INFOKARA RESEARCH ISSN NO: 1021-9056

A STUDY ON CUSTOMER SATISFACTION OF

UPI WITH REFERENCE TO COIMBATORE
CITY
S.SOWBARNIKA

Ph.D Scholar, Department of Commerce, PSG College of Arts and Science, Tamilnadu, India .

V.VASANTHAKUMAR

Ph.D Scholar, Department of Corporate Secretaryship, PSG College of Arts and Science, Tamilnadu, India .

[email protected]&[email protected]

ABSTRACT

The Unified Payments Interface (UPI) is a digital payment architecture rolled out by National Payments
Corporation of India (NPCI) using advanced digital payment features with mobile phone as the main device. This
study is surveyed with 103 respondents. The objective of this study is to know the customer preference, level of
satisfaction towards the UPI scheme and to study the problems faced by customers in using UPI Scheme. Customers
are distinctly classified into the different clusters based upon their level of satisfaction of the services rendered to
them. It is inferred that the significant value is less than 0.05 for all the factors which means that there is significant
difference among the clusters. Also, the quality of the cluster is tested with a two-step cluster analysis which shows
“Good” quality of segmentation of customers based on their level of satisfaction. The study also reveals that users of
UPI have a strong positive Satisfaction towards technology used in banking which is reflected in their adoption and
usage of the same whereas non users clearly exhibited their disinterest and ignorance in using various technology
driven banking channels.

Keywords: UPI, NPCI, Satisfaction, Technology, Customer Preference, Problem.

I. INTRODUCTION

According to the NPCL, “Unified Payments Interface (UPI) is a system that powers multiple bank
accounts into a single mobile application, merging several banking features, seamless fund routing & merchant
payments into one hood. UPI’s overall importance comes from the intense desire and effort made by the RBI
and the government to create a cost effective, simple and safe digital payment system that will be used for the
large population of the country. The RBI along with the NPCI has made commendable efforts to spread digital
payments culture. According to the RBI, a digital payment platform should be simple, safe and efficient while
carrying out payments. Various criteria about an ideal payment system was brought out by the RBI in its vision
for a future payment system dreaming a digital transaction economy. From this angle, a remarkable feature of
the UPI is that it satisfies several criteria put forwarded by RBI’s payment system vision of safe, efficient,
interoperable, authorized, accessible, inclusive and compliant with international standards.

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A) Statement of problem

With the changing environment, banks implemented tele- banking, mobile banking and call centre
services, ATM and other one after another. Due to rapid change in technology and entry of private and foreign
banks a number of new products and delivery channels have been introduced. Among the major initiatives,
Unified Payment Interface (UPI) has bought to the customers the much demanded convenience. The advent of
Unified Payment Interface offers banking firms a new frontier of opportunities and challenges. Despite these
possibilities, there are various psychological and behavioral issues such as reluctance to change, trust in one’s
bank, security concerns, preference of human interference and the like impede the growth of Unified Payment
Interface. In this regard a study has been undertaken in UPI provided by banks in Coimbatore district.

II. LITERATURE REVIEW

“A comparative study of customer perception toward e-banking services provided by selected private &
public sector bank in India”, Ms. Fozia, September 2013, International Journal of Scientific and Research
Publications. The purpose of this paper is to determine the customer‘s perception toward the e-banking services.
A total of number of customer taken for the study is 196. Analysis of variance technique is employed to study
the significant relationship between the occupation and customer perception of e-banking services and
significant relationship between the age and customer perception of e-banking services. The result of the study
clearly shows that different age group of customer and different occupation group of customers have different
perception toward the e-banking services.

“Banking services and customer satisfaction – A study of banks in campus of university of Rajasthan”,
Dr. Mamta Jain; Mr. Suresh Kumar Yadav; Mr. AbhineetSaxena and Dr. T. N. Mathur , November 2013 , Asian
Journal of Research in Banking and Finance.This study examines the perceptions of four specific ethnic groups
about how service quality dimensions contribute to their satisfaction with retail banking in university of
Rajasthan Jaipur campus. University of Rajasthan Jaipur campus was a logical research location given the large
number of expatriates living and working there as well as its own ethnically diverse citizenry. The research has
been carried out through secondary research and primary research. Survey method has been used for primary
research. Personal contact approach through questionnaire has been introduced to conduct the survey. The
findings concludes that there is significant impact of personnel behavior on customer satisfaction and result also
shows that there is a positive impact on customer satisfaction of the perceived service quality which leads to the
not only customer satisfaction but increases loyalty and commitment toward bank.

“Customer satisfaction in Indian retail banking: a grounded theory approach, Pratap Chandra Mandal and
Sujoy Bhattacharya , The Qualitative Report, 2013.In this study the researchers studied the construct of
customer satisfaction with respect to Indian retail banking from a qualitative perspective. We studied the
dimensions of customer satisfaction. We applied Grounded Theory Method, a tool for qualitative analysis. We
conducted depth interviews and focus groups of Indian retail banking customers. The participants were persons
who have availed Indian retail banking services. The analysis included open coding of the data and writing

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INFOKARA RESEARCH ISSN NO: 1021-9056

memos, concept generation from the phenomena, index card sorting to identify categories and sub-categories,
axial coding to relate the categories and subcategories, and selective coding to identify the core category. The
findings included the concepts generated which would determine the dimensions which might affect customer
satisfaction. Keywords: Customer Satisfaction, Grounded Theory, Concepts, Categories, Sub-categories.

III. RESEARCH METHODOLOGY

A) Research design: Descriptive
B) Data Collection: The study is based on primary and secondary data.
C) Sample Size: 103 respondents selected from Judgmental or Purposive sampling technique.
D) Period of study: Period of study is for 5 months from March 2019 to July 2019.
E) Tools used for analysis:
• Percentage analysis
• ANOVA
• Chi square test
IV. OBJECTIVES OF THE STUDY

1. To know the customer preference and level of satisfaction towards the UPI scheme
2. To study the problems faced by customers in using UPI Scheme
V. ANALYSIS AND INTERPRETATION

A) PERCENTAGE ANALYSIS:
TABLE I

Factors Category Frequency Percentage

Gender Male 67 65.0
Female 36 35.0
Age Group Below 18 years 13 12.6
18 years- 36 years 89 86.4
56 years -74years 1 1.0
Monthly family Less than Rs.25000 50 48.5
income Rs. 25000 25 24.3
Rs.50000 18 17.5
Above Rs.1,00,000 10 9.7
Educational No formal education 3 2.9
qualification School level 8 7.8
Diploma holder 4 3.9
Undergraduate level 51 49.5
Post graduate level 28 27.2
Professional 9 8.7
Occupational status Government employee 7 6.8
Private employee 42 40.8
Home makers 19 18.4

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Business 18 17.5
Professionals 17 16.5
How long are you 2 months 46 44.7
using this UPI Scheme 6 months 17 16.5
More than 6 months 40 38.8
How did you get to Bank staff 12 11.7
know about UPI Advertisement 11 10.7
Friends and relatives 58 56.3
Other sources 22 21.4
If through Television & Radio 3 2.9
advertisement, specify
Internet 7 6.8
the source of
awareness Posters and Banner 1 1.0
In which mobile Phone Pe 16 15.5
application do you use Google Pay 61 59.2
UPI Mobikwik 18 17.5
Paytm 8 7.8
Problems faced while Safety and security 27 26.2
using UPI Authentication 9 8.7
Network problems 51 49.5
Pending for verification 16 15.5

INTERPRETATION

It can be seen from Table I that nearly 65 percent of the customers’ surveyed is male. It can be
concluded that there is a higher proportion of male customers. Also, it can be inferred that male customers are
more willing to participate in the survey than female customers 35 percent. It is observed from that 86 percent
of the respondents are between 18-36years, 12.6 percent of the respondents are below 18yrs, 1 percent of the
respondents are in the age group of 56-74 years. Thus, it can be stated that a majority of the respondents are in
the age group of 18-36 years which indicates that a large number of middle aged people have participated in the
survey. The monthly income of the respondents depicts that 48.5percent of the respondents surveyed are in the
income which is less than 25,000, 25 percent of the respondents earn 25,000 monthly , 18 percent between
25,000-50,000 and the last category of above 1,00,000 are 10 percent of the respondents. It can be observed that
a majority of the customers surveyed are in the low income category. It can be said that respondents from almost
all income groups have responded except the high income group. The educational qualification shows that
majority of the customers surveyed are graduates (51%), 27.2 percent of them are post-graduates, 9 percent are
professional degrees 7% are Government employees, 8% have education upto school level, 4% Re diploma
holders and only 3%percent of the respondents have no formal education. Looking at the profile of the
respondents, it can be observed that 51 percent of the respondents are well-educated and qualified persons. It
can be inferred that these customers have more dealings with the UPI as they may have requirement for different
needs. People with lesser educational qualification like high school do not have many transactions with the
bank. It is evident from that majority of the respondents surveyed are from the private sector (42%), 19 percent
are home makers, 18 percent are entrepreneurs, 17 percent are professionals. Persons from the government
sector constitute only 7 percent of the respondents. It can be inferred from the table that customers from the
private sector have more dealings with the UPI. The use of UPI among the respondents vary between 2 months
to 6 months, where 46% of the respondents have used it for 2months, 40% have used to for more than 6 months,
17% only within 6 months. The respondents have found various sources to get to know about UPI, 58% are

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influenced by friends and relatives, 22% from other sources, Bank staffs have influenced to about 12% of the
respondentsand least of 11% are known through advertisement (i.e 7% have known through internet, 3%
through television,1% by seeing Posters and banners). The respondents use many applications for using UPI,
Google shows the majority with 61% of users, Mobikwik have 18% of users, PhonePe have 16% of users and
Paytm stands last with 8% of users. Many of the respondents faced the network problem (51%). 27% have faced
safety and security problem, pending for verification is also an problem faced by the respondents 16% and 9%
stands for authentication.

B) Cluster Analysis:

Final Cluster Centers

Cluster
1 2 3
Recharge 1.25 4.66 3.89
Fund transfer 1.25 4.75 4.11
Bill payment 1.00 4.48 3.91
Balance enquiry 1.50 4.59 3.82
Privacy 1.25 4.57 3.05
No.Of Cases 4 44 55
Mean 1.25 4.6 3.76

Table II
ANOVA
Cluster Error F Sig.
Mean Square df Mean Square df
Recharge 24.310 2 .640 100 37.995 .000
Fund transfer 24.021 2 .463 100 51.831 .000
Bill payment 23.161 2 .775 100 29.876 .000
Balance enquiry 20.916 2 .538 100 38.864 .000
Privacy 39.799 2 .604 100 65.913 .000

INTERPRETATION

From Table II it can be seen that the respondents are divided into three prominentclusters. The mean value and
ANOVA of the results relating to level of satisfaction are given. The first cluster has a mean value of 1.25 which
indicates that the respondents in the first cluster do not have high level of satisfaction towards the various uses
of UPI. In the second cluster the mean value 4.6 indicates that 44 respondents have higher level of satisfaction
towards the services of UPI. The last cluster’s mean value 3.76 indicates that 55 respondents have medium level
of satisfaction in the services.

The F value is highest for the factor “Privacy” (65.913) which indicates that this is the most important of all the
factors. From the ANOVA results, it can be inferred that the significant value is less than 0.05 for all the factors
which means that there is significant difference among the clusters. Thus, it can be concluded that customers’
are distinctly classified into the different clusters based upon their level of satisfaction of the services rendered
to them.
Also, the quality of the cluster is tested with a two-step cluster analysis. Figure 2.1

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shows a “Good” quality of segmentation of customers based on their level of satisfaction.

C) Chi-Square test:

1.) Gender and level of satisfaction

TABLE 3.1
Crosstab
Cluster Number of Case Total
Low High Medium
Male 2 28 37 67
Gender
Female 2 16 18 36
Total 4 44 55 103
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 15.557 2 .027

INTERPRETATION

From Table 3.1 it can be observed that the significant value of the Gender variable is
greater than 0.05. Thus, the variable Gender has no significant association with level of satisfaction .

2) Age and level of satisfaction:

TABLE 3.2

Crosstab
Cluster Number of Case Total
Low High Medium
Below 18 years 1 6 6 13
Age group 18 years- 36 years 3 38 48 89
56 years -74years 0 0 1 1
Total 4 44 55 103
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 8.587 4 .011

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INTERPRETATION

From Table 3.2 it can be observed that the significant value of the Age variable is

greater than 0.05. Thus, the variable Age has no significant association with level of satisfaction.
Figure 3.2

The figure above reveals the results of correspondence analysis. Figure 3.2 shows the association between the
age of the customers and the level of satisfaction. Customers in the age group of 18 to 36 years can be
categorized in the “High Level” category and customers whose age is less than 18 years are found to be “Fair”.
Customers who are in the age group of 54 to 74 belong to the “Low level” group. It can be inferred that
customers in the middle
age group are greatly satisfied with the UPI facilities.

3) Monthly income and level of satisfaction:

TABLE 3.3

Crosstab
Cluster Number of Case Total
Low High Medium
Less than Rs.25000 2 20 28 50
Rs. 25000 0 15 10 25
Monthly family income
Rs.50000 2 5 11 18
Above Rs.1,00,000 0 4 6 10
Total 4 44 55 103
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 7.760a 6 .256

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INTERPRETATION

From Table 3.3 it can be observed that the significant value of the Monthly income variable is

greater than 0.05. Thus, the variable Monthly income has no significant association with level of satisfaction.

FIGURE 3.3

The figure above reveals the results of correspondence analysis. Figure 3.3 shows the association between the
Monthly income of the customers and the level of satisfaction. Customers with the income group less than
25,000 can be categorized in the “High Level” category and customers whose income is 25,000 are found to be
“Fair”. Customers whose income is 50,000 also belong to the “ fair level” group and income above 1,00,000
belong to “Low level” group. It can be inferred that customers whose income is less than 25,000 are greatly
satisfied with the UPI facilities.

4) Educational qualification and level of satisfaction:

TABLE 3.4

Crosstab
Cluster Number of Case Total
Low High Medium
No formal education 0 1 2 3
School level 0 4 4 8
Diploma holder 1 1 2 4
Educational qualification
Undergraduate level 1 24 26 51
Post graduate level 2 7 19 28
Professional 0 7 2 9
Total 4 44 55 103
Chi-Square Tests

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Value df Asymp. Sig. (2-sided)

a
Pearson Chi-Square 14.863 10 .137

INTERPRETATION

From Table 3.4 it can be observed that the significant value of the Educational qualification variable is greater
than 0.05. Thus, the variable Educational qualification has no significant association with level of satisfaction.

Figure 3.4

The figure above reveals the results of correspondence analysis. Figure 3.4 shows the association between the
Educational qualification of the customers and the level of satisfaction. Customers with undergraduate level can
be categorized in the “High Level” category and customers with Postgraduate level are found to be “Fair”.
Customers who are professionals and school level also belong to the “fair level” group and customers who hold
diploma and those who have no formal education belong to “Low level” group. It can be inferred that customers
with undergraduate level are greatly satisfied with the UPI facilities.

5) Occupational status and level of satisfaction:

TABLE 3.5

Crosstab
Cluster Number of Case Total
Low High Medium
Government employee 0 4 3 7
Private employee 0 20 22 42
Occupational status
Home makers 2 4 13 19
Business 1 8 9 18

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Professionals 1 8 8 17
Total 4 44 55 103
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 28.242a 8 .040

INTERPRETATION

From Table 3.5 it can be observed that the significant value of the Occupational Status variable is greater than
0.05. Thus, the variable Occupational Status has no significant association with level of satisfaction.

6) Usage of UPI and level of satisfaction

TABLE 3.6

Crosstab
Cluster Number of Case Total
Low High Medium
2 months 3 20 23 46
How long are you using this
6 months 1 6 10 17
UPI Scheme
More than 6 months 0 18 22 40
Total 4 44 55 103
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 13.039 4 .001

INTERPRETATION

From Table 3.6 it can be observed that the significant value of the Usage of UPI scheme variable is less than
0.05. Thus, the variable Usage of UPI has a significant association with level of satisfaction.

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FIGURE 3.6

The figure above reveals the results of correspondence analysis. Figure 3.6 shows the association between the

Usage of UPI by the customers and the level of satisfaction. Customers who have been using UPI for 2 months

can be categorized in the “High Level” category and customers who have been using UPI for more than 6

months are found nearly to be in High level. Customers who have been using UPI for 6 months are found to be

in “Fair” group. It can be inferred that customers who have been using UPI for 2 months are greatly satisfied

with the UPI facilities.

VI. FINDINGS:

A) PERCENTAGE ANALYSIS:

• Majority of customers surveyed are male (65%).

• Majority of respondents are between the age of 18-36 (86%).

• Most of respondents are below the income of 25,000 (48.5%)

• Majority of the customers surveyed are graduates (51%).

• Most of the respondents surveyed are from the private sector (42%)

• Most of the respondents surveyed have used UPI between 2 months to 6months (46%)

• Majority of respondents are influenced by friends and relatives (58%).

• Majority of respondents have used Google pay for UPI (61%).

• Majority of the respondents faced the network problem (51%).

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B) ANOVA

• The F value is highest for the factor “Privacy” (65.913) which indicates that this is the most important
of all the factors. From the ANOVA results, it can be inferred that the significant value is less than 0.05

for all the factors which means that there is significant difference among the clusters.

C) CHI SQUARE TEST:

• Gender has no significant association with level of satisfaction.
• Age has no significant association with level of satisfaction.
• Monthly income has no significant association with level of satisfaction.
• Educational qualification has no significant association with level of satisfaction.
• Occupational Status has no significant association with level of satisfaction.
• Usage of UPI has a significant association with level of satisfaction.

VII. SUGGESTION AND CONCLUSION

Cluster analysis shows low mean value on bill payment that means customers are not satisfied with the bill
payment system of UPI served apps and need more to concentrate on the bill payment related problems. The
Monthly income is less than Rs.25000 where customers are not satisfied with the UPI App companies and have
to improve their satisfaction level through fund transfer, privacy, and recharge etc., services. Students are also
satisfied with the UPI especially under graduates because companies give more cash back, scratch cards for their
transactions thus helps to improve the satisfaction level of students. In this digital era, UPI is the emerging E-
Banking technology in India and has a positive satisfaction level among the customers.The study also reveals
that users of UPI have a strong positive perception towards technology used in banking which is reflected in
their adoption and usage of the same whereas non users clearly exhibited their disinterest and ignorance in using
various technology driven banking channels.

BIBILIOGRAPHY

BOOKS & JOURNALS

1. American banker (2000), “Internet banking’s popularity increases”, Vol.165,no.186,p.3A

2. Balachandher,K.G., Balanchandran, S., Nafis, A. And Corrine, JP.(2004), “An evaluation of internet
banking sites in Islamic countries”, Journal of Internet Banking and Commerce, Vol.8, No.2.
3. Branca, A. S.(2008), “Dempgraphic influences on behaviour: An update to the adoption of bank
delivery channels”, International Journal of Bank marketing, Vol.26,No.4,pp.237-259.
4. Cox,J. And Dale,B.G.G.(2001), “Service quality and e-commerce: an exploratory analysis”, Managing
Service Quality, Vol.11, No.2,pp.121-131.

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INFOKARA RESEARCH ISSN NO: 1021-9056

5. Cronin,J., Brady,M and Hult,G.(2000), “Assessing the effect of quality, value, and customer
satisfaction on consumer behavioural intentions in service environments”, Journal of Retailing,
Vol.76,No.2,pp.193-218.
6. Foxall, G.R. and Yani-de-Soriano,M.M.(2005),” Situational influences on consumer’s attitudes and
behaviour”, Journal of Business Research, Vol. 58,No.4,p.518.

WEBSITES

1. Http://www.wikipedia.org
2. Http://www.ebsco.com
3. Http://www.razorpay.com
4. Http://www.shodhganga.com
5. https://www.gpay.com.tr/
6. https://paytm.com/
7. https://www.phonepe.com/en/

ANNEXURE

A STUDY ON CUSTOMER SATISFACTION OF UPI WITH REFERENCE TO COIMBATORE CITY

1. Gender : Male / Female
2. Age group
a) Below 18 years b) 18 years – 36 years
c) 37years-55 years d) 56 years -74years
3. Monthly family income
a) Less than Rs.25000 b) Rs. 25000 – Rs.50000
c) Rs.50000 – Rs.1,00,000 d) Above Rs.1,00,000
4. Educational qualification
a) No formal education b) School level c) Diploma holder
d) Undergraduate level e) Post graduate level f) Professional
5. Occupational status
a) Government employee b) Private employee c) Home makers
d) Business e) Professionals
6. How long are you using this UPI Scheme?
a) 2months b) 6months c) More than 6 months
7. How did you get to know about UPI?
a) Bank staff b) Advertisement c) Friends and relatives
d) Other sources
If through advertisement, specify the source of awareness
a) Television & Radio b) Newspaper &Magazines c) Internet
d) Posters and Banner e) Pamphlets f) Others (Specify)
8. In which mobile application do you use UPI

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INFOKARA RESEARCH ISSN NO: 1021-9056

a) Phone Pe b) Google Pay c) Mobikwik d) Paytm

9. State level of satisfaction towards the following
S.No Facilities Highly satisfied Satisfied Dissatisfied Highly
Dissatisfied

a) Recharge
b) Fund transfer
c) Bill payment
d) Balance enquiry
e) Privacy

10. What are the problems faced while using UPI?

a) Safety and security b) Authentication c) Network problems
d) Pending for verification e) Others (specify)
11. Your opinion about service of UPI? a)Very good b)Good c)Poor
12. Would you recommend UPI to your friends and relatives? Yes / No
If No, state the reasons
a) Not worth recommending b) Let us others decide c) Others specify
13. Suggestions
________________________________________________________________
________________________________________________________________
________________________________________________________________

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