Abstract
A Study on the Impact of Digital Payment Adoption in Small Retail Businesses – Adoption of digital payment methods (such as internet banking, mobile wallet money, and credit/debit cards)in small retail stores which have increased in the developing world, and is a cornerstone for financial inclusion initiatives in developing countries .Digital payment usage has pervaded to levels of transactions for online shopping to level of street vendor. Retailers are able to implement infrastructure to transact digitally (such as bank accounts and smart phones), fees on digital platforms are affordable, and small scale retailers are sufficiently literate to be able to use digital payment systems. Using a quantitative methodology this research, investigated the challenges faced by these small retail stores. This research intends to determine the factor influencing the overall adoption of digital payment, the factors considered are perceived usefulness, perceived ease of use, risk, subjective norms, self-efficacy, facilitating condition, behavioral intentions, behavioral control are identified in the research. The data has been collected from 150 respondents of retail store owners in Chennai. Convenient sampling technique was employed in collecting samples. Percentage Analysis, ANOVA Analysis, Correlation Analysis, chi square Test Analysis, have been utilized to interpret data. From the analysis we came to know that the tenure of usage and years of business does play a vital role in making decision and is the reason to adopt the digital payment method. There is high correlation between behavioral intension and perceived behavioral control. Hence convenience and customer demand are the primary reason to adopt digital payment in retail stores, yet there is a very low concern about fear of being cheated and security of transaction in digital platform by retailers in Chennai.
Prerequisites for Digital Payment Adoption
In order for merchants to accept digital payments, there are prerequisites they must satisfy; namely merchants need to have a bank account, have an internet connection, have a device with internet access, be able to pay the fees associated with using these devices, and be technologically literate enough to use digital payment. All four digital payment types require merchants to have bank accounts at public or private banks in order to complete transactions, either because transactions are done directly between consumers’ and merchants’ bank accounts (for internet banking and UPI) or because they are done using card or wallet platforms in which money must be transferred in and out from a bank account (for Po-S devices and mobile wallets). If merchants do not satisfy the bank account prerequisite already, they will be able to open an account fairly easily as long as they have the required documents.
Modes Used For Digital Payments
1.Banking Cards (Debit/ Credit/ Cash)
- Bank cards offer consumers more security, convenience and control than any other payment method. The wide variety of cards available, including credit, debit and prepaid cards, also offers tremendous flexibility. These cards offer 2-factor authentication for secure (e.g. secure PIN and OTP. RuPay, Visa, MasterCard)
2.Unified Payments Interface (UPI)
- Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).
3.Mobile Wallets
- A mobile wallet is a way to carry cash in digital format. You can link your credit card or debit card information in mobile device to mobile wallet application or you can transfer money online to mobile wallet. Instead of using your physical plastic card to make purchases, you can pay with your smartphone, tablet, or smart watch. Most banks have their e-wallets and some private companies. e.g. Paytm, Google pay, Phone-pay, Free-charge, Mobikwik, Oxigen, mRupee, Airtel Money, Jio Money, SBI Buddy, itz-Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc.
4.Internet Banking
- Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website.
5.Mobile Banking
- Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct different types of financial transactions remotely using a mobile device such as a mobile phone or tablet. It uses software, usually called an app, provided by the banks or financial institution for the purpose.
Some of the Popular Digital Wallets in India
- Paytm
- BHIM
- Google Pay
- Amazon Pay
- Phonepe
- Mobikwik
- Airtel Money
Advantages of Electronic Payments in Retail Stores
- It saves time
- It’s more efficient
- It takes cash out of the equation
- It’s more secure
Disadvantages of Electronic Payments in Retail Stores
- Internet Connectivity
- Security and threats
- Costly
- Confidential Data Management
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
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