International Journal of Science and Research (IJSR)

ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426

A Study on Customer Insight Towards UPI (Unified

Payment Interface) - An Advancement of Mobile
Payment System
Dr. Virshree Tungare
Assistant Professor, Acropolis Institute of Management science & Research, DAVV, Indore, M.P., India

Abstract: Digitization and Go cashless scheme has been extensively pushed by the Indian government to regularize and smoothen the
cash transaction after demonetization. The demonetization consequences give extraordinary growth in digital payment such as E-
banking, Mobile banking, Card transaction etc. Unified Payments Interface (UPI) is one of the fastest growing digital payment system
through which a user can both send and receive money through a Virtual Payment Address (VPA).Uniqueness of UPI over other digital
payment methods like 24*7 and 365 days availability, Easy and convenient to use and secure gateway attracts the customers of service
sector. This research was mainly focused to study the customer perception (service sector) towards the awareness and adoption of UPI
systems in Indore region. For this research primary data was collected through structured Questionnaire contains 5 point Likert scale
from service sector and secondary Data collected from Government Reports, Website etc. This research concludes with aspects of
awareness and adoption of UPI through comparison between gender, age and occupational data of customers. The results of this study
add to our knowledge about acceptation of UPI and its usefulness in cashless and immediate transactions that influenceyoung male
customers who belongs to service sectors. The research concluded that customer of service sector is more swing towards the adoption of
UPI and there is significant difference found male and female customers towards the adoption and use of UPI.

Keywords: UPI, VPA, Digital Payment

1. Introduction 2. Conceptual Framework

Advancement in technology has changed the system of 2.1 History
payments in India. Post Demonetization period (After08
November 2016), has plaid an important role in the growth India growing fast in the usage of Digital Payments options.
of digital payments in India. Also cashless transaction has With the increase in Internet usage, Digital payment is also
been extensively pushed by Prime Minister Mr. come into existence. The payment firstly shifted from the
NarendraModi as part of government reforms. The number traditional payment into Electronic Payment through Debit
of digital transactions stood at about 11.8 billion for the first and Credit cards, E- Payments options through E- Banking
six months of this financial year, according to calculations and then further shifted to Mobile Payment through the
based on data from the Reserve Bank of India and the usage of M –Payment technologies.
National Payments Corporation of India.
Digital payment is also coming in growing stage by the
This market of digital payments highly effected by a smart support of Government. After demonetization Indian
tool known as smart phones, this has become a key Government work on Cashless Transaction Through their
component of people’s personal, professional and financial Campaign known as “Digital India- Power to Empower”.
onlinelife. Smart phone ecosystem made it very easy to The Expansion of Cashless India or Digital India is majorly
inculcate the use of various application/technology in our based on four factors:
day today life. Easy availability of internet connection, one  Advancement in technology: Technology has been
touch access, secures financial transaction influence the advancing at a rapid paceto deliver robust, secure and
adoption of one touch payment. Thus to optimize this benefit convenient payments solutions. This enables rapid
of smart phone and technology and to develop a platform delivery of payment services to large sectionsof the
for cashless and transparent financial transactions the population.
Government of India developed one significant product ,the  Economical: Digital payments allow services to be
“UPI” (Unified Payment Interface). delivered at lower costs, afford greater scalability and
greater ease of access. This in turn, helps in fostering
UPI is a simple payment tool created by NPCI that is based economic growth and financial inclusion.
on IMPS system. UPI can operate on a smart phone and it  No more unlimited cash transactions: Though there are
works as an email ID for money. It facilitates virtual several perceived benefits of transacting in cash (such as
Payment address (VPA: A VPA is an ID, which a user instantaneous settlement, relative anonymity, and the
creates by linking their accounts to a bank’s mobile notion of security), government of India has put embargo
application) as a payment identifier for sending and on unlimited cash transactions.
collecting money and works on single click.  Government initiatives: Initiatives taken by the
government have created a catalytic environment for the
greater proliferation and growth of digital payments.UPI is
one of the best examples of it, the advancement in
Volume 8 Issue 4, April 2019
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: ART20197212 10.21275/ART20197212 1408
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426
technology and adoption of smart phones has motivated  Bill Sharing with friends and opportunity to earn reward
Indian customers to accept the virtual payment system. points
 Best answer to Cash on Delivery hassle, running to an
ATM or rendering exact amount.
 Utility Bill Payments, Over the Counter Payments,
Barcode (Scan and Pay) based payments.
 Donations, Collections, Disbursements Scalable.

Different Apps used UPI Feature in India:

Below is the list of App that provides UPI Feature:

Table 1: List of Popular UPI Application available in

India
PhonePe Paytm BHIM app MobiKwik
Airtel Payments Bank Google Tez Uber Yono
SBI Pay iMobile Axis Pay BOB UPI

3. Literature Review

 BabitaSingla, Manish Bansal (2015) in their research

found that the shoppers are happy with plastic use, and
the non-platinum card clients are fascinated to utilize the
card for buys and mean to utilize the card in not so
distant future. However the banks and other financial
institutions are motivating the use of plastic card.
 KhuramShafiq and Khalil Ahmad (2015) Is plastic
Money Matter for Consumer Buying Behavior? This
examination gives the affirming data since buyers feel
good in spending through plastic cash as easy access of
money, no cash carrying risks and reward shopping are
Figure 1 the major factors that plays important role behind it.
Source: https://www.india-briefing.com/news/growth-of-
 Rouibah (2015) showed that poor security, lack of trust,
digital-payments-systems-in-india-14797.html/
fear of failure, high charges and poor familiarity were the
major constraints that affected payments. Besides,
Introduction of UPI (Unified payment Interface) security features of internet, banking facilities, privacy
Unified Payments Interface (UPI) is a digital payment
and quality of services were also affecting adoption of e-
system through which a user can both send and receive
payments.
money through a Virtual Payment Address (VPA). The
 Rathore (2016) stated that digital payment using wallet
money will be directly debited from the customer's bank
was highly convenient for consumers in purchasing
account. It is a system that powers multiple bank accounts
products through online without physical movements
into a single mobile application (of any participating bank),
across places.
merging several banking features, seamless fund routing &
 Dr. Stitch ShewtaRathore (2016) "Appropriation of
merchant payments into one hood. It also caters to the “Peer
Cashless transactions By Consumers" her investigations
to Peer” collect request which can be scheduled and paid as
disclose to us computerized wallets are rapidly getting to
per requirement and convenience.
be standard method of online installment. Customers are
embracing advanced wallets at end unfathomably quick
National Payments Corporation of India (NPCI), the
pace, to a great extent because of comfort and
umbrella organization for all retail payment systems in India
convenience.
has taken up a new initiative of implementing “Unified
Payment Interface” to simplify and provide a single interface  RoopaliBatra , NehaKalra (2016) "Are Digital wallets
across all systems. Banks have started to upload their UPI The Newcurrency?" her investigations let us know in a
enabled Apps on Google Play store from 25th August, 2016 period of digitalization, the examination intends to
onwards. contemplate the client recognition, utilization design
inclinations and fulfillment level with respect to
Uniqueness of UPI than other digital payment methods: advanced wallets in view of an investigation of 52
respondents. It additionally recognizes the hindrances
 Immediate money transfer through mobile device round
the clock 24*7 and 365 days. and difficulties to the selection of the same. The
outcomes demonstrate that there exists a tremendous
 Single mobile application for accessing different bank
undiscovered market for computerized wallets both
accounts.
regarding expanding mindfulness and also its use.
 Virtual address of the customer for Pull & Push provides
 K. C. Balaji and K. Balaji (2016)"A Study On
for incremental security with the customer not required to
Demonetization And Its Impact On Cashless
enter the details such as Card no, Account number; IFSC
Transactions" considered that the development of the
etc.
Volume 8 Issue 4, April 2019
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: ART20197212 10.21275/ART20197212 1409
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426
cashless exchange framework is achieving new statures. H2: There is a significant difference in adoption of UPI
Individuals tend to move to cashless exchanges. It is on system among Business sector and service sector customers.
the right track to state that the cashless framework is a H3: There is a significant difference in adoption of UPI
prerequisite as well as a requirement for the general system between young customer, adult customer and senior
public. citizens.
 KunalTaheam, Rahul Sharma and saurabhGoswami
(2016) "Drivers Of Digital Wallet Usage: Implications 4. Analysis and result
For Leveraging Digital Marketing" The outcomes from
this investigation highlighted on various elements that 4.1 Analysis of Awareness of UPI systems
inspired individuals to utilize computerized wallets for
making installments. Individuals in Punjab have been Table 2 shows the study on respondent about the awareness
found have been discovered utilizing advanced wallets of various electronic payment systems.
because of the intentions of controllability and security,
societal impact and helpfulness and requirement for Table 2: Various electronic payment systems
execution improvement. Electronic payment system Percentage No. of Respondent
 Singh (2017) concluded that there was significant E-Banking 23 24
difference between education of consumers and adoption UPI 34 35
of digital payment. The perception of consumers for Mobile-Banking 19 20
digital payment had positive and significant effect on Debit card/Credit Card 24 24
adoption of digital payment among consumers. Total 100 103

Objective
1) To study the awareness of UPI system in customers of
Indore region.
2) To study the adoption of UPI system in customers of
Indore region.

Research Methodology
Data Collection- Primary Data Collected through structured
Questionnaire. Secondary Data collected from Government
Reports, Website etc.

Scale &Tools for Analysis

Nominal Scale was used in the study to import the collected
responses in SPSS 20. Cronbach’s Alpha test was used to Chart 1
find the reliability of the data. So the data is appropriate and
found reliable for testing the hypothesis. Independent T- test The above chart shows that around 35 respondents out of
& Frequency analysis was found to be the most appropriate 104 know about the UPI payment methods so we can state
statistical tool finds the answer for research objectives. that the awareness about the UPI payment methods is 34%.

The following research hypothesis was framed as null Analysis of Adoption of UPI systems
hypothesis. The following analysis represents the willingness of
Hypothesis respondents to adopt UPI services.
H1: There is a significant difference in adoption of UPI
system among the male and female customers.

Table 3: Adoption of UPI services

Responses
S. No Strongly Total
Agree
Parameters Agree Percentage respondents
Q.1 UPI provides a convenient way of Payment 32 47 77 103
Q.2 UPI Facilitates transfers and payments from any point 32 51 81 103
Q.3 Cashless payments options gives you more discounts/cash back rewards 36 50 83 103
Q.4 Provides flexibility and easy tracking of spending 16 66 80 103
Q.5 Denomination of currency and advertising about UPI motivates you to adopt this system 35 49 82 103

Volume 8 Issue 4, April 2019

www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: ART20197212 10.21275/ART20197212 1410
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426

Chart 2

Hypothesis testing respect to the use of UPI systems . hens the hypothesis is
H1: There is a significant difference in adoption of UPI accepted.
system among the male and female customers.
H3: There is a significant difference in adoption of UPI
Table 4: t-Test: Two-Sample (male and Female) system between young customers, adult customer.
Male Female
Mean 4.146031746 3.92 Table 8
Variance 0.090588838 0.128820513 t-Test: Two-Sample (Young and Adult)
Observations 63 40 Young Adult
Hypothesized Mean Difference 0 Mean 4.033333333 4.102702703
Df 73 Variance 0.11025641 0.128048048
t Stat 3.311689506 Observations 66 37
P(T<=t) one-tail 0.000722005 Hypothesized Mean Difference 0
t Critical one-tail 1.665996224 Df 70
t Stat -0.968397438
From above table, it can be seen that the result of t test is P(T<=t) two-tail 0.33618003
significant and indicates that adoption of UPI system differs t Critical two-tail 1.994437112
significantly in male and female. The result of analysis also
shows, the absolute obtained T (cal) (3.311) value is more From the above it can be see that the result of T test is
than absolute critical value of t (tab) (1.66) ,which implies significant and indicates age group significantly affects the
that male and female differs significantly in the use UPI use of UPI SYSTEMS. The result of analysis shows, the
SYSTEMs and the hypothesis is accepted. absolute calculated value of t(cal)(0.968) calculated is less
than Critical value of t(tab) (1.99),which implies that
H2: There is a significant difference in adoption of UPI respondents of young age group and old age group differs
system among Business sector and service sector customers. significantly in the adoption of UPI system hence the
hypothesis is accepted.
Table 6: t-Test: Two-Sample (Service class and Business
Class) 5. Finding
Service Business
Mean 4.1 4.068571 Cronbach’s Alpha test Result: Reliability test in SPSS 20.
Variance 0.143529 0.084571 Result in 0.849, which is higher than 0.7 acceptable ranges.
Observations 52 35 So the data is appropriate and found reliable for testing the
Hypothesized Mean Difference 0
hypothesis.
Df 83
t Stat 0.436824
P(T<=t) one-tail 0.331687
The Discussion of frequency analysis Distribution for
t Critical one-tail 1.66342 analyzing awareness and Adoption of UPI services among
respondents is as under-
the result of t test is significant and the absolute obtained
value of t(cal) (0.436) is less than absolute critical value of Adoption of UPI services (Generated by Survey): this
t (tab ( 1.66),which implies that business class customers Dimension will come from the response of following
and services class customers differs significantly with questions. Out of 103 respondent:

Volume 8 Issue 4, April 2019

www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: ART20197212 10.21275/ART20197212 1411
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2018): 7.426
a) 77% respondents Responds “UPI as a convenient way of [2] Ashish Das, and RakhiAgarwal,(2010) Cashless
Payment”. Payment System in India- A Roadmap Technical Report
b) 81% respondents have positive view that “UPI Facilities 2010
transfers and payments” [3] Bansi Patel and Urvi Amin (2012), “Plastic Money:
c) 83% respondents have positive response to the statement RoadmayTowards Cash LessSociety”, Paripex Indian
that “Cashless payments options gives you more journal Of Research, Vol. 1, No. 11, ISSN2250-1991.
Discounts/cash back rewards”. [4] BabitaSingla, Manish Bansal (2015) “Consumers
d) 80% respondents are agree to the point that “Provides Behavior Towards Debit Card Payment Mode While
flexibility and easy tracking of spending”. Shopping At Retail Stores”An International Journal of
e) 82% respondents are agree to the point that Engineering Sciences, December 2015, Vol. 16 ISSN:
“Denomination of currency and advertisements about 2229-6913 (Print), ISSN: 2320-0332
f) UPI motivates you to adopt this system”. [5] BappadityaMukhopadhyay (2016) “Role of MFIs in
Financial Inclusion”Review of Market Integration,
The results of Hypothesis testing is as under 2011, vol. 3, issue 3, pages 243-286 6. Dahlberg, T.,
Mallat, N., Ondrus, J., &Zmijewska, A. (2008).
Table 9 [6] K. C. Balajiand K. Balaji (2016)“A Study On
T T Demonetization and Its Impact on Cashless
Hypothesis Statements (cal) (tab) Decision Transactions “International Journal of Advanced
Value Value Scientific Research & Development ... Vol. 04, Iss. 03,
There is a significant Ver. I, Mar' 2017, pp. 58 – 64
difference in adoption of UPI [7] KhuramShafiq and Khalil Ahmad (2015) Is plastic
H01 3.311 1.66 Accepted
system among the male and
female customers.
Money Matter for on Consumer Buying Behavior,
There is a significant World Applied Sciences Journal, 23(1), 2013.
difference in adoption of UPI [8] Dr. Stitch Shewta Rathore (2016) "Appropriation Of
H02 system among Business 0.436 1.66 Accepted Cashless transactions By Consumers" ssue 4, December
sector and service sector 2007, Pages 413–432 11
customers. [9] RoopaliBatra, NehaKalra, “Are Digital Wallets The
There is a significant New Currency?”, Apeejay Journal of Management
difference in adoption of UPI and Technology, Vol 11, No 1, January 2016
H03 0.968 1.99 Accepted
system between young [10] KunalTaheam, R. S. (2016, January). Drivers of Digital
customers, adult customer.
Wallet Usage: Implications for Leveraging Digital
Marketing. IJER Serial Publications, 13 (1), 175-187
6. Conclusion [11] Taheam, K., Sharma, R., &Goswami, S. (2016). Drivers
of Digital Wallet Usage: Implications for Leveraging
UPI developed the m-payment technology by facilitating DigitalMarketing. International Journal of Economic
mobile phone to be used as a main payment device for Research, 13(1), 175-186.
giving and accepting payments. In contrast to all of payment [12] www.rbi.org.in
systems it can be say that UPI is the most advanced payment [13] www.trai.gov.in
system in the world.UPI payment system allows money [14] www.npci.org.in
transfer between any two bank accounts by using a smart [15] https://www.india-briefing.com/news/growth-of-digital-
phone. It allows a customer to pay directly from a bank payments-systems-in-india-14797.html/
account to different merchants, both online and offline, [16] http://digidhan.mygov.in/pages/pdf/sbi/NPCI%20Unifie
without the hassle of typing credit card details, IFSC code, d%20Payment%20Interface.pdf
or net banking/wallet passwords. It aims to simplify and [17] http://upipayments.co.in/upi-payment-system
provide a single interface to money transfers easy, quick and [18] http://www.icommercecentral.com/open-access/study-
hassle free. These features of UPI motivates the respondents of-consumer-perception-of-digital-payment-
of service sectors to adopt the tool and the above study mode.php?aid=86419
revealed that there also a significant difference found
between the gender towards the adoption of UPI. The use of
smart phones, the availability of an online verifiable identity,
universal access to banking and the introduction of biometric
sensors in phones will proactively encourage UPI
Transactions and findings revealed that the respondent
have positive attitude towards the UPI transaction for
ushering in a less-cash society in India.

References
[1] Anupama Sharma (2012), “Plastic card frauds and the
countermeasures: Towards a safer payment
mechanism”, International Journal of Research in
Commerce, It &Management, Vol. 2, No. 4. 2.

Volume 8 Issue 4, April 2019

www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: ART20197212 10.21275/ART20197212 1412