount: Cash back and discounts are being offered by most of the
players along with providing offline wallet balance top up known as 'Cash Pickup' service.
This service is being offered by Mobikwik that will facilitate cash to be directly added to
Phonepe wallet where consumers of even smaller towns can be benefited.

OBJECTIVEs:

1. To find out the customer perception and impact of digital mode of payment.

2. To study the online payment through Phonepe wallet.

3. To analyze the use of Phonepe services by shopkeepers and to study the

satisfactionlevel of Phonepe users.

HYPOTHESIS:

 Services offered by Phonepe are adaptable in supporting the Cashless Economy.

 Services offered by Phonepe are not adaptable in supporting the Cashless Economy.
 Phonepe plays an important role in making India Digital.
 Phonepe does not plays an important role in making India Digital.
 Perception of senior citizens towards Phonepe.

4. LITERATURE REVIEW:

Bamasak carried out study in Saudi Arabia found that there is a bright future for m-payment.
Security of mobile payment transactions and the unauthorized use of mobile phones to make a
payment were found to be of great concerns to the mobile phone users. Security and privacy
were the major concerns for the consumers which affect the adoption of digital payment

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solutions. Doan illustrated the adoption of mobile wallet among consumers in Finland as only
at the beginning stages of the Innovation-Decision Process.

(DezanShira and Associates (2017) Watal R (2017) 2016-17.)

Doing payments via mobile phones has been in use for many years and is now set to explode.
Also, mobiles are increasingly being used by consumers for making payments. “Digital
Wallet “has become a part of consumers which are nothing but smart phones which can
function as leather wallets. Digital wallet offered many benefits while transferring money
such as convenience, security and affordability. Growth in technology has opened many
modes of payments through which consumers can do transactions which are more convenient,
accessible and acceptable, consumers have an inclination towards mobile payment apps
usage. Offering various benefits such as flexi payment digital wallet brands are providing
extra convenience to consumers. Major factor in adoption of digital wallet is convenience in
buying products online without physically going from one location to another location. There
has been many studies conducted in past on mobile payment application to find consumer
interest and they found consumer has positive inclination for the same.

The factors such as perceived ease of use, expressiveness and trust affect adoption of digital
wallet as payment method. These factors are termed as facilitators and plays crucial role in
adoption of digital payment solution. Usage of digital wallet among youth in the state of
Punjab was found to be associated with societal influence and usefulness, controllability and
security, and need for performance enhancement. Premium pricing, complexity, a lack of
critical mass, and perceived risks are the barriers to adoption of digital payment systems.

(Journal of Internet Banking and Commerce An open access Internet

December 2017)

5. RESEARCH PROBLEM:

Phonepe wallets hold the amount in the electronic form so as to ease the payment process
where users can make online payments. There is a good amount of security when payments
are made through Phonepe wallets since the wallet does not pass the payment card details to
the website. Present study has made an attempt to understand customer perception regarding
digital payment, knowledge and awareness of Phonepe in the mind of shopkeepers and

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individual, drawbacks of Phonepe as an online payment application for users and payment
through Phonepe is not available in many online shopping websites.

6. RESEARCH METHODOLOGY:

6.1 Research design:

The purpose of the methodology is to design the research procedure. This includes the overall
design, the sampling procedure, the data collection method and analysis procedure. Marketing
research is the systematic gathering recording and analysing data about problem retaining to
the marketing services.

The essential purpose of marketing research is to provide information, which will facilitate
the identification of an opportunity of problem situation and to assist to manager in arriving at
the best possible decision when such situation is encountered. Basically, there are two types
of researchers, which according to their applicability, strength, weaknesses, and requirements
use before selecting proper type of research, their suitability must be seen with respect to
specific problem two general types of researchers are exploratory and conclusive.

In this research we will use the non-probability sampling techniques that is

7. DATA COLLECTION:

Data is the basic input to any decision making process in a research study; processing which
gives the statistics of importance of the study which can be categorized in to primary and
secondary data. The data was collected thought:

7.1 Primary data collection:

Primary data may be collection from actual information which is received by researcher
from the study from the actual field of research. It will also be collected through

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discussions/interviews. Data would also be collected by pilot study. The specific tools will
include:

 Questionnaire: A questionnaire is a research tool featuring a series of questions used

to collect useful information from respondents. 
 Personal discussions: An interview schedule is to serve as a guide for interviewers,
researchers and investigators in collecting information or data about a specific topic or issue.

7.2 Secondary data:

Secondary data is the one which is collected from existing records or previous studies made
by others in the topic in questions. In the study, the secondary data would be traced from the
following sources:

 Websites
 Journals
 Articles
 Research paper

7.3 Sampling Technique:

Random sampling is where the whole population is divided into clusters or groups.
Subsequently, a random sample is taken from these groups, all of which are used in the final
sample (Wilson, 2010). Random sampling is advantageous for those researchers whose
subjects are fragmented over large geographical areas as it saves time and money.

There are two groups in this study so we can use random sampling technique conveniently.

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7.4 Sampling Size:

In this study we will select the 40 (Persons / Individuals) & 10 (Shop Keepers) sample
in the Ramtek Area. Because we can meet them and collect proper data within period of time.

7.5 Sampling Unit:

The sample unit of the study is a person and shopkeeper who are related with the use
of Phonepe.

8. BIBLIOGRAPHY:

Book:

Research Methodology Methods and Techniques. (C. R. Kothari, second revise

edition.)

Journal:

Journal of Internet Banking and Commerce. An open access Internet journal

(http://www.icommercecentral.com)Journal of Internet Banking and

Commerce December 2017, vol. 22, no. STUDY OF CONSUMER

PERCEPTION OF DIGITAL PAYMENT MODE

9. Research Paper:

DezanShira and Associates (2017) Growth of Digital Payments Systems in India. Watal R
(2017) Digital payments surge 55% in 2016-17. 2r9p7ilo; u8

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Website:

www.livemint.com/Industry/hF8D3D6bWBie6IoJzWtdZO/Digitalpayments-surge-55-in-
FY17-Niti-Aayog.html

www.wikkipedia.com

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PLAN OF WORK

SR. NO PERIOD WORK

1 1st – 3rd week  Collection of study related data and literature
from various books, journals, and websites
for study.
 Go through all literature and sought out
related points.
2 4th week  Identification of research methodology.
 Selection of the research methodology.
3 5th week  Questionnaire will be distributed to the
selected sample.
 Questionnaire will be filling up by the
selected sample.
 Collection of secondary data as well.
4 6th – 8th week  The information collected during last fifth
week will be classified, tabulated and
arranged systematically.

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CHAPTER NO. CONTENT

Executive summary

1 Introduction

2 Research Aim, objectives and reason for

selecting the topic

3 Research methodology

4 Literature review

5 Survey finding and interpretation

6 conclusion

7 Recommendation

8 Bibliography

9 Annexure

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