Demonetization effect on digital payments solutions in india by Balaji

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1.1 INTRODUCTION
India: a country where 97% of transactions in volume terms still happen with cash. Is such a
cash-dependent economy ready for a cashless digital economy? This question was put to the test
during recent demonetisation when 86% of cash currency in the country was withdrawn
overnight on 8th November, 2016. Since then, consumers from various income strata, as well as
large and small local vendors, quickly adapted to new and alternative payments – digital wallets,
banking apps.
Although a disruptive move, demonetisation has seeded the growth of digital finance in India.
Following demonetisation, consumers, the Indian government and private players came together
and acted synergistically on a number of digital payment initiatives. While some of this
coordination and swift action was a temporary reaction to demonetisation, other long-term
factors demonstrate that India is ready for a digital revolution and permanent shifts to digital may
be on the horizon.
1.11 DIGITALLY EVOLVED CONSUMERS
INDIA BENEFITS FROM A LARGE (AND GROWING) POOL OF DIGITALLY EVOLVED
CONSUMERS
Today, India is the second largest online market with over 348 million internet users, ranked
only behind China. Despite the large base of internet users in India, only 26 percent of the Indian
population accessed the internet in 2016. However, internet penetration is rapidly increasing and
by 2021 the Indian internet user base is forecasted to reach 555.3 million, covering 44% of the
country’s total population. Increasingly, Indians turn to mobile internet; the large majority of the
digital population in India were mobile internet users in 2016. According to a report by Internet
and Mobile Association of India, about two-third of internet users accessed the internet through
their mobile phones in 2015. Of that 72% mobile internet users living in urban communities, and
28% living in rural areas. 2021 growth forecast of internet user base demonstrates huge potential

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in engaging consumers via mobile and leveraging various mobile platforms for commerce in
India
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1.21 EQUIPPED PLAYERS
While consumers are getting habituated to using apps, many private players including e-
commerce companies, banks, and individual mobile/online wallets companies have started
offering mobile payments, recharge, shopping, bill and peer-to-peer payment options with huge
discounts and cash back offers in order to woo and bring consumers on their platform. Paytm,
FreeCharge, Mobikwik, and Airtel are currently some of the most popular players. These players
took advantage of an opportunity as the limit on cash withdrawal following demonetisation
raised the demand for digital cash from consumers as well as merchants. They aggressively
partnered with both big and small retailers to penetrate the market. For instance, Paytm money is
now accepted by roadside small shops and tea stalls. Some of these wallet companies have also
applied and acquired licences to operate as a payment bank (ie, Paytm and Airtel).
1. AIRTEL PAYMENT BANK
On April 11, 2016, Airtel – the largest mobile network operator in India was first to receive an
RBI license to launch its payment bank in India. Airtel Bank has plans to expand payments bank
service by leveraging Bharti Airtel’s national distribution network of over 1.5 million retail
outlets, with deep penetration in rural areas.It started its pilot project in Rajasthan with its 10,000
Airtel retail outlets in towns and villages across Rajasthan functioning as banking points and
offer convenient banking services to customers and later rolled out its services in 3 other states –
Karnataka, Andhra Pradesh and Telangana.
2. PAYTM PAYMENT BANK
Paytm, which is India’s biggest mobile wallet in terms of user base, also received a license from
RBI and its wallet will now act as a payment bank. According to the company, currently Paytm

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has 147 million active transacting users and claims to have recorded one billion transactions in
the year 2016 with over one million registered merchants on its platform. Post-demonetisation,
Paytm’s founder Sharma said in an interview that Paytm has been signing up the equivalent of a
small European country’s worth of customers every week and has attracted a range of vendors
from Burger King and Dominos to roadside tea sellers and rickshaw drivers.
3. INDIA POST PAYMENT BANK
RBI on 20th January issued license to India Post, which has been the backbone of the country’s
communication for more than 150 years. India Post will follow a bottom-up approach, targeting
people who either have feature phones or no
mobiles at all. The CEO of India Post Payments Bank, Ashok Pal Singh says “Our USP is door-
to-door banking with the help of the postman.” The Indian government allocating Rs. 500 crore
to India Post for Payments Bank underscores the government’s commitment towards financial
inclusion..India Post Payment Bank is expected to start operations before March 31, 2017 and
will be gradually rolled out in 650 districts using the network of 1.54 lakh post offices.
GROWTH INHIBITORS EXISTS BUT OPPORTUNITY LIES IN MAINTAINING THE
MOMENTUM
Reluctant small merchants trying to hide income to reduce their tax bills might act as a deterrent
to the growth of a cashless economy. However, such merchants are already suffering from
declining consumer footfalls heading to bigger retailing formats and e-commerce, so these
merchants will likely quickly adapt to digital commerce as they know that they need to keep pace
with new technology or else will be left out.
Age-old cash habits could act as another deterring factor, especially now when cash is back in
circulation and the effect of demonetisation is fading. Both government and private players
should keep consumers motivated to use cash-alternative payment instruments. The Indian
government has already announced a series of incentives from free insurance to discounts on

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digital payments, which will continue to boost consumer motivation to become and remain
cashless.

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1.2 NEED FOR THE STUDY
Increasing number of vendors are relying on digital payment platform since they have made
very huge transactions. As a matter of fact payment through digital payment solutions has
become one of the most preferred source of mode of payment platform..
This study aim at finding the effectiveness of the vendors disposition towards the digital
payment mode post demonetization with special reference to E-3innovations. Chennai..(Event
management service).
This segment of the vendors disposition post demonetization might as well give the overall
attitude of the vendors in the country.

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1.3 SCOPE OF THE STUDY
 The research is applicable in the area of vendors perception on using digital platform
solutions.
 The scope of the research helps in understanding the effectiveness of the digital payment
solutions post demonetization.
 The study also helps the E-3 innovations to find out the different promotional strategies
followed by the marketing agencies on promoting their digital payment solutions post
demonetization towards the vendors..
 The scope of the study is helps to know the information efficiency of the vendors on
different initiatives rendered by central government towards digital payment solutions
post demonetization.

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1.4 OBJECTIVES OF THE STUDY
1.22 Primary objective
 A Study on vendors disposition towards digital payments on the backdrop of
demonetization.
1.23 Secondary objective
 To analyses the digital transaction in pre and post demonetization period.
 To understand the vendors choice towards digital payments platforms.
 To find out the vendors attitude towards digital payments in terms of Ease of use,
safety, usefulness, perception.

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1.5 LIMITATIONS OF THE STUDY
 The quality of the research is determined by the Vendors disposition is affected by a
range of things including age, experience, background, income, status, social class and
ability.
 Vendors needs wants and opinions differ from each other, the size of the study limited
upto 110 samples.
 The quality of the research could be limited by the resources available I .e. time and
budget.
 Today vendors perception is characterized by tremendous changes. Whatever is
applicable or relevant today it will be change tomorrow. Due to rapid changes the
research results or outcomes available after the specific time period seem irrelevant or
meaningless.
 The research data conducted only through direct interview and questionnaire.

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CHAPTER – 2
BACKGROUND OF THE STUDY

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2.1 INDUSTRY PROFILE
India is emerging as a global leader in global economic stability perspective. It is an
opportune time to be in India. New age technologies are transforming music, movies and events
in an amazing way. From EDM concerts to cutting edge animation technologies coming up and
catching the more of eye balls, India is re-imagining experiences and redefining perceptions. As
India grows, the opportunity will grow for every facet of the Indian entertainment and culture
showcase industry.
The event industry has evolved over the years and has grown considerably both in size and
stature. The proliferation of TV channels and newspapers mean that advertisers have begun to
opt for experiential marketing (event management) instead. According to a recent report
published by Price Waterhouse and Coopers, the live entertainment segment alone is poised to
grow at 20 per cent in the coming years.
The key facets of event management industry included: Cultural events, sports events,
entertainment events, wedding cum celebration events & brand activation events.
The Prime challenges of Event Industry:
1. The multiplicity and varying of direct & indirect taxes: These affect the industry
profitability curve a lot. Increase in service taxes is one such scenario which if leading to
cut-throat competition in the event industry.
2. Legal Boundation: A lot of hurdles in the form of rules, for which organizers need to get
permissions from the concerned multiple authorities is another challenges for the
industry.
3. Skilled Manpower Pool: The skilled human capital is also lacking in Indian context or is
not enough to meet the needs of this sector. This needs to be improved through learning
programs.
4. Sponsorships: As the industry is still sponsor led, obtaining the same is a major
challenge. For non-metro cities, this challenge broadens further as the HO’s of major
brands are remotely located and the response turnaround time is too long.

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5. Lack of supporting infrastructures: Absence of proper event venues, technology
service providers, air transport network etc makes conducting large scale events a bit
tough.
6. ROI Measurement Standard: Brands are likely to increase their expenditure on
experiential marketing if the return on their spends could be demonstrated in standard
manner. Due to unique nature of each event, there is no universally accepted standard to
measure ROI. We need to define standards to measure performance against client
expectations (such as sales, trial, awareness, database creation etc.).
7. Advent of other media: Other media invading the activation space is a major challenge.
Television, radio and print media creating activation teams for their clients with incentive
of promotion through their media channels, is a real major threat.
8. Rising rental cost of space: The rentals seem to spike up and is a major concern for
event planners in India.
9. Social Media Gates: In lure to drive more engagement over social media, marketers
have made Facebook and Twitter handles as mandatory part of registrations for the
events.

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2.11 Event Management Trends that Aims to Change the Industry in India
The Event Management Industry in India is constantly changing and evolving. Event
professionals implementing technology gradually and constantly in the Event industry have been
able to achieve a competitive advantage over those who aren’t implementing the technology.
Today’s trends will not be there in the future. Because by then, every professional in the event
industry would have already implemented it. So, to have a considerable advantage over the
competitors, one should be aware of the current trends in the market.
Smart Phones- The Present and The Future
No one would have guessed that smartphones could have such a big impact on our lives.
Smartphones have been there for us in every area of the business and will be continuing to do so
in the future. It is expected that smartphone users would be 6.1 billion by 2020 against 2.6 billion
from 2014. The companies and event organizers should stop living in the past and start believing
in the present and future aspects of the smartphone. They need to embrace the various ways by
which people can interact with each other. In fact, smartphones are keeping more people
connected than ever, as many apps allow everyone to network with each other more easily and
quickly.
Event Apps- The Key for Business
With every passing day number of apps are increasing at a tremendous rate, and has been the key
for most of the business. The quality and service that apps are giving have improved over years.
The event industry is no exception to it. The event apps are making things easier, quicker, more
interactive to the event industry. The increase in the engagement of interactive mobile event apps
has been emerging as one of the biggest event trends.
Live Streaming- The Way to Success
YouTube and other streaming sites have changed the face of the online media industry. The live
streaming of the events was previously criticized due to the risk of ticket sales. But the scenario
has changed due to drastic improvement it has made in reaching people. Online conversations

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and general awareness made through social media are only helping businesses to become more
successful. Sanpchat which was previously used only by family and close friends to share photos
and second videos are marketing strategy for many businesses including event industry.
Social Ambassadors- The Idol People for Successful Marketing
The social media has been the most active and used medium over the last few years. The social
media is affecting the lives of people, so much that people check their social media accounts
from the moment they wake up to the moment they sleep back at night.
While social media is grabbing the attention of many people, many companies have recognized
that advertising on the social media can be very much helpful to the business, and that’s when
social ambassadors come in. They are the people who represent and talk about a company in
front of potential customers in a positive way. So, many companies are willing to pay to social
ambassadors for positive marketing on the social media.
Experimental Marketing- A Tactic to Connect With Consumers
The experimental marketing was big trend last year and is still most preferred one. The
experimental marketing’s main objective is to find new and innovative ways to connect and
communicate with consumers. The best way to connect with consumers is to give them an
experience of a brand through all senses. Some of the techniques used in the experimental
marketing include Virtual Reality, Projection Mapping, Molecular Catering, Gesture
Recognition Gaming, and 360-degree Photo Experiences. The trend of experimental marketing
has already adopted by small and large event management enterprises and many companies will
continue to do so.
Venue Hunting- Best Way for Basic Foundation
Venue of the event is the basic foundation for every type of event that takes place all over the
world. The event industry is not a new to the search for different venues for various events.
However, there are few websites which make the hunt for venues easier and at one click away
like Venue hunter in India. Online methods such as this require no details to access these venues

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and without any charges too. Users can gain a greater insight of the various venues at one click
away.
Digital Swag Bags- The New Swag For Consumers
The toughest hurdle event organizer has been facing is to find creative and unique gift bag for
attendees. The organizers have tried everything they could to find a unique gift bag to provide to
the consumers to take away with. The sponsors have not always been pleased with the traditional
bags. But there are new bags being used in the market, which contains online gift vouchers or
offers for event attendees. These bags are called, ‘Digital Swag Bags.’ The bag not only
contains the vouchers, but also are more environmentally friendly and cheap.

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2.12 CHALLENGES OF THE EVENT MANAGEMENT INDUSTRY
1. Managing multiple events
Most large organizations run dozens if not hundreds of meetings and events a year. Many of
them, including large customer events, sales meetings and incentive trips, are centrally managed,
while others, like departmental planning sessions, training programs and employee onboarding
sessions, occur on a smaller scale and come together through more decentralized planning.
All of these events are part of the company’s larger meeting portfolio, and therefore, need to stay
on brand and on message. Over the course of the year, people will move from one meeting or
event to another based on their role in the organization, and will expect a consistent experience
everywhere they go.
2. Resource allocation
The more events and meetings you plan, the greater number of people and teams you’ll need
managing specific events. Some will be under your authority and some not. There will also be
people at different operational levels responsible for different parts of the event. It should ensure
that everyone that needs the mobile app has access to it and that they use it according to your
company policies.
3. Managing app content
In today’s world, event content changes rapidly, placing even more pressure on your team, which
is already operating at maximum capacity, to keep pace and keep your participants up to date. its
need is an app solution that’s not only extensible and efficient to deploy across your team and
organization but also as easy to use as your smartphone.

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2.2 COMPANY PROFILE
ABOUT E-3 INNOVATIONS
E-3 INNOVATIONS is a full service event management firm that was created by Mr Prabu
and his brother on their passion for business and events.
We bring a fresh, unique approach to the event management industry. We are not party
planners. We are strategic event management partners. We understand that a properly executed
event can be leveraged to support an organization’s strategic vision, incorporated into a
company’s marketing plan, or used to build networks and client loyalty.
We approach every project with meticulous attention to detail and obsessive precision.
Regardless of size and scope, we treat your event like a business with clear strategic goals,
defined milestones, and a comprehensive plan to ensure that your event is delivered on time and
on budget. At E-3, we put your organization first. We learn about your business, we focus on
your challenges, and we plan events to support your goals.
Laser sharp focus, unparalleled professionalism and exceptional service means clients can trust
that their event is in capable hands.
2.21 CLIENTS
Our clients include not for profit organizations, corporate clients, regulating bodies and member
associations. Each of these organizations has a unique set of business goals and challenges, and
has chosen Spark because we understand the business of running events.

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2.22 Services
E-3innovationns specializes in event management for corporate, association and not
for profit clients. If your event needs to be properly conceived and executed to deliver
tangible business results, E-3innovation is your answer
.
The E-3innovations team is able to provide a full-service event management experience
that include
• Project administration and management
• Program development and speaker management
• Speaker contracting & fulfillment
• Sponsorship sales, support and fulfillment
• Registration management and support
• Event branding and marketing
• Event communications and promotion
• Print production and management
• Volunteer management
• Social event planning
• Event production and AV coordination
• Facility and hotel management

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2.23 Corporate Events
The E-3innovations team can assist you in developing a business case for your event and
delivering an event that exceeds expectations.Whether you need to generate sales leads, build
client loyalty or celebrate an important milestone, the Spark team possesses the event
management expertise and business background to ensure your event is a success.
2.24 Association Events
E-3innovations has worked with numerous associations to implement strategic changes to their
events in order to address many of the issues associations deal with on a daily basis. Managing
an association is complicated, so let us focus on your event so you can focus on your association
and members.
2.25 Not-for-Profit Events
At E-3innovations we have very strong ties to the community we work and live in and being able
to work with a not for profit organization is incredibly rewarding for us. Because we understand
your funding, staffing and volunteer challenges, we are able to be flexible and adapt to your
circumstances.
2.26 Team Building Events
It is a key to develop and motivate teams in companies and divisions. Everything about the
planning of professional team building events.
2.27 Trade Shows
The exhibitions where companies can present and demonstrate their latest products. A
professional presentation is crucial.
2.28 Business Dinners a long-standing corporate tradition to conclude fiscal years, celebrate
new milestones or to get in contact with key customers.

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2.29 Golf Events golf tournaments or retreats. Those events aim to acquire new customers, to
increase customer loyalty or to motivate employees.
2.30 Press Conferences perfect business events to promote new products, launch marketing
campaigns or to inform the shareholders and public about financial issues
2.31 Networking Events are personal marketing galas. Such events are great opportunities for
contact establishment and personal marketing.
2.32 Incentive Travel are perfect to reward and to motivate employees or to increase customer
loyalty and retention. Everything about incentive travel:
2.33 Opening Ceremonies are held to start conventions, annual meetings and other events that
last for two or more days. Find everything about opening events.
2.34 Product Launches are critical for the successful market introduction of some products. A
perfect product presentation might also increase the media coverage.
2.35 Theme Parties events that devote to a special topic. Popular events are casino nights or
Halloween parties. Ideas and planning tips.
2.36 VIP Events are used to increase customer loyalty. Professional planners organizing VIP
events that ultimately increase your revenues
2.37 Trade Fairs are a great opportunity to present your latest products to customers and
business partners
2.38 Award Ceremonies are great events to honor and motivate key staff or to acquire and
retain customers. Event planners are able to organize events to remember

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2.39 Our Approach
At E-3innovations, we know that a truly successful event starts way before the linens, flowers
and lighting. These components are important parts of the event, but they do not define the event.
Understanding your organization and the business reasons for putting on an event lays the
foundation that ensures your event is providing a return on investment. Our approach is unlike
our competitors because we focus on your business first and your event is the result.
1. Learn we want to get to know you?
What is your business about? What are your challenges? What are the issues that your
members or clients are dealing with? By thoroughly understanding your company’s leadership
culture, how your organization operates and your long term strategic plans, we become a part of
your team. Our model works best when we can become more than the “hired help” and can
become strategic event management partners, so the first step for us is about getting to know you
and your business.
2. Build let us do the heavy building:
Because we have taken the time to learn about your business and the goals of your event, you
can rest assured that the event will be on target and in line with your objectives. Leave the
planning and management to us. Let us look after the details and the heavy lifting that comes
with planning a professional event. From our network of preferred vendors, industry connections
and years of experience, we can deliver a full service event management experience. The Spark
team is well equipped to deliver a world class event, each and every time. Your job is to run your
business; our job is to run your event.
3. Deliver sit back relax:
Finally, this is where our event management expertise comes into play. At our core, we love
events. We love the on-site details, production plans, schedules, deadlines and to do lists that
come along with managing an event. From meticulous management of facility details to AV,
catering and on-site coordination, we ensure every detail is looked after. Managing your event

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using a strategic overall plan and a methodical management approach allows you to rest easy.
Knowing that every last detail is looked after will allow you to focus on your attendees and
stakeholders at the event. Let us look after the rest.

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2.40 DIGITAL PAYMENT SOLUTIONS AWARENESS CAMPAIGN
EVENT POST DEMONETISATION.
The Customer Awareness Campaign focuses at spreading digital awareness and facilitating
the common man to use Cashless payment options during day to day transactions..
With the introduction of Cashless payment options like Credit & Debit Cards, UPI, POS
terminals, e-Wallet options and Loyalty Cards at Retail Outlets, the campaign reinforces the
fact that convenience lies in being cashless in today's time. The various digital payment solutions
available to the general public, were also showcased.
The campaign will fulfill the objective of moving towards digital transactions. Transition
will be towards less cash and then towards cashless..
’ Retail Outlets across the country to train the general public on use of various
Digital/Cashless payment modes and to promote them.
Tie-ups have been done with Public sector banks,Axis pay, Paytm, Bhim, yesbank wallet,
Mobikwik, Oxygen, Citrus, Olamoney, Ideamoney, Jiomoney, Airtel money, Vodafone
MPS, Freecharge etc.
In two month all retail outlets in tamilnadu districts include Chennai, Kanchipuram,
Vellore, Mayiladuthurai, Thiruvanamalai, Cuddalore, Madurai, Coimbatore as well as
Pondicherry and Karaikal. will be covered under the customer awareness cum training
programme.
in the first phase, all Retail outlets numbering more than 10000 thousand in the Tamilnadu
will be covered in the campaign which will be further expanded to cover Gas distributors, LPG
stations etc.

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Task force have been set up to look into the expansion of cashless services, overcome the
hurdles in the path, facilitating such services through feature phones also, and exploring ways to
undertake such transactions in offline mode.
Today’s Customer Awareness Campaign for Digital transactions is yet another Consumer
empowering initiative launched by E-3innovations Chennai.and a step forward promoting the
vision of #CashlessEconomy of our Hon’ble Prime Minister, Sh. Narendra Modi..

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2.41 OPERATIONAL DEFINITIONS:
What is Digital Payment?
Digital payment is a way of payment which is made through digital modes. In digital payments,
payer and payee both use digital modes to send and receive money. It is also called electronic
payment. No hard cash is involved in the digital payments. All the transactions in digital
payments are completed online. It is an instant and convenient way to make payments.
2.42 BANKING CARDS (DEBIT / CREDIT / CASH / TRAVEL / OTHERS)
Banking cards offer consumers more security, convenience, and control than any other payment
method. The wide variety of cards available – including credit, debit and prepaid – offers
enormous flexibility, as well. These cards provide 2 factor authentication for secure payments e.g
secure PIN and OTP. RuPay, Visa, MasterCard are some of the example of card payment
systems. Payment cards give people the power to purchase items in stores, on the Internet,
through mail-order catalogues and over the telephone. They save both customers and merchants’
time and money, and thus enable them for ease of transaction.
2.43 UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
The innovative payment service *99# works on Unstructured Supplementary Service Data
(USSD) channel. This service allows mobile banking transactions using basic feature mobile
phone, there is no need to have mobile internet data facility for using USSD based mobile
banking. It is envisioned to provide financial deepening and inclusion of underbanked society in
the mainstream banking services.
*99# service has been launched to take the banking services to every common man across the
country. Banking customers can avail this service by dialling *99#, a “Common number across
all Telecom Service Providers (TSPs)” on their mobile phone and transact through an interactive
menu displayed on the mobile screen. Key services offered under *99# service include, interbank

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account to account fund transfer, balance enquiry, mini statement besides host of other services.
*99# service is currently offered by 51 leading banks & all GSM service providers and can be
accessed in 12 different languages including Hindi & English as on 30.11.2016 (Source: NPCI).
*99# service is a unique interoperable direct to consumer service that brings together the diverse
ecosystem partners such as Banks & TSPs (Telecom Service Providers).
2.44 AADHAAR ENABLED PAYMENT SYSTEM (AEPS)
AEPS is a bank led model which allows online interoperable financial transaction at PoS (Point
of Sale / Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using
the Aadhaar authentication.
2.45 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)
2.46 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. An individual's account is required to be linked to
the digital wallet to load money in it. Most banks have their e-wallets and some private
companies. e.g. Paytm, Freecharge, Mobikwik, Oxigen, mRuppee, Airtel Money, Jio
Money, SBI Buddy, itz Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI
Pockets, SpeedPay etc.

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2.47 POINT OF SALE
A point of sale (PoS) is the place where sales are made. On a macro level, a PoS may be a mall, a
market or a city. On a micro level, retailers consider a PoS to be the area where a customer
completes a transaction, such as a checkout counter. It is also known as a point of purchase.
2.48 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.
2.49 DIFFERENT TYPES OF ONLINE FINANCIAL TRANSACTIONS:
2.50 National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-
one funds transfer. Under this Scheme, individuals, firms and corporates can electronically
transfer funds from any bank branch to any individual, firm or corporate having an account with
any other bank branch in the country participating in the Scheme. Individuals, firms or
corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such
individuals who do not have a bank account (walk-in customers) can also deposit cash at the
NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash
remittances will be restricted to a maximum of Rs.50,000/- per transaction. NEFT, thus,
facilitates originators or remitters to initiate funds transfer transactions even without having a
bank account. Presently, NEFT operates in hourly batches - there are twelve settlements from 8
am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on
Saturdays.

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2.51 Real Time Gross Settlement (RTGS)
RTGS is defined as the continuous (real-time) settlement of funds transfers individually on an
order by order basis (without netting). 'Real Time' means the processing of instructions at the
time they are received rather than at some later time; 'Gross Settlement' means the settlement of
funds transfer instructions occurs individually (on an instruction by instruction basis).
Considering that the funds settlement takes place in the books of the Reserve Bank of India, the
payments are final and irrevocable. The RTGS system is primarily meant for large value
transactions. The minimum amount to be remitted through RTGS is 2 lakh. There is no upper
ceiling for RTGS transactions. The RTGS service for customer's transactions is available to
banks from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 14:00 hours on
Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary
depending on the customer timings of the bank branches.
2.52 Electronic Clearing System (ECS)
ECS is an alternative method for effecting payment transactions in respect of the utility-bill-
payments such as telephone bills, electricity bills, insurance premia, card payments and loan
repayments, etc., which would obviate the need for issuing and handling paper instruments and
thereby facilitate improved customer service by banks / companies / corporations / government
departments, etc., collecting / receiving the payments.
2.53 Immediate Payment Service (IMPS)
IMPS offers an instant, 24X7, interbank electronic fund transfer service through mobile phones.
IMPS is an emphatic tool to transfer money instantly within banks across India through mobile,
internet and ATM which is not only safe but also economical both in financial and non-financial
perspective.
2.54 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

31
or financial institution for the purpose. Each Bank provides its own mobile banking App for
Android, Windows and iOS mobile platform(s).
2.55 MICRO ATMS
Micro ATM meant to be a device that is used by a million Business Correspondents (BC) to
deliver basic banking services. The platform will enable Business Correspondents (who could be
a local kirana shop owner and will act as ‘micro ATM’) to conduct instant transactions.
The micro platform will enable function through low cost devices (micro ATMs) that will be
connected to banks across the country. This would enable a person to instantly deposit or
withdraw funds regardless of the bank associated with a particular BC. This device will be based
on a mobile phone connection and would be made available at every BC. Customers would just
have to get their identity authenticated and withdraw or put money into their bank accounts. This
money will come from the cash drawer of the BC. Essentially, BCs will act as bank for the
customers and all they need to do is verify the authenticity of customer using customers’ UID.
The basic transaction types, to be supported by micro ATM, are Deposit, Withdrawal, Fund
transfer and Balance enquiry.
.

32
2.6 REVIEW OF LITERATURE
It is relevant to refer briefly to the previous studies and research in the related areas of the subject
to find out and to fill up the research gaps, if any. Literature on event management among digital
payments mode and disposition of vendors towards digital mode can generally be found; a
number of books are available on event services and digital payment aspects as merchants. but,
few studies are undertaken on the role of technology in the digital wallets, card payments, Pos at
retail outlets etc.
2.61 Karen A. Smith 2008
New Zealand Found that information mix for events was characterized by the use of multiple
channels by both organisers and visitors. Limited budgets, competition for audiences and a
crowded market place create challenges for organisers deciding about promote and distribute
information on their event. Varieties of factors influence the mix of channels chosen: the purpose
of the marketing campaign, the target audience(s), the cost effectiveness of channels, and
partnerships an event can be utilized.
2.62 Wim Heijman, Benjamin Jongenburger 2011 NetherLand
Pointed out that employment was created as a result of the World Cup. This sounds very positive
but in reality it was very important that who actually pays for this employment. As the probable
loss of the World Cup equals about 150 million, it was the Dutch taxpayer who paid for the
employment. Donald Getz 2010 Canada Emerged Festival-unique theory. Methodologies should
not be restrictive, and a single epistemological paradigm (such as quantitative positivism) was
not predominated. Ontological progress has to be made in defining and linking key concepts,
developing a common vocabulary, and scoping the discourses, themes and topic
2.63 Tom Baum, Leonie Lockstone 2007
Australia Highlighted a tentative research framework agenda that is by no means inclusive in
seeking to identify the wide range of potential avenues for investigation that the field of

33
volunteering merits. Further research in the areas highlighted will be of value to mega sporting
event organisers in maximising the value they can derive from effective use of volunteers.
2.64 Handelsman and Munson (1989),
“Switching behaviours from credit card to cash payment among ethnically diverse retail
customers” shows that the credit card sales constitute an important revenue source for many
retailers. Their ever increasing use and evaluation into other forms, such as debit and electron
cards, demands that retailers gain a more complete understanding of how they are used by
diverse consumer segments. Particularly needed is a better understating of the propensity to
switch over from credit card to cash payment and the incentive required to initiate switching. In
view of the cost to the retailer of administering credit card payment systems, the retailer’s overall
profit position may be enhanced by converting a larger proportion of credit card sales to cash
sales. Four aspects of credit card usage and switching ethnicities are investigated, propensity to
switch over from credit card to cash payment at various levels of monetary incentive, the effect
of product price on propensity to switch, the frequency of credit card usage, and the preferred
method of payment of credit card balances (installment versus full payment). Several significant
differences are shown among the three ethnic groups studied (Anglo-American, Chinese-
American and his panic-American) in these usage behaviours such differences might even be
Review of Literature 32 extended to international comparisons involving consumers domiciled in
different countries.
2.65 Barker (1992)
in his study, Globalization of credit card usage: The case of a developing economy” investigate
the attitude of Turkish consumers towards credit cards, and the approach of card issuers by
surveying two samples of 200 card holders and non-holders. The better educated, middle aged
members of the upper middle class seem to be the prime target; the most important reasons for
using a credit card were “case of payment”, followed by “risk of carrying cash”, Non holders do
not carry credit cards because they do not know much about it; informal sources of information
appear to be more influential than mass media advertising in penetrating the market; proposes
that the usage and the administration of credit cards are influenced very much by the

34
infrastructure of the country and hence, credit card companies have to modify their marketing
and administrative procedures rather than following a standardized approach.
2.66 Natarajan and Manohar (1993)
“Credit Cards–an Analysis”. A study has been attempted to know that to what extent the credit
cards are utilized by the cardholders and the factors influencing the utilization of credit cards.
The study is confined to cards issued by the Canara Bank. A random sampling technique is used
to collect the data. Ten components i.e. numbers of purchases, shops, percentage of purchases,
place, frequency, type of product, type of services, cash withdrawal facilities, add on facility,
insurance schemes are identified and used for the measurement. Chi square test has been
conducted to know the level of utilization. For this, both personal and nonpersonal factors also
have been taken into consideration. Chi square test reveals that sex, age, educational
qualification of card holders has no relationship with utilization of Can Card. While occupation,
income, employment status of spouse, mode of getting card has relationship with utilization of
Can Card.
2.67 Simon and Victor (1994),
“Customers’ Risk Perceptions of Electronic Payment Systems” finds that one reason for the slow
adoption rate of electronic fund transfer at point-of-sale (EFTPoS) is that consumers perceive
that EFTPoS has a higher level of risk than other traditional payment methods. Study shows that
EFTPoS has the lowest physical risk and highest financial risk, the credit card has the lowest
psychological risk and highest time loss risk, while cash has the highest physical risk and lowest
performance risk. Physical risk, financial risk and time loss risk for cash payment are
significantly higher when purchase is large while performance risk for EFTPoS and credit card
payment is significantly higher when the purchase is small. Users of EFTPoS have a
significantly higher level of perceived financial and time loss risk than non-users, while non–
users have higher level of psychological risk. Article suggests that in order to reduce customer’s
fears and worries, it is also appropriate to consider Review of Literature 34 introducing some risk
reduction techniques. e.g. endorsements by key people in society (reducing psychological risk),
money-back guarantee (reducing financial risk) and live demonstration and free trial (reducing
time loss risk). Research indicates that technological excellence cannot dictate success; a good

35
marketing mix, prompt service support, sufficient legal protection and educational efforts, etc.
are also relevant.
2.68 Almeida (1995),
“The Future in cards” shows that credit card business is booming as more than 1.1 million
Indians have credit cards with them. Their numbers are expected to grow at an even faster pace
as issuing banks get aggressive. Studies show that more than 4000 business establishments in the
country accept credit cards. The country now provides all the ingredients for a healthy credit
cards industry: a rapidly expanding, increasingly acquisitive middle class, a growing yen for
travel and entertainment sophisticated merchant establishment and greater transparency in
financial system. Acquiring banks for business from merchant establishment has brought the
commission down and if the issuing bank happens to be also the acquiring bank, it get the entire
merchant discount. Finally, no payment system can ever replace cash in India on a wide spread
basis.
2.69 Worthington (1995),
“The cashless society” paper describes the cashless society, where clumsy and expensive-to
handle coins and notes are replaced by efficient electronic payments initiated by various types of
plastic cards is a tantalizing prospect for the twenty-first century. Some of the interested parties
stand to gain more than others if the cashless society becomes a reality. Paper outlines the
rationale of those who are keen to promote the cashle
ss society and the implications for marketers charged with winning consumer acceptance for
payment by plastic card. Commencing with a European-wide view of the European plastic card
market, focuses on recent developments within the UK, one of Europe’s leading countries in the
use of plastic Review of Literature 36 cards as a means of payments. The plastic card payment
product is analyzed under the three headings of pay later, pay now and pay before and a view is
offered as to the future prospects for each type of plastic card in contributing to the development
of the cashless society.

36
2.70 Joshi (1996),
“Variants in plastic.” Author analysis that card issuers seeks to introduces the emerging payment
card technology like debit and smart cards. Credit cards are being gradually revolutionised by
various factors: introduction of customers– friendly technology, a competitive marketing
environment, the rise of the financially sophisticated consumer who avoids paying interest and
the emergence of new competitors. The concept of debit cards as a new emerging payment
system has gained acceptance in the Asia-Pacific region in past few years. Being a new concept,
mass acceptance is gradual and not instantaneous. It shows that spending on credit cards is
higher than debit cards but the number of transactions are more on debit cards. There are
technological and infrastructure hurdles for debit cards as it is significantly different from credit
cards. For this, system should be on line and the investments in technology are huge. Study
shows that profit margins in debit cards are one-third than those from credit cards. Author
believes that India by virtue of a late starter in the card industry is at an advantage as it can
except to shorten its learning curve by utilizing global experience and expertise in electronic
payment system.
2.71 Worthington (1996),
“Smart Card and retailer-who stand to benefit?” Paper describes the major current payment
options which are open to consumers, and accepted by retailers with a review of the costs and
benefits of each payment option. Retailers, as the merchant acceptors of payment by suffer from
the introduction of the smart card. Article sets out to explore the pros and cons of the smart card
for retailers. The introduction of the smart card will not eliminate any of the existing method of
payment and it is probable that the smart card will even introduce new means by which
nonfinancial data, such as purchase patterns, can be collected and exchanged. There will also be
substantial costs involved fo
r retailers such as upgrading thousand of stores and head office systems, replacement of point-of
–service terminals, training to thousands of cashiers for the acceptance of smart cards. The smart
card could be a useful addition to the existing payment options at the point of service. It could
offer retailers to access to new delivery channels and better communication channels and help to
maintain relationship with customers.

37
2.72 Black and Morgan (1998),
“Risk and democratization of credit cards”. Research paper show the dramatic rise in credit card
charge-offs in the midst of a vigorous expansion suggest that bank card borrowers have become
inherently riskier. This paper investigates how the mix of credit card borrowers has changed in
recent years, and how those changes affect delinquency risk. The new card holders seem riskier
along several dimensions. They tend to earn less, and as a result, they owe relative to income.
This rise in debt burden almost certainly contributed to the rise in charge offs, since debt burdens
are a key determinant of delinquency risk. Cardholders are also more likely to work at relatively
unskilled blue collar jobs. This occupation shift may also have contributed to the rise in charge-
offs, since delinquency rates are higher in those occupations, perhaps income is more cyclical.
Some of the personal characteristics and attitudes that have changed, such as martial status and
job tenure also imply somewhat higher risk.

38
CHAPTER – 3
RESEARCH METHODOLOGY

39
3. RESEARCH METHODOLOGY
Methodology is a way to systematically solve research problems. It explains the various steps
that are generally adopted by a researcher in studying the research problem with the logic behind
them.
3.1 RESEARCH DESIGN
A research design is the detailed blue print used to guide a research study towards its objectives.
It helps to collect, measure and analysis of data. The present study seeks to find the vendors
disposition towards digital payments in the backdrop of demonetization with special reference to
E-3innovations Chennai.. The study also aims to study the return expectations, their basis of
decision with various characteristics like income, business type, etc. So this makes this study a
descriptive one. In this survey the design used is descriptive research design. It includes surveys
and fact finding enquiries of different kinds. The major purpose Descriptive research is
description of state of affairs, as it exists at present. The main characteristic of this research is
that the researcher has no control over the variables. The information are collected from the
individuals and analyzed with the help of different statistical tools.
3.12 SOURCES OF DATA COLLECTION
The collection of data is considered to be one of the most important aspects in the research
methodology. Both primary and secondary data is used in this study in order to meet the
requirements of the purpose.
3.13 PRIMARY DATA
Primary data are those data which are collected for the first time and are thus fresh in nature.
They are first hand information.
Under this study primary data was collected by using structured questionnaire. The structured
questionnaire consists of both open ended and closed ended questions. The primary data has

40
been collected through the questionnaire by means of personal interview. The questionnaire
consists of number of questions printed in a definite order on a form. The primary data was
collected from E-3 innovations Chennai.
3.14 SECONDARY DATA
The secondary data are sourced from various website, magazines, books, periodical surveys.
3.15 HYPOTHESIS:
“Hypothesis may be defined as a proposition or a set of propositions set forth as an
explanation for the occurrence of some specified group of phenomena either asserted merely as a
provisional conjecture to guide some investigation in the light of established facts” (Kothari,
1988). A research hypothesis is quite often a predictive statement, which is capable of being
tested using scientific methods that involve an independent and some dependent variables.
3.16 HYPOTHESIS- TESTING RESEARCH DESIGN
Hypothesis-Testing Research Designs are those in which the researcher tests the
hypothesis of causal relationship between two or more variables. These studies require
procedures that would not only decrease bias and enhance reliability, but also facilitate deriving
inferences about the causality. Generally, experiments satisfy such requirements. Hence, when
research design is discussed in such studies, it often refers to the design of experiments.
3.17 SAMPLING DESIGN
Sampling is a method of selecting experimental units from a population so that we can make
decision about the population. Sampling Design is design or a working plan that specifies the
population frame, sample size, sample selection, and estimation method in detail. Objective of
the sampling design is to know the characteristic of the population.
3.18 SAMPLING TECHNIQUE
Non-probability Convenient sampling method is used to collect the data.

41
3.19 SAMPLE UNIT
The respondents of the study are various parts of the vendors around the Tamilnadu, the data was
taken on digital payment solutions promotional campaign conducted by E-3innovations Chennai.
vendors are considered to be the sampling unit.
3.2 TOOLS FOR DATA ANALYSIS
The data has been mainly analyised by using the following rudimentary methods and
tests.
1. Post hoc test –homogenous subsets
- Duncon’s test
2. Frequency table
3. N par tests
- Cochran test
4. Correlations
5. Pearson Chi-square test

42
3.21 COCHRAN TEST
Name:
COCHRAN TEST
Type:
Analysis Command
Purpose:
Perform a Cochran test that c treatments have identical effects.
Description:
The Cochran test is a non-parametric test for analyzing randomized complete block
designs where the response variable is a binary variable (i.e., there are only two possible
outcomes, which are coded as 0 and 1).
The Cochran test assumes that there are c experimental treatments (c >= 2). The
observations are arranged in r blocks, that is
Treatment
Block 1 2 ... C
1 X11 X12 ... X1c
2 X21 X22 ... X2c
3 X31 X32 ... X3c
... ... ... ... ...
R Xr1 Xr2 ... Xrc
The Friedman test is the usual non-parametric test for this kind of design. The Cochran
test is applied for the special case of a binary response variable (i.e., it can have only one
of two possible outcomes).
Then the Cochran test is
H0: The treatments are equally effective.
Ha: There is a difference in effectiveness among treatments.
Test Statistic: The Cochran test statistic is
T=c(c−1)∑ci=1(Cj−Nc)2∑ri=1Ri(c−Ri)

43
with c, Ci r, Ri and N denoting the number of treatments, the column total
for the ith treatment, the number of blocks, the row total for the ith block,
and the grand total, respectively.
Significance
Level:
Α
Critical
Region:
T > χ21−α,c−1
where χ2 is the chi-square percent point function.
Note that this is based on a large sample approximation. In particular, it
assumes that r is "large".
Conclusion: Reject the null hypothesis if the test statistic is in the critical region.

44
3.22 DUNCAN”S TEST
 The Duncan Multiple Range test uses different Significant Difference values for means
next to each other along the real number line, and those with 1, 2, … , a means in
between the two means being compared.
 The Significant Difference or the range value:
where ra,p,n is the Duncan’s Significant Range Value with parameters p
(= range-value) and n (= MSE degree-of-freedom), and experiment-wise alpha level a (=
ajoint).
 MSE is the mean square error from the ANOVA table and n is the number of
observations used to calculate the means being compared.
 The range-value is:
 2 if the two means being compared are adjacent
 3 if one mean separates the two means being compared
 4 if two means separate the two means being compared

45
3.23 Chi-Square Test of Independence
The Chi-Square test of Independence is used to determine if there is a significant relationship
between two nominal (categorical) variables. The frequency of one nominal variable is
compared with different values of the second nominal variable. The data can be displayed in an
R*C contingency table, where R is the row and C is the column. For example, a researcher
wants to examine the relationship between gender (male vs. female) and empathy (high vs. low).
The chi-square test of independence can be used to examine this relationship. If the null
hypothesis is accepted there would be no relationship between gender and empathy. If the null
hypotheses is rejected the implication would be that there is a relationship between gender and
empathy (e.g. females tend to score higher on empathy and males tend to score lower on
empathy)
How to calculate the chi-square statistic by hand. First we have to calculate the expected
value of the two nominal variables. We can calculate the expected value of the two nominal
variables by using this formula:
Where
= expected value
= Sum of the ith column
= Sum of the kth column
N = total number
After calculating the expected value, we will apply the following formula to calculate the value
of the Chi-Square test of Independence:
= Chi-Square test of Independence
= Observed value of two nominal variables
= Expected value of two nominal variables
Degree of freedom is calculated by using the following formula:
DF = (r-1)(c-1)

46
Where
DF = Degree of freedom
r = number of rows
c = number of columns
Hypothesis:
Null hypothesis: Assumes that there is no association between the two variables.
Alternative hypothesis: Assumes that there is an association between the two variables.
Hypothesis testing: It is the same for the Chi-Square test of Independence as it is for other tests
like ANOVA, t-test, etc. If the calculated value of the Chi-Square test is greater than the table
value, we will reject the null hypothesis. If the calculated value is less, then we will accept the
null hypothesis.

47
CHAPTEER -4
DATA ANALYSIS AND INTERPRETATION

48
4.1 Cochran’s Test
Vendors preference * Mode of digital payment platform
H0: There is no significant difference among vendors preference on choosing digital
payment platform post demonetization.
H1: There is a significant difference among vendors preference on choosing digital payment
platform demonetization.
Chart no 4.11
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Net banking UPI USSD AEPS E wallet
YES
NO

49
Table no 4.11
Cochran test
Table 4.12
Test Statistics
N 110
Cochran's Q 273.396a
Df 4
Asymp. Sig. .000
a. 1 is treated as a success.
Inference:
110 vendors were taken as a sample to find out vendors preference on choosing digital
payment platform in the backdrop of demonetization.
From Cochran’s test it was found out that there was a statistically significant differences on the
vendors preference between the digital payment platform post demonetization. Thus the
alternate hypothesis is accepted at 1% level of significance.
From the above table chart it can be inferred that 94.55% of the vendors prefer the Net banking
for their business transaction . Over 40% of the vendors prefer UPI. None of the vendors
preferred AEPS and USSD for their business transactions. 63.64% of the vendors prefer e-wallet
as a digital platform for their business.
.
Frequencies
Value
1 2
Net banking 104 6
UPI 44 66
USSD 0 110
AEPS 0 110
E wallet 70 40

50
4.2 Cochran Test
Vendors preference * Mode of digital payment brands among UPI.
H0: There is no significant difference between vendors preference on choosing digital
payment platform among UPI server post demonetization.
H1: There is a significant difference between vendors preference on choosing digital
payment platform among UPI server post demonetization.
Chart no: 4.21
0
20
40
60
80
100
120
axis pay
upi1
sbi pay pnb upi indian bank
upi
Bhim canara bank
upi
easy
pay(icici)
Yes
No

51
Cochran’s test
Table 4.21
Table 4.22
Inference:
110 vendors were taken as a sample to find out vendors usage of various brands of UPI as the
payment platform . Cochran’s Q test determined that there was a statistically significant
differences on the vendors preference for various brands of UPI as the digital payment
applications.
From the above chart and table, it can be understood that 16.37% of the respondents use Axis
pay as their payment option and the same number of respondents use SBI Pay. 6.37%, 4.53%,
and 3.63% of the respondents use PNB upi, BHIM and Easy pay upi (icici) respectively.
13.64%, 18.19% of the respondents use Indian bank upi and canara bank upi.
Frequencies
Value
1 2
Axis pay upi 18 92
Sbi pay 18 92
Pnb upi 7 103
Indian bank upi 15 95
Bhim 5 105
Canara bank upi 20 90
Easy pay icici 4 106
Test Statistics
N 110
Cochran's Q
29.287a
Df 6
Asymp. Sig. .000

52
4.3 Cochran Test
Vendors preference * Mode of digital payment brands among E-WALLET..
H0: There is no significant difference between vendors preference on choosing digital
payment platform among E-WALLETS post demonetization.
H1: There is a significant difference between vendors preference on choosing digital
payment platform among E-WALLETS post demonetization
Chart no: 4. 31
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Airtel
money
Freecharge jio money paytm ICICI
pocket
hdfc pay ola money
YES
NO

53
Cochran’s test
Table 4.31
Frequencies
Value
1 2
Airtel money 14 96
Free charge 18 92
Jio money 13 97
paytm 58 52
Icici pocket 4 106
Hdfc pay cap 6 104
Ola money 7 103
Inference:
110 vendors were taken as a sample to find out vendors usage of various brands of E-wallets as
the payment platform . Cochran’s Q test determined that there was a statistically significant
differences on the vendors preference for various brands of UPI as the digital payment
applications.
From the above chart and table, it can be understood that majority of 53.73% of the respondents
use Paytm as their payment option and the lower number of 3.64%, 5.45%, and 6.36% of the
respondents use icici pocket, hdfc pay zap and ola money respectively. Average of 12.73%,
16.36% 11.82% of the respondents use airtel money, freecharge and jio money as the digital
payment option for their business truncation.
Table 4.32 Test Statistics
N 110
Df 6
Asymp. Sig. .000

54
4.4 Cochran’s test
Vendors perception * Promotional activities were marketing agencies engaged for digital
payment brands
H0: There is no significant difference between vendors perception towards the promotional
activities were marketing agencies engaged for digital payment brands post
demonetization.
H1: : There is a significant difference between vendors perception towards the promotional
activities were marketing agencies engaged for digital payment brands post demonetization
:
Chart 4.41
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Brochures Stickers Digital campaign Promoting through
creative way lke
conduct micro ATM
YES
NO

55
Cochran’s test
Table 4.41 & Table 4.42
Frequencies
Value
1 2
Brochures 92 18
Stickers 50 60
Digital campaign 10 100
Promoting though creative
way conduct micro ATM
19 91
Inference
110 vendors were taken as a sample to find out vendors opinion towards the promotional
activities were marketing agencies engaged on promoting their digital payment solutions after
demonetization. Cochran’s Q test determined that there was a statistically significant differences
on the vendors opinion towards various promotional activities carried out by the marketing
agencies for their digital payment solutions.
From the above chart and table it can be understood that Over 83.63% of the respondents felt that
brochures are the frequently rendered activity were marketing agencies carried out for
promotion. Average of 45.45% of the respondents felt that stickers are most carried on
promotion. Few no 9.09% and 17.27% respondents felt that they are conducting digital
campaign and Micro ATM for promoting their digital payment solutions post demonetization..
Test Statistics
N 110
Df 3
Asymp. Sig. .000

56
Vendors opinion * Offers rendered by the marketing agencies to accept digital payment
brands.
H0: There is no significant difference between vendors opinion among offers provided by
the marketing agencies to accept their payment solutions post demonetization.
H1: There is a significant difference between vendors opinion among offers provided by the
marketing agencies to accept their payment solutions post demonetization.
:
Chart no 4.51
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Offer rewards on
payments
Offer supplementry
products
Offer infrastructure
development
activities
YES
NO

57
Cochran’s test
(Table 4.51 & 4.52)
Frequencies
Value
1 2
Offer rewards on payments 78 32
Offer supplementary
products
15 95
Offer infrastructure
development activities
26 84
Inference:
110 vendors were taken as a sample to find out vendors’ perception towards the offers rendered
by the marketing agencies to make accept their digital payment solutions post demonetization.
Cochran’s test it was found out that there was a statistically significant differences on the
vendors opinion between the offers rendered by marketing agencies post demonetization. Thus
the alternate hypothesis is accepted at 1% level of significance.
From the above table and chart it can understood that majority of 70% of the respondents felt
that rewards on payments is the most frequently engaged activity by the marketing agencies,
only 13.64% of the respondents felt supplimentry product are offered to accept their digital
payment solutions. average of 23.64% of the respondents felt that they are provided with the
infrastructure development activities like painting, furniture, banner design etc. to accept their
digital payment solution on the business.
Test Statistics
N 110
Cochran's Q 61.764a
Df 2
Asymp. Sig. .000

58
Vendors perception * Frequently engaged digital payment brands on promotion.
H0: There is no significant difference between vendors perception among digital payments
solutions where they most frequently engaged on promotion post demonetisation.
H1 There is a significant difference between vendors perception among digital payments
solutions where they most frequently engaged on promotion post demonetization
:
Chart 4.61
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Axis pay Paytm Sbi pay Bhim Jio money
waller
Yes bank
wallet
freecharge
YES
NO

59
Cochran’s test (Table 4.61 & 4.62)
Frequencies
Value
1 2
Axis pay 17 93
Paytm 82 28
Sbi pay 14 96
Bhim 7 103
Jio money 7 103
Yes bank wallet 26 84
Freecharge 40 70
Inference:
110 vendors were taken as a sample to find out vendors’ perception towards the towards
Cochran’s test it was found out that there was a statistically significant differences on the
vendors opinion between. Thus the alternate hypothesis is accepted at 1% level of significance
From the above chart 6.1 it can be understood that over 74.55% of the respondents felt that
Paytm frequently engages in marketing their digital payment solutions towards the vendors. Few
no of 6.36% 6.36%, 12.73%, 15.45% of respondents felt Bhim, Jio money, Sbi pay and Axis
pay were marketing more for their digital solutions. And the average of 36.36% and 23.64% of
the respondents felt that Freecharge and Yes Bank wallet were more engaged on promotion.
Test Statistics
N 110
df 6
Asymp. Sig. .000

60
4.7 Correlations
Ease of use * Usefulness in digital payment solutions
Ho: There is no significant association between vendors perception towards ease of use and
usefulness in digital payments.
H1: There is a significant association between vendors perception towards ease of use and
usefulness in digital payments.
TABLE 4.71
Correlations
EASEOFUSE USEFULNESS
EASEOFUSE
Pearson Correlation 1 .497**
Sig. (2-tailed) .000
N 110 110
USEFULNESS
Pearson Correlation .497**
1
N 110 110
**. Correlation is significant at the 0.01 level (2-tailed).
Inference
Since the asymptotic significance of the Pearson correlation value is 0.00 which is less than the
0.01 so there exists a significant relationship between vendors perception towards ease of use
and usefulness in digital payments.. Therefore the alternative hypothesis is accepted at 1%
significance level. From this it can be understood that vendors who find the payment platforms
easy to use also find the payment platforms as very useful.

61
4.8 Correlations
Ease of use * Safety in digital payment solutions
Ho: There is no significant association between vendors perception towards ease of use and
safety in digital payments.
H1: There is a significant association between vendors perception towards ease of use and
safety in digital payments
TABLE 4.81
Correlations
EASEOFUSE SAFETY
EASEOFUSE
N 110 110
SAFETY
1
N 110 110
Inference
0.5 so there exists a significant relationship between vendors perception towards ease of use and
safety in digital payments. Therefore its alternative hypothesis is accepted. From this it can be
understood that vendors who find the payment platforms easy to use also find the payment
platforms as very secure.

62
4.9 Correlations
Usefulness * Safety in digital payment solutions
Ho: There is no significant association between vendors perception towards usefulness and
H1: There is a significant association between vendors perception towards usefulness and
TABLE 4.91
Correlations
USEFULNESS SAFETY
USEFULNESS
N 110 110
SAFETY
1
N 110 110
Inference
0.5 so there exists a significant relationship between vendors perception towards usefulness and
safety in digital payments. Therefore its alternative hypothesis is accepted. From this it can be
understood that vendors who find the payment platforms is very useful and also find the payment
platforms as very secure.

63
4.10 Correlations
Perception * Safety in digital payment solutions
Ho: There is no significant association between vendors perception towards govt. initiatives
and Safety in digital payments.
H1: There is a significant association between vendors perception towards govt. initiatives
and Safety in digital payments.
TABLE 4.10.1
Correlations
PERCEPTION SAFETY
PERCEPTION
N 110 110
SAFETY
1
N 110 110
Inference
0.5 so there exists a significant relationship between vendors perception towards govt. initiatives
and safety in digital payments.. Therefore its alternative hypothesis is accepted. . From this it
can be understood that vendors who find the vendors have a good perception among govt.
initiatives and secure in digital payments.

64
4.11 Frequency Table
Table shows that range of digital payments have been received by the vendor on their
business post demonetization.
Before Demonetisation
Frequency Percent Valid Percent Cumulative
Percent
Valid
monthly 0 to 50 counts 19 17.3 17.3 17.3
monthly 50 to100 counts 34 30.9 30.9 48.2
monthly above 200 counts 21 19.1 19.1 100.0
Total 110 100.0 100.0

65
CHART 4.11
Inference:
From the above table and chart it can understood that over 32.7% of the respondents received (
100 to 200 (per month) range of digital payment transactions before demonetization. lesser
percent of 19.1% of the respondents received more than 200 counts of digital payments.
similarly nearest no. of 17.3% of respondents constitute only less than 50 counts of digital
payment on their business. Surprisingly the average no..of 30.9% of respondents have been
received the average range of 50 to 100 counts of digital payments on their business before
demonetization.

66
4.12 Frequency table
The table revealed that range of digital payments have been received by the vendors on
their business post demonetization:
After Demonetisation
Frequency Percent Valid Percent Cumulative
Percent
Valid
monthly above 200 counts 13 11.8 11.8 100.0
Total 110 100.0 100.0

67
CHART 4.12
Inference:
From the above table it can clearly understood that around 39.1% of the respondents were
received the average range of 500 to 100 counts of digital payments on the backdrop of digital
payments, surprisingly higher no. counts (above 200) only constitutes 11.8% respondents.
Average of 29.1% and 20% of the respondents were received (50 to 100 counts) and (100 to
200 counts) of digital transaction on their business.
.

68
4.14 CHI – SQUARE TEST
Before demonetization * After demonetization
Ho: There is no significant association between digital payments before demonetization
and digital payments after demonetization.
H1: There is a significant association between digital payments before demonetization and
digital payments after demonetization.

69
Table 4.14
Before demonetisation * after demonetisation Crosstabulation
Before demonetization
After demonetisation Total
monthly 0 to
50 counts
monthly 50
to 100
counts
monthly 100
to 200
counts
monthly
above
200
counts
b
e
f
o
r
e
d
e
m
o
n
e
t
i
s
a
t
i
o
n
monthly 0 to 50 counts
Count 7 10 1 1 19
Expected Count 5.5 7.4 3.8 2.2 19.0
% within before
demonetisation
36.8% 52.6% 5.3% 5.3% 100.0%
% within after
demonetisation
21.9% 23.3% 4.5% 7.7% 17.3%
Count 16 8 7 3 34
Expected Count 9.9 13.3 6.8 4.0 34.0
% within before
demonetisation
47.1% 23.5% 20.6% 8.8% 100.0%
% within after
demonetisation
50.0% 18.6% 31.8% 23.1% 30.9%
Count 6 17 10 3 36
Expected Count 10.5 14.1 7.2 4.3 36.0
% within before
demonetisation
16.7% 47.2% 27.8% 8.3% 100.0%
% within after
demonetisation
18.8% 39.5% 45.5% 23.1% 32.7%
monthly above 200 counts
Count 3 8 4 6 21
Expected Count 6.1 8.2 4.2 2.5 21.0
% within before
demonetisation
14.3% 38.1% 19.0% 28.6% 100.0%
% within after
demonetisation
9.4% 18.6% 18.2% 46.2% 19.1%
Total
Count 32 43 22 13 110
Expected Count 32.0 43.0 22.0 13.0 110.0
% within before
demonetisation
29.1% 39.1% 20.0% 11.8% 100.0%
% within after demonetisation 100.0% 100.0% 100.0% 100.0% 100.0%

70
Chi-Square tests
Table 4.14.1
Chi-Square Tests
Value
Df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 20.743a
9 .014
Likelihood Ratio 20.627 9 .014
Linear-by-Linear Association 9.667 1 .002
N of Valid Cases 110
a. 6 cells (37.5%) have expected count less than 5. The minimum
expected count is 2.25.
Inference:
Since the asymptotic significance of the Pearson chi- square value.002 which is less than.05
there exists a significant relationship between the digital payment counts pre and post
demonetization among the vendors. Therefore the alternate hypothesis is accepted.
 From the above table & chart that it can clearly revealed that there is a quite gap between
the before and after demonetization on digital payment counts among vendors.
 Only 17.3% of respondents have been received (0 to 50 counts) of digital transactions
before demonetization but its quite increasing up to 29.1% post demonetization.
 Average respondents of 30.9% constitutes (50 to 100 counts) digital transaction before
demonetization but its surprisingly elevate up to 39.1% post demonetization
 Reverse case happen on (100 to 200 counts) of digital payments with 32.7% before
demonetization and only 20% for post demonetization. The highest count (above 200 )
constitutes only19.1% before demonetization but it quite drastically drop down to 11.8%
on the backdrop of demonetization.

71
CHAPTER - 5
SUMMARY AND CONCLUSION

72
5. Findings
 Majority of 104 (94%) respondents were choosing net banking as a payment solution for
their business post demonetization. Over 70 (64%) respondents using e-wallet and 44
(40%) prefer UPI, none of the respondents prefer USSD and AEPS.
 Majority of 20 (19%) respondents prefer canara bank upi as a digital payment solution
among UPI server, average of 19 (17%) preferred axis pay and sbi pay as their payment
option. And 15 (14%) respondents prefer Indian bank upi, recently launched BHIM upi
constitutes only 5 respondents. Others likes icici pocket, pnb bank upi only few
respondents.
 Majority of 58 (54%) of the respondents prefer Paytm as their option option among E-
wallets. Airtel money, freecharge, jio money constitutes average of 14 (13%) ,18(17%),
13 (12%) respondents. ICICI upi, Hdfc zap, ola money are only preferred by few no. of
4(3%), 4 (4%), 7 (6%) respondents.
 Majority of 92 (84%) of the respondents felt that marketing agencies frequently using
broachers for promoting the digital payment brands post demonetization . Some of the 50
(46%) vendors felt they are using stickers while promoting the digital payment solutions
among the merchants. Less no of 10 (9%) & 19 (18%) respondents felt that they are
conduct digital campaign and Micro ATM for their digital payment brands promotion
post demonetization.
 More than half of 78 (70%) respondents felt that marketing agencies offer rewards on
payments to make accept their digital payment mode among the business. Very few 15
(14%) &14(13%) of respondents felt they are providing supplementary products on
promotion. Average of 26 (24%) respondents felt that they are offering infrastructure
development activities among merchants to attract them to prefer their digital payment
brands.
 Majority of 82 (75%) respondents felt Paytm are the most frequently engaged brand on
promotion. Nearly 40 (37%) of respondents felt the freecharge are more engaged on

73
promoting their brand. Average of 17 (16%) ,14 (13%) , 26 (25%) respondents felt Axis
pay, Sbi pay & yes bank wallet..Only 7 (6%) felt BHIM & jio money wallet.
5.12 Correlation :
 The vendors who find the digital payment platform easy to use, also find the platform
very useful as there exists a positive correlation between ease of use and usefulness.
 The vendors hold a positive perception towards the digital payment solutions among ease
of use will also have positive opinion towards the safety of the digital solutions.
 The vendors hold a positive perception towards the digital payment solutions among
safety will also have positive opinion towards the usefulness of the digital payment
solutions
 The vendors support the govt. initiatives towards digital solutions and also have a good
realize that digital solution are create safety among their transactions.
5.13 Frequency table:
 Around 17.3 % of the vendors received monthly (0 to 50 counts) of digital transactions
before demonetization.
 30.9 % & 32.7% of vendors have been received monthly (50 to100 counts) & ( 100 to
200 counts) of digital transactions among their business before demonetization.
 Very few no. of vendors 21% received monthly (above 200 counts) of digital
transactions before demonetization.
 Nearly 29.1% of vendors have been received monthly (0 to 50 counts) of digital
payments post demonetization.
 Surprisingly around 39.1% of vendors got average counts of (50 to 100) digital payments
among their business post demonetization.
 Unfortunately very few percent of 11% vendors received (above 200 counts ) of digital
payment post demonetization which is less than the before demonetization.

74
5.14 Chi – square test
 The number of digital transactions has come down post demonetization in comparison
with number digital transaction in pre demonetization period.

75
5.2 SUGGESTIONS
 From the analysis it can be understood that vendors are willing to understand and use the
digital payment solutions due to demonetization and their preferred platform is e-wallets
as it is heavily promoted and a known platform.
 Paytm is the most preferred e-wallet as they are the pioneers and they also engage in
heavy promotion. It is suggested to the other e-wallet companies to venture into
promotions like rewards and payment, providing supplementary products, helping in
infrastructural development activities of the vendor in order to increase the usage of e-
wallets and to capture the market from the market leader.
 It is suggested to the companies to check the effectiveness of their promotion programme
in creating the awareness and interest in the minds of the target audience. For instance,
though axis bank engaged in conducting digital campaign and Micro ATM, were not able
to create awareness among the vendors as they expected to do.

76
5.3 CONCLUSION
 The Vendors disposition towards digital payment solution post demonetization is both
positive and negative. Majority of the vendors support the central government initiatives
towards cashless India. Due to lack of healthy promotional activity like awareness
campaign, attractive incentives to vendors there is less improvement in digital payments
among merchants. The private digital payment brands like Pay tm, freecharge, axis
bank, yes bank wallet etc, very frequently engage on promoting the digital solutions
among the vendors in an effective way. The government should try to promote the
cashless payments especially in rural areas.
 In order to encourage digital payment systems across the country post demonetization,
the central govt. encouraging BHIM UPI, USSD and AEPS. The nationwide campaign
already been launched to spread awareness among all category of people across the
country, even central govt. offer incentives for some category of digital payments but
there is a problem on information inefficiency. The recent study revealed that the ability
of use computers remain low in the country, in spite of campaigns for digitalization, an
analysis of national sample survey office (NSSO) data reveals. An estimated 8.8% of the
rural population has computing ability (ability to use PCs, smart phones) in India. In
urban areas its nearly four times higher at 30.2%.
 The government should create a positive atmosphere and see that companies are
rewarded based on the security and incentives they are provide.
 All commercial establishments should be provide with point of sale (pos) machine free of
cost and mobile banking with the help of various application should be encourage to
increase the digital payments.
 Even there is a little gradual increases in digital payment counts on the backdrop of
demonetization, this study result clearly revealed that demonetization has been create the
great impact over the digital payment counts among vendors on their business
unfortunately in a negative way.

77
5.4 BIBILOGRAPHY
 The article “Digital payment to rural India as huge as the opportunity” by rajiv
singh, ET Bureau.
 “A cashless future is the real goal of India’s demonetization” by wade stepard
#foreginaffairs.
 Impact of demonetization on payment industry – www.entrapraneur.com
/article/187149..
 E-wallets the real winners after demonetization – inc42.com/e-wallets
demonetiation/.

79
QUESTIONNAIRE
! ) NAME OF THE BUSINESS:
2) NAME OF THE OWNER / VENDOR:
3) ADDRESS:
4) MOBILE NO:
E MAIL ID:
TIN NO:
5) WHAT IS YOUR FREQUENTLY USED MODE OF PAYMENT?
a) CASH b) DIGITAL PAYMENT SOLUTIONS
6) IF YOU ARE USING DIGITAL PAYMENT MODE, THEN WHAT KIND OF
PLATFORM CHOOSING TO PERFROM?
a) NET BANKING b) UPI c) USSD d) AEPS e) E- WALLET
7) CHOOSE THE BELOW
a) IF UPI b) IF E- WALLETS
Axis pay UPI Airtel money
SBI pay Freecharge
PNB UPI Jio money
Indian bank UPI Ola money
BHIM ICICI pocket
Canara bank UPI Hdfc pay zap
Easypay (ICICI) Citi master pass

80
8) WHAT RANGE OF DIGITAL PAYMENTS HAVE BEEN RECEIVED IN YOUR
BUSINESS PRE AND POST DEMONETISATTION?
Before demonetization After demonetization
a) Monthly (0 to 50) a) Monthly (0 to 50)
b) Monthly (50 to 100) b) Monthly (50 to 100)
c) Monthly (100 to 200) c) Monthly (100 to 200)
d) Monthly (above 200) d) Monthly (above 200)
9) WHAT KIND OF PROMOTIONAL ACTIVITIES WERE MARKETING AGENCIES
ENGAGED ON PROMOTING THEIRS DIGITAL PAYMENT SOLUTIONS AFTER
DEMONETISATION?
a) BROUCHURES b) STICKERS c) DIGITAL CAMPAIGN
d) PROMOTING THROUGH INNOVATIVE WAY LIKE( conduct Micro ATM)
10) WHAT KIND OF OFFERS RENDERED BY THE MARKETING AGENCIES TO MAKE
YOU ACCEPT THEIRS DIGITAL PAYMENT MODE IN YOUR BUSINESS?
a) OFFER REWARDS ON PAYMENTS
b) OFFER SUPPLEMENTRY PRODUCTS
c) OFFER INFRASTUCTURE DEVELOPMENT ACTVITIES ( banner design,
paintings, furnitures etc)
11) WHICH OF THE FOLLOWING ARE MOST FREQUENTLY ENGAGED IN
PROMOTIONAL ACTIVITIES?
a) AXIS PAY b) PAY TM c) SBI PAY d) BHIM e) JIO MONEY WALLET
f) YES BANK WALLET g) FREECHARGE

81
DIGITAL PAYMENT INITIATIVE TAKEN BY
OUR CENTRAL GOVERNMENT
1
Strongly
disagree
2
Somewhat
disagree
3
Neutral
4
Somewh
at
Agree
5
Strongly
Agree
EASE OF USE
I prefer digital payment platforms as it
brings flexibility in carrying out my Tasks.
I prefer to use the digital payment
platforms for my business as they are
always available.
I prefer digital payment platform for my
work as they are easy to use
USEFULNESS
I prefer digital payment platform as I can
carry to the place of my trade.
I prefer to use digital payment
platform for work as it increases the
customer walk ins.
I prefer digital payment platform as it is as
per my need and requirement.
SAFETY
I feel safe in my transactions with the
digital payment platform.

82
I trust the digital payment platform to
keep my personal information safe.
I trust to use digital payment platform for
financial transactions.
PERCEPTION
I feel that demonetization has positively
impacted the digital payment mode.
I support the digital payment initiative
taken by our central government.
I feel that demonetization brings
transparency in the business transaction
I feel that increasing the level of digital
payments will help the economy to grow.
I feel that the incentives for using the
digital mode will increase the digital
transaction among the public.

Demonetization effect on digital payments solutions in india by Balaji

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