An empirical analysis of electronic payment system (EPS) among banking customers in Kerala

Abstract

The digitisation of the new century has contributed a variety of options in information and communication technologies that have brought about a revolutionary change in financial services. With digitisation, the financial flow has shifted swiftly from traditional to convenient E-Payment Methods, particularly after demonitisation and the Covid-19 pandemic situations. The measures adopted by the government and service providers have played a pivotal role in popularising and making the Electronic Patment System (EPS) a common man’s tool for financial services.In addition to this, EPS has played vital role in the reduction of the cost of banking and in reaching out to the unbanked rural people.Despite of the benefits of the e-payment system, there are several challenges faced by e-payment users as well. Fear of loss of money, chance of online fradulent activity, risk of hacking, deduction of money due to failed EPS transaction, and chance of leaking of personal information are the few among them.These issues vary significantly with respect to demographic variables with women and people with less experience being more vulnerable. The literature review analysis indicated that, to date, no in-depth examination of EPS usage in kerala has so far attempted to understand the factors that make it difficult for keralites in this regard. Therefore, the researcher attempts to analyse the perception and degree of satisfaction of the respondents, and the strategies to be considered forenhancing the utilisation of e-payment methods in Kerala. The present research employs descriptive methodologies grounded in analytical methods to deal with the prospects and challenges of EPS usage. This study witnessed that increasing the usage of EPS with high-security features will subsequently stops the flow of unlawful transactions, black money, and parallel economies, which enhances accountability, promotes financial inclusion, and improves the country’s economic standing. It is also hoped thatGOI, RBI, banks and service providers will try collectively to solve the issues related to EPS usage.