Adoption and Diffusion of Bharat Interface for Money (bhim)

ADOPTION AND DIFFUSION OF

BHARAT INTERFACE FOR MONEY (BHIM)

Challa Sai Abhishek (1611243) | Thota Sahithi (1611359)

Abstract- Although there has been a tremendous increase in usage of e-payments worldwide, the diffusion of electronic payment systems in India is still far from widespread. NPCI launched BHIM app in view of their move towards digital India. This article explains the key elements influencing the adoption of BHIM app using Technology Acceptance Model (TAM) which offers a theoretical framework to analyse the adoption of new technology. The proposed model is based on five variables namely, perceived ease of usage, perceived usefulness, perceived risk, attitude towards BHIM and behaviour. Responses are collected on a five-point Likert scale. The data was analysed using N-way ANOVA and Regression model.

Keywords: BHIM, TAM, ANOVA, Regression

1. INTRODUCTION

Internet business has seen a tremendous improvement over the last decade, not just through online platforms but also through mobiles. Advent of 3G, 4G technologies gave a considerable boost to mobile internet. Mobile browsing speeds have caught up with the traditional Modem speeds. In this fast-changing digital world, Digital payments became the key focus for seamless and cashless transactions that saved all the hassle. Reserve Bank of India (RBI) in its Vision statement has set a priority to promote e-payments to make India a cashless society1. To turn India into a cashless economy, National Payments Corporation of India (NPCI) was set up in 2009. Among numerous offerings like NEFT, IMPS and ECS, which found prominent usage, NPCI launched BHIM to facilitate fast and secure payments through mobiles2. BHIM was launched on 30 December 2016 by Narendra Modi, Prime Minister of India.

        BHIM allows simple and hassle-free transactions using Unified Payment Interface (UPI) technology. BHIM transfers money directly to bank account instantly using mobile number, Aadhar number linked to the bank account, UPI address (allotted by BHIM app) of the recipient or account number with a IFSC code. It uses a Virtual Payment Address (in line with an email), Mobile Number, account number & IFSC Code or MMID (Mobile Money Identifier) as payment identifier. There are alternate ways to use BHIM, like Scan & Pay, where a user generated QR code is used to transfer money3.

BHIM runs on UPI, an interface built on the lines of IMPS interface, which allows any user to instantly transfer money to the payee bank account4. BHIM can be used on any Android or iPhone platforms launched in the recent years. No charges are levied on transactions through BHIM, however, the participating banks may levy the UPI charge.

They key features of BHIM:

1.        Send Money

2.        Request Money

3.        Scan & Pay

4.        Transactions

5.        Profile

6.        Bank account details

7.        My beneficiaries

8.        Language

9.        Others

Send Money, Request Money and Scan & pay (by generating QR code) are modes of payment. Transactions display an updated list of all transactions from the day of installation. Profile shares information such as UPI address, QR code etc. Bank Account tab is used for checking bank balance, syncing the account and changing UPI pin for the UPI address. Beneficiaries are the people with prior transactions with your UPI address5. Set your Language helps us choose the among the 12 languages available. Others include ‘I am a merchant’, FAQ’s, Feedback etc. to improve user experience.

1. LITERATURE REVIEW

Mobile payments are next big thing in place of POS payments that require access to a debit/credit card (Begonha et al., 2002)7. (Dewan & Chen, 2005)8 argue that consumers are keep to using mobile payments at the expense of risk. (Laukkanen & Lauronen, 2005)9 suggest that mobile banking offers customers additional value in terms of location-free access. The results from Tommi Laukkanen’s paper that resistance to mobile banking comes mainly from usage factor followed by image issue10. Unified Payment Interface (UPI) has attracted many a facet of industry due to its quick transaction pace and ease of usage (mobile). Shivkumar and Deepak6 argue that UPI is a revolutionary technique embedded with security protocols to promote digital transactions. The software is under constant upgradation to be more accurate, consistent and in real time. According to Niina Mallat, consumer usage of mobile payments is limited to a specific situation or purpose. Though they are useful, consumer do not substitute the existing payment methods for mobile payments11. Now, a more dynamic model is required to better understand the acceptance of mobile payments. This article uses TAM model to better determine the adoption process of BHIM.

        TAM was introduced by Davis (1989) to explain the acceptance of technologies. TAM is based on Theory of Reasoned Action (Fishbein and Ajzen, 1975) and Theory of Planned Behaviour (TBA)12. The model talks about the variables that influence user to adopt a new technology or innovation and how they do it. TAM is used to predict the intention to use technology (Lee and Chang, 2011) 15. TAM has extensively been used to pick up trends in online shopping. Subhro Sarkar & Arpita Khare’s study gives an interesting insight on the perceived usefulness of online shopping based on value consciousness and coupon proneness14.  Mohammad Chuttur, however, argues that TAM isn’t relevant and flexible enough model to make it a well-established theory13.

1. FRAMEWORK

TAM is based on TRA and TBA which are about acceptance and attitude. The following are the predictors of consumer attitude towards a technology:

• Perceived Usefulness
• Perceived Ease of Use
• Perceived Risk

1. Perceived Usefulness:

Degree to which consumer deems a particular technology useful for his performance. This variable influence attitudes of consumer towards a technology.

1. Perceived Ease of Use:

Degree to which a particular technology reduces hassle when compared to a benchmark technology. The effect of this variable is predominantly indirect, i.e., it influences other variables like Perceived Usefulness.