A Study on Digital Payments System with Perspective of Customer’s Adoption

Abstract

The demonetization resulted in tremendous growth in digital payments. With the
government initiative such as Digital India and increased use of mobile and internet are
means to exponential growth in use of digital payment. This transformation towards digital
payments benefits in more transparency in transactions which empowers the country’s
economy. In recent days many changes took place in the payment system like digital
wallets, UPI and BHIM apps for smooth shift to digital payments. The paper talks about the
services that the customers prefer from the payment banks. It also captures how
convenience/ease is helping payment banks to expand customer base. The role of
demographics as deciding factors for customers in choosing payment banks is studied in
this paper. The paper further studies the effect of reference groups on the customer’s
decision to choose a bank. Payment gateways have emerged as the most significant
contributor in pushing Cashless and electronic payments. The surge of smart phones and
internet connectivity of 3G and 4G is reflected in the robust growth of payment gateways in
India. The present study is focused on Customer preference towards payment gateways
with respect to Charges and Risks and effectively analysed the impact of demographic
variables on the usage of Payment gateways.