Digital media Dessertation full topic

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EXECUTIVE SUMMARY
Digital payments are to finance what invention of wheel was to transport. It offers an
unprecedented opportunity to our people, most of who live in rural India or are migrants in big
cities. It promises access to formal financial services and benefits from e-commerce, especially
for those who continue to be excluded. In addition to accelerating financial inclusion, opening
new business models and markets – digital payments can improve the State’s ability to curb tax
leakages, funding of criminal activities and reduce cash related costs.
Analytical research methodology has been used for the given study. The objective of
research is to know the procedure of Digital payment benefits the area of study is Vadgaon Sheri
Pune 411014. Since the research carried out for this project is descriptive in nature, the various
documents and official files would require for understanding the methodology used by the banks,
vendor, and customer. The data collection is done by one-to-one interactions with bank officials,
vendor, customer & direct observations. At the same time, related articles, newspapers,
magazines, in-house journals, etc were referred. The information on the project under
consideration is obtained by the bank officials, vendor, and customer.
In this project Comparison among the Digital payment is done that is Digital wallet v/s Plastic
money like – PAYTM, JIO MONEY, AIRTEL MONEY, DEBIT CARD, and CREDIT CARD
These DIGITAL INSTRUMENTS are the part of our study
According to my survey I found that people are ready to do transaction with digital payment but
some of the charges are directly deducted from their account which make them paused to do
digital payment. So government should make awareness about the cost deducted through the
digital transaction. And also show how that deducted cost help to the society and nation. In this
project I also found that Digital payments are far cheaper than the traditional method and also
provide fraud protection and have worldwide acceptance and they are good for online
transaction.
In this project my limitation is that research is based on the data provided by customer and
vendor and the company statements provided on internet website and the time period was very
less and research was only based on one place that is Vadgaon Sheri.

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At last I conclude by saying that digital payment made human life convenient as a person can
pay his payments online.

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INTRODUCTION
DIGITAL PAYMENT:
Payments are made using payment instruments. Cash, for example, is a payment instrument. So
too are checks. However, digital payments are not one instrument but rather an umbrella term
applied to a range of different instruments used in different ways. In this section, we provide
some parameters for creating this definition.
The payer-payee interface: whether the payer, payee, or both use an electronic medium in a
payment transaction.
Since there is no one standard definition of a digital or e-payment, you should settle on a clear
and implementable definition at the start of any measurement exercise. The subject matter is
complex, but Digital payment instruments can be grouped together with respect to their
underlying nature in two ways:
 Narrow choice- ‘Paper’ vs. ‘non-paper’: Instruments which rely on a paper-basis for
authorization, such as checks, traveler’s checks, and money orders, are regarded as ‘non-
digital’ and all other instruments are regarded as ‘digital’.
 Broad choice - ‘Cash’ vs. ‘non-cash’: Every instrument other than cash is regarded as
‘non-cash’ and therefore digital, since each usually takes a digital form at some stage in
the transfer of value.
In reality, there is a spectrum between pure digital and pure physical in how most instruments
other than cash are transacted over the whole transaction cycle. The choice of which definitional
option to apply will depend on the purpose. For example, if you are measuring to highlight the
need to transition away from existing payment instruments due to, for example, cost, then you
can make a case for focusing on the broader definition (non-paper instruments). However, if you
want to highlight the potential of payment flows to be digitized, you may consider checks as
much closer to digital than cash, therefore including them with ‘non-cash’ in the narrow

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definition. In an increasing numbers of countries, paper checks are truncated into a digital
message on deposit, and since they require the payer to have an account, and are also traceable,
they are less like cash in these attributes and more like account-based digital options.
Note, however, that technology is challenging the boundaries of all instrument-based
definitions—for example, countries like Canada are considering the introduction of digital cash,
where digital legal tender is transferred directly from payer to payee in a payment transaction,
and where paper and metallic currency will become obsolete. Hence a ‘cash’ transaction could
be ‘digital.’

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ORGANIZATION PROFILE
“Wallet“ in the conventional sense of the term, refers to a purse or folding case for safely holding
money or personal information such as identity card. Digital or Electronic Wallet (e-wallet)
refers to an electronic, internet based payment system which stores financial value as well as
personal identity related information. Such electronic payment systems enable a customer to pay
online for the goods and services, including transferring funds to others, by using an integrated
hardware and software system. Hardware can be a mobile or computer. Communication between
the buyer and the seller may happen over the internet or blue tooth or on mobile network. Thus,
e-wallet is nothing but an online money account which does not require the use of a physical
card for undertaking transactions/remittances. Unlike savings bank accounts, they, at present, do
not offer any interest for keeping money in it, but rewards the holders through cash-backs for
making purchases through it. Unlike credit cards, e-wallets are pre-loaded money. Hence, it
resembles more to a debit card.
E-wallet is a component of the payment system. The word “payment system” is defined in India
to mean a system that enables payment to be effected between a payer and a beneficiary,
involving clearing(wherein the payment service provider acts as a counterparty between the
buyer and seller by calculating the obligations between them and guaranteeing its
settlement), payment (act of paying or transacting) or settlement service (the final act of
changing the records of ownership of the asset transacted, either after netting all the cross
obligations or on gross terms) or all of them. A “payment system” as understood in India, can
include the systems enabling credit card operations, debit card operations, smart card operations,
money transfer operations or such similar operations.

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2.1 DIGITAL PAYMENT
Payments are made using payment instruments. Cash, for example, is a payment instrument. So
too are checks. However, digital payments are not one instrument but rather an umbrella term
applied to a range of different instruments used in different ways. In this section, we provide
some parameters for creating this definition.
TYPES OF DIGITAL WALLET:
PAYTM WALLET:
DIGITAL
WALLET
PAYTM
WALLET
AIRTEL
MONEY
JIO MONEY

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Paytm (Acronym for ‘Pay through Mobile’) is an Indian payment and commerce company based
out of Delhi NCR, India. Launched in August 2010, it is the consumer brand of One97
Communications.
In 2015, Paytm became the first Indian company to receive Alibaba’s funding after it rose over
$625 million at a valuation of $1.5 billion with the Alibaba Group being the biggest stakeholder
in the parent company One97 Communications. In August 2016, Paytm received an investment
from Mountain Capital, one of Taiwan-based MediaTek’s investment funds at a valuation of
over $5 billion.
Paytm has invested $5 million in auto rickshaw aggregator and hyper local delivery firm
Jugnoo. It has also acquired Delhi-based consumer behavior prediction platform Shift for $8
million and local services startup near in for $2 million. Paytm has also spent over INR 200
crores to become the title sponsor of the Indian Cricket team.
The company employs over 13,000 employees as of January, 2017 and has 3 million offline
merchants across India. It also operates the Paytm payment gateway and the Paytm Wallet.
AIRTEL MONEY:

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Airtel has started a new mCommerce platform called Airtel Money in collaboration with Infosys
and Smart Trust (now Giesecke & Devrient). The platform was launched on 5 April 2012, at
Infosys' headquarters in Bangalore. Using Airtel Money, users can transfer money, pay bills and
perform other financial transactions directly on the mobile phone. It has an all-India
presence. Certain charges are levied per Airtel Money transaction

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JIO MONEY:
Jio Money is digital wallet Jio Money’s core product and the end to end systems that support it
are operational. “To begin with, Jio have launched the product within a few Reliance campuses
and facilities. Jio expect to expand the Jio Money presence city by city, across the country in
phases over the next few quarters,”
Customers can use Jio Money’s digital wallet, a Jio Money card or any other credit/debit card
directly from the wallet to pay merchant seamlessly and instantly. Jio Money digital wallet will
also give consumers the option of opening a Digital Bank Account or linking their
existing account.
Note Reliance Industries and State Bank of India have formed a joint venture and applied for a
payments bank license. RIL will be the promoter and SBI will be the joint venture partner with
an equity investment of up to 30%.
Plastic money is a term that is used predominantly in reference to the hard plastic cards we use
every day in place of actual bank notes. They can come in many different forms such as cash
cards, credit cards, debit cards, pre-paid cash cards and store cards.

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TYPES OF PLASTIC MONEY:
PLASTIC
MONEY
DEBIT
CARD
CREDIT
CARD

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DEBIT CARD:
A debit card (also known as a bank card or check card) is a plastic payment card that can be
used instead of cash when making purchases. It is similar to a credit card, but unlike a credit
card, the money comes directly from the user's bank account when performing a transaction.
Some cards may bear a stored value with which a payment is made, while most relay a message
to the cardholder's bank to withdraw funds from a payer's designated bank account. In some
cases, the primary account number is assigned exclusively for use on the Internet and there is no
physical card.
In many countries, the use of debit cards has become so widespread that their volume has
overtaken or entirely replaced cheques and, in some instances, cash transactions. The
development of debit cards, unlike credit cards and charge cards, has generally been country
specific resulting in a number of different systems around the world, which were often
incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in
one country to be used in other countries and allowed their use for internet and phone purchases.
Unlike credit and charge cards, payments using a debit card are immediately transferred from the
cardholder's designated bank account, instead of them paying the money back at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash. Merchants may also offer cash back facilities to customers, where a customer
can withdraw cash along with their purchase.
CREDIT CARD:
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a
merchant for goods and services, based on the cardholder's promise to the card issuer to pay
them for the amounts so paid plus other agreed charges.[1] The card issuer (usually a bank)
creates a revolving account and grants a line of credit to the cardholder, from which the
cardholder can borrow money for payment to a merchant or as a cash advance.
A credit card is different from a charge card, where it requires the balance to be repaid in full
each month.[2] In contrast, credit cards allow the consumers a continuing balance of debt, subject
to interest being charged. A credit card also differs from a cash card, which can be used like

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currency by the owner of the card. A credit card differs from a charge card also in that a credit
card typically involves a third-party entity that pays the seller and is reimbursed by the buyer,
whereas a charge card simply defers payment by the buyer until a later date.
2.2 VISION:
Vision of the Committee is to set a roadmap for digital payments to grow substantially
over the next three years from the current level of about five percent of personal
consumption and twenty per cent of all transactions. India’s cash to Gross Domestic
Product (GDP) ratio is among the highest in the world. Over the next three years, it is the
vision of the Committee to reduce this ratio from about twelve percent to six percent
2.3 PAYMENT STRUCTURE:
There are different types of payment structure of the transaction of money from one account to
another account and one person to another person for exchange of goods and services.
2.4 DISTRIBUTION CHANNEL :

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For digital wallet
In market we need money to survive or for doing some transaction like buying or selling. It
required channel for payment through Digital wallet.

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Same way Plastic card also require distribution channel for payments.

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3.1 OBJECTIVES OF STUDY
 To study the process of Digital Payment.
 To analysis the Digital Payment Instrument.
 To understand the digital payment security services.
 To bring out solution in the form of application to uproot Digital payment.
3.2 SCOPE
The given study has a wider scope for Digital payment. It increases the transaction process of
people to make more comfortable. The study provides guidelines of procedure, methods,
components and formalities of digital payment process. So ultimately it offers innovation for
small enterprises as the given study motivates people to start a new business on small or
medium scale by digital payment process, also PM start Digital program to make Digital
India.
3.3 LITERATURE REVIEW
E- commerce:
BY CHAFFEY ETAL, 2014
A study on the online payment system would not be complete without the discussion of
electronic commerce. So e-commerce refers in the buying and selling the goods and services, or
the transmitting of funds or data, over an electronic network, primarily the interest, this business
transaction occur business-to-business, business-to-consumer, consumer-to-consumer, and
consumer-to-business. The term e-commerce and e-business are often used interchangeably.
E –commerce is conducted using a variety of application, such as email, online catalogs and
Shopping carts, electronic data interchange, (file transfer) protocol, and web services.
Online payment system:

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BYAWAD,2015
Many users make payments electronic rather than in person. So online payment refers to money
that is changed electronically, typically, this involves use of computer networks, the internet and
digital stored value systems and an electronic payment system is a way of paying for a goods or
services electronically, instead of using cash or a check, in person or mail. Fund reds of
electronic payment system have been developed to provide secure internet transaction. Electronic
payment system is generally classified into four categories: credit card and debit cards electronic
cash micropayment system and session-level protocol for secure communications, the categories
are:
Credit and debit card:
Credit card is the plastic card issued to the users to lent money for purchase of goods or services.
The customer type the card number, expiry date and billing address on the order form and the
vendor can verify the details and be confident of payment. Card holder need to deposit advance
in the bank and withdraw in the purchase time.
Electronic cash:
E-cash is purely software based, anonymous, untraceable, online token payment system, then the
token purchased by customers the e-cash software stores the digital money on the customers’
personal computer which is under signed by the bank. The users can easily spend digital money
at any shop accepting e-cash without giving credit card details to the shop keeper.

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RESEARCH METHODOLOGY
TITLE OF STUDY: “Comparison of Digital Payment: Digital wallet vs. Plastic money”
Research methodology:-
Analytical research and descriptive methodology has been used for the given study. The
objective of research is to know the procedure of Digital payment benefits the area of study is
Vadgaon Sheri Pune 411014.
Data Collection:-
Every project requires research to be carried out in order to get collective data which in turn
helps us to better understand the methodology used by the Bank therefore resulting in better
planning & implementation of the same and progress of the bank. The technique of Data
Collection for this particular project is as follows:
Data collected specifically for the study the process of Digital payment: Digital wallet
v/s Plastic money. Since the research carried out for this project is descriptive in nature, the
various documents and official files would require for understanding the methodology used
by the banks, vendor, and customer. The data collection is done by one-to-one interactions
with bank officials, vendor, customer & direct observations. At the same time, related
articles, newspapers, magazines, in-house journals, etc were referred. The information on the
project under consideration is obtained by the bank officials, vendor, and customer.
A. Primary Data:-
Primary data is a data, which is gathered by the researcher himself. This data can be
collected through experiment or through survey. The various method of primary data
collection is used in this study is:-
 1- Observation Method
 2- Questioners Method

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 3- Through interaction with user of digital payment
B. Secondary Data:-
This data is collected from organization web site; bank’s internal document’s which is
made on monthly basis & from Web sites. Secondary data is scrutinized on the basis of
suitability, reliability, adequacy and accuracy.
About the study
Compare among the Digital payment: Digital wallet v/s Plastic money like –
PAYTM,
JIO MONEY,
AIRTEL MONEY,
DEBIT CARD,
CREDIT CARD
These DIGITAL INSTRUMENTS are the part of our study

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5. DATA PRESENTATION AND INTERPRETATION

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5.1 Questionnaire Answered by Vendor: size 50
Q 1) Does your business accept Digital payment?
Options Yes No Total
Responses 40 10 50
Percentage 80% 20% 100%
Interpretation
It was found that 80% of vendor used Digital payment to accept payment while selling goods
to customer. However, 20% of the vendor is not comfortable with digital payment. It required
swap machine and smart phone for digital payment.
80
20
Accept Digital payment
yes
no

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Q 2).Which types of Digital payment instruments will you accepts?
Options Plastic
money
Digital
wallet
Both Total
Responses 15 20 15 50
Percentage 30% 40% 30% 100%
Interpretation:
30% of vendor or businessman prefers Plastic money, 40% of vendor or businessman
prefers Digital wallet and 30% of vendor or businessman prefers both plastic money and
digital money.
Q.3) which of the following methods are used in your Business for acceptance of payment?
30
40
30
Digital payment instruments
plastic money
Digital wallet
both

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Options Debit
card
Credit
card
Paytm Airtel
money
Jio
money
Total
Responses 10 5 25 5 5 50
Percentage 20% 10% 50% 10% 10% 100%
Interpretation
20% of vendor prefers Debit card, 10% prefers Credit card, 50% prefers Paytm, 10% prefers
Airtel money & 10% prefers Jio money.
Q.4) what is the criteria for Payment selection?
20
10
50
10
10
Types of payment
Debit card
Credit card
Paytm
Airtel money
Jio money

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a) Cash (For fast payment)
b) Plastic money (For large amount)
c) Digital wallet (For removable of change)
Options Cash Plastic money Digital wallet Total
Percentage 40% 20% 40% 100%
Interpretation
It was found that vendor prefers Cash payment method 40%, plastic money 20% and
Digital wallet 40% according to the transaction amount and easy way to acceptance of
money.
Q.5) what you think which of payment methods are more safe and secured?
40
20
40
Payment selection
Cash
Plastic money
Digital wallet

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a) Cash
b) Plastic Money
c) Digital wallet
Interpretation
It was found that 20% of vendor think cash is safe, 30% think plastic money is safe and
50% of vendor think Digital wallet is safer and secured than all.
Q.6) what you think which of payment methods is more useful for economy development?
20
30
50
More safe and secured
cash
plastic money
digital money
Options Cash Plastic
Money
Digital
wallet
Total
Percentage 20% 30% 50% 100%

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a) Cash
b) Plastic Money
c) Digital wallet
Interpretation
It was found that 10% of vendor think cash is helpful for economy development, 30%
think plastic money is more useful for economy development and 60% of vendor think
Digital wallet is more useful for economy development and government also planning to
do digital market.
Q 7) Do you think Digital Payment required hidden charge in payments?
10
30
60
Economy development
cash
plastic money
digital money
Options Cash Plastic
Money
Digital
wallet
Total
Percentage 10% 30% 60% 100%

30
Responses 40 10 50
Interpretation
It was found that 80% of vendor used Digital payment and they know about hidden charge
deducted while accepting digital payment while selling goods to customer. However, 20% of
the vendor is not comfortable with hidden charge of digital payment.
5.2 Questionnaire Answered by Customers: sized 50
80
20
Hidden charge in payments
yes
no

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Q 1) Do you use smart phone for payment?
Responses 45 5 50
Interpretation
It was found that 90% of customer are using smart phone for payment and they are
comfortable with the Digital payment process. However, 10% of the customers are not
comfortable with digital payment and they do not use smart phone.
Q 2) Are you comfortable with the Digital payment process?
90
10
Use smart phone for payment
yes
no

32
Responses 40 10 50
Interpretation
It was found that 80% of customers are comfortable with the Digital payment process.
However, 20% of the customers are not comfortable with digital payment. It required smart
phone for digital payment.
Q 3) According to you which are the most prefers payment instrument are used now days?
a) Plastic money
b) Digital wallet
c) Cash
80
20
comfortablewith the Digital payment
process
yes
no

33
Options Plastic
money
Digital
wallet
Cash Total
Percentage 20% 60% 20% 100%
Interpretation
It was found that according to customers 20% prefers plastic money, 60% customers prefers
digital wallet and 20% customers prefers cash for payment now days.
Q 4) Do you think digital payment required extra charges in payments?
a) Yes
b) No
20
60
20
plastic money
digital wallet
cash

34
Responses 35 15 50
Interpretation
It was found that 70% of customers think that digital payments required extra charge in
payments process of 1% to 2%. However, 30% of the customers are not comfortable with
extra charge of digital payment.
Q 5) which application you prefer for payment?
a) Paytm
b) Airtel money
c) Jio money
d) Other wallet money
70
30
Required extra charges in payments
yes
no

35
Options Paytm Airtel
money
Jio money Other
wallet
money
Total
Responses 30 10 5 5 50
Percentage 60% 20% 10% 10% 100%
Interpretation
Q 6) Digital payment helps government in the economy development.
a) Yes
b) No
6020
10
10
Paytm
airtel money
jio money
other wallet money

36
Responses 45 5 50
Interpretation
It was found that 90% of customers are comfortable with the Digital payment process. And
they think government gets indirectly tax from digital payment process. However, 10% of the
customers are not comfortable with digital payment. They think they are paying extra tax to
government through digital payment process.
Q 7) According to you which are the most prefers payment instrument are used now days?
e) Plastic money
f) Digital wallet
g) Cash
90
10
comfortablewith the Digital payment
process
yes
no

37
Options Plastic
money
Digital
wallet
Cash Total
Percentage 20% 60% 20% 100%
Interpretation
20
60
20
plastic money
digital wallet
cash

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6.1 FINDINGS
For vendors:
3 It was found that vendor prefers Cash payment method 40%, plastic money 20% and
Digital wallet 40% according to the transaction amount and easy way to acceptance of
money.
4 20% of vendor prefers Debit card, 10% prefers Credit card, 50% prefers Paytm, 10% prefers
Airtel money & 10% prefers Jio money.
5 It was found that 20% of vendor think cash is safe, 30% think plastic money is safe and
50% of vendor think Digital wallet is safer and secured than all.
For customers:
 It was found that according to customers 20% prefers plastic money, 60% customers
prefers digital wallet and 20% customers prefers cash for payment now days.
 It was found that 70% of customers think that digital payments required extra charge
in payments process of 1% to 2%. However, 30% of the customers are not
comfortable with extra charge of digital payment.
 It was found that 90% of customers are comfortable with the Digital payment process.
And they think government gets indirectly tax from digital payment process. However,
10% of the customers are not comfortable with digital payment. They think they are
paying extra tax to government through digital payment process.
OVERALL FINDING
 Digital payments are far cheaper than the traditional method of mailing out paper invoice
and then processing payment received.
 Digital payment provides fraud protection.
 Digital payment have worldwide acceptance.

40
 Plastic money is good for online transaction.

42
7.1 RECOMMENDATION:
According to my survey I found that people are ready to do transaction with digital payment but
some of the charges are directly deducted from their account which make them paused to do
digital payment. So government should make awareness about the cost deducted through the
digital transaction. And also show how that deducted cost help to the society and nation.
“Digital economy should be a ‘Way of life’ and that such an economy would be transparent and
effective. The centre has been pushing hard for a ‘cashless’ economy exhorting people to engage
in digital transactions”

44
LIMITATIONS
The study is subjected to the following limitations
 The study is based on the data provided by customer and vendor and the company
statements provided on internet website. So the limitations of the study are equivalent to
the real outcome and equally applicable.
 The study is based on Vadgaon Sheri location only.
 In some cases data is collected from the companies past records.
 Limited time period restricts the scope of study.

46
CONCLUSION
 Made human life convenient as a person can pay his payments online while he is taking
rest.
 Override traditional marketing system into digital marketing system.
 Payment cards provide fraud protection.
 Plastic money is required for digital wallet to add money in wallet.

48
10. BIBLIOGRAPHY
http://cashlessindia.gov.in/digital_payment
https://en.wikipedia.org/wiki/E-commerce_payment_system
https://www.airtel.in/bank
https://www.jio.com/en-in/apps/jio-money
https://paytm.com/paytmwallet

50
11.1Questionnaire for vendor
Name: …………………………………………………………………………
Gender: Male Female
Business type:
Fast Food Super Market Cosmetic Shop
Medical Shop Hotel Stationary
1. Does your business accept digital payment?
Yes No
2. If yes, then which type of digital instrument will you accept?
Plastic Money Digital Wallet
3. More you prefer for the electronic payment?
ATM card PAYTM Jio Money
Airtel Money Other Wallet
4. Do you feel digital payment is safe?
Yes No
5. Do you find plastic money charged more than wallet money?
Yes No
6. Which of the options you consider more reliable and secured?
Paper money wallet money plastic money
7. Which types of Digital payment instruments will you accepts?

51
Wallet Money Plastic money
8. Do you think digital payment required extra charges in payments?
Yes No
9. What you think which of payment methods is more useful for economy development?
Cash Digital wallet Plastic Money
11.2 Questionnaire for customer
Name: ……………………………………………………………………………..
Gender: Male Female
Occupation: ……………………………….
1. Do you use smart phone for payment?
Yes No
2. Which type of payment you prefer more?
Digital payment Card payment Cash payment
3. Which app you prefer for payment?
Paytm Airtel money Jio money other wallet money
4. How often do you visit the bank for cash withdraw?
Once a weak once in year once in a month never
5. Which type of security measurement you expect for stopping misuse of plastic money
and digital wallet?
Password Pin Finger print

52
6. Are you comfortable with the Digital payment process?
Yes No
7. Do you think digital payment required extra charges in payments?
Yes No
8. Digital payment helps government in the economy development.
Yes No
Thank You

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