1 A COPARATIVE STUDY BEWTEEN ONLINE AND

2 OFFLINE PAYMENT WITH REFER TO MUMBAI

3

4 Team Members: Ritik Tiwari (89)

5 Ankit Gupta(24)

6 Aniket Golambade(21)

7 Vipul Ghonge(18)

8 Vishal Gohil (20)

9 Paritosh (36)

10

11 SY. BACHELOR OF ACCOUNTING AND FINANCE

12 ABHINAV DEGREE COLLEGE BHAYANDER (EAST) THANE 401105
13

14 Research Guide
15 Asst. Prof. Suman Gupta
16

17

18 Abstract
19 The research is focused on the online and offline [Link] online
20 payment are used to 2 to 3 [Link] payment happens when a customer
21 funds are transferred to your payment account right after your customer
22 confirm the [Link] payment indicates money that is exchanged
23 electronically. Online mode requires an internet connection at all [Link] is an
24 online payment service that allows user to send a safe, simple and speed of
25 money transfer form their browers, smartphone, and computer etc .During
26 the onging covid-19 Pandamic we have seen a surge in online [Link]
27 offline payment mode works without the [Link] mode of payment is
1 direct and do not rely on any other source. Easy to use and understand many
2 people face difficulty with the online mode of [Link] offline payment
3 are very used for old generation.

4 Keyword:Security . Online payment . Secure Payment . Fast Transaction .

5 Time Consuming . Credit card payment

6 Introduction
7 The online payment started in the year 1994. The “Digital India” is an Indian
8 government flagship programme with a vision to convert India into the
9 digital empowered [Link] online mode of payment requires an internet
10 connection. In this payment method, customer money is transferred to the
11 account as soon as the customer makes the payment. Some examples of
12 online mode of payment are UPI, E-wallet ,Credit cards and Debit cards.
13 Online payment system has gained the importance nowadays, especially after
14 demonetization. The government is taking the essential step to encourage the
15 public to use the payment gateway platform. To promote the payment
16 gateway goverment has declared the discount on purchase of certain
17 products [Link] payments are transactions processed
18 asynchronously. The transaction is usually done offline and reconciled
19 manually or automatically to the console. Typically, there is a delay in paying
20 offline and reconciling it, compared to online payments where everything
21 happens [Link] payments are made via cash, cheques, bank
22 transfers, postal orders, or any other offline means besides online payment
23 [Link] offline mode of payment works without the internet, hence it is
24 termed as “offline”. They are easy to trace as it is directly recieved by
25 business and is thus considered as more transparent. Some examples of
26 offline mode of payment are cash & [Link] for customers to pay
27 through offline payment methods can help extend your business coverage to
28 even areas which don't provide support for online payment methods.

29 TYPES OF ONLINE PAYMENT :

1 Unified Payments Interface (UPI): Unified Payments Interface is a
2 real-time payment system that allows sending or requesting money
3 from one bank account to another. Any UPI client app may be
4 used and multiple bank accounts may be linked to a single app.
5 Money can be sent or requested by using a usercreated Virtual
6 Payment Address (VPA) or UPI ID that helps in sending or
7 requesting money from a bank account using the (KYC) linked
8 mobile number. UPI also generates a specific QR code for each
9 user account for the purpose of contact-less payment.

10 E-WALLETS: A digital wallet, also known as e-wallet, is

11 an electronic device, online service, or software program that allows one party to
12 make electronic transactions with another party bartering,digital currency units for
13 goods and services. This can include purchasing items online with a computer or
14 using a smartphone to purchase something at a store. Money can be deposited in
15 the digital wallet prior to any transactions or, in other cases, an individual's bank
16 account can be linked to the digital wallet.

17 CREDIT AND DEBIT CARD: Debit cards allow you to spend money by
18 drawing on funds you have deposited at the bank. Credit cards allow you to
19 borrow money from the card issuer up to a certain limit to purchase items
20 or withdraw cash.

21 TYPES OF OFFLINE PAYMENT :

22 CASH: It is money in the physical form of currency, such
23 as banknotes and coins. We can pay in cash in exchange of goods and services. It is
24 preferred to make small payments like stores, train tickets, bus tickets,etc.

25 CHEQUE: It is a document that orders a bank to pay a specific

26 amount of money from a person's account to the person in whose name the cheque
27 has been issued. The person writing the cheque, known as the drawer, has a
28 transaction banking account where the money is held. The drawer writes the various
29 details including the monetary amount, date, and a payee on the cheque, and signs it,
1 ordering their bank, known as the drawee, to pay that person or company the
2 amount of money stated.

3 POSTAL ORDER: A postal order or postal note is a type of money

4 order usually intended for sending money through the mail. It is purchased at a post
5 office and is payable at another post office to the named recipient. A fee for the
6 service, known as poundage, is paid by the purchaser. In the United States, this is
7 known as a postal money order.

8 Advantages & Disadvantages

9 1. Advantages of Online Payment

10 I. Increased Security..
11 II. More Convenient. .
12 III. Different Options.
13 IV. Offers & Discounts.
14 V. Convenience During Travel.
15 VI. Physical Distancing.
16  Track Your Spending.

17 2. Disadvantages of Online Payment

18 I. Service fees
19 II. Payment gateways and third-party payment processors charge service fees.
20 III. Online fraud
21 IV. Illiterate about it.
22 V. Technical Problem.

23 3. Advantages of Offline Payment

24 I. No service fees
1 II. No Payment gateways and third-party payment processors charge service fees.
2 III. No risk of online fraud
3 IV. Convinient
4 V. No Technical Problem.

5 4. Disadvantages of Offline Payment

6 I. Security issues.
7 II. Minimal options.
8 III. No offers & discounts.
9 IV. Difficulties if not have change.
10 Objectives:

11 a) To study about difference between online and offline payment.

12 b) To study about effective mode of payment.
13 c) To learn about advantage of online/offline payments.
14 d) To analysis peoples preference mode of payment.
15 e) To know why the people choose online payment.

16 Needs of online & offline payment :

17  To study the consumer behaviour towards using online payment.

18  To study the benifit & safety of using online payment.
19  To study the issues faced by the customers towards online payment.
20  To study the importance of online payment among customers.
21  To study offline payment means transaction which does not require internet. 
22 To study offline payment are transactions are transparents.

23 Scope of online & offline payment:

24  Online payment allows for cashless payment for goods & services through
25 cards, mobile phones, etc. The main advantages of using online is that they are
26 cost efficient & time saving, increases the sales and transaction cost. Sometimes
27 due to technical errors the transaction gets decline so the people prefer offline
28 mode of payment. The offline payment is important because small value of
29 payment in offline mode with built in feature for safe the interest of the uses
1 liability protection, etc. Therefore , online payment is important for financial
2 inculsion along with offline payment method.

3 Review of Literature :
4 (Kenton,2018)The literature used in this research will related
5 with offline and online payment, also the preference factor that influence a
6 certain person in using those two payment methods. Previously,knowing that
7 payment system is transfers of one form of product, service, or financial asset in a
8 proportion that have been agreed by all parties involved before.
9 (Burhan UI Islam Khan,2017)Offline payment can be define
10 as the payment method that is not using internet connection, however use traditional
11 gateway in making payment activitie (BigCommerce) (Chargebee)
12 (InvestingAnswers). Offline payment can be in the form of cash, debit card, credit
13 card using electronic data capture (EDC) machine, e-money, and postal order. In
14 this research, the offline payment instrument more focused on cash, debit card,
15 credit card with EDC machine, and e-money. Meanwhile, online payment is an
16 arrangement of monetary exchange amongst purchasers and vendors on online
17 conditions or using the internet server that is helped by a digital financial
18 instrument that supported by a bank, a mediator, or by a lawful [Link]
19 payment can be in the form of credit card that using internet connection (through
20 card number and card verification value or CVV code), mobile payment, e-wallet,
21 virtual credit cards, smart and loyalty cards, stored value card
22 payment, and e-cash. In this research, the online payment instrument more focused
23 on e-wallet and credit card payment with verification of CVV code.

24 (Preeti Motiani, 2021) Reserve Bank of India[RBI] today

25 announces that offline payment mechanism will soon be made available throughout
26 the country. As per the announcement, customer who face internet connectivity
27 issues which don’t allow them to make payment using online digital modes such as
28 UPI,IMPS,RTGS,etc will now be able to use the offline payment mechanisms to
29 make payment in due to course.

30 Research Methodology

31 i. Sampling Techniques: Convenience sampling techniques will be used for

32 collecting the data from different online & offline payment. The selection of units
33 from the population based on easy ability and accesibility to the research in known
34 as convenience sampling. ii. Sampling Units: The respondents who will be asked to
35 fill out the questionnaires are the sampling units. This comprisis of students,self
36 employee, employee and other youth(ages18-40).
1 Demographics of sample online & offline payment

3
1 DATA ANALYSIS:
2

3
4

6 After concluding data most of the people choose for on online payment method.
7 (75% people choose for online payment & remaining for offline payment
8

9
10
11 66.7% of people finds offline transaction more time consuming while 33.3%
12 people finds it less time consuming.
1
2 We can see from the above chart that the time consuming facing problem in
3 travelling 13.9%, paper process 11.1%, stand in line 13.9% and all 61.1%.

5
6 People are getting more attracted towards online payment mode more than offline
7 because it is more time saving and easy to use. Hence, 30% of the people are using
8 Online payment & 4% offlinepayment
1
2 After looking at the above data we can clearly see that cashback(30.6%) have
3 been selected by most of the people followed by coupons(11.1%) while (55.6%)
4 choose for both.

6 After looking at the above data we can clearly see that 63.9% people faces problem
7 sometime while 16.7% most of the time and 19.4% never faces problem while doing
8 online transaction.
1 Hows many of you have trust on offline payment?

3 According to above data 11 people have very high trust,20 of them

4 have avg trust and 5 of them have very low trust.

5
6 Different people have different perspective about this question. Out of 36, 16 people
7 found offline transaction more attractive because of withdrawal facilities, 12 for
8 card facilities, 2 of them for cheques and the remaining 6 found all the above as an
9 attractive.

10 Do you find online payment as a risky mode of payment?

1

2 Majority of people from our survey founds online payment as risky mode of
3 payment because of online fraud & scams. While others found it as a safe mode of
4 payment.

5 Limitation of Study:
6 1) This study was conducted in the region of Mumbai. So, the result obtain reflects
7 the online & offline payment of the city [Link] result cannot be generalized
8 for any other region.
9 2) The sample size is 36 which means there are chances of sampling error.
10 3) Maybe the responded feed survey is not truely a random sample.
11 4) Having limited time for preparing this research paper.
12 5) Lack of knowledge about previous research studies on the online & offline
13 payment mode.

14 Conclusion: The payment industry in India has observed significant alterations with
15 the introduction of the online payment system. This phenomenon and the growing
16 significance of the online payment sector is the result of the flourishing e-commerce
17 industry, where the customers are shifting from paper based payment mediums to
18 online payment [Link] preferences are moving towards transparency and
19 flexibility as they are looking for better, more proactive solutions around life events.
20 The most preferred instrument for online payment in India has been payment cards
1 and payment directly from bank accounts (Net Banking) has been picking up off
2 late.
3 Reference:
4  [Link]
5  [Link]
6  [Link]
7  [Link]
8 nextbig-push-for-digital-transactions
9  [Link]