KEERTHI 3

A STUDY ON IMPACT OF ONLINE PAYMENT APPLICATIONS
AMONG YOUNGSTERS WITH REFERENCE TO GOOGLE PAY
CHAPTER I
INTRODUCTION
BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 1

1 .INTRODUCTION
The world is becoming more digitalized in every field these days, and one of the best examples
is how various countries around the world are transitioning to a cashless society. A cashless
society is one that does not use cash in any of its transactions and instead conducts all of them
digitally. Several countries around the world conduct more than half of their transactions using
cashless methods. In India 98% of the total transactions used to be done through cash but after
the Demonetization of the Government on Nov 8 2016, our country has also started getting
steered towards a cashless society. Due to the Demonetization act already existing mobile
payment applications came into the limelight like Paytm, Google pay, Phone Pe etc. The Digital
India programme is the Government of India's flagship agenda, with the goal of transforming
India into a digitally empowered society and knowledge economy. "Faceless, Paperless,
Cashless" is one of Digital India's professed roles. Mr. Narendra Modi, Prime Minister of India,
has empowered India to adopt cashless transactions by significantly boosting India's digital
payments sector. Since Demonetization in November 2016, India's digital payment sector has
experienced unprecedented growth. 1
The government of India is also encouraging the use of digital payment apps such as Aadhaar
Payment App, UPI App, Bharat Interface for Money (BHIM) App, and private sector apps such
as Paytm, Mobikwik, and Freecharge. These new apps are useful for transferring funds across
our country. The digital payments industry in India is rapidly expanding, providing a highly
appealing platform for foreign investors to invest in India.
Google pay was the company’s first mobile payment system, developed devices for Android
In 2011.In 2015, it was renamed Android pay, with Google pay refocused to strictly peer-peer
Payments. As of January 8, 2018, the old Android pay and Google wallet have unified in to a
single pay system called Google pay. Android pay was rebranded and renamed as Google pay.
It also took over the branding of Google chrome’s auto fill features of both Android pay and
Google wallets. Google pay is digital wallets platform and online payment system developed
by google.
1
https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-new-digital-edge-rethinking-strategy-for-the-
postpandemic-era.

It is a payment service operated under financial regulation and made thorough a mobile device
instead of paying with cash, checks or credit cards, a consumer can use a mobile phone to pay
for a wide range of services. Google pay means it is easy to keep track of purchase, redeem
loyalty point and get personalized suggestion to help the customer to save time and money. The
Google pay service works with hundreds of banks and payment providers, discovery and
American express are called out for support user should check with their individual bank if
they are unsure about its compatibility with Google pay. Additionally the google pay user
website maintains a list of featured stone and transit agencies that support Google pay. User
should look for the Google pay symbol or contactless payment symbol on a terminal. To pay,
user must have the Google pay app installed on their device and have linked a card to their
account.
1.1 DIGITAL PAYMENT :
Digital payment refers to the purchase of goods or services using various electronic modes of
payment rather than physical cash or cheques. People are increasingly using digital payment
methods because they are easier and more convenient, and they also give customers the
flexibility to make payments from anywhere at any time, which serves as a good alternative to
traditional payment methods and fastens transaction cycles.
10 Types of Digital Payment methods in India:-
1. Banking Cards- Debit/Credit / Prepaid Cards.
2. USSD (Unstructured Supplementary Service Data).
3. AEPS (Aadhar Enabled Payment System).
4. UPI Mobile (Unified Payments Interface).
5. Mobile Wallets.
6. Bank Pre-paid Cards.
7. POS Terminals 8. Internet Banking
9. Mobile Banking.

10. BHIM App (Bharat Interface for Money).
1.2.Google pay:
Google pay is a digital wallet platform and online payment system developed by Google to
power in-app, online and in-person contactless purchases on mobile device, enabling users to
make payments with Android phones, tablets or watches. Users in the united states and India
can also use an iOS device, albeit with limited functionality. In addition to this, the service also
supports passes such as coupons, event tickets, store cards, boarding passes, movie tickets,
student ID cards, public transportation tickets, and loyalty cards. Sujith Narayan and Summit
Galanin are the brains behind Google pay.
Sujith Narayan is the co-creator of Google pay. Sujith Narayan is a veteran payment executive
and has enviable experience in the domain of financial service. As of January 8, 2018, the old
Android pay and Google wallet have unified into a single pay system called Google pay.
Android pay was rebranded and renamed as Google pay. It also took over the branding of
Google chrome’s autofill feature. Google pay adopts the features of both Android pay and
Google wallet through its in-store, peer-to-peer and online payments service. The rebranded
service provided a new API that allows merchants to add the payment service to websites, apps,
stripe, brain tee and Google assistant. The service allows users to use the payment cards they
have on file in their Google account.
In addition to the change in name lot of additional features are added in this app to increase
popularity. It will also offer pre-approved loan on the go in association with ICICI Bank and
HDFC BANK. Google pay. is simple way to send and receive money to anyone using a mobile
This Photo by Unknown Author is licensed under CC BY-NC-ND

account number. This app will work even if the receiver is not on Google pay. It is a zero-fee
affair. Apart from sending and receiving money, we can do online shopping, mobile recharge
and a lot of other stuff.
Google pay has got several revenue collecting opportunities. It estimates an amount of $4.5
billion every day. The revenue might come from both transactions’ fees from banks and also
from ads and product requests within Google pay. It’s a digital platform for money transaction.
In 2017 it had 67 million monthly active users. And it’s 2020 now, so it’s imaginable that the
rate has increased. Neobank raised funds of $13.2 million. From this fund, Google pay came
into existence though before it was known as Tez. During the startup it had 24 employees,
coming from Netflix, Flipkart and PayPal. International investors invested a record of $9.6
billion into startup lenders.
The payment products gained a lot of traction in the period 2018–19. The team successfully
introduced a few new features and updated the payment products on a global scale. Google Pay
placed a special emphasis on partnerships and an ecosystem approach as it established close
ties with the government and central bank to jointly develop innovative products. As a result,
the products cooperated within the ecosystem.The company is planning something new and
unique for its users. They are planning to merge up the entire payment’s ecosystem into one
universal app for receiving and sending payments with cards saved in each one’s respected
Google account. The new design is totally different than Android pay and plans of renewing
Google pay is also on. The company presently is not only concerned with receiving and sending
but also, it’s concerned with easy payments of fares.
1.3STEPS FOR USING GOOGLE PAY :
Using Google pay is very simple. The steps for using Google pay: -
1.Download Google pay from Google play store.
2. After installation first step is setting up screen lock. Then setup existing lock pattern or PIN.
3. Click on Add Bank Account and select bank from the list. If the bank account is linked with
current mobile number linkage is easy without passing much information else provide the Bank
account number, IFSC code etc
4. Once the Bank Account is linked, then tap on circle to send and receive money.

1.4.FEATURES OF GOOGLE PAY :
Google pay boasts of many unique features in comparison to all the other options available in
the market.
Send and receive money via Audio:
Google pay has introduced a new feature enabled as Audio based QR system for sending and
receiving money. In order to transfer money using these features one need to scan QR code
appearing on screen while sliding the circle for payment and receipt. It is claimed that ultrasonic
wave is used to create one-time code for digital payment.
Pay utility bills:
Apart from sending and receiving the money it uses this app for paying utility bills like
electricity, gas, water, property tax, insurance bill, DTH recharge and many others. We can
even pay for a lending, mobile and broad band. They have a tie-up with leading brand such as
zeroth, red bus, tata sky, geobios etc.
Multiple payment options:
Google pay offer multiple payment options. Firstly, we can use the facility of pairing mobile
using QR code and transferring money Apart from that, we can also use UPI name for
transferring money. We can send money by submitting recipient’s bank details and IFSC code.
We can also see an old transactions history including the requested money.
Rewards:
Like another payment app, Google pay also offers rewards and cashback benefits current offer
is sending or receiving up to Rs.150 and change of winning Rs.1000. If we pay our electricity
bill using this app there is assure cash back of Rs.500. If we refer this app to others, we will
get assure cash back of Rs.51.
Loan offer:
Google pay has recently tied up with ICICI Bank, HDFC Bank and Kottak Bank for offering
loan on the move, if we are eligible it will directly receive loan offer on the app.  The
transactions are instant.
 Money can be sent to and received directly from bank account.

 Tez shield-multi-layered security with 27*7 protection from frauds-facilitates highly secure
transactions.
 Because the money transferred from bank accounts, all transaction whether small or big can
be done through the app.
 The app is available in eight Indian languages making it more acceptable.
 The compatibility of the app with all the banks is further proof of its security, networkreach
and service quality.
 The app also provides multiple payment options which means the users can transact through
their mobile numbers or even virtual payment Address (VPAS).
 Scratch cards are another attraction as Google pay provides lucrative cashback and offers on
varying transactions. These cashbacks are directly credited to a linked bank account.
 The compatibility of the app with all the banks is further proof of its security, networkreach
and service quality.
1.5.BENEFITS OF GOOGLE PAY :
Major Bank Support:
Google pay is supported by all the four major banks in US; namely Citibank, chase, Bank of
America and wells Fargo MasterCard, American Express, Discover and visa also support
Google pay. Moreover, through strategic partnerships, sites that support master pass and visa
checkout now also work with Google pay.
Mobile Banking App integration:
Google pay makes it easier for users to add cards to the app. It is partnered with several banking
apps so that users will be able to add their card simples tapping a button fast and easy.
In-App and online purchase:
Google pay is used primarily in stores. But we can also use it for making in app purchased.
Some of the apps that support in-app and online purchases, at the moment, include the
following: -
Airbnb
Caviar
Door dash
Fandango
Houzz
Instacart
Kayak
Starbucks
Wish
RITUAL
Via.com
Boarding passes and tickets:
Avoid the hassle of fumbling through our bag or purse to search for our plain or train tickets.
Google pay lets store a digital ticket or boarding pass on your phone. There are two ways to
store tickets or passes in google pay. First, select the “send ticket to my option”. Second, select
the same option through e-mail. Once we have stored our digital tickets or passes, we can easily
access them by simply tapping the passes tab.
Enhanced security: Google pay provides layers upon layers of security to protect users from
theft and fraudulent transactions. The app does not store our cards number. We worried that our
bank account will be compromised when our phone gets lost, we can always instantly lock
access to our device or wipe clean any confidential information by using the Android Device
manger. In case, there is a prove unauthorized transaction, we will have zero liability.
No cost: -
Google pay is a free mobile app available in the Google play store. Customer’s don’t pay extra
transaction fees when they use Google pay to make purchases.

Fast and easy purchases whenever they buy:
In stores, customers speed through checkout when they use Google pay on their mobile device
to tap and pay.
Peace of mind:
When customers use Google pay to buy in stores, Google doesn’t send their actual credit or
debit cards number to make the payment. Instead, it was a virtual account number to represent
the account information.
Attractive promotion and reward programs:
One big advantage of mobile payment methods like Google pay is that apart from the
convenience of use, they also reward for promoting it. Pending on the country of use, a user
will be entitled to receive a small commission every time they spread the work about the app
to their friends’ network and those people make their first transactions on Google pay.
1.6.DISADVANTAGES OF GOOGLE PAY:
Google pay is fast, secure and widely accepted. When we have successfully used it many
times, it feels like not wanting to go back to card swiping or paying through cash again. But no
matter how great Google pay is, it’s not without obvious flaws. The truth is it can’t rely on
google pay all the time. There are times when they have no other choice but not use our card
or pay cash. Like other mobile payment apps, Google pay suffers from the following
disadvantages: -
It’s not always accepted:
Google pay is now widely accepted by major stores and retailers. But smaller retailers likely
won’t accept it. Even if the store uses an NFC pos terminal, it’s not always a guarantee that it
will accept Google pay.
It’s not invincible:
Despite the multilayer of security features that Google pay has, it’s still not invincible. Google
pay is safe but cannot say it is 100 percentage safe.
Limited only to NFC technology:

The problem with Google pay is that it only works in NFC technology. It does not work with
MST terminals.
Google pay is taking giant steps at revolutionizing the payments market in India.
Consumers/users will miss a hoard of features and easy money transfer transactions if they
don’t use the app if the skeptical about mobile banking what makes it safe. Google pay is a
wonderful digital payment app that can be used for sending and receiving money on the move.
The use of this app has made the online payments was simpler. The number of users using this
app is increasing significantly day by day. It is the payment service operated under financial
regulation and made through a mobile device. Instead of paying with cash, checks or credit
cards, a consumer can use a mobile phone to pay for wide range of products and service.It is a
virtual wallet that stores payment card information on a mobile device. It is a convenient way
for a user to make payments at the store and can be used at merchants listed on the Google pay
service providers list.

CHAPTER 2
REVIEW OF LITERATURE
&
RESEARCH METHODOLOGY

2.REVIEW OF LITERATURE:
DR HEM SHWETA RATHORE (2017)1 In today's world, smartphones have become an

essential part of daily life. Because of advances in technology, mobile users can now use their
smart phones to make money transactions or payments by using applications installed on the
phone. When smartphones can function as leather wallets, they are referred to as "digital
2
wallets," or more colloquially, "mobile wallets." This paper titled ‘Adoption of digital wallet
by consumers’ attempts to investigate the various factors that can influence a consumer's
decision to use digital wallets as a mode of online payment. Aside from that, the study seeks to
identify the various risks and challenges faced by digital wallet users.
ABHIJIT AND HARMEET (2017)2 In this research paper titled ‘Customer satisfaction
towards paytm’ studies about the paytm usage by smartphone users and also attempts to analyze
the varied obstacles faced by the paytm users. A structured questionnaire was distributed to 230
smartphone users but only 151 responses were valid and thought of for data analysis. The
researchers‟ have used the descriptive method so as to urge the statistical results. The findings
conclude that paytm has got to work upon the payment gateway to enhance 3the transaction
efficiently and to figure upon transaction time, discounts and offers.
N RAMYA, D SIVASAKTHI AND DR. M NANDHINI (2017)3 The objective of the research
paper "Cashless transactions: Modes, Advantages and Disadvantages" is to describe the efforts
made by the RBI and the Indian government to promote digital payment methods and to create
a "less-cash society." The researcher also looked into different cashless payment methods,
including e-wallets, mobile wallets, UPI apps, AEPS, USSD systems, and debit/credit cards.
The researcher also listed a number of benefits of using cashless payment methods, including
convenience, tracking expenses, the ability to take advantage of discounts, reduced risk, and
the ability to make small payments. Going cashless has some drawbacks, according to this
study, including increased overspending, difficulty for those unfamiliar with such technology,
risk of phone loss, and higher risk of identity theft. 4
2
https://pmc.ncbi.nlm.nih.gov/articles/PMC5403814/
3
https://www.ijrte.org/wp-content/uploads/papers/v8i4S3/D10151284S319.
4
https://www.allresearchjournal.com/archives/?year=2017&vol=3&issue=1&part=B&ArticleId=3026.

PREETI GARG AND MANVI PANCHAL (2017)4 This research titled ‘Study on introduction
of cashless economy in India 2016 : benefits and challenges’ examines people's perspectives
on the introduction of cashless economy in India. The study was conducted in the Delhi region,
and data was collected using a structured questionnaire and analysed using a simple percentage
method. Responses from respondents show that cashless economy will help in curbing black
money, counterfeit's fake currency, fighting against terrorism, reducing cash related robbery,
and improving our country's economic growth.5
RAVISH RANA (2017)5 According to this research based on consumer perception towards
digital payment, highly educated people are more attracted to these digital payment apps than
those who are illiterate. They also note that urban residents are more likely to use these apps
than people living in rural areas, who are more likely to rely on traditional payment methods. 6
SHAMSHER SINGH (2017)6 Conducted a research on the “study of consumer perception of

digital payment mode” mentions that respondents found that interacting with mobile wallets is
helpful. His study also reveals that males are more comfortable in using m-wallets than
females. 7
ASHISH BAGLA (2018)7 The adoption of digital payments in India was the focus of this
research paper titled "A Study on the Future of Digital Payments in India." This paper identifies
the problems or challenges that Indians face when adopting digital modes of payment. One of
the goals of this study was to learn about people's attitudes toward digital payment adoption in
India. The paper concluded that the government's efforts to make India cashless are succeeding,
but it will take time for India to become completely cashless due to various challenges that the
government has to take care of.
K SUMAVALLY and DR. K HEMA DIVYA (2018)8 This research paper titled “ A Study on
Digital Payments in India with perspective of consumers adoption.” focuses on the analysis of
the extent to which customers have adopted these digital payments. The major objective of this
study was to confirm how clients in our country felt about digital payments in relation to the
idea of digital banking. The report also recommended that suitable steps be made to increase
knowledge of various technologies and the security of digital payment usage in India.
5
https://www.allresearchjournal.com/archives/?year=2017&vol=3&issue=1&part=B&ArticleId=3026
6
7

SUSMI ROUTRAY, REEMA KHARUNA, RUCHI PAYAL, RAKESH GUPTA (2019)9 Using
digital technology, such as mobile wallets and digital currency, India is attempting to transition
from a heavily reliant on cash economy to a cashless one. ‘A case of continuous usage of mobile
wallets in India ‘ is the title of this research paper. This study's objective is to analyze a research
model that combines the two ideas of technology acceptability and excellence. The study
discovered that the mobile wallets' information quality had a substantial impact on perceived
usefulness; however, system and service quality did not have a significant impact. The study
discovered that the mobile wallets' system and service quality greatly affect users' perceptions
of security. The continuing intention to use among mobile wallet users was found to be
significantly impacted by perceived security and utility. 8
SUJITH T S, DR. M SUMATHY & ANISHA T (2019)10 The study aims to investigate how
young people view m-wallets. According to the study titled ‘Customer perception towards
mobile wallets among youth with special reference to Thrissur city’ , the majority of
respondents are familiar with mobile wallets and use them to make payments. The most popular
payment gateways are thought to be Phonepe, Google Pay, and Paytm. They find the services
offered by m-wallet gateways to be satisfactory and prefer m-wallets for the convenience of
making instant payments. The main issues m-wallets encounter are network problems and
security issues. This study examines too few barriers and makes recommendations for action
to encourage the development of e-payment. It is essential to conduct marketing and promotion
campaigns to educate non-users. Its popularity may grow as a result of promotional discounts
and reward points for using a digital wallet to make payments. 9
M THIRUPATHI, DR G VINAYAGAMOORTHI & DR. SP MATHIRAJ (2019)11 This study

titled ‘ Effect of cashless payment methods : a case study’, digital payment apps are the most
beneficial to users in terms of quick payment, avoiding carrying physical cash, saving time,
high security payment, receiving discounts and offers, easy recharge, and green payment
system, among other things. The number of users is growing every day, with more young and
adults using digital payment apps, particularly students and employees in the government and
private sectors. As a result, Indian citizens' attitudes are shifting in favour of a cashless or less
coin-based economy. This will push India towards a more digital and developed economy. 10
8
9
10

SATINDER BAL GUPTA, RAJ KUMAR YADHAV & SHIVANI (2020)12 The research paper
titled ‘ study of growing popularity of payment apps in India’ , shows that there has been a
significant increase in the use of apps for online payments in recent years. Online payment apps
are being used by a growing number of people every day. Many users are drawn to these apps'
wallet features. According to the authors' analysis, Google Pay, PhonePe, and Paytm are the
top three payment apps used in India. Google Pay is highly preferred for high-value
transactions because it allows for direct bank account payment as opposed to other apps. To
increase the user base even more in the future, more security features must be included.
DR. C. MALLESHA (2020)13 The study investigates the perceptions of urban and rural
customers who use online payment systems, as well as the impact of online payments on Indian
banking clients. The combined results indicate that rural people require more knowledge and
training in order to bridge the rural-urban divide. The survey emphasizes the percentage of
people who are aware of how to use technology to its full potential. Banks should take
significant steps to raise knowledge about the proper use of technology and security while using
online payment systems. 11
SINDHU SINGH (2020)14 The author states that improvements in mobile phone technology
have raised the acceptance of mobile payments. Customers can conveniently and quickly shop
online using a mobile device. In mobile payment systems, users and payment service providers
have ongoing interactions. A lot of research has been done on the initial adoption of mobile
payment systems, but few have attempted to understand users' post-adoption behaviour.12
11
https://pmc.ncbi.nlm.nih.gov/articles/PMC5403814/
12
https://www.ijrte.org/wp-content/uploads/papers/v8i4S3/D10151284S319.

2.1.RESEARCH METHODOLOGY:
RESEARCH DESIGN
Research design is arrangement of conditions for collection and analysis of data in systematic
manner that aims to combine relevance to research purpose with economy in procedure. The
research study applied here is purely descriptive.
2.2. SOURCES OF DATA:
Necessary data are collected from both primary sources and secondary sources.
* Primary data:
The main source of data used for this study is primary and it is collected with the help of a
structured questionnaire. A questionnaire is framed to collect the information to fulfil the
objectives of the study. Primary data are first-hand information. These information’s are
collected directly from the source.
* Secondary Data:
The secondary data have been collected from different sources such as websites, books,
journals, internet and magazines. Secondary data are second hand information. The data that
have already been collected and processed by some agency or person and not used for the first
time are termed as secondary data.
2.3. SAMPLE SIZE:
The target population chosen for the study was yongsters in Ernakulam district. From the
population 100 samples were selected for the study.
2.4.SAMPLING TECHNIQUE:
The sampling technique used for the study is convenience sampling method. Convenience
sampling is a non-probability sampling technique where subjects are selected because of their
convenient accessibility and proximity to the researcher.

2.5. TOOLS OF DATA COLLECTION :
The collected data is analyzed and interpreted by using various mathematical and statistical
tools like percentage, tables, pie-chart, bar charts etc. Chi-square is used for testing hypothesis.
2.6. METHOD OF DATA ANALYSIS:
Tables, Graphs, and charts.

2.7.NEED OF STUDY :
As Google pay is surging on an account of growing online payment transactions in India. This
study brings out and increases the perception towards Google pay. This would help to gain
better understanding of the Google pay and to analysis and observe the mindset of people about
Google pay. This study helps in understanding the preference of the youngsters with regard to
Google pay and analysis the impact of demographic factors through the usage of mobile
payment. It helps to know the kind of services used by the users, which are provided by the
Google pay. This study conducted to analyze the usage of Google pay and to study the
satisfaction level of Google pay users based on different parameters namely convenience,
transaction time, safety, etc. This study also helps to know the motivational factors which
influence youngsters to use online payment applications.

2.8.SCOPE OF THE STUDY :
The foundation of any economy is financial transactions. Cash has long reigned supreme in
India. i.e., in our nation, cash was the only form of payment used for all transactions. Cash was
the dominant payment method and the foundation of our economy in 2015. This was due to a
variety of factors, including digital illiteracy, a lack of education, a lack of infrastructure, poor
network connections in rural areas of our country, and many others.
With the help of Digital modes of Payment, the transaction process has become more
convenient, secure, and transparent. It will be easier to exchange currency in foreign countries
if cashless transactions are adopted and implemented in India. A cashless society results in
lower crime rates, which benefits society. Once a society is cashless in economy, there will be
no scenario of black money and corruption, which can be accomplished by adopting more and
more digital modes of payment for various transactions. The primary goal of the research is to
investigate the advantages of using online payment applications and to analyze the various
online payment applications available in India.

2.9.OBJECTIVES OF THE STUDY:
 To study the impact of online payment applications among youngsters.
 To analyze the problems faced by the users while using online modes of payment .
 To find out the reasons for choosing e-payment over cash transaction.
 To know whether going cashless has helped the Indian economy.
 To identify the factors that influencing the use of online payment applications.

2.10. LIMITATIONS OF THE STUDY:
 This research was carried in a shorter period of time.
 Some of the respondents did not answer the questions accurately with interest.
 The sample size was small and constraint, the research would have been accurate if the sample
size was more.
 The study is focused only to the respondents of Ernakulam district.
 The information provided by the people may be biased.

CHAPTER III
DATA ANALYSIS
AND
INTERPRETATION

1. GENDER OF RESPONDENTS
TABLE 3.1. SHOWING GENDER OF RESPONDENTS
FIGURE 3.1 SHOWING GENDER OF RESPONDENTS
INTERPRETATION:
This study was conducted among 100 respondents. Out of 100 respondents, 62 respondents are
Female and 38 respondents are Male.

2. AGE OF RESPONDENTS
TABLE 3.2 SHOWING AGE OF RESPONDENTS
FIGURE 3.2 SHOWING AGE OF RESPONDENTS
INTERPRETATION:
From this chart it is found that out of 100 respondents 63% of the respondents were between
20-25 age group, 28% were between 15-20 and 9% were between 25-30 age group.

3. USAGE OF ONLINE PAYMENT APPLICATIONS
TABLE 3.3 SHOWING USAGE OF ONLINE PAYMENT APPLICATIONS
FIGURE 3.3 SHOWING USAGE OF ONLINE PAYMENT APPLICATIONS
INTERPRETATION:
The above data reveals that out of 100 respondents, 100 % of respondents are using online
payment applications for their transactions.

4 USAGE OF GOOGLE PAY
TABLE 3.4. SHOWING USAGE OF GOOGLE PAY
FIGURE 3.4. SHOWING USAGE OF GOOGLE PAY
INTERPRETATION:
From the above figure, It is clear that 100% of the respondents are using Google pay.

5 DURATION OF USAGE
TABLE 3.5. SHOWING DURATION OF USAGE
FIGURE 3.5. SHOWING DURATION OF USAGE
INTERPRETATION:
From the above figure, it is shown that 42% of the respondents were using online payment
applications for more than 2 years, 33% were using it for 1-2 years and 25% of the respondents
using online payment applications for less than a year.

6 REASON FOR CHOOSING ONLINE PAYMENT OPTIONS OVER PHYSICAL

PAYMENTS
TABLE 3.6 SHOWING REASON FOR CHOOSING ONLINE PAYMENT OPTIONS OVER
PHYSICAL PAYMENTS
FIGURE 3.6 SHOWING REASON FOR CHOOSING ONLINE PAYMENT OPTIONS

OVER PHYSICAL PAYMENTS
INTERPRETATION:
The above data reveals that 43% of the respondents choosing online payment options over
physical payments because it is a easy payment option, 22% of the respondents uses due to
24*7 transfer option, 16% uses it due to time saving and convenient, 15% uses due to cashand
offers, 2% uses it due to easy to track expenses and 2% of the respondents uses it due to other
reasons.

7 USAGE OF DIFFERENT METHODS FOR ONLINE TRANSACTIONS
TABLE 3.7 SHOWING USAGE OF DIFFERENT METHODS FOR ONLINE

TRANSACTIONS
FIGURE 3.7 SHOWING USAGE OF DIFFERENT METHODS FOR ONLINE

TRANSACTIONS
INTERPRETATION:
The above figure shows that 61% of the respondents using digital payment apps as a method
for online transactions, 16% using COD, 13% using debit card, 8% using credit card and 2%
of the respondents using net banking method.

8 WHETHER THE GOOGLE PAY IS SECURE MODE OF PAYMENT
TABLE 3.8 SHOWING WHETHER THE GOOGLE PAY IS SECURE MODE OF PAYMENT
FIGURE 3.8 SHOWING WHETHER THE GOOGLE PAY IS SECURE MODE OF

PAYMENT
INTERPRETATION:
The above figure shows that 51% of the respondents agree that the google pay is a secure mode
of payment, 32% neutrally, 14% strongly agree, 2% disagree to the statement and 1% strongly
disagree.

9 INFORMATION ABOUT E-WALLET BEFORE DEMONETIZATION
TABLE 3.9 SHOWING INFORMATION ABOUT E-WALLET BEFORE

DEMONETIZATION
FIGURE 3.9 SHOWING INFORMATION ABOUT E-WALLET BEFORE

DEMONETIZATION
INTERPRETATION:
From the study it is clear that majority of the respondents ,63% didn’t know about the concept
of e-wallets before demonetization and 37% of the respondents knew about the concept of
ewallets before demonetization.

10 EFFECT OF DEMONETIZATION ON USAGE OF E-WALLETS
TABLE 3.10 SHOWING EFFECT OF DEMONETIZATION ON USAGE OF E-WALLETS
FIGURE 3.10 SHOWING EFFECT OF DEMONETIZATION ON USAGE OF EWALLETS
INTERPRETATION:
From the above figure it is clear that, out of 100 respondents, 65% respondents said that
demonetization increased the use of e-wallets, 32% said that it has been stable and 3% of the
respondents said that it has decreased the usage.

11 PURPOSE OF USING ONLINE PAYMENT APPLICATIONSTABLE
TABLE 3.11 SHOWING PURPOSE OF USING ONLINE PAYMENT APPLICATIONS
FIGURE 3.11 SHOWING PURPOSE OF USING ONLINE PAYMENT APPLICATIONS
INTERPRETATION:
From the above data, it is clear that 21% of the total respondents use online payment
applications for transferring money, 20% use for the purpose of mobile recharge, 19% use for
payment of bills, 18% use for online shopping and merchant payments, 12% use it for food or
movie booking, 6% use it for booking transportation facilities and 4% use online payment
applications for other purposes.

12 OPINION ABOUT CONTRIBUTION OF ONLINE PAYMENTS TO THE SUCCESS OF

BANKS
TABLE 3.12 SHOWING OPINION ABOUT CONTRIBUTION OF ONLINE PAYMENTS

TO THE SUCCESS OF BANKS
FIGURE 3.12 SHOWING OPINION ABOUT CONTRIBUTION OF ONLINE PAYMENTS

TO THE SUCCESS OF BANKS
INTERPRETATION:
The above table shows that 52% of the respondents said that the contribution of online payment
to the success of bank is high, 25% said that it is average, 23% said it is very high.

13 INFLUENCE OF GOOGLE PAY IN INDIAN MARKET
TABLE 3.13 SHOWING INFLUENCE OF GOOGLE PAY IN INDIAN MARKET
FIGURE 3.13 SHOWING INFLUENCE OF GOOGLE PAY IN INDIAN MARKET
INTERPRETATION:
From the above figure, it is clear that 91% of the respondents agrees that google pay has
influence in Indian market and 9% opinion that there is no influence.

14 OPINION ABOUT POPULARITY OF NEW TECHNOLOGIES IN RURAL AREAS IN

FUTURE
TABLE 3.14 SHOWING OPINION ABOUT POPULARITY OF NEW TECHNOLOGIES IN

RURAL AREAS IN FUTURE
FIGURE 3.14 SHOWING OPINION ABOUT POPULARITY OF NEW TECHNOLOGIES

IN RURAL AREAS IN FUTURE
INTERPRETATION:
The above chart show that 95% of the respondents feel that in future new technologies will be
popular in rural areas as well.

15 OPINION WHETHER GOING CASHLESS IS BENEFICIAL FOR THE ECONOMIC

GROWTH
TABLE 3.15 SHOWING OPINION WHETHER GOING CASHLESS IS BENEFICIAL FOR

THE ECONOMIC GROWTH
FIGURE 3.15 SHOWING OPINION WHETHER GOING CASHLESS IS BENEFICIAL

FOR THE ECONOMIC GROWTH
INTERPRETATION:
The table shows that 36% of the respondents agree that going cashless is beneficial for the
economic growth of India, 32% strongly agree, 25% neutrally, 6% of the respondents disagree
to the statement and 1% strongly disagree.

CHAPTER IV
FINDINGS ,SUGGESTIONS
AND
CONCLUSION

4. FINDINGS :
1. Majority of the respondents (62%) are female.
2. Majority of the respondents (63%) are within the age between 20-25 use online payment
applications.
3.Majority , 43% of the respondents choosing online payment options over physical payments
because it is a easy payment option, while 22% of the respondents uses due to 24*7 transfer
option, 16% uses it due to time saving and convenient, 15% uses due to cashback and offers
and also they uses it due to easy to track expenses and for other reasons.
4. Among the respondents, 61% use digital payment applications as a payment gateway while
making online payments and only 16% of the respondents use COD ie, cash on delivery
5. 51% of the total respondents agree that e-payment systems like google pay are a secure mode
of payment and use various e-payment modes.
6. Majority of the respondents ,63% didn’t know about the concept of e-wallets before
demonetization and 37% of the respondents knew about the concept of e-wallets before
demonetization.
7. 65% of the respondents had an opinion that demonetization has increased the use of ewallet
and 32% said that it has been stable and 3% of the respondents said that it has decreased the
usage.
8. Majority of the total respondents (52%) feel that the contribution of new technologies on
banks is high and around 23% of the total respondents feel that the contribution is very high on
banks.
9. Around 91% of the respondents think that online payment applications like google pay has
a great future in the Indian market with the increasing number of usage of smartphones.
10. Majority of the total respondents (95%) think that in near future new technologies such as
Google pay will be popular in rural areas as well as it is in urban areas which means that there
will be increase in the usage of online payment applications.
11. Majority of the respondents (36%) agree that going cashless is beneficial for the economic
growth of India and around 32% of the respondents strongly agree that going cashless has

helped the Indian economy, 25% neutrally and 6% of the respondents disagree that going
cashless has helped Indian economy.
12. 62% of the respondents feel transaction failure is their biggest concern while using
epayments, 19% feel Security issues is their biggest concern, 10% respondents feel Fraud or
theft is their biggest concern, 7% feel Transaction charges is their biggest concern and 2% feel
Privacy concerns is their biggest concern while using e-payments
13. A large majority of the respondents (94%) accepts the Google pay, from this we can say
that Google pay is acceptable among youngsters
14. Among the 100 respondents 45% uses google pay less than 5 times in a week, 36% uses 5-
10 times in a week, 10% uses more than 10 times and 9% of the respondents uses 10- 20 times
in a week.
15. Majority of the respondents (77%) faced problems while using google pay transactions and
23% of the respondents faced no problems while using google pay

4.1.SUGGESTIONS :
 Advertisement should be made in the social media networks which will capture young people
to get in to the usage.
 Discount offers and reward on making payment through online payment applications can
increase its popularity and adoption as well.
.The more adored feature of Google pay is that it is a easiest mode of making an online
payment. So Google pay is performing well in terms of privacy, transaction time, discounts,
offers and customer satisfaction.
 Many respondents felt that the hindrance in adopting cashless economy is the digital and
technological illiteracy among the people of India, so to overcome this problem government
need to take initiatives in educating the people about the same.
 Awareness programs must be done at educational sector in order to educate people about
digital payment system.
 As respondents are well aware of the Google pay as per our findings, steps must be taken to
minimize the deficiencies involved in digital payments like security issues, failure of the app
and payment gateway failure, delay in confirmation order etc.
 Service provider of Google pay must taken in to consideration user experience and take their
valuable feedback in order to better their services.
 It is very important to educate the people in rural areas about cashless transactions and about
e-wallets, because majority of the crowd in our country belong to the rural areas.
 Many of the respondents felt that cashless mode of transactions in India is not safe so the
government should make electronic payments infrastructure completely safe and secure.
 Government should make the infrastructure capable and secure so that there are minimum
fraud and thefts.

4.2.CONCLUSION :
This study aims to find out the negative and positive aspects of online or digital payment ,
digital wallet in India. And this study was accomplished to explore consumer’s perception,
awareness, and willingness to engage in using Google pay to replace the content of their
physical wallets. This study has revealed that, there is a drastic increase in the usage of online
payment application after demonetization. On the basis of the study conducted, 100% of the
respondents are users of online payment application. It can be seen that many people are
adopting cashless mode of payment as it has its own pros like it :- reduces time and is
convenient to use , offers various cashback offers and discounts, etc., However, they are also
facing with certain difficulties.
In this study it can be seen that the youth is satisfied with the use of Google pay for making
various payments and that online modes of payments are increasing day –byday with the
increase in various technologies which facilitate the entire process of a transaction. As it can
be seen that cashless economy or the use of online payment application has its various
advantages and disadvantages so if any government is planning to adopt cashless economy
should carefully analyze the situation of the country. The government of India is taking efforts
to encourage the people of India to use digital modes of payments.
Google pay is getting more and more trending among the consumers. Google pay is taking
giant steps at revolutionizing the payments markets in India. Consumers or users will miss
aboard of features and easy money transfer transactions if they don’t use the app. The use of
These App for making online payments has made a huge growth in few years. The number of
users of Google pay is increasing significantly day by day. More security features need to be
added to increase the user base further in future. Marketing and promotion programmes should
be conducted to create awareness among non-users. Discount offers and reward points on
making payments through Google pay can increase its popularity and adoption as well.

REFERENCES:
1. DR HEM SHWETA RATHORE (2017) – Adoption of digital wallet by consumers

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3215675
2. ABHIJIT AND HARMEET (2017) – customer satisfaction towards paytm

https://www.ijrte.org/wp-content/uploads/papers/v8i4S3/D10151284S319.pdf
3. N RAMYA, D SIVASAKTHI AND DR. M NANDHINI (2017) – cashless transaction:

modes,advantagesanddisadvantages
https://www.researchgate.net/publication/316429963_Cashless_transaction_Modes_a
dvantages_and_disadvantages
4. PREETI GARG AND MANVI PANCHAL (2017) – study on introduction of cashless

economy in India 2016: benefits & challenges https://www.ijsdr.org/papers/IJSDR1902011.pdf
5. RAVISH RANA (2017) – study on consumer perception of digital payment mode

https://www.icommercecentral.com/open-access/study-of-consumer-perception-ofdigital-
payment-mode.pdf
6. SHAMSHER SINGH (2017) – study on consumer awareness of e-wallets

https://www.researchgate.net/publication/349381000
7. ASHISH BAGLA (2018) – use and awareness of digital payment in rural areas
https://ijcrt.org/papers/IJCRT2011248.pdf
8. K SUMAVALLY and DR. K HEMA DIVYA (2018) - a study on digital payments in India
with perspective of consumers adoption https://www.acadpubl.eu/hub/2018-118-24/2/378.pdf
9. SUSMI ROUTRAY, REEMA KHARUNA, RUCHI PAYAL, RAKESH GUPTA (2019) – A

caseofcontinuous usage of mobile wallets in India
https://www.scirp.org/Journal/Paperabs.aspx?paperid=92187
10. SUJITH T S, Dr. M SUMATHY & ANISHA T (2019) – Customer perception towards
mobile wallet among youth with special reference to Thrissur city
https://www.researchgate.net/publication/354598925

11. M THIRUPATHI, DR G VINAYAGAMOORTHI & DR. SP MATHIRAJ (2019) – Effect

of cashless payment methods: A case study https://www.ijstr.org/final-print/aug2019/Effect-
Of-Cashless-Payment-Methods-ACase-Study-Perspective-Analysis.pdf
12. SATINDER BAL GUPTA, RAJ KUMAR YADHAV & SHIVANI (2020) – Study of
growing popularity of payment apps in India
http://www.testmagzine.biz/index.php/testmagzine/article/view/3353
13. DR. C. MALLESHA (2020) – A case study on perception towards online payment systems
among urban and rural customers
https://www.inspirajournals.com/uploads/Issues/898276372.pdf
14. SINDHU SINGH (2020) – A study on usage of online payment apps by customers
https://www.researchgate.net/profile/Sindhu-Singh
15. MR CHERUKUR (2020) – Customer satisfaction towards mobile wallets

https://scholar.google.com/scholar?hl=en&as_sdt=0,5&cluster=892618876467379006 0

QUESTIONNAIRE:
1. Gender:
A Male
B Female
2. Age:
A 15-20
B 20-25
C 25-30
3.Have you ever used online payment application for making payments?
A Yes
B No
4.Have you ever used Google pay for making payments?
A Yes
B No
5.How long have you been using Google pay?
A Less than a year

B 1-2 years
C More than 2 years
6.Why would you adopt online payment option over physical payments?
A Easy payment option

B Time saving and convenient
C Cashback offers and discounts
D Easy to track expenses
E 24*7 transfer Other
7. What payment gateway do you use while making online payments?
A COD
B Debit Card

C Credit Card
D Net Banking
EDigital payment apps
8. Do you think e-payment systems like Google pay are a secure mode of payment?
A Strongly agree
B Agree
C Neutral
D Disagree
E Strongly disagree
9.Have you had information about e-wallet before demonetization?
A Yes
B No
10.Do you think after demonetization the use of e-wallets have increased?
A Increased
B Decreased
C Stable
11.For which purpose do you use online payment applications?
A Mobile recharges
B Payment of bills
C Online shopping and merchant payments Food or movie booking
D Booking transportation facilities
E Transfer money
F Others
12. In your opinion what do you think in India the contribution of new technologies like online
payments to the success of the banks?
A Very High
B High

C Average
D Low
E Nil
13.Do you think online payment application like Google pay has a great influence in Indian
market?
A Yes
B No
14. Do you think in near future new technologies like Google pay will be popular in rural areas
as much as it is in urban areas?
A Yes
B No
15. Do you think going cashless is beneficial for the economic growth of India?
A Strongly agree
B Agree
C Neutral
D Disagree
E Strongly disagree


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A STUDY ON IMPACT OF ONLINE PAYMENT APPLICATIONS

AMONG YOUNGSTERS WITH REFERENCE TO GOOGLE PAY

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 1

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 2

1.1 DIGITAL PAYMENT :

10 Types of Digital Payment methods in India:-

1. Banking Cards- Debit/Credit / Prepaid Cards.

2. USSD (Unstructured Supplementary Service Data).

3. AEPS (Aadhar Enabled Payment System).

4. UPI Mobile (Unified Payments Interface).

6. Bank Pre-paid Cards.

7. POS Terminals 8. Internet Banking

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 3

10. BHIM App (Bharat Interface for Money).

This Photo by Unknown Author is licensed under CC BY-NC-ND

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 4

1.3STEPS FOR USING GOOGLE PAY :

1.Download Google pay from Google play store.

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 5

1.4.FEATURES OF GOOGLE PAY :

Send and receive money via Audio:

Pay utility bills:

Multiple payment options:

 Money can be sent to and received directly from bank account.

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 6

 The app is available in eight Indian languages making it more acceptable.

1.5.BENEFITS OF GOOGLE PAY :

Major Bank Support:

Mobile Banking App integration:

In-App and online purchase:

Boarding passes and tickets:

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 8

Fast and easy purchases whenever they buy:

Attractive promotion and reward programs:

1.6.DISADVANTAGES OF GOOGLE PAY:

It’s not always accepted:

It’s not invincible:

Limited only to NFC technology:

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 9

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 10

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 11

DR HEM SHWETA RATHORE (2017)1 In today's world, smartphones have become an

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 12

SHAMSHER SINGH (2017)6 Conducted a research on the “study of consumer perception of

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 13

M THIRUPATHI, DR G VINAYAGAMOORTHI & DR. SP MATHIRAJ (2019)11 This study

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 14

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 15

2.2. SOURCES OF DATA:

2.3. SAMPLE SIZE:

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 16

2.5. TOOLS OF DATA COLLECTION :

2.6. METHOD OF DATA ANALYSIS:

Tables, Graphs, and charts.

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 17

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 18

2.8.SCOPE OF THE STUDY :

BHEMMI REDDY INSTITUTION OF MANAGEMENT SCIENCE 19

2.9.OBJECTIVES OF THE STUDY:

 To study the impact of online payment applications among youngsters.