Page 58 - IMDR JOURNAL- 2022

convenience and legal framework are the four factors which contribute to strengthen the E- payment system.
E-payment systems are important mechanisms used by individual and organizations as a secured and
convenient way of making payments over the internet and at the same time a gateway to technological
advancement in the field of world economy (Slozko & Pello, 2015).
In a study conducted by Rakesh H M & Ramya T J (2014) pointed out that in India, currently there are more
than few options available for consumers to be able to do payments through their mobile phones. Even
though there is a growing number of mobile payment services available to the public in India, still most users
do not know how to use them (Rakesh H M & Ramya T J, 2014). Some banks are using mobile point of sale
(mPOS) devices and also providing online facilities to their customers. Banks here include local and foreign
private banks. The Indian central bank has issued guidelines on installing mPOS devices and also guidelines
for online facilities for customers which were approved by RBI in 2013. MobiKwik is the most popular
mobile payment service in India. It was started in 2011, and has almost 12 million users (Rakesh H M &
Ramya T J, 2014).

In a study conducted by S M Sajeevan (2015) including the impact of discounts and advertisements of
mobile banking and payment systems, it says that discounts play an important role in increasing the adoption
of mobile banking among customers. But it also found out there is no significant difference in the adoption
between discounted and non-discounted groups. The study also investigates advertisement with no
significant different in adoption between advertisement and non-advertisement groups.

The study also investigated accessibility differences between banks on mobile banking, individuals who
received discount using mobile banking and individuals who viewed advertisement using mobile banking. It
was found out that accessibility to offer more services for customers through their smart phones/tablets
which will improve customer satisfaction (S M Sajeevan, 2015).
Mobile payment systems and transactions are growing in China (Kaur et.al. 2016). The Chinese digital
payment market is dominated by Alipay, WeChat Pay and Union Pay, all of which have nearly 300 million
users (Bruton, 2015).

A study conducted by F&S Group found that the use of mobile payment has increased from 44.7% in 2013 to
68.9% in 2014 (F&S Group, 2014). It was found that the main reason for not using mobile payments was the
lack of security concerns (Kaur et.al. 2016).
Hong Jiang & Nian Jun Zhang, (2013) have analysed the impact on customer's shopping experience in China
and its relation to the adoption of mobile payment. It argues that convenience, better experience and a sense
of ownership are some of the factors which are important to customers when using mobile payments. It also
examines how retailers can benefit from these new payment methods and how they can improve their overall
customer service.

The value of credit card transactions has been increasing over time in China and it is expected that most
credit card transactions will be made online by 2017 (Bruton, 2015).
Mobile payment systems are still not very popular in other parts of Asia (Kaur, 2016). This is due to the lack
of delivery methods for internet shopping and a lack of sophistication in the digital economy. A study
conducted by a consortium of researchers found that only 10% of Internet users use some type of mobile
payment in India, Indonesia, Malaysia and Philippines (Ipsos Mori & AFI-BAF, 2015). India was found to
be among the most cash-driven economies in Asia. The main reasons why consumers do not use mobile
payments include security concerns and the inability to make small transactions using mobile phones (Kaur
et al. 2016).

There are still many factors in Asia which affect people's use of mobile payments. These include: the
preference for cash over cards, the high cost of internet service and mobile phones, the lack of financial

53