Payment Banks: Changing Indian Payments Landscape

Authors

  •  Sweety Nishant Shah Assistant Professor in Finance at LJMBA, L.J. Institute of Management Studies, Gujarat Technological University (GTU)
  •  Neha Mehta Assistant Professor in Marketing at LJMBA, L.J. Institute of Management Studies, Gujarat Technological University (GTU)

DOI:

https://doi.org/10.53739/samvad/2019/v19/146702

Keywords:

Demonetization, Electronic Payment, Payment Bank.

Abstract

The banking system and financial transactions have taken paradigm shift in recent decade in India. The present era has entered into smartphone to smart wallet and they have become mainstream mode of online payment. Mobile users use digital payment gateway and e-commerce applications to facilitate financial transactions to online retailers and e-businesses. Demonetization has also envisaged progressive shift to cashless economy. The study was conducted to find out the dimensions and impact of various demographic factors on the usage of payment banks in the Ahmedabad district of Gujarat. The payment banks show a rapid growth and identified dimensions for the usage of payment banks are; user friendly, convenience, cost effectiveness, security and easy cash management. People look for the aforesaid factors while they transact through payment banks. It is observed that most of the people use Paytm, Freecharge and Jio money payment banks to transact and awareness has impact on the usability of payment banks for bill payment, recharge, ticket booking and shopping. Considering the demographic factors and its impact on the occupation, annual income and education on the usage of payment banks whereas age and annual income both impact the frequency of usage and average spending through payment banks.

Downloads

Download data is not yet available.

Author Biographies

Sweety Nishant Shah, Assistant Professor in Finance at LJMBA, L.J. Institute of Management Studies, Gujarat Technological University (GTU)

Assistant Professor in Finance at LJMBA.

Neha Mehta, Assistant Professor in Marketing at LJMBA, L.J. Institute of Management Studies, Gujarat Technological University (GTU)

Assistant Professor in Marketing at LJMBA.

Downloads

Published

2019-12-31

How to Cite

(1)
Shah, S. N.; Mehta, N. Payment Banks: Changing Indian Payments Landscape. samvad 2019, 19, 12-19.

Issue

Volume 19, 2019

Section

Articles

References

Akinci, S., Aksoy, S., and Atilgan, E. (2004). Adoption of internet banking among sophisticated consumer segments in an advanced developing country. International Journal of Bank Marketing, 22(3), 212-32. https://doi.org/10.1108/02652320410530322

Ali, Sadia Samar, & Bharadwaj, R.K. (2010). Factor analysis approach of decision making in Indian e-banking: a value adding consumer’s perspective. Retrieved from: http://inderscience.metapress.com/app/home/contributionasp?re ferrer=parent&b ackto=issue,2,6

Al-Sukkar and Hasan, H. (2005). Toward a model for the acceptance of internet banking, MB139QH in developing countries, Information Technology for Development, 11(4), 381-398. https://doi.org/10.1002/itdj.20026

Alvares, Cliford. (2009). The problem regarding fake currency in India. Business Today, 18(5), 24-24

Bamoriya, P. S. & Singh, P. (2012). Mobile banking in india: barrier in adoption and service preferences. Integral ReviewA Journal of Management, 5(1), 1-7. ISSN:2278-6120

Bartlett, M. S. (1954). A note on the multiplying factors for various chi square approximation. Journal of Royal Statistical Society, 16(Series B), 296-298.

Bauer, H.H., Hammerschmidt, M., & Falk, T. (2005). Measuring the quality of e-banking portals. International Journal of Bank Marketing, 23(2), 153-75. https://doi.org/10.1108/02652320510584395

Celik, H. (2008). What determines Turkish customers’ acceptance of internet banking? Marketing, 26(5), 353-370. https://doi.org/10.1108/02652320810894406

Clark, A. (2008). Mobile banking & Switching. Retrieved from: www.mcom.co.nz/assets/sm/163/.../CriticalSwitchingEvents-WhitePaper.pdf

Comninos, A., Esselaar, S., Ndiwalana, A., & Stork, C. (2008). Towards evidence based ICT policy and regulation m-banking the unbanked. Retrieved from: http://externo.casafrica.es/aeo/pdf/english/overview_part_2_09_aeo_09.pdf

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16, 297-334. https://doi.org/10.1007/BF02310555

Das, A. & Agarwal, R. (2010) Cashless Payment System in India- A Roadmap Technical Report 2010.

Financial Expres., (2017). Online banking users in India to reach 150 million by 2020 according to the Study. Retrieved from: http://www.financialexpress.com/industry/banking-finance/online-banking-users-in-india-to-reach-150-billion-by-2020-according-to-a-study/731048/

Gan, C., Clemes, M., Limsounchai, V., & Weng, A. (2006). A logic analysis of electronic banking in New Zealand. International Journal of Bank Marketing, 24(6), 360-383. https://doi.org/10.1108/02652320610701717

Hooper, V. & Zhou, Y. (2007). Addictive, dependent, compulsive? A study of mobile phone usage. 20th Bled eConference eMergence: Merging and Emerging Technologies, Processes, and Institutions Bled, Slovenia, June 4-6.

Karjaluoto, H. (2002). Selection criteria for a mode of bill payment: Empirical investigation among finnish bank customers. International Journal of Retail and Distribution Management, 30(6), 331-339. https://doi.org/10.1108/09590550210429540

Kolodinsky, J.M., Hogarth, J.M., &Hilgert, M.A. (2004). The adoption of electronic banking technologies by US consumers. International Journal of Bank Marketing, 22(4), 238-259. https://doi.org/10.1108/02652320410542536

Malhotra, N. K. (2010). Marketing Research. An Applied Approach, 6th Global Edition, London: Pearson.

Mas, Ignacio. (2009). The economics of branchless banking. Innovations: Technology, Governance, Globalization 4.2: 57-75. https://doi.org/10.1162/itgg.2009.4.2.57

Polatoglu, V.N. & Ekin, S. (2001). An empirical investigation of the Turkish consumers’ acceptance of Internet banking services. International Journal of Bank Marketing, 19(4), 156-165. https://doi.org/10.1108/02652320110392527

Reddy, S. (2019). What are Payment Banks and Small Banks? Retrieved from: https://www.relakhs.com/paymentsbanks-small-banks-meaning-benefits/

Rogers, E.M., & Shoemaker, F. (1971). Communications in Innovation. New York: Free Press.

Rousseau, D.M, Sitkin, S.B., Burt, R.S., Camerer, C. 1998. Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3): 393-404. https://doi.org/10.5465/amr.1998.926617

Sathye, M. (1999). Adoption of internet banking by Australian consumers: an empirical investigation. The International Journal of Bank Marketing. 17(7), 324-334. https://doi.org/10.1108/02652329910305689

Sharma, P, and Singh, P (2009). Users’ perception about mobile banking- with special reference to Indore & around. Review of Business & Technology Research, 2(1), 1-4.

Singh, H. (2019). Structure of Banking Sector in India. Retrieved from: https://www.jagranjosh.com/general-knowledge/structure-of-banking-sector-in-india-1448530019-1 accessed on 2/4/2019.

Venkatesh, V., Morris, M., Davis, G., and Davis, F. (2003). User Acceptance of Information Technology: Toward A Unified View. MIS Quaterly, 27(3), 425-478. https://doi.org/10.2307/30036540

Waghmare, A. (2016). 2016: The year of cashless payments trending upwards. Retrieved from: http://www.business-standard.com/article/economy-policy/post-demonetisation-digital-payments-are-down-15-116122700098_1.html

Wang, Y., Wang, Y., Lin, H., & Tang, T. (2003). Determinants of user acceptance of internet banking: an empirical study. International Journal of Bank Marketing, 14(5), 501-519. https://doi.org/10.1108/09564230310500192

Winn, J.K. (2015). Mobile payments and financial inclusion: Kenya, Brazil and India as Case Studies. University of Washington School of Law Research Paper, 29.

Most read articles by the same author(s)