Effectiveness of Online Payment System during COVID-19

Abstract

Digital payment methods are popular now days with the rapid development of computer technology for the banking transactions. This can be used to attract more customers to perform banking transactions digitally. However, the main problem of digital payment methods faced by the providers is that a large number of the banks’ customers are not willing to use the digital payment methods offered. We found that adoption of digital payment methods has increased immediately after demonetization and rapid growth has seen in the COVID-19 period. The purpose of this study is identifying the common methods of digital payments, as it is an efficient and viable tool to create customer value. The main objective of this study is to understand the usage of digital payments method and its impact on cash management. In this study, the data has been collected through questionnaire. Data has been analyzed by applying descriptive and diagrammatic analysis. In this study, we found that there are so many factors which affect the participants for the adoption and usage of digital payments method such as nature and scope of transactions, personal factors such as comfort and familiarity with other digital technologies and transactions. The main finding of the study is rapid growth of the digital payment’s methods in lockdown period in India. The usage of the digital payment method is found high in the age group of 20-40 years. It is reported that above 90% of the respondents are aware about the digital payment’s methods. Ease of accessing, cash back, time saving, convenience, better quality decision making, mobile wallet are the main benefits received by respondents. Respondents agreed that these methods are faster and better than traditional payments method.