A Study on the usage of E-Payment System and its Influence to Digital Financial Inclusion in Coimbatore District, Tamil Nadu

Abstract

This study investigates the usage of e-payment system among bank account holders in Coimbatore district, Tamil Nadu and how it influences digital financial inclusion in the study area.Using simple random sampling, this study collected data from 390 respondents. One-Way Analysis of Variance with Tukey’s HSD post-hoc test and Pearson’s Chi Square test were used to analyse the data.This study resulted that there is a significant difference between age groups 18 to 41 and 42 and above on frequency of usage of debit and credit card. In case of internet and mobile banking, except age groups 26 to 41, other age group respondents shown a significant difference in usage frequency.  It is further found that device users are more in the age group of 18 to 25, which are salaried and the highly preferred device is mobile phone for frequent use for e-payment. Further more than 50% of the respondents said that they have stored their password information in their device. So, they are prone to Novelty risks, Agent-related risks, and Digital-technology related risks. From the study it is evident that the study area is too far from digital financial inclusion and it is the responsibility of the bank account holders to use e-payment system for speedy, secured and smooth transaction.