ANTECEDENTS FOR THE ADOPTION OF UPI AND

THE PROBLEMS FACED BY ITS USERS

PROJECT REPORT SUBMITTED TO

MAHATMA GANDHI UNIVERSITY, KOTTAYAM
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE

BACHELOR OF COMMERCE
(2020-2023)

Submitted by
EZABERT JOSEPH V A (REG NO. 200021072282)
NIKHIL JOSEPH (REG NO. 200021072295)
THOMSON ABRAHAM (REG NO. 200021072303)

UNDER THE SUPERVISION OF

Dr. AJAY JOSEPH

( Assistant Professor )

BHARATA MATA COLLEGE THRIKKAKARA

KERALA MARCH 2023
 BHARATA MATA COLLEGE, THRIKKAKARA
RESEARCH AND POSTGRADUATE DEPARTMENT OF
COMMERCE
(Affiliated to Mahatma Gandhi University, Kottayam)
THRIKKAKARA P.O., COCHIN 682021

DATE: 31.03.2023 .

CERTIFICATE
This is to certify that this Dissertation entitled “ANTECEDENTS FOR
ADOPTION OF BOOKMYSHOW AND THE PROBLEMS FACED BY ITS
USERS” has been prepared by NIKHIL JOSEPH, EZABERT, THOMSON
ABRAHAM under my supervision and guidance in partial fulfilment of
the requirements for the award of the Degree of Bachelor of Commerce of
the Mahatma Gandhi University. It has not previously formed the basis
for the award of any Degree, Fellowship, Associateship etc.
They are allowed to submit this Project Report.

Ponny Joseph Dr. Ajay Joseph

Head of the Department Assistant Professor
Research & P.G Dept. Of Research & P.G Dept. Of
Commerce Commerce
Bharata Mata College Bharata Mata College
Thrikkakara, Kochi Thrikkakara, Kochi

1
 DECLARATION

We hereby declare that the Project “ANTECEDENTS FOR THE

ADOPTION OF UPI AND THE PROBLEMS FACED BY ITS
USERS” is our original work and has not been submitted earlier
to MG University or to any other Universities. We have
Undertaken this project work partial fulfillment of the
requirements of B.Com 2020-23 in Bharata Mata College,
Thrikkakara, Ernakulam affiliated to MG University, Kottayam.

EZABERT JOSEPH V A

NIKHIL JOSEPH

THOMSON ABRAHAM

Thrikkakara
31.03.2023

2
 ACKNOWLEDGEMENT
The project “ANTECEDENTS FOR THE ADOPTION OF UPI AND THE
PROBLEMS FACED BY ITS USERS” was done under the guidance and
supervision of Prof. Dr. AJAY JOSEPH. We express our sincere gratitude
to him for his valuable guidance, help and encouragement in preparing
this project.
We sincerely express our gratitude to Dr. Johnson K.M for his
encouragement in completing the study. We are thankful to Ms. Ponny
Joseph, Head of the P.G Department of Commerce and Research Center,
Bharata Mata College, Thrikkakara, for her valuable guidance and
suggestions throughout the course.
We are immensely grateful to all the teachers of the department of
commerce for their inspiration and co-operation. We also thank all the
respondents who spend their valuable time to answer the questionnaire
in spite of their busy schedules.
Above all, we are thankful to the GOD Almighty, for his race and
timely & successful completion of our project.

EZABERT JOSEPH V A

NIKHIL JOSEPH

THOMSON ABRAHAM

Place: -Thrikkakara
Date: -31.03.2023

3
CONTENT

SL.NO. TITLE PAGE NO.

LIST OF TABLES
1 5

2 LIST OF FIGURES 6

3 INTRODUCTION 7

THEORITICAL FRAMEWORK AND

4 14
REVIEW OF LITERATURE

DATA ANALYSIS AND

5 26
INTERPRETATION

FINDINGS, SUGGESTIONS AND

6 51
CONCLUSION

7 REFERENCE 57

8 APPENDIX 59

4
TABLE PAGE
TITLE OF THE TABLE
NO. NO.
2.1 Year wise Transaction Volume and Value 21
2.2 App wise Market Share 22
3.1 Gender 28
3.2 Age 29
3.3 Education 30
3.4 Occupation 31
3.5 Time period of usage 32
3.6 Transaction Frequency 33
3.7 Apps 34
3.8 Instant transactions 35
3.9 Transfer Money from anywhere 36
3.10 Maintain a better transaction history 37
3.11 Contribution Cashless Economy 38
3.12 Privacy Protection 39
3.13 Transaction through Multiple Accounts 40
3.14 Reward and Cashback 41
3.15 Helpful for Small Transaction 42
3.16 Supported by various apps 43
3.17 Delay in payment due to network issues 44
3.18 Insecurity due to 6 Digit PIN 45
3.19 No physical representation of bank balance 46
3.20 Money Credited only after 48 Hours 47
3.21 Less satisfaction for less or no money with them 48
3.22 Security of transaction 49
3.23 Not reliable everywhere 50

5
FIGURE PAGE
TITLE OF THE FIGURE
NO. NO.
3.1 Gender 28
3.2 Age 29
3.3 Education 30
3.4 Occupation 31
3.5 Time period of usage 32
3.6 Transaction Frequency 33
3.7 Apps 34
3.8 Instant transactions 35
3.9 Transfer Money from anywhere 36
3.10 Maintain a better transaction history 37
3.11 Contribution Cashless Economy 38
3.12 Privacy Protection 39
3.13 Transaction through Multiple Accounts 40
3.14 Reward and Cashback 41
3.15 Helpful for Small Transaction 42
3.16 Supported by various apps 43
3.17 Delay in payment due to network issues 44
3.18 Insecurity due to 6 Digit PIN 45
3.19 No physical representation of bank balance 46
3.20 Money Credited only after 48 Hours 47
3.21 Less satisfaction for less or no money with them 48
3.22 Security of transaction 49
3.23 Not reliable everywhere 50

6
 Chapter 1
INTRODUCTION

7
1.1 INTRODUCTION
The transformation of the Internet into a medium has greatly
improved public access to modern Internet services such as UPI
payments. UPI stands for Unified Payments Interface. It is a real-
time payment system that allows you to instantly transfer
money between bank accounts using a mobile phone. UPI was
launched by the National Payments Corporation of India (NPCI)
in 2016 and has since gained widespread popularity in India.
UPI transactions can be initiated through various UPI-enabled
mobile apps and used to send or receive money, pay bills and
make online purchases. UPI has transformed the digital
payments ecosystem in India by making payment transactions
faster, easier and more convenient.

UPI (Unified Payments Interface) is a digital payment system

developed by the National Payments Corporation of India
(NPCI). It allows users to instantly transfer money between
bank accounts via mobile phone or computer. Instead of bank
accounts and IFSC codes, UPI uses a unique identification
number called Virtual Payment Address (VPA) to enable
seamless transaction. UPI allows users to make payments to
merchants, utility bills and other services directly from their
bank accounts. UPI payments are secure as they are
authenticated by a combination of the user's mobile number and
a unique UPI PIN.

To use UPI payments, users must have a bank account linked

to their mobile number, a UPI-enabled mobile application and a
UPI ID/VPA. They can then initiate transactions by entering the
recipient's UPI ID/VPA or scanning the QR code. UPI has
become popular in India due to its ease of use, speed and
availability on mobile apps of almost all banks. As of March

8
2021, UPI had over 2 billion transactions with a total value of
over 4 trillion.

The features of UPI include registration, transaction initiation,

authorization and processing, verification, transaction history
and additional features. The entire process is designed to be fast,
secure and convenient for customers, making UPI one of the
most popular payment systems in India.

Registration: To use UPI, customers need to register their bank

account through a UPI-enabled mobile application. During
registration, customers need to create UPI ID and set UPI PIN
for secure authentication.

Transaction Initiation: To initiate a UPI transaction, customers

need to enter the recipient's UPI ID or mobile number, enter the
amount to be transferred and authenticate the transaction with
their UPI PIN.

Authorization and Processing: Once a transaction is initiated,

the UPI app sends a payment request to the recipient's UPI app.
The recipient then accepts the payment request by entering their
UPI PIN. Once the payment is authorized, the payment is
processed and the money is transferred from the sender's bank
account to the recipient's bank account in real time.

Confirmation: Once the transaction is complete, both the sender

and the recipient will receive a confirmation message from their
respective banks.

9
 Transaction history: UPI-enabled mobile apps allow customers
to view their transaction history, including details such as
transaction date, time, amount and status.

Additional features: UPI also supports additional features such

as bill payments, virtual payment addresses (VPA), QR code
based and direct debit requests.

1.1 SIGNIFICANCE OF THE RESEARCH

UPI research is important because it can help individuals and

businesses understand the economic impact of digital payments,
identify business opportunities and meet regulatory
requirements. During intensive research through books,
magazines and internet, it became clear that although UPI is a
widely used payment application, studies on its functioning,
customer perception of services etc. are almost rare. So, to fill
the gap in the literature, it was necessary to conduct a study on
this topic. Therefore, we have chosen "UPI Payment App User
Requirements and Issues" as our research topic.

1.2 PROBLEM REPORT

In this study, we propose to examine the prerequisites for

adoption of UPI payments and the challenges faced by its users.
The study focuses on the ability of UPI Payments to meet
customer needs to maintain customer loyalty and better returns
in today's dynamic and competitive market.

10
The researcher has the following questions.
1. What are the precedents influencing the use of UPI
payments? 2. What are the problems faced by UPI
Payments users?

1.4 PURPOSE OF THE RESEARCH

The study "UPI Payments Adoption Precedents and Challenges

by its Users" is conducted with the following objectives:

Explain the premise of using UPI payments.

To investigate the problems of UPI Payments users.
To understand the general perception of people about UPI
payments.

1.5 EXPECTATIONS

This study is based on data collected from UPI Payment users

in and around the Ernakulam region over a period of 3 months
ie. January 2023 to March 2023. The sample size of the study is
60 .

1.6 RESEARCH METHODS

Research methodology is the science of how research is

conducted. It is the specific procedures or techniques used to
select, process and analyze information about a subject. In a
research paper, the methodological part allows the reader to
critically assess the overall validity and reliability of the study.
The purpose of the study is to find out the conditions and
problems of UPI Payments users. The different parts of this
research methodology are presented below:

11
 NOTE: The sample unit of the study consists of people who
have downloaded apps like Google pay, Phone Pay, Paytm etc.
from Play Store and used them for necessary transactions as per
customer needs.

SAMPLING DESIGN: The sampling design used in this study

is convenience sampling where the sampling units were
conveniently selected by the researcher.

SAMPLING: The study is based on responses from sample

units of users of UPI payment apps in Ernakulam region.

SOURCE OF DATA: This study uses both primary and

secondary data. Primary data was collected using a google form
that was sent to the respondents. Secondary data was collected
through books, published journals and websites to confirm the
findings of the primary data.

1.7 ANALYSIS

The primary data collected were statistically processed,

classified, tabulated and analyzed using mathematical tools and
techniques such as percentages, frequencies, pie charts, etc.

1.8 LIMITATION OF LEARNING

The time allotted for the study was limited.

The information may contain personal biases.
Lack of previous research related to the subject.
Study material was limited to specific area of Ernakulam city.

12
 CHAPTERISATION

CHAPTER 1 Introduction

CHAPTER 2 Theoretical framework and Review of literature

CHAPTER 3 Data Analysis and Interpretation

CHAPTER 4 Findings, Suggestions and Conclusions

Reference, Appendix

13
 Chapter 2
THEORETICAL
FRAMEWORK AND
REVIEW OF
LITERATURE

14
 A. Theoretical Framework
The Unified Payments Interface (UPI) is an instant real-time payment
system that was developed by the National Payments Corporation of
India (NPCI). P2P and P2M transactions between banks are made possible
via the interface. Using mobile devices, it is possible to transfer money
between two bank accounts quickly. The mobile number on the device
must be used to register it with the bank. It is possible to transmit money
using the recipient's UPI ID. It runs as an open source application
programming interface (API) on top of the Immediate Payment Service
(IMPS) and is controlled by the Reserve Bank of India (RBI). Governor of
the RBI Dr. Raghuram G. Rajan unveiled the pilot scheme in Mumbai on
April 11, 2016. Banks started uploading their UPI-compatible apps to the
Google Play market on August 25, 2016.
It is earlier mentioned that UPI runs as an Open Source Application
Programming interface (API), this is because it connects 2 computers or
pieces of software. This is true in case of UPI as we see when there is a
transaction the actual movement of fund or money takes place inside
servers and software.
The platform has more than 100 million active monthly users in India as
of May 2021. With a median transaction fee of Rs 1,849, the proportion of
UPI transactions in the total volume of digital transactions increased from
23% in 2018–19 to 55% in 2020–21. Through the platform, digital
transactions of $8.31 trillion were made in January 2022. In the financial
year 2021-2022 the value of transaction broke over $1 Trillion.
UPI was introduced in India in 2016 with the intention of giving everyone
in the nation access to a simple and efficient technology for the
digitalization of payment services. UPI, however, was also associated
with the Indian government as a ground-breaking programme for
financial inclusion.

15
HISTORY

The National Payment Corporation of India (NPCI) was established in

April 2009 with the goal of integrating all Indian payment systems and
standardising them for all retail transactions. By March 2011, RBI had
discovered that despite 10 million merchants accepted card-based
payments, the average Indian person only engaged in six non-cash
transactions annually. There are 145 million families without any access
to banking services. Additionally, there is the issue of dealing with
corruption that primarily occurs with cash and black money.
The RBI committed to developing a safe, efficient, open, inclusive,
interoperable, and regulated payment and settlement system in India in a
four-year vision statement announced in 2012. Reducing the usage of
paper in domestic payment markets is part of the Green Initiative. In 2016,
UPI made its official debut to the general public.
The main organisation tasked with creating a brand-new payment system
that is easy to use, safe, and interoperable is now the NPCI, thanks to RBI
instruction. There will be a remitter/beneficiary front end PSP (payment
service provider) and a remitter/beneficiary back end bank that settles
the financial transaction for the users under UPI's four pillar push-pull
interoperable paradigm. UPI became one of the most successful deep-tech
innovations to come out of India, according to the CEO of Netmagic
Solutions.
In December 2019, Google urged that the Federal Reserve Board use UPI
as an example while creating FedNow, a real-time payment system for
the United States, highlighting the success of UPI.

India surpassed China and the United States to become the largest real-
time payment market in the world in 2020 with 25,50 billion yearly
transactions, according to data from ACI Worldwide and GlobalData.
India is now the market leader for real-time payments worldwide,
followed by China and South Korea, according to the Economist
Intelligence Unit Report 2021. The number of low value transactions

16
exploded, producing enormous gains on real-time transaction volume
data, after the Ministry of Finance's decision to abolish the merchant
discount rate (MDR) from UPI in 2019. Currently, countries including
Brazil, Bahrain, Saudi Arabia, Singapore, the United States, and the
European Union are attempting to imitate UPI's success in their own
markets.
UPI gained popularity as a payment method for initial public offers
(IPOs) as of January 1, 2019. In March 2020, the transaction cap increased
from Rs 100,000 to Rs 200,000. The RBI once more raised the threshold for
Retail Direct Scheme and IPO applications from December 2021 to Rs
500,000. RBI is taking merchant discount rate (MDR) on upcoming UPI
transactions into consideration in order to make UPI commercially viable
for payment companies. In its initial monetary policy for the fiscal year
2022–2023, the RBI recommended a cardless ATM cash withdrawal
option using a QR code based on UPI. ToneTag introduced VoiceSE in
collaboration with NSDL Payments Bank and NPCI, allowing 400 million
feature phone users to make UPI payments via speech in Hindi, Tamil,
Telugu, Malayalam, Kannada, and Bengali.
The advent of UPI 2.0 on August 16th gave users the ability to connect
their overdraft accounts to a UPI handle. Users could require a specific
merchant in order to pre-authorize transactions. The ability to view and
save the transactional invoice was also provided in this version.
Additionally, a recurring payment option called AutoPay was
implemented. State Bank of India, Bank of Baroda, and Paytm Payment
Bank are all active UPI AutoPay providers as of August 2021, with each
bank recording 660,000, 204,000, and 186,000 mandates, respectively. The
government eliminated the requirement for a debit card for UPI
registration as of March 15, 2022. By September 2022, NPCI hopes to
operationalize a real-time payment dispute resolution mechanism that
will resolve 90% of the complaints and expand AutoPay to worldwide
markets.
RBI has made it possible to integrate RuPay credit cards with UPI as of 8
June 2022. Without a physical card, customers can now use UPI to make
credit card payments. With the real-time feature that NPCI is developing,
banks will only need 30 seconds instead of 24 hours to unlock cash

17
blocked due to time-outs or transaction declines. The service debuted
formally on September 20, 2022. The RBI declared on December 7, 2022,
that UPI will transition from single-block-single to single-block-multiple
debit for recurring transactions and securities investments. The function
will enable the user to set aside money for a certain use and release it
when needed.
MARKET SHARE
From 93,000 transactions worth Rs 30 million in August 2016, UPI
generated 800 million transactions worth Rs 1330 billion in March 2019.
1.94 million IPO mandates were recorded by UPI in June 2021, while 7.66
million were recorded in July. Since the Securities and Exchange Board of
India made UPI necessary for domestic retail investors participating in
the IPO process, this was the highest level ever. By the end of August 2020,
UPI had eclipsed American Express in India with 18 billion annual
transactions. By 2023, according to NITI Aayog, UPI would also overtake
Visa and MasterCard. While it took UPI three years to reach 1.14 billion
in October 2019, the payment system has processed 2.07 billion
transactions by the end of October 2020. The UPI platform transferred Rs
457 billion in value in 2020, which is 15% of India's GDP.
In October 2021, UPI reached a value of 7.71 trillion, up 56% from
September. According to NPCI, daily UPI payments will range from Rs
250 billion to Rs 300 billion in October. In October, 54% of UPI transactions
were made from person to person (P2P), while 46% were made from
person to merchant (P2M). Up till November 2021, UPI had a worth of Rs
844 billion. With a 99% annual growth rate, the total transaction value on
UPI surpassed 8.27 trillion in December. UPI accounts for the greatest
portion of India's $2 trillion in annual digital payments. According to
Worldline SA, there were 20.57 billion transactions in Q2 2022, totaling Rs
36.08 trillion. P2P made up 49% of the volume and 67% of the value, while
P2M made up 34% of the volume and 17% of the value. P2M would
account for more than 50% of UPI transaction volumes as of November
2022, according to NPCI CEO Dilip Asbe. UPI accounted for 17% of the
Rs 3,100 billion in digital transactions in 2019 and 52% of the Rs 8,840
billion in digital transactions in 2022.

18
SERVICES
Any UPI client app may be used, and several bank accounts may be linked
to a single app, for real-time payments from one bank account to another.
Each bank account has a user-created Virtual Payment Address (VPA) or
UPI ID that may be used to send or request money using a mobile number
that has undergone KYC. For contactless payments, UPI also creates a
unique QR code for each user account.
To transfer money from and to UPI capable banks, you can use any UPI
app. NPCI oversees its own app, BHIM, in addition to a number of third-
party ones including Google Pay (formerly Tez), PhonePe, Paytm,
Amazon Pay, Airtel Payments Bank, MobiKwik, Samsung Pay, and
WhatsApp Pay.

Between April 2016 and February 2022, the total number of banks
connected to the UPI platform increased from 21 to 304.

The NPCI lifted the cap on WhatsApp's UPI customer onboarding, which
had previously been set at 20 million users, in June 2021. Once WhatsApp
had 530 million registered users in the Indian market, it could offer UPI
to all of its users.
Market Share
UPI generated 800 million transactions in March 2019 with a value of Rs
1330 billion, up from 93,000 transactions in August 2016 valued at Rs 30
million. UPI noted 1.94 million IPO mandates in June 2021, and 7.66
million in July. This was the highest level ever since the Securities and
Exchange Board of India mandated UPI for domestic retail investors
participating in the IPO process. With 18 billion annual transactions by
the end of August 2020, UPI surpassed American Express in India. By
2023, UPI is expected to overtake Visa and Mastercard, according to NITI
Aayog. While it took UPI three years to reach 1.14 billion in October 2019,

19
the payment system has processed 2.07 billion transactions by the end of
October 2020. The UPI platform transferred Rs457 billion in value in 2020,
which is 15% of India's GDP.
UPI recorded 432.5 million transactions as of July 2021, totaling Rs 567,345
million, with the highest average daily transaction amount of over 100
million, which is double what it was in July 2020. UPI will make up 10%
of all retail payments in India as of August 2021. In the UPI payment
ecosystem, PhonePe and Google Pay both had 1 billion transactions in
August, with market shares of 45.94% and 34.45%, respectively, while
Paytm had 11.94% of the market with 387.85 million transactions.
Domestic retail UPI payments by value increased by 18% over the five-
year period of 2015–21 at a compound annual growth rate (CAGR), while
overall UPI payments increased by 400% CAGR between 2017 and 2021.
The UPI platform saw transactions totaling Rs 41 trillion (short scale) in
the fiscal year 2021, which is 2.8 times the value of POS debit and credit
card transactions and 20 times the value of digital wallet and prepaid
instruments in India.
In August 2021, UPI recorded 3.55 billion transactions, an increase of
9.56% from the previous month. In terms of value, only August saw
transactions totaling 6.39 trillion. The growth in value terms doubled
between September 2020 and July 2021, going from 3.2 trillion to 6 trillion.
Since its start in the month of September, it had grown to an all-time high
of 3.65 billion transactions with a total value of Rs 6.54 trillion. The total
amount of transactions for 2021 have now surpassed Rs 50 trillion.
In October 2021, UPI reached a value of Rs 7.71 trillion, an increase of 56%
over September. According to NPCI, daily UPI payments range between
Rs 250 billion to Rs 300 billion during the month of October. In October,
54% of UPI transactions were made from person to person (P2P), while
46% were made from person to merchant (P2M). Up to November 2021,
UPI had a worth of Rs 844 billion. With a 99% annual growth rate, the
total transaction value on UPI surpassed Rs 8.27 trillion in December. UPI
accounts for the greatest portion of India's $2 trillion in annual digital
payments. According to Worldline SA, the second quarter of 2022 saw
20.57 billion transactions totaling Rs. 36.08 trillion. P2P made up 49% of
the volume and 67% of the value, while P2M made up 34% of the volume

20
and 17% of the value. P2M would account for more than 50% of UPI
transaction volumes as of November 2022, according to NPCI CEO Dilip
Asbe. UPI accounted for 17% of the Rs 3,100 crore in digital transactions
in 2019, and 52% of the Rs 8,840 crore in digital transactions in 2022.

Year wise Transaction Volume and Value

No. of
Transaction
Banks INR Value USD Value
Year Volume (in
live on (in Cr.) (in Billions)
Mn)
UPI

2022 382 74,044.48 12,594,818.73 1,699.71

2021 282 38,744.55 7,159,285.80 966.17

2020 207 18,880.89 3,387,744.72 457.19

2019 144 10,787.54 1,836,638.18 247.86

2018 129 3,746.32 585,710.45 79.04

2017 67 418.8 57,020.87 7.7

2016 35 2.65 893.07 0.12

TABLE 2.1

21
App Wise Market Share

Transactio
Transaction Ran n Number Ran
App % %
Value (₹) k (In k
Million)

5,247,424,900,00 49.25 47.33

PhonePe 1 2,993.83 1
0 % %

Google 3,666,690,900,00 34.42 33.68

2 2,130.63 2
Pay 0 % %

1,111,496,600,00 10.43 14.76

PayTM 3 933.88 3
0 % %

Cred 197,164,300,000 1.85% 4 14.89 0.24% 9

Yes Bank
152,360,400,000 1.43% 5 60.80 0.96% 5
Apps

ICICI
Bank 115,092,900,000 1.08% 6 37.34 0.59% 7
Apps

BHIM 78,239,500,000 0.73% 7 24.48 0.39% 8

Amazon
67,518,000,000 0.63% 8 68.77 1.09% 4
Pay

22
Axis
Bank 12,139,500,000 0.11% 9 53.99 0.85% 6
Apps

Airtel
Payment 5,552,600,000 0.05% 10 7.41 0.12% 10
s App

TABLE 2.2

How UPI is Unique

• Immediate money transfer through mobile device round the clock
24*7 and 365 days.

• Single mobile application for accessing different bank accounts.

• Single Click 2 Factor Authentication – Aligned with the Regulatory

guidelines, yet provides for a very strong feature of seamless single
click payment.

• Virtual address of the customer for Pull & Push provides for
incremental security with the customer not required to enter the
details such as Card no, Account number; IFSC etc.

• QR Code

• Best answer to Cash on Delivery hassle, running to an ATM or

rendering exact amount.

• Merchant Payment with Single Application or In-App Payments.

• Utility Bill Payments, Over the Counter Payments, QR Code (Scan

and Pay) based payments.

• Donations, Collections, Disbursements Scalable.

• Raising Complaint from Mobile App directly.

23
International Acceptance
Liquid Group, a supplier of cross-border digital payment services, and
NIPL announced an agreement in September 2021 to launch a UPI-based
QR code payment system in Singapore, Malaysia, Thailand, the
Philippines, Vietnam, Cambodia, Hong Kong, Taiwan, South Korea, and
Japan beginning in 2022. On March 8, 2022, NIPL and the Arab Monetary
Fund (AMF) signed a Memorandum of Understanding (MoU) to connect
UPI with the Buna Payment Platform, which is linked to the central banks
and financial institutions in the Arab area. This will facilitate cross-border
cash exchange. India has already started discussions for UPI integration
with 30 nations as of July 4, 2022.
Sending Money vs Receiving Money
On the UPI, sending money is referred to as "pushing." The user logs into
the interface and chooses the Send Money/Payment option to send
money. He selects the account from which the funds will be debited after
inputting the necessary amount and the recipient's virtual ID. After
entering a unique personal identification number (PIN), the user is given
a confirmation.
Getting money through the system is called "staking". The user selects the
fundraising option by logging into the system. At this stage, you must
enter the amount collected, the virtual ID of the payer and the account to
which he will transfer the money. After that, a payment request is sent to
the payer. If he decides to proceed with the payment, he enters his UPI
PIN to accept the transaction.

24
 B. Literature Review

SHAILESH RASTOGI , CHETAN PANSE, ARPITA SHARMA,

VENKATA MRUDULA BHIMAVARAPU conducted a study on UPI
and Impact on Financial Inclusion and Economical Development. The
study adds to the body of knowledge about financial inclusion and
economic growth. The article demonstrates how financial stability and
trust mediators operate as predictors of financial inclusion and economic
development, respectively, taking into account an innovative variable of
UPI in the area of digital finance and financial inclusion. The advent of
digitalization itself is a path-breaking innovation, and UPI is one such
innovation which supports the digital ecosystem and contributes to the
inclusion of the bottom of the pyramid into the financial system.

25
 Chapter 3
DATA ANALYSIS AND
INTERPRETATION

26
INTRODUCTION
This chapter includes the data analysis and interpretation. Here
the data is analysed using tables and figures. The figures are
represented using Pie Diagram

OBJECTIVES
1. To unearth the antecedence of usage of UPI Payments.
2. To examine the problems faced by the users of UPI
Payments.
3. To understand the overall perception people have towards
UPI Payments.

RESEARCH METHODOLOGY
• Type of study: - Analytical
• Sources of data: - Primary Data is used for analysis and secondary
data has been used for further study
• Method of data Collection: - Questionnaire has been used for data
collection
• Respondents: - Customers using UPI system In Ernakulam District.
• Sampling Size: -60 respondents Have been considered for the
sample
• Period of Study: - 2022-2023
• Sampling Procedure: - Convenience sampling
• Sampling Tools: - Pie Chart, Table etc.

27
 Gender No. of Percentage
Respondents
Male 42 70
Female 18 30
Other 0 0
Total 60 100

TABLE 3.1

FIGURE 3.1

INTERPRETATION

Out of 60 respondents, 42 are male and 18 are female users.

That is 70% of the users are male and 30% of the users are
female. Majority of the respondents are male.

28
 Age No. of Percentage
Respondents
Below 18 1 1.7
18 to 25 32 53.3
25 to 40 7 11.7
Above 40 20 33.3
Total 60 100
TABLE 3.2

FIGURE 3.2

INTERPRETATION

About 53% of the respondents were of the age group 18 to 25.

And another 1/3 rd of the respondents were of the age group
above 40. Out of the 60 responses 32 were from the age group
18 to 25 and only 1 reponse was from the age group below 18.
This shows majority of UPI users are adults.

29
Education No. of Respondents Percentage
Plus Two 3 5
Under Graduate 42 70
Post Graduate 15 25
Total 60 100
TABLE 3.3

FIGURE 3.3

INTERPRETATION

About 95% of the respondents, that is 57 respondents have

minimum qualification of an under graduate and in this about
15 respondents are post graduated.

30
Occupation No. of Respondents Percentage
Student 32 53.3
Self Employed 8 13.3
Salaried 15 25
Wage Worker 1 1.7
Unemployed 4 6.7
Total 60 100
TABLE 3.4

FIGURE 3.4

INTERPRETATION

Majority of the respondents are students, that is 53.3%. And

about 25% are salaried. And only 8 respondents are self
employed. Only 1 person was a wage worker.

31
Time Period of No. of Respondents Percentage
usage
0 to 3 Months 5 8.3
3 to 6 Months 4 6.7
6 Months to 1 Year 3 5
More Than 1 Year 48 80
Total 60 100
TABLE 3.5

FIGURE 3.5

INTERPRETATION
A large majority of the respondents has been using UPI apps
for More than 1 year. Only a small number of respondents
equalling to about 20% have been using these apps for less than
1 year.

32
Transaction No. of Respondents Percentage
Frequency
Every Transaction 6 10
Frequently 38 63.3
Sometimes 12 20
Occasionally 3 5
Never 1 1.7
Total 60 100
TABLE 3.6

FIGURE 3.6

INTERPRETATION
Only 10% of the Respondents, that is 6 persons use UPI apps
for every Transaction. A large majority of the respondents use
the apps frequently. Only 1 respondent never use UPI.

33
App No. of Respondents Percentage
Google Pay 52 89.7
Phone Pay 2 3.4
Paytm 2 3.4
Yono 1 1.7
PayZapp 1 1.7
Total 58 100
TABLE 3.7

FIGURE 3.7

INTERPRETATION
Only 58 Respondents responded to this question and from
these 52 were using Google Pay, that is about 90%. The then
popular apps were Phone Pay, Paytm, Yono, Payzapp.

B. Descriptive Analysis

34
 a) ANTECEDENTS FOR ADOPTING UPI TRANSACTION
In this section we identified 10 antecedents for adopting UPI
apps for transactions
1. Instant Transactions
Particulars No. of Respondents Percentage
Strongly Agree 20 33.3
Agree 32 53.3
Neutral 8 13.3
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.8

FIGURE 3.8

INTERPRETATION
A large percentage of respondents agree that UPI transactions
Helps them make Instant Transaction.

2. Transfer Money From Anywhere

35
Particulars No. of Respondents Percentage
Strongly Agree 26 43.3
Agree 27 45
Neutral 7 11.7
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.9

FIGURE 3.9

INTERPRETATION
A large number of respondents find it helpful to use UPI to
transfer Money From anywhere. About 45% agree to this
statement and 43% strongly agree to this statement. All
respondent either responeded positively or took a neutral
stand.

3. Maintain a better transaction History

36
Particulars No.of Respondents Percentage
Strongly Agree 26 43.3
Agree 24 40
Neutral 9 15
Disagree 1 1.7
Strongly Disagree 0 0
Total 60 100
TABLE 3.10

FIGURE 3.10

INTERPRETATION
Many respondents believe UPI system Help to maintain a
Better Transaction History, about 83% believe this way out of
which 24 persons agree and 26 persons strongly agreeing to
this statement. 15% stay Neutral to this statement and 1 person
disagree to this Statement.

4. Contribution to Cashless Economy

37
Particulars No.of Respondents Percentage
Strongly Agree 25 41.7
Agree 22 36.7
Neutral 13 21.7
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.11

FIGURE 3.11

INTERPRETATION
A large majority of the respondents agree or strongly agree to
this statement, that is 37% agree and 42% strongly agree. About
13 persons remained neutral to this statement.

5. Privacy protection

38
Particulars No.of Respondents Percentage
Strongly Agree 11 18.3
Agree 25 41.7
Neutral 23 38.3
Disagree 1 1.7
Strongly Disagree 0 0
Total 60 100
TABLE 3.12

FIGURE 3.12

INTERPRETATION
Many respondents agree that UPI provide privacy protection to
users and another majority remained neutral to this statement.
About 42% agree there is a privacy protection and 1 respondent
disagree to this statement.

39
 6. Make Transactions Through Multiple Accounts
Particulars No.of Respondents Percentage
Strongly Agree 14 23.3
Agree 29 48.3
Neutral 17 28.3
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.13

FIGURE 3.13

INTERPRETATION
Just over 70% of the respondents Agree or Strongly agree to
this statement. And about 17 respondents remained neutral to
this statement.

7. Reward and Cashback

Particulars No.of Respondents Percentage
Strongly Agree 8 13.3

40
Agree 24 40
Neutral 21 35
Disagree 6 10
Strongly Disagree 1 1.7
Total 60 100
TABLE 3.14

FIGURE 3.14

INTERPRETATION
There is a mixed response about this question 32 responses
were positive and 21 responses were neutral and 7 responses
were negative. Out of this 24 responses were agreeing to this.

8. Helpful for small transaction

Particulars No.of Respondents Percentage
Strongly Agree 23 38.3

41
Agree 32 53.3
Neutral 5 8.3
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.15

FIGURE 3.15

INTERPRETATION
More than 90% of the responses were positive and only 5
responses were neutral with no negative responses.
Respondents find it it very useful for small transactions.

9. Supported by various apps

42
Particulars No.of Respondents Percentage
Strongly Agree 23 38.3
Agree 28 46.7
Neutral 9 15
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
TABLE 3.16

FIGURE 3.16

INTERPRETATION
About 85% of the responses were positive about the statement
and there are no negative responses. It can be founded that this
feature can help its users in its usage.

43
b) Problems faced by UPI users
1. Delay In payment due to network issues
Particulars No.of Respondents Percentage
Strongly Agree 14 23.3
Agree 28 46.7
Neutral 14 23.3
Disagree 4 6.7
Strongly Disagree 0 0
Total 60 100
TABLE 3.17

FIGURE 3.17

INTERPRETATION
A large majority of the responses have given positive response
to this statement. And about 4 responses were negative
responses to this statement.

2. Insecurity due to 6 digit PIN

Particulars No.of Respondents Percentage

44
Strongly Agree 4 6.7
Agree 7 11.7
Neutral 31 51.7
Disagree 14 23.3
Strongly Disagree 4 6.7
Total 60 100
TABLE 3.18

FIGURE 3.18

INTERPRETAION
A large group of the respondents were neutral to this statement
and There is a higher percentage of negative response in for
this question indicating more people find the 6 digit pin secure.

3. No physical Representation of bank balance

45
Particulars No.of Respondents Percentage
Strongly Agree 4 6.7
Agree 22 36.7
Neutral 22 36.7
Disagree 11 18.3
Strongly Disagree 1 1.7
Total 60 100
TABLE 3.19

FIGURE 3.19

INTERPRETATION
There is a mixed response for this question, while a large
portion is positive about this statement a respectable number of
people have given negative response about this statement.
Most people doesn’t find No physical representation of money
a problem.

4. Money credited only after 48 hours

Particulars No.of Respondents Percentage
46
Strongly Agree 8 13.3
Agree 23 38.3
Neutral 22 36.7
Disagree 5 8.3
Strongly Disagree 2 3.4
Total 60 100
TABLE 3.20

FIGURE 3.20

INTERPRETATION
Majority of the respondents does find this inconvenient as
more than 50% of the respondents have given a positive
response for this statement. While there are some responses
which state that there is a little inconvenience for the users.

5. Less satisfaction for less or no money with them

47
Particulars No.of Respondents Percentage
Strongly Agree 4 6.7
Agree 12 20
Neutral 23 38.3
Disagree 20 33.3
Strongly Disagree 1 1.7
Total 60 100
TABLE 3.21

FIGURE 3.21

INTERPRETATIONS
There is a majority of neutral responses for this statement
followed by 20 responses which are negative. This indicate that
people are not less satisfied for carrying no or less money with
them. This Indicate that there are more people finding it less
inconvenient for carrying less money with them.

6. Security of Transaction
48
Particulars No.of Respondents Percentage
Strongly Agree 3 5
Agree 20 33.3
Neutral 24 40
Disagree 10 16.7
Strongly Disagree 3 5
Total 60 100
TABLE 3.22

FIGURE 3.22

INTERPRETATION
Here also there is a mixed response about this statement, about
40% of the people gave a neutral response and there is a higher
positive response for this statement. this indicate that there a
higher degree of people not sure about the security of the
transaction.

7. Not Reliable Everywhere

49
Particulars No.of Respondents Percentage
Strongly Agree 4 6.7
Agree 18 30
Neutral 23 38.3
Disagree 11 18.3
Strongly Disagree 4 6.7
Total 60 100
TABLE 3.23

FIGURE 3.23

INTERPRETATION
There is a varied response about this statement as well, about
23 responses were neutral and there is higher degree of
agreement to this statement against disagreement. About 37%
of the response were positive and 25% of the responses were
negative.

50
 Chapter 4
FINDINGS,
SUGGESTIONS AND
CONCLUSION

51
FINDINGS
Our study on Antecedents for adopting UPI and the Problems
faced by it revealed the following information
Antecedents for adoption of UPI
1. Majority of the respondents were males from the age
group 18 to 25
2. Majority of the respondents agree to the fact that they
have been able to make instant transaction using UPI
systems
3. Most of the respondents responded favourably to the fact
that they were find it helpful to use UPI apps to Transfer
money from Everywhere.
4. Almost all the respondents strongly agree that they were
able to maintain a better transaction history through UPI
5. Almost 41.7% of the respondents strongly agree and 36.7
of the respondents agree to the fact of contributing their
part to cashless economy
6. 41.7% of the responses were agreeable and 18.3% of the
Responses were strongly agreeable to the fact they have
protection to privacy to their transactions
7. Transaction through multiple accounts makes the user
easier as 71.6% of the responses were agreeable.
8. Reward and Cashback is found helpful to about 53.3%
respondents and it is found that about 11% of the
respondents find it not helpful.
9. For small transaction more than 90% of the responses
were favourable that UPI is helpful for making small
Transaction.
10. Many respondents feel it helpful As UPI is supported
by various apps as 85% of the Responses were favourable

52
 Tto the statement. It is concluded that people find it easier
to use UPI apps due to this fact

1. Delay in payment due to network Issue have mixed

responses among the respondents as majority (70%) feel
that they find it problematic
2. It can be noted that more respondents responded neutrally
when asked about the security of the 6 digit PIN, that is
about 52% and the next best response was that they felt it
secure with 23% disagreeing with the statement and 7%
strongly disagreeing with the statement.
3. When asked about whether they overspend due to not
having a physical representation of the money, it is found
that about 37% of the respondents feel that way by agreeing
and 6% strongly agreeing to this statement.
4. It is found that most users find it really inconvenient that
deducted money is only credited back after 48 hours, with
52% agreeing or Strongly Agreeing to the statement and
only a very few Disagreeing.
5. More people feel that there is no satisfaction loss due to
them not carrying any money with them
6. It is found that more people are concerned about the
security of their transaction.
7. There is mixed response about the reliability of the UPI
everywhere as it is to be noted it is still too early to judge as
many stores and shops are adopting it, nevertheless the
respondents are more inclined to the fact that they are not
as reliable right now which can very much change in the
future.

53
SUGGESTIONS
1. Respondents feel that there is delay in payment sometimes
due to network issue, therefore we suggest something to be
done for this to improve customer satisfaction.
2. Respondents feel like there is less coordination between
UPI system and Bank, respondents have stated that there is
a problem when they have been forgetting the bank
balances and sometimes they overspend, if the
confirmation message is right on time then the people will
not have tough time remembering their bank balance.
3. It would be preferred if the amount deducted would be
credited back within a lesser time period as respondents
have responded in majority that it is inconvenient for them
to have to wait for 48 hours.
4. Many respondents feel that the security of the transaction
is not up to mark as the respondents commented that they
are not sure about the security of the transaction. We would
suggest something to be done against this problem.
5. Some respondents feel that the UPI system is not reliable
everywhere as there are some store and shop which still
does not have UPI implemented, there not more to suggest
for this as we feel it would be implemented in the future
but for the sake of current users we suggest UPI system try
to implement the system to as many stores and shops.

54
CONCLUSION

Making all payments is about convenience, security and speed.

We have seen how India’s payment system has evolved from the
Barter system of the old age to the modern world’s Digital
payment mode.

The study was based on antecedents for adoption of UPI and the
problems faced by its users. The study focused on UPI system’s
ability to Make Transactions easier and convenient to its users
and also throw some light on its problems faced by its users. For
this purpose we were able to collect data from over 60
respondents in and around Ernakulam from different age group
for our study. The responses were collected in the period of
December 2022 to march 2023.
The researchers were able to find about nine antecedents for the
adoption of UPI and they are Instant Transaction, Transfer
money from anywhere, maintain a better transaction history,
Contribution to cashless economy, Privacy Protection,
Transaction through multiple accounts, rewards and cashback,
small transaction and supported by various apps. The problems
faced by them are delay in payment due to network issues,
Insecurity of 6 digit PIN, no physical representation of cash,
deducted money credited back only after 48 hours, less
satisfaction, security of transaction and its reliability.
The data collected from the respondents were analysed carefully
to give light to two sections that is demographic analysis and
descriptive analysis. From the demographic analysis we were
able to find which group of people responded most, and we
found out most of the respondents were students and between

55
the age group 18 to 25, this was really helpful to the study as this
is the age were most people start to spend a lot for small
transactions. About one-third of the respondents were from age
group above 40 other stage of heavy spending. We were able to
identify the time period and frequency of UPI usage as well
giving more insight to our research.

We through our research found that UPI’s ability to do small

transaction is one of the major upside for its adoption and also
positive like able instant transaction, able to transfer money from
anywhere, able to maintain better transaction history,
contribution to cashless economy, transaction through multiple
accounts and supported by various apps have indeed made UPI
very more viable. Although some respondents have given their
concern about rewards and cashback, and also about the privacy
protection of their transactions. When it comes to the problems
faced by the users delay in payment due to network issue stands
out the most and fairly too, since it will become inconvenient.
The other problems faced by the users had conflicting responses
as the positive and negative responses were always neck to neck.
It is safe to assume that UPI system will be the go to for the
future. The UPI system can also improve to certain extend to
decrease its problems to make it more viable, as consumers still
have some concern about its usage.

56
REFERENCE

57
1. ARTICLES
• “A STUDY ON CUSTOMER INSIGHT TOWARDS UPI, WITH SPECIAL
REFERENCE TO THRISSUR DISTRICT” By : ASWIN SHAJU
• “THE STUDY ON PUBLIC ACCEPTANCE OF UPI AND DIGITAL
PAYMENTS” By: Shradha Patel and Shreni Patel
• “UPI and Impact on Financial Inclusion and Economical
Development.” By: Shailesh Rastogi , Chetan Panse, Arpita
Sharma, Venkata Mrudula Bhimavarapu

2. WEBSITE
• https://www.cribfb.com/journal/index.php/ijfb/articl
e/view/1855
• https://www.academia.edu/50890305/Digital_Payme
nt_Service_in_India_A_Case_Study_of_Unified_Paym
ent_Interface
• https://www.icwa.in/show_content.php?lang=1&leve
l=1&ls_id=9180&lid=5961
• https://www.usenix.org/system/files/sec20summer_k
umar_prepub.pdf
• https://www.ibef.org/blogs/unified-payments-
interface-upi-transforming-india-s-payment-
landscape
• https://www.creditmantri.com/upi/
• https://www.semanticscholar.org/paper/A-study-on-
consumer-behaviour-towards-UPI-
(Unified/3341cd0a93cfdbc3e8f5ecae902dbb288ef3b1
39
• https://en.wikipedia.org/wiki/Unified_Payments_Inte
rface

58
APPENDIX

59
ANTECEDENTS FOR ADOPTION OF UPI AND THE PROBLEMS
FACED BY ITS USERS
QUESTIONNAIRE

1. Email address

2. Name

3. Gender
• Male
• Female
• Others

4. Age
• Below 18
• 18 to 25
• 25 to 40
• Above 40

5. Education
• Plus, two
• Under graduate
• Post graduate

6. Occupation
• Student
• Self employed
• Salaried
60
 • Wage worker
• Unemployed

7. I have been using UPI for transactions for the past

• 0 to 3 months
• 3 to 6 months
• 6 months to 1 year
• More than 1 year

8. Frequency of usage of UPI for transactions

• Every transaction
• Frequently
• Sometimes
• Occasionally
• Never

9. I mostly use
• Google pays
• Phone pe
• Paytm
• Other

10.I have been able to make instant transactions using UPI

systems
• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

61
10. I find it helpful as I can use it to transfer money from
anywhere

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

11. I have been able to maintain a better transactions history

due to UPI system

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

12. I have been able to contribute my part to cashless

economy

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

13. I feel there is privacy protection to my transactions

• Strongly agree
• Agree

62
 • Neutral
• Disagree
• Strongly disagree

14. I find it easier to use due to its ability to make transactions

through multiple accounts

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

15. I find rewards and cashbacks helpful

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

16. I find it helpful for small transactions

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

17. I feel it is helpful as UPI is supported by various apps

63
 • Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

18. I fear delay in payment due to network issues

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

19. I feel it insecure due to it having only 6 Digit PIN

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

20. I sometimes forget about my bank balance and overspend

because there is no physical representation

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

64
21. I feel it inconvenient because the deducted money is
credited back only after 48 hours

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

22. I feel less satisfaction that I am carrying less or no money

with me

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

23. I am not sure about the security of my transactions

• Strongly agree
• Agree
• Neutral
• Disagree
• Strongly disagree

24. I feel it is not reliable everywhere

• Strongly agree
• Agree
• Neutral

65
• Disagree
• Strongly disagree

66