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org © 2020 IJCRT | Volume 8, Issue 12 December 2020 | ISSN: 2320-2882

A PERCEPTION ON USAGE OF DIGITAL

PAYMENTS (WITH SPECIAL REFERENCE TO
COIMBATORE CITY)
1.Mr.K.MYILSWAMY
Ph.D RESEARCH SCHOLAR,LRG GOVT ARTS COLLEGE FOR WOMEN, TIRUPUR.
2. Dr.R.HAMSALAKSHMI
ASSISTANT PROFESSOR, DEPARTMENT OF COMMERCE,
LRG GOVT ARTS COLLEGE FOR WOMEN, TIRUPUR.

ABSTRACT
A digital Payment System or Digital payment Processing System is a boon to today’s world, thanks to the advancement
of Information technology. Digital payments henceforth will be called OPPS made a huge impact by cutting across all the
barriers like space, time, language, currencies, etc. OPPS is the heart of any E-commerce system. With the present setting the
present study is intended to find the solution for the following objective To analyze the perception of rural population on the
digital payments. The research is investigative and qualitative in nature and the primary data has been used in this study.
Primary data will be collected using questionnaire technique from the selected companies. The population targeted for this study
consisted of respondents who are the rural population using digital payments from the Coimbatore city of Tamilnadu. The city is
being divided into five zones as per the administration of the government; east, west, central, north and south zones. The
extensive use of plastic cards, online shopping and electronic payments are gathering momentum surpassing the tradition
payment system. The initiative of government in providing the high-tech services in coordination with other institutions are
motivating consumer to move from cash-based to a cashless system and thus increasing efficiency and decreasing the process
costs.
1.1 Introduction
The prehistoric man had produced things like food, clothes and habitat themselves. With the growth of
Civilization, commodities were initially bartered / purchased (exchanged) with other commodities and later gold was
used for purchasing in olden days. With the introduction of currency trading was enabled to happen across the globe,
though each transaction involved many people, process and was time consuming. With the advent of computers and
information technology, trading process reached its zenith of development. Within few seconds, products or
commodities are purchased from any part of the globe and also shipped anywhere.
A digital Payment System or Digital payment Processing System is a boon to today’s world, thanks to the
advancement of Information technology. Digital payments henceforth will be called OPPS made a huge impact by
cutting across all the barriers like space, time, language, currencies, etc. OPPS is the heart of any E-commerce system.
E-commerce Systems made it possible to purchase products or services from any part of the world in a few minutes
with various currencies. Any enhancement to digital payments will encourage users by giving more confidence and
comfort on one hand and increase the volume of business for merchants on the other. Above all, the payment systems
play a major role in a country's monetary policy; financial sector and economic development as they improve
macroeconomic management, release funds from the clearing and settlement functions for more productive use;
reduce float levels and improve the control of monetary aggregates. Firms in different economic sectors use payment
system to transfer funds and to provide competitive financial services.
The cashless transaction and cashless economy has witnessed a phenomenal growth over the last decade. This
sharp rise of digital payments has not grown only in the developed countries but also in many of the developing
countries. Today most of the market is passing through a transition phase. The presence of cashless transaction can be
experienced from each segment of the market like grocery stores, hypermarkets to electronic markets and other
advanced market serving products and services. The extensive use of plastic cards, online shopping and electronic
payments are gathering momentum surpassing the tradition payment system. The initiative of government in
providing the high-tech services in coordination with other institutions are motivating consumer to move from cash-
based to a cashless system and thus increasing efficiency and decreasing the process costs. This has led to the idea of
a futuristic, cashless society. The consumer motivation is the key driver to develop the cashless society. Presently this
is progressing because of the worldwide internet availability with user friendly software and hardware.

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Indian Banking Sector has witnessed a number of changes. It has undergone a huge transformation in the
years since Independence. The rate of transformation was particularly high in the 1990s and 2000s, when a number of
innovations changed the way banking was perceived and it was the result of autonomous and induced necessities of
the environment. Banks began to use technology to provide better quality of services at greater speed. Information
technology has made it convenient for customers to do their banking from geographically diverse places which earlier
remain uncovered. The technology effects and diverted from cash to cashless in India.
In the last few years, Government has taken multiple steps to promote adoption of digital payments but the
progress has been slow especially in rural areas. The traditional culture, the lack of technological knowledge, and poor
skill and slow adaption as well as rigid attitude can be some of the reasons of not moving towards cashless economy.
Generally consumer attitude are defined as evaluative effect of individuals’ positive or negative feelings in a
particular behavior performing (Fishbein and Ajzen, 1975)1.
According to Grewal et.al (2000)2 attitude performs four functions such as Knowledge Function which acts as
a source of organizing beliefs or views about objects and activities like brands and shopping, and helps in determining
subsequent behaviors. Another function is the Value-expressive Function which serves as the formation of attitudes to
express and help in individual’s central values and self-concept. Third function is the utilitarian Function which based
on classical condition theory, and reflects the concept that people tend to form positive attitudes with something
which is rewarding and tend to form negative attitude towards other things. Fourth function is the Ego-Defensive
Function which is based on the formation of attitude by people to defend their egos and self-images against threats
and their shortcomings. Apart from these, there is other motivation that drives consumer to go far cashless.
Sanket Dhanorkar (2017)3 indicated that 84% consumer moves from cash to cashless due to Convenience,
49% consumer moves from cash to cashless due to availing Discounts/cash back rewards, another 54% respondents
indicated that they moves from cash to cashless due to Easy tracking of spends, and 34% indicated that they move
towards cashless transaction die to shortage of currency notes.
Apart from these many researchers have found consumer motives such as government compulsion,
transparency in the transaction, enhanced security measure to ensure transaction safety, growing consumer confidence
in the digital transaction system, growing digital literacy, peer pressure, technological innovation and extension of
services to the masses in rural as well as urban area, growing consumer trust in the cashless transaction, saving time
and fatigue, secure payment system, convenient and all information are stored under one roof as well as attractive
discount like 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 are some of the key driver moving consumer from cash to cashless
transaction system. With the present setting the present study is intended to find the solution for the following
objective;
1. To analyze the perception of rural population on the digital payments
Reviews of literature
Hugh Thomas (2018)4, expressed that many countries are taking to get closer to cashless, we have come to
realize that local circumstances dictate both the path of the journey and the destination. There is a traditional path to
going cashless, but the experience is showing that government focus and technological innovation can create shortcuts
and may also change what the final destination looks like. Kenya is unlikely to take the same path to cashlessness as
Sweden, and its final destination will likely look different as well.
Atanda et.,al.(2012)5discussed in detail the structure, importance, challenges and consequences of the newly
adopted cashless policy program in the Nigerian banking sector. The cashless
policy is mainly instituted to enhance the effectiveness of flow of financial resources among economic agents in the
economy at least cost possible as well as ensuring prompt cash transfers within the system. The Central Bank of
Nigeria (CBN) cashless initiative is geared towards eliminating the continuous use of physical cash in most daily
transactions at the business unit of the economy, as well as regulating, controlling, and securing the financial system.
A critical analysis of the policy as contained in this report as identified major constraints that can hinder the
effectiveness of the cashless banking without prompt attention by the concerned authority.”

1
Fishbein, M., &Ajzen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction to Theory and Research. Addison-
Wesley.
2
Grewal all (2000) The role of the social-identity function of attitudes in consumer innovativeness and opinion leadership,
Journal of Economic Psychology 21 (2000) 233
3
Sanket Dhanorkar (2017) available at: economic times.indiatimes.com /articleshow / 56269830.cms ? utm_source=content of
interest & utm_medium=text&utm_campaign= cppst ET Bureau| Updated: Jan 02, 2017, 04.45 PM IST
4
Hugh Thomas, Exclusive insights from Master Card Advisors http:// www.mastercardadvisors.com/ _assets/ pdf/
MasterCardAdvisors Cashless Society.pdf [Accessed 5 May 2018].
5
Atanda, Akinwande A., and Alimi, Olorunfemi Y. (2012), Anatomy of Cashless Banking in Nigeria: What Matters? MPRA
Paper No. 41409 posted 21. September 2012 13:31 UTC
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www.ijcrt.org © 2020 IJCRT | Volume 8, Issue 12 December 2020 | ISSN: 2320-2882
Bansi and Urvi (2012)6stated that; as per technology changes suitable changes should be adopted by the
economy. In addition, among all the changes in economy lead to some drastic changes in the transaction. Nowadays
in any transaction, Plastic money becomes an inevitable part of the transaction. In addition, with it, life becomes
easier and development would take better place. Relating to Indian scenario how the plastic money took place in the
banking world would be the focus by the researcher over here. In addition, along with the plastic money it becomes
possible that control the money laundry and effective utilization of financial system would become possible which
would also helpful for tax legislation.
Research Methodology
The research is investigative and qualitative in nature and the primary data has been used in this study.
Primary data will be collected using questionnaire technique from the selected companies. Secondary data for the
study has been collected from books, websites and few journals and news paper, for this study secondary data was
collected through various sources such as magazines, internet and company reports and business journals. The
population targeted for this study consisted of respondents who are the rural population using digital payments from
the Coimbatore city of Tamilnadu. The city is being divided into five zones as per the administration of the
government; east, west, central, north and south zones. All the five zones are being covered in the study where the
samples are found distributed. A total 100 (20 samples from each zone) from the city are being selected and to whom
the questionnaires are distributed. The sampling technique adopted for the study is simple random sampling.

Analysis and discussion

Table 1: Demographic Profile of the Respondents
Classification No of Respondents Percentage
Gender
Male 56 56
Female 44 44
Age (Years)
16 - 25 12 12
26 – 35 28 28
36 - 45 38 38
Above 45 22 22
Marital Status
Married 76 76
Unmarried 24 24
Others 0 0
Educational qualification
No formal education 15 15
HSC 37 37
UG 28 28
PG 08 08
Diploma and others 12 12
Occupation
Farmer 26 26
Professional 06 06
Self employed 24 24
Public employee 04 04
Private employee 34 34
Others 06 06
Total 100 100.0
Source: Compiled and calculated using primary data
The above table represents the demographic profile of the respondents who are the rural people. Out of 100
samples selected 56 respondents were male, 38 Respondents were between 26-45 years of age, 76 respondents were
married, and 37 respondents have Higher Secondary level of educational qualification and finally 34 respondents are
private employees.

6
Bansi Patel, Urvi Amin(2012) Plastic Money: Roadmap Towards Cash Less Society PARIPEX - Indian Journal Of Research
Volume: 1 | Issue: 11 | November 2012 ISSN - 2250-1991

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www.ijcrt.org © 2020 IJCRT | Volume 8, Issue 12 December 2020 | ISSN: 2320-2882
Perception towards diversity
Table 2: Perception towards Diversity
Statements NT RT N ST AT
Digital payment ensure privacy and transparency 0 2 5 28 65
Digital payment is unavoidable in the competitive economy
8 11 11 18 52
of India
Digital payment have clear future in global age and
0 2 9 29 60
improves the quality of service
Digital payment create more social relations and fulfill all
2 7 18 18 55
the requirements in time
Digital payment make on line purchase of goods and
1 3 19 30 47
services easier
Effecting business transactions flexibly 6 12 13 22 47
Quick processing of transactions and minimum human
0 2 6 15 77
intervention
More formalities are required to get e- channels issued from
1 4 12 18 65
the banks
Digital payment charge more hidden cost and sometime
28 12 36 12 12
creates technical hurdles
Digital payment helps to manage information efficiently 6 12 13 47 22
Digital payment creates confusion for customers due to lack
16 53 22 2 7
of required information
Source: Compiled and calculated using the primary data
The above table denotes the respondents’ perception towards digital payments. In the first statement that depicts
digital payment ensure privacy and transparency, majority of respondents at 65 per cent expressed that the statement
was always true.
A total of 52 per cent of respondents stated always true to the fact that Digital payment is unavoidable in the
competitive economy of India. A total of 60 respondents expressed always true to Digital payment have clear future in
global age and improves the quality of service. 55 respondents expressed always true to the fact that Digital payment
create more social relations and fulfill all the requirements in time.
47 respondents stated always true to Digital payment make on line purchase of goods and services easier. 47 per
cent of the respondents expressed always true to the fact that the digital payments effecting business transactions
flexibly. 77 the respondents stated always true to the fact Quick processing of transactions and minimum human
intervention.
65 per cent of respondents expressed always true to the statement that more formalities are required to get e-
channels issued from the banks.36 respondents stood neutral with Digital payment charge more hidden cost and
sometime create technical hurdles. 47 respondents stated somewhat true to Digital payment helps to manage
information efficiently. Finally, 53 respondents true to the fact that Digital payment creates confusion for customers
due to lack of required information.
H01: The association between the perception of digital payments and the demographic profile of the respondents is not
significant.
Table – 2: Chi-square analysis
Variables x2 P-value S/ NS

Gender 29.255 0 S**

Age 2.111 0.001 S**

Marital Status 16.982 0.003 S**

Educational Qualification 0.551 0.004 S**

Occupation 26.595 0.006 S**

*Significant at 5 per cent level**Significant at 1 per cent level
Source: Compiled and calculated using the primary data
The table above represents the analysis of association using chi-square analysis between theperception and the
demographic profile of the respondents. It is clear from the table that the all the personal profiles; are found
significant at 1 per cent. Hence the null hypothesis is rejected and concluded that the association between perception
of digital payments and the demographic profile of the respondents is significant viz, gender, age, marital status,
educational qualification and occupation.
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Recommendation and Conclusion
The cashless transaction and cashless economy has witnessed a phenomenal growth over the last decade. This
sharp rise of digital payments has not grown only in the developed countries but also in many of the developing
countries. Today most of the market is passing through a transition phase. The presence of cashless transaction can be
experienced from each segment of the market like grocery stores, hypermarkets to electronic markets and other
advanced market serving products and services.
The extensive use of plastic cards, online shopping and electronic payments are gathering momentum
surpassing the tradition payment system. The initiative of government in providing the high-tech services in
coordination with other institutions are motivating consumer to move from cash-based to a cashless system and thus
increasing efficiency and decreasing the process costs. This has led to the idea of a futuristic, cashless society. The
consumer motivation is the key driver to develop the cashless society.
References
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Technology and Advanced Engineering, Vol. 5, pp. 110-115.
2. Roy S, Sinha I. Determinants of Customers Acceptance of Electronic Payment System in Indian Banking
Sector-A Study. International Journal of Scientific & Engineering Research. ISSN 2229-5518, 2014;
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3. Go Cashless: Digital Wallets, NEFT, IMPS, UPI, Debit Cards, Credit Cards https://www.bemoneyaware.com
/blog/ cashless-digital-wallets -neft-imps-upi-debit-cards/ Date accessed: 22/10/2017
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digitalpayment-method-to-use/ Date accessed: 23/10/2017
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