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            2023 | Vol 6 | Issue 5 

 

The trend toward online payments among digital marketing 

and e-commerce consumers 
Dr.C.Mani , M.Phil. 

Associate Professor 
1 
  

Sri Vasavi College (S.F.Wing), Erode 

 

 

 

 

ABSTRACT 
 

Customers may make instantaneous, remote payments at any time, from any location. Customers 

will benefit greatly from this study since they will be able to choose the most secure, quickest, 

and most convenient method of making online monetary transfers. Customers will be able to use 

the information gained from this study to confidently choose and implement a strategy for 

meeting their monetary commitment with little effort. Digital money transfers have facilitated a 

shift in consumer behavior that has facilitated the widespread use of digital payment methods. 

This manner of doing business facilitates the movement of funds to previously unreached rural 

and semi-urban regions. 

KEYWORDS: Customer payment, Digital, Online, and Utilities 

 

 

 

 

INTRODUCTION 

It just takes a few straightforward clicks to 

complete a purchase using an online 

payment service. They may be accessed 

online or via a mobile application, 

eliminating the need for specialized 

software or hardware. With each passing 

year, the lines between online and in-person 

financial transactions blur more and more. 

With the proliferation of smartphones and 

other internet-connected mobile devices, it's 

becoming more common for customers to 

make purchases at physical establishments 

using their phones.The government of India 

has launched a digital India initiative to 

promote and facilitate cashless transactions 

across the country. When using these 

techniques, customers may pay for goods 

and services, move money between 

accounts, and even settle utility bills 

without ever touching physical 

cash.Customers benefit from more 

protection, management, and convenience 

when using bank cards or debit cards as 

opposed to alternative payment options. 

Unstructured supplemental service data for 

mobile transactions allows for online 

payment processing even in the absence of 

smart phones. In India, all of the major 

banks use GSM carriers to serve customers 

with USSD-based mobile banking.The 

Aadhar Enabled Payment System (AEPS) 

is the next step in online payment methods, 

and it is a bank-led payment model that 

allows businesses to conduct interoperable 

trend transactions online via micro ATMs 

and points of sale (POS) via 

correspondence with any bank, 

authenticated with an Aadhar card.A user 



 

 

or client may make an instantaneous 

payment from any location at any time. 

This research will aid in determining which 

payment methods have recently emerged as 

market leaders in this space.In this analysis, 

we'll take a look at the best features of 

Online bill payment is convenient for the 

sample population since it allows them to 

pay their bills whenever they want, from 

any device. 

Literature Review 

Y. Chou; C. Lee; J. Chung; R. Yuanru 

(2004). Digital currency, often known as 

electronic cash, was developed early on in 

the history of online trade. The actuality of 

the e-cash market, however, has been less 

thrilling. Digicash, Cyber Cash, and First 

Virtual are just a handful of the early e-cash 

issuers who failed, shut down, or shifted 

focus within the first few years.The 

widespread use of credit cards for online 

purchases (about 95% of online payments 

in the US are done by credit card) and the 

failure of the aforementioned electronic 

currency systems led to their 

development.The authors examine the 

influence of technical considerations, 

economic, and social aspects on the rise of 

online payment methods to determine 

whether payment schemes are suitable for 

the e-business environment. 

Khan et al. (2017) found that the future 

success of online payment systems required 

improved integration with the existing 

financial and communications 

infrastructure. They also discovered that the 

successful adoption of online payment 

systems around the globe may be due in 

part to the legality of several elements. 

 

STATEMENT OF THE PROBLEM 

Both consumers and business owners want 

their online transactions to be simple, 

quick, and secure. Complex automated 

procedures involving intermediaries like 

banks and payment processors are set in 

motion by digital transactions. Competition 

among PSPs has increased as new 

technologies like smart phones and e-

wallets, as well as changes in consumer 

spending habits and the need for cross-

border, multi-currency electronic payments, 

have entered the market. Online payments 

may be made in a variety of ways, 

including UPI, bank transfer, debit/credit 

card payments, mobile wallets, social 

payments, and real-time, international 

payments. 

While modern technology certainly has its 

advantages, it also presents bigger 

obstacles. Customers still face unusual 

problems sometimes, despite the rapid 

speed of technical advancements. 

Nonetheless, there are more and more 

individuals who are always pressed for 

time. Customers now have a convenient 

option in online bill paying.Gas, water, and 

electricity are the three primary utilities. 

Customers may use their e-wallets to pay 

their electric, water, gas, and phone bills. 

The commission earned from each bill 

payment made by the client is unlimited. 

People would no longer have to wait in 

enormous lines to take care of their most 

basic monetary obligations. When a 

consumer pays their bill for utility services 

they have received from a certain provider 

over the Internet, they are making an online 

utility bill payment. Customers may save 

time, energy, and money by paying their 

utility bills online, where there are no lines, 

no wait times, and no parking hassles. 

Online payment is becoming more popular 

as a result of its accessibility and simplicity. 

The convenience and speed of making 

payments online have led to their 

widespread adoption, but the process is not 

without its problems. There is still a sizable 

customer base that is unwilling to switch to 

an online complaint system, outage alerts, 

technician visit notifications, self-service, 

or multi-channel deployment. 

The research will provide light on the 

difficulties and issues that a subset of 

respondents have encountered while 

making purchases online. As a result, the 

study set out to identify a wide range of 

benefits associated with electronic 

transactions. 

OBJECTIVES 

1. To study the customer’s perception 

towards online payments. 



 

 

2. To analyze the utilities towards online 

payments. 

3. To analyze the prospects and 

problems in online payments 

METHODOLOGY AND SAMPLING 

DESIGN 

Sample of 50 respondents were 

selected from Madurai District for this 

study. The Study has been made as a 

descriptive research. The sampling design 

adopted for this study is proportionate 

random sampling. Questionnaire was 

used to collect the primary data and the 

secondary data was collected from books, 

journals and websites etc. 

 

Table 1.1 

LEVEL OF ACCEPTANCE OF RESPONDENTS TOWARDS ONLINE PAYMENTS 
 

LEVELS NUMBER OF 

RESPONDENTS 

PERCENTAGE 

(%) 

LOW 6 12 

MEDIUM 12 24 

HIGH 32 64 

TOTAL 50 100 

Source : Primary Data 

It is clear from the table 1.1 that 

out of the total respondents taken for the 

study, 12 percent of the respondents are in 

Low level acceptance, 24 percent of the 

respondents are in Medium level 

acceptance and the 64 percent of the 

respondents are in High level acceptance 

towards online payments. 

Table 1.2 

CUTOMERS PERCEPTIONS TOWARDS ONLINE PAYMENTS 
 

PERCEPTIONS NUMBER OF 

RESPONDENTS 

PERCENTAGE 

(%) 

SAFE & SECURE 14 28 

CONVENIENCE 11 22 

PRIVACY 7 14 

PAYMENT ON 
TIMING 

13 26 

RECORD KEEPING 5 10 

TOTAL 50 100 

Source : Primary Data 

It is analyzed from the table 1.2 

that out of the total respondents taken 

for the study, 28 percent of the 

respondents said that safe and secure, 22 

percent of the respondents under 

convenience, 14 percent  of the 

respondents under privacy, 26  percent of 

the respondents under payment on timing 

and 10 percent of the respondents under 

record keeping. 

 

 

 

 



 

 

 

Table 1.3 

CUTOMERS FACEING PROBLEMS IN ONLINE PAYMENTS 
 

PROBLEMS NUMBER OF 

RESPONDENTS 

PERCENTAGE 

(%) 

FRAUD 9 18 

LOW SECURITY 11 22 

STEP BY STEP 
PROCESSING 

18 36 

TECHNICAL 

INTEGRATION 

12 24 

TOTAL 50 100 

 

 

 

Source : Primary Data 

It is examined from the table 1.3 

that out of the total respondents 

taken for the study, 

18 percent of the respondents stated that 

the problems were fraud, 22 percent of 

the respondents under low security, 36 

percent of the respondents   under step by 

step processing and 24percent of the 

respondents under technical integration. 

Table 1.4 

CUTOMERS UTILITIES TOWARDS ONLINE PAYMENTS 
 

SERVICES NUMBER OF 

RESPONDENTS 

PERCENTAGE 

(%) 

PREPAID &POST 

PAID MOBILE 

RECHARGE 

8 16 

ELECTRICITY BILL 

PAYMENTS 

15 30 

GAS BILL 
PAYMENTS 

20 40 

ONLINE SHOPPING 7 14 

TOTAL 50 100 

Source: Primary Data 

It is clear from the table 1.4 that 

out of the total respondents taken for the 

study, 16 percent of the respondents 

preferred for Prepaid and post paid 

mobile recharge , 30 percent of the 

respondents preferred for electricity bill 

payments, 40 percent of the 

respondents preferred for gas bill 

payments and 14 percent of the 

respondents preferred for online 

shopping. 

Conclusion 

The current research aimed to 

learn how customers use online payment 

options. It was shown that most 

consumers are OK with using digital 

payments for routine purchases. This 

conclusion was backed by a percentage of 

respondents who said they were more 

likely to make timely online payments. 

Respondents reported having the most 



 

 

trouble with the online payment 

procedure due to the number of steps 

involved. This statistic suggests that 

people are increasingly paying their gas 

and electricity bills digitally. 

Utilities using new technology to 

improve customer service and provide 

conveniences should be transparent to 

their patrons. We live in a time where 

technology permeates almost every facet 

of our existence. Customers of utilities 

want utilities to utilize technology to 

improve their services much as they do in 

their own companies. Customers are 

looking for hyper-personalized service 

and experiences that are tailored to their 

individual needs and preferences. Utilities 

have a responsibility to their consumers, 

who are becoming more environmentally 

conscious, to offer them with services and 

communications that are tailored to their 

specific needs. In order to meet these 

standards, businesses must be able to 

anticipate their consumers' needs before 

those needs are consciously known to 

them. 

Whatever technologies utilities 

adopt, it needs ensure that they 

consistently encage digitally with their 

customers and not just when it’s time for 

monthly bill. Importantly these 

communications must be relevant, useful 

and personal to each individual customer. 

References 

1. The Analytic Hierarchy Process: A 

Framework for Understanding M-

Commerce Payment Systems by Chou, 

Yuntsai, Lee,Chiwei, and Chung, Jianru 

(2004). 

2. Reference: 2 Khan BU, RF Olanrewaju, 

AM Baba, AA Langoo, and SA Assad 

(2017). Extensive research on the 

evolution, current state, and potential 

future of online payment systems. 3 

https://www.invoicevera.com/blog/entrep

reneurship/entrepreneurship-billing-

challenges-faced-utility-companies/. 

International Journal of Advances in 

Computer Science and Applications, 8 

(5), 256-271. 

3. You may get more information on how to 

use AMR to provide better service to 

customers at 

https://www.wateronline.com/doc/amra-

2000. 

4. 5.https://www.rapyd.net/resource/gartner-

payment-acceptance-will-never-be-the-

same-after- the-covid-19-pandemic/. 

5. The expansion of digital payment systems 

in India is covered in this article: 6. 

6. Lastly, please visit this link: 

https://www.consumer.ftc.gov/articles/02

20-utility-services#7. 

7. Forexample: 

http://www.google.com/url?sa=t&source

=web&rct=j7/url=This is an example of 

an IT essay on paying your utility bills 

online: http://www.ukessays.com/essay 

s/information-technology/an-online-

utility-bill-payment-essay. 

 


