Digital Payment and E-commerce Payment System

This research project analyzes the benefits and challenges of using digital payment and e-commerce payment system. It includes data collection and analysis methodology, expected outcomes, and demographic information of the participants.

Running head: RESEARCH PROJECT
Digital Payment and E-commerce Payment System
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Problem statement..................................................................................................................2
1.1 Background”....................................................................................................................2
1.2 Context in which problem arises......................................................................................2
1.3 Nature of the problem......................................................................................................2
1.4 Reason of research...........................................................................................................3
2. Research Question..................................................................................................................3
3. Research methodology...........................................................................................................4
3.1 Selected strategy or approach for the research.................................................................4
3.2 Individual steps involved in undertaking the research project.........................................4
3.3 Data collection method....................................................................................................5
3.4 Data analysis methodology..............................................................................................6
3.5 Estimation of resources needed for finishing the research...............................................6
4. Expected outcome..................................................................................................................7
4.1 Data analysis results with data sets..................................................................................7
4.2 Prototypes.......................................................................................................................14
4.3 Performance measures...................................................................................................14
4.4 Standards and guidelines................................................................................................15
5. New Knowledge...................................................................................................................15
References................................................................................................................................16
Appendices...............................................................................................................................18
Appendix 1- Reflective statement........................................................................................18

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1. Problem statement
1.1 Background
Manual payment system was used earlier in order to transfer money however the use
of a manual system creates a number of challenges. According to Grimes and Rodima-Taylor
(2017), utilization of manual payment system uses a paper journal as well as ledgers in order
to finish the task which is one of the time-consuming procedures and can be subject to
frequent errors due to the use of manual accounting information. Moreover, it is found that
the lack of security is another major disadvantage of using manual payment system (Kazan &
Damsgaard, 2016). In addition to this, it is found that the use of the manual payment system
also creates challenges including inconvenience, high cost of transaction as well as chances
of data duplication. In order to resolve the issues that are faced due to the use of the manual
system, the utilization of digital Payment and E-commerce Payment System was used.
1.2 Context in which problem arises
Traditionally, the utilization of manual payment system put pressure on the people to
be correct in context to the details related to work. It is found that the service that is provided
by the manual payment system is generally dependent on the individuals and it generally
creates a number of issues like data duplication, redundancy, inaccurate security as well as
time consumption. (Sumathy & Vipin, 2017). Moreover, it is found that when mistakes are
made and corrections are generally needed than manual transaction requires to be completely
redone rather than just updating. Thus, it is found that in order to resolve the issues and
challenges, it is a very much necessary move to digital Payment and E-commerce Payment
System as the services that are provided are very much convenient, highly secure as well as
assists in limiting the spending of the organizations.

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1.3 Nature of the problem
According to Pal et al. (2018), utilization of manual payment system generally needs
to understand the entire procedure of accounting in a proper way by unravelling the
difficulties as well as complexities of the financial records. It is identified that the utilization
of manual system for undertaking transaction is considered to be one of the unsecured
methods due to the security challenges as well as utilization of paper-based calculation for
completing the entire transaction. In addition to this, inaccuracy in financial records can also
occur due to the tedious manual calculation which further causes the bookkeepers to make
mistakes.
The problems that are created by the use of a manual payment system includes
technical problems, security issues as well as workplace related problems. It is analyzed that
as manual payment system needs much time in order to complete the calculation manually,
an organization needs to spend more amount of money on hiring human resources in order to
complete the work in a short period of time. Though, more amount of money was spent on
the human resources the chances of accuracy within the calculation is not high as there is a
high chance of error, inconveniency as well as security-related issues. (Kazan, 2015).
Moreover, the use of manual payment system is not considered as one of the safest methods
for payment due to the security associated problems.
1.4 Reason of research
It is found that it is quite necessary to resolve the problem by pinpointing the gaps by
using literature as a support for the argument is very much necessary (Geva, 2017). This is
generally necessary in order to determine the method that would be helpful in providing a
secure as well as convenient method of payment to the people by resolving the issues that are
related with the manual payment system. In addition to this, the research would also help in
identifying the role that the Digital Payment and E-commerce Payment System play.

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2. Research Question
The research question includes:
What are the benefits and challenges of using the digital Payment and E-commerce
Payment System?
The use of digital payment and E-commerce payment system helps in enabling the
businesses, individuals as well as governments to make cashless payment in context to goods
and services with the help of cards, mobile phones as well as internet. It presents a number of
advantages including time as well as cost savings, increased speed and convince as well as
helps in enhancing the sales of the organizations. It is found that nowadays digital payment
systems are utilizing secure socket layer as well as data encryption method in order to keep
the online payment safe and secure. In addition to this, Payment Fraud Prevention using
Cryptographic Algorithm TDES is also utilized for making a safe transaction. (Trautman,
2015). Moreover, in spite of the advantages that are provided by the digital Payment and E-
commerce Payment System, it is found that there are a number of challenges including
security concerns, disputed transactions, as well as enhanced cost of business. It is analyzed
that although stringent measures like encryption are used for making the digital payment
system much more secure and safe though they are vulnerable to hacking. Moreover, it is
found that if electronic money is utilized without the authorization of the person then one
could identify unfamiliar charge as, without sufficient details about the individuals who
performed the transaction, it is very much difficult to receive a refund. In addition to this, it is
analyzed that the digital or electronic payment system enhances the need to protect the
financial details that are generally stored.
It is found that this question will not be answered easily without having proper data
and information that proves that the utilization of digital and e-payment system provides both

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benefits as well as challenges. Thus, in order to answer the question, it is very much
necessary to undertake primary data analysis. It is found that primary data analysis method
would be helpful in determining the benefits and challenges that are associated with the use
of digital Payment and E-commerce Payment System.
3. Research methodology
3.1 Selected strategy or approach for the research
It is found that in order to undertake the research project on digital Payment and E-
commerce Payment System, inductive approach is mainly utilized as this approach is helpful
in analyzing the advantages as well as challenges of the digital payment and e-commerce
payment system with the help of online survey (Lewis, 2015). This approach is generally
selected for this research project as with the help of specific observations from the online
surveys, it would be quite easy to conclude that digital payment and e-commerce payment
system are quite beneficial as they are helpful in providing easy as well as a convenient
method of payment to the people.
3.2 Individual steps involved in undertaking the research project
The individual steps that are generally undertaken in order to finish the entire research
project are generally elaborated below:
Initial literature review: It is found that in this step, the problem for the research
project is identified so that proper review can be made in order to determine the solution that
would be helpful in resolving the problem that is associated with the manual payment system.
After reviewing it is found that the use of digital payment and e-commerce system are not
only helpful in resolving the issues and challenges but are helpful in providing easy as well as
a convenient method of payment to the people (Vaioleti, 2016).

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Undertaking a survey: The Online survey is generally done in order to collect the
response of 100 people for determining the benefits as well as challenges that are mainly
associated with that digital payment and e-commerce payment system. Online survey method
is found to be online of the essential data collection method for analyzing the role that digital
payment and e-commerce payment system plays.
Collection of data: After undertaking survey, it is found that in the next step,
quantitative data collection method is used in order to analyze the significance of using
digital payment and e-commerce payment system (Choy, 2014). This method is mainly used
as the research project uses an online survey in order to collect proper data and information
on the research project.
Data analysis: With the help of quantitative data analysis method, the information as
well as details related with the utilization of digital as well as e-commerce payment system is
inspected, cleansed, transformed as well as modelled with the proper goal of discovering
proper information related with the advantages as well as challenges of digital and e-
commerce system by informing as well as supporting proper process of decision making.
(Fletcher, 2017).
Analyzing the final outcome: The data that is analysed on the basis of the research
that generally reflects in reflecting the advantages of digital payment and e-commerce
payment system and how it is helpful in making payment quite easily as well as in a very
much short period of time.
3.3 Data collection method
In this research project, quantitative data will be collected in order to analyze the
answer for the research question (McCusker & Gunaydin, 2015). It is found that quantitative
data collection method is mainly used as it generally helps in allowing a better understanding

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of the research and in addition to this it helps in exploring proper decision that would be
further helpful in undertaking the research in a detailed insight.
It is found that online survey method is used for the collection of data in context to
digital payment and e-commerce payment system as it is considered as one of the powerful
tools for collecting quantitative data. Surveys are mainly utilized as it assists in providing a
high level of general capability in order to represent large number of population and a huge
number of people generally answers the survey, the data that are being gathered mainly
compromises better description about the views of the people on the benefits and challenges
of the digital and e-commerce payment system. Thus, in order to get proper understanding as
well as knowledge on the benefits and challenges of digital system, an online survey is
conducted which collects responses of 100 participants in order to reach to the conclusion
quite easily (Isaacs, 2014).
3.4 Data analysis methodology
It is identified that in order to collect the raw data for the research project, quantitative
data analysis method is used. The main reason of using quantitative data analysis is that it
generally helps in analyzing the data successfully by delivering proper information in context
to using digital payment and e-commerce payment system (Choy, 2014). It is found that the
data that is generally collected from the online research method, helps in analyzing that there
are number of benefits that is achieved with the utilization of digital payment and e-
commerce payment system. The advantages that are achieved include convenient as well as
easy method of payment, increment in the sales as well as less time consumption during
transaction. In spite of the advantages, it is analyzed that it is very much necessary to use
some of the security-related methods in order to make the digital payment secure.

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3.5 Estimation of resources needed for finishing the research
The resources that are generally needed in order to finish the research project on the
using digital payment and e-commerce payment system is provided in the table that is given
below:
Time required 20 days.
Human resources 100
Other resources Software tools
4. Expected outcome
4.1 Data analysis results with data sets
In this specific section, the response of 100 participants are collected in order to
analyze the significance of using digital Payment and E-commerce Payment System. The
graph that is used for analysing data are mainly done by using excel where both the option
factor as well as response percentage factor was considered.
Section 1: Demographic information
1. Please select your gender.
Options No of respondents Total respondents Response %
Male 62 100 62.6 %
Female 36 100 34.6%
Others 2 100 2.8 %

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Figure 1: Gender
Finding: From the above figure that is provided, it is reflected that out of 90
respondents who participated into the survey, the percentage of the male is 34.6% whereas
the female is 62.6 % and others are 2.8%.
2. Please indicate your age group
Options No of respondents Total respondents Response %
Between 12-19 7 100 7.4%
Between 20-27 45 100 47.4%
Between 28-37 40 100 42.1%
Between 37-50 3 100 3.2%

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Figure 2: Age group
Findings: The figure that is provided below reflects that the participants of the survey
are mostly the middle-aged people between 20-27 as 47.4% of them were involved in the
survey.
Section 2: Digital Payment and E-commerce Payment System
Figure 3: Increasing use of E-payment system

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Findings: The figure that is provided above suggests that 53.3% agrees that the use e-
payment system has increased since the last decade whereas 7.6% of the participants disagree
with the statement.
Figure 4: Need of e-payment system
Findings: The findings suggest that 42.4% of the people agree that due to online
shopping the need for online payment become must for the people whereas 27.2% people
disagrees with it.

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Figure 5: Convenience of e-payment system
Findings: The figure which is provided above reflects that 44.4% people agrees that
digital and e-payment system is much more convenient as compared to the traditional method
of payment whereas 24.2% disagree with the statement.
Figure 6: Need for protection in the e-payment system.

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Findings: The figure which is provided above reflects that 43.3% people agree with
the fact that e-payment system generally requires protection from unauthorized access
whereas 23.7 % disagrees with the statement.
Figure 7: Cash payment decreasing
Findings: The figure that is provided above reflects that 42.4% people agrees that
with the use of internet banking and online shopping, the number of people doing cash
payments is decreasing. On the other hand, it is reflected hat 28.3 % disagrees with the fact.

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Figure 8: Vulnerability to hacking
Findings: The figure that is provided above reflects that 42.4% people agrees that
although stringent measures are provided, e-payment and digital payment system are
vulnerable to hacking whereas 26.3% disagrees with the statement.
Figure 9: Competitive advantage due to the use of digital and e-commerce
payment system

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Findings: It is seen from the above figure that 43.9% people agrees with the fact that
E-payment and digital payment system provide competitive advantage whereas 26.5%
disagrees with the statement.
Figure 10: Improvement in reputation
Findings: It is reflected from the figure that 43% people agrees that an option to
receive online payment will be helpful in improving reputation and thus it helps in allowing
the users to gain trust for the customers whereas 27% disagrees with the statement.

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Figure 11: Usefulness of digital payment
Findings: The figure which is provided above showcases that 38.7% of the people
agrees with the fact that digital payment system is very much useful in boosting the sales
whereas 31.2% people disagrees with the statement.
Figure 12: Advantages of digital payment system

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Findings: The figure that is given above reflects that 39% of the people agrees with
the fact that online payment reduces labour costs whereas 27% people disagrees with the
statement that is provided.
4.2 Prototypes
The prototype for the Digital Payment and E-commerce Payment System is provided
below. The prototype that is provided below reflects on the procedure that needs to be
followed in order to make digital payment.
Figure 13: Prototype for the digital payment system and an e-commerce system
4.3 Performance measures
The analysis that was undertaken on the research topic suggests that e-commerce and
digital payment system generally resolves the problems that are associated with the
traditional or manual payment system. In addition to this, it is showcased for the data that e-
commerce and digital payment system helps in increasing sales within the organization,
assists in improving competitive advantages and helps in providing easier and convenient
method of making payment. In spite of that, the research also suggests that although stringent

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measures are taken, the chances of ethical hacking in context to digital and e-commerce
payment system is quite higher. Thus, it is found that the from the data that is gathered
through a survey, both the benefits as well as challenges of using digital and e-commerce
payment system is determined.
4.4 Standards and guidelines
The standards and guidelines that are generally followed within the research are
reflected below:
 The data that are collected are collected will not be shared with others and the data are
kept in a secure place so that they cannot be accessed by the unauthorized individual.
 The research topic will generally be helpful in producing proper as well as ethical
knowledge in context to digital and e-commerce payment system
 Validity of the data that is collected through the survey is collected ethical method.
5. New Knowledge
The entire research that is undertaken reflects that due to the use of e-commerce
payment and digital payment system the organizations are gaining a huge competitive
advantage as there is 10-15% hike in the sales of the organization. It is found that secure
socket layers as well as data encryption methods are utilized in context to digital payment
system in order to secure the online transaction. Moreover, online Payment Fraud Prevention
using Cryptographic Algorithm TDES is also utilized for securing the transaction that is done
with the help of digital medium. As the new payment system is considered to be convenient,
it is analyzed that it is utilized by a greater number of people in comparison to the use of the
traditional payment system. In addition to this, it is analyzed that the new payment system
also helps in minimizing the required time consumption within the entire payment procedure.
Moreover, it is analyzed that in spite of the advantages, there are a number of security-related

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issues which can affect the digital payment system. From the entire research, it is identified
that though stringent measures are used in order to keep the digital and e-commerce payment
system secure then also the new payment system can get vulnerable to hacking. Thus, the
entire research that is undertaken by collecting responses of 100 people is helpful in
producing new knowledge that is associated with the utilization of e-commerce payment
system and the information that is gathered from the research methodology and the
corresponding new knowledge must be quite obvious. Moreover, it is found that the new
knowledge that is collected from the research is quite helpful in solving the research problem.

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References
Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers'
repeat purchase intentions in B2C e‐commerce: the roles of utilitarian value, hedonic
value and perceived risk. Information Systems Journal, 24(1), 85-114.
Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), 99-104.
Fletcher, A. J. (2017). Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), 181-194.
Geva, B. (2017). The Digital Payment Revolution: Books on Mobile, Bitcoin, and
Beyond. Banking & Finance Law Review, 33(1), 109-116.
Grimes, W. W., & Rodima-Taylor, D. (2017). Cryptocurrencies and digital payment rails in
networked global governance: Perspectives on inclusion and innovation. In Bitcoin
and Beyond (pp. 109-132). Routledge.
Isaacs, A. N. (2014). An overview of qualitative research methodology for public health
researchers. International Journal of Medicine and Public Health, 4(4).
Kazan, E., & Damsgaard, J. (2016). Towards a Market Entry Framework for Digital Payment
Platforms. CAIS, 38, 37.
Kazan, E. (2015, December). The Innovative Capabilities Of Digital Payment Platforms: A
Comparative Study Of Apple Pay & Google Wallet. In ICMB (p. 4).
Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), 473-475.

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McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), 537-542.
Ogbanufe, O., & Kim, D. J. (2018). Comparing fingerprint-based biometrics authentication
versus traditional authentication methods for e-payment. Decision Support
Systems, 106, 1-14.
Pal, J., Chandra, P., Kameswaran, V., Parameshwar, A., Joshi, S., & Johri, A. (2018, April).
Digital Payment and Its Discontents: Street Shops and the Indian Government's Push
for Cashless Transactions. In Proceedings of the 2018 CHI Conference on Human
Factors in Computing Systems (p. 229). ACM.
Sumathy, D. M., & Vipin, K. P. (2017). Digital Payment Systems: Perception and Concerns
among Urban Consumers. International Journal of Applied Research, 3(6), 1118-
1122.
Trautman, L. J. (2015). E-Commerce, cyber, and electronic payment system risks: lessons
from PayPal. UC Davis Bus. LJ, 16, 261.
Vaioleti, T. M. (2016). Talanoa research methodology: A developing position on Pacific
research. Waikato Journal of Education, 12(1).

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Appendices
Appendix 1- Reflective statement
In order to complete the research project on digital payment system and e-commerce
payment system, I have engaged on a weekly task for collecting data as well as information
in order to complete this research project. The research project that I have undertaken by me
by conducting an online survey and depending on that survey, I have collected information
for the research project. The most interesting work that I have done within this research
project is collecting data with the help of the online survey. It is quite interesting to know
different people views on a specific topic. On the other hand, I have faced lot of difficulty in
analyzing data properly so that I can reach to the conclusion. I have used excel tool in
analyzing data and by using it, I completed the data analysis part quite easily. Moreover, in
the coming future, I would undertake research project with primary data analysis as I find it
quite interesting.