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1. Brief introduction of Mobile Banking in Bangalore

All over the world, mobile phone users in the graph are growing at a healthy rate despite
dismal figures of economic growth at key developed economies. There are many applications
that fall in the area of mobile telephony like mobile advertising, entertainment services.
Among all these applications, mobile payment is the application that is predicted to have the
largest potential. This application gives a customer good value services by allowing the
customer to transact irrespective of working hours, places beyond geographies almost
nullifying the distance constraint.Though the initial description of technology seemed to be
very hi fi and highly advanced, experts have worked hard to prove the technologies that
support this application and brand it as a proven technology. Interestingly mobile payment
has not been adopted widely by the population as other cashless non payment modes such as
credit cards and e-payment systems. Even in advanced countries like Japan and South Korea,
there are no major success stories (Bradford and Hayashi 2007; Dahlberg et al., 2008). There
is a large gap in the understanding of mobile telephony market by business community about
the factors that hinders the adoption. As we know that certain technologies wont get
approval of customers easily, market estimations can take a little bit conservative side to
predict the growth of many technology adoptions. In the year 2000, Gartner research
estimated that mobile payments transaction value would grow by $15 billion. Again in the
year 2005 Gartner came out with the estimation that in Western Europe itself the user
numbers would rise to 104 million. Despite all the assurances and high corporate ambitions to
capture the market share, the reality turned pretty sore with the failure of mobile payment to
trigger behavioural intentions of large masses of people even in developed economies like US
and Europe (Adrian, 2002; Shen, 2008). If we take readings only from developed economies
the conclusion may not be sufficient. Major hopes all over the world was kept on developing
Asian economic hubs such as Singapore and Hong Kong have not shown impressive figures
where the middle class, high class and niche segment have high consuming habits. Many
reports concluded that until 2012, the acceptance of mobile payment by people may be in a
same progress line. Studies and research works to break the mysterious lock in the market are
in very less numbers and there is a need for studies with thorough analysis of factors that
affect the adoption of mobile payment application by consumers (Jones 2011). Area that
represents mobile payments is information systems. Currently many studies and research
works in this areas focus on e-payments rather than mobile payments making it under
presented. Started publications in the area of mobile payments that attracted industrial
research toward m-payments. At the outset experts also agree that research on e-payment is
necessary to gain some insight on mobile payment. But there is difference between e-
payment and mobile payment process and the hardware/software components that supports
the applications. Systematic implementation of mobile payment systems also needs a service
provider providing compatible mobile sets that enable easy transactions. Technology adoption
issues that are faced by consumers should be probed in detail to understand the dimensions of
mobile payment adoption. In consumer behaviour, the decision to adopt can be called as
behavioural intention to try and repeatedly use the service permanently. To get these sorts of
results, trust is probably the most powerful factor. But in reality, every customer when faces a
new technology, goes through a considerable amount of trust deficit. This variable has not
been tested in many studies that have been conducted .To understand theoretical bits of
Mobile payment system, we can define M-payment as, a system using mobile device to
make transactions such as pay bills and perform banking transactions. Other positive feature
of mobile payment is that it can be set up by service providers instead of depending on banks
to implement mobile payments technologies. Service providers can get huge savings of cost
and time lag for customers waiting in queues for checking out in retail outlets. Customers
may have any card but they still have to wait in queue and time stands as barrier. Biggest
question mark on the faces of business community is how many people are going to avail the
easy payment service and what success probabilities are shown by research. Earlier
transactions were facilitated through networks especially by banks as well as financial
institutions. Banks have mastered several facets of transactions by playing roles like as
issuing banks, acquiring banks and clearing houses. But mobile operators though are involved
in these transactions were confined to boundaries of their own business operation. If
introduced by mobile operators, they can gain huge market shares by lifting up the trend,
prompting other sub segment players and finally banks to go for enabling mobile payments
(Ho, Fong & Yan 2008). According to (Chen et al 2009), despite aggressive promoting efforts
by many service providers the mobile banking service could not ring the bell of success. Most
of the consumers will not be comfortable with the idea of mobile banking service. Especially
in Indian context, people are extremely conservative and careful when there is an issue of
money. Lots of scepticism blooms out when mobile payment options get advertised and
promoted to the people, consumers often tend to relate other IT loop holes and frauds to the
new technology that is introduced. Even a small service backlog cannot be neglected by
service providers and the service personnel appointed by them. If mobile phone owned by the
consumer is lost, then it is great risk for the consumers there is a direct need for deeper
understanding of consumer behaviour in relation to mobile payment services. The
information by specific empirical works may serve as a major breakthrough in the body of

2. Review of literature:

2.1 The article has published in Tactful Management Research Journal. The title of
article was in customer perception towards E-Banking service. Author Uppal R K
Uppal R.K (2007) the study concludes that the customers of e banks are satisfied with the
different e-channels and their services in the spread of e banking services. It also suggests
some measures to make e banking service more effective in the future. The present study is
mainly concerned with the Indian banking industry in general and particular those banks that
are producing service through e-channels
E-Banking has affected customers expectations as banks clients prefer to deal with banks
that offer enhanced, well organized, professional and innovative services. Banks have to
bring improved quality services to their customers to survive in this vulnerable environment
(Uppal, 2008). There are many forces that have an effect on banks to develop their online
banking services. One of them is to reduce the cost of their services. With the online
channels, Banks can eliminate costly transactions by reducing the number of branches. New
physical locations have high starting up costs but online services and ATM banking reduces
the need of new branches. The freedom of no time limitation and benefit of low cost service
can be considered therefore the key reasons behind the development of online banking
services has analysed the quality of e- Banking services in the changing environment on the
basis of 5 point Likert type scale with different statistical tools such as rated average method
and ranking. The study concludes that most of the customers of e - banks are satisfied with
the different e channels and their services, but the lack of awareness is a major obstacle in
the spread of e banking services.
In 2011 Uppal, R.K threw light on growth of information technology in various banks. The
objective of this research is to analyse the extent of technological developments in various
bank groups. Findings shows as compared to new private sector banks and foreign banks, in
public sector banks very less IT has taken place. The maximum technology is taking place in
new generation private sector banks and foreign.
2.2 The article has published in International Refereed Research Journal. The title of
article was on consumer adoption of mobile payments in Bangalore city.
Mobile payment application is the latest paying alternative and an excellent application that
provides huge opportunity for the business communities to offer higher end value to the
customer. For any of the goods purchased, consumers can pay by using his/her mobile phone
instantly instead of depending on cash, cheque and credit cards. After failed forecasts in 2000
and 2004, again in the year 2009, it was foreseen that 3% of overall mobile phone user may
start making mobile payments more frequently, adopt at a later stage by 2011-2012 and also
may fall in line for further growth as banks have started promoting mobile banking in
developing countries like India and China as part of financial inclusion to promote mobile
banking and mobile payment (Gartner 2009). According to Chen (2008) mobile payment
services can enjoy a consistent growth only when a service provider recruits a strong
marketing force capable of selling the concept of mobile payment. A little help from users to
inform about their need is the major factor for a successful brand. Needs and wants are
diverse and marketer or service provider is interested to find out common needs or in the
other way features in the mobile phone mostly preferred by the target population. Extraction
of the same is being attempted by researchers all over the world. The most basic question is
What factors make the consumers adopt a new self-service technology? this question has to
be answered by majority of the research studies (Heijden et al., 2003; Lee and Turban, 2001;
Sarker and Wells 2003). Previously many studies have come out using variables from famous
theories such as Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB),
Theory of Reasoned Action (TRA) and Diffusion of Innovation theory. Majority of these
variables have failed to explain especially consumer adoption of mobile payments.
2.3 The article has published in International Journal of Innovative Research and
Development. The title of article was on consumer perception towards E-Banking
services in ICICI Bank.
Perceived usefulness according to Davis (1989) can be defined as the degree to which the
user believes that using a system would enhance their job performance. When we discuss on
mobile payments, we can replace the word job with the ever day routine as usage of
mobile in recent times has been so frequent especially with teenagers. Perceived use appears
in TAM (Technology Acceptance Model). This variable generally points out advantage and
additional use in latest system compared to the system that is being followed in the present
times (Nysveen, et al., 2005). In TAM, Perceived use has been consistently endorsed as a
contributor to the final behavioral intention to try the self-service technologies like mobile
payments. According to Pousttchii (2003), when there is an introduction of new system in a
service, consumers would first look the benefits, tally them with the previous one and then
would consider going for the new technology.
Jadhav Anil (2004) described various channels of e-banking services such as ATM, Telephone
banking (Tele-banking), Mobile banking, Internet banking and its features. The focus is also
given on e-banking opportunities, challenges and security aspects while performing the
banking transactions on the internet. Comparison of public, private, foreign and co-operative
banks and barriers to the growth of e-banking in India are also discussed. Finally the paper
discusses an overview of the major private sector banks such as ICICI banks which provides
e-banking services.
Heber Raveendranath (2004) described that the advancements made in computing. Banks are
developing alternative channels of delivery like ATM, telebanking, remote access, internet
banking etc.
Janeetal (2004) stated that online banking requires perhaps the most consumer involvement,
as it requires the consumer to maintain and regularly interact with additional technology (a
computer and an Internet connection).
Dharma lingam, S. Anand Kannan. V. (2012) evaluated the service quality in retail banking in
the Tamil Nadu, based on different levels of customers perception regarding service quality.
Data are collected from Three Private Banks, i.e. ICICI, AXIS and HDFC Bank. Sample size
of this research is 240. The result indicates that customers perception is highest in the
tangibles area and lowest in the Product Variety area.
Bahl, Sarita, (2013) determined that security and privacy issues are the big issue in e-
banking. If security and privacy issues resolved, the future of electronic banking can be very
2.4 The article has published in International Journal of Economics & Management
Sciences. The title of article was on a study of consumer awareness towards e-Banking.
Expressiveness can be understood as ability to express individuals emotions or identity.
This variable was previously used in determining behavioural intentions of people towards
mobile parking (Pedersen, 2003) as well as mobile portals (Serenko & Bontis, 2004). Every
individual in this world carries an immense internal desire that he/she should express to the
outer world for what actually they stand for eg: status, ideology etc. This is the place where
expressiveness as variable to determine the behavioural intention plays its role. Mobile
phones have been used by people to show off their status in cosmopolitan cities (Leung and
Wei 2000). This variable calls for personalizing the business service and improving customer
experience so that there is a repeated consumption of mobile payment leading to adoption in
the long term.
Trust is a variable that has attracted attention of many scholars playing mysterious role in the
adoption of mobile payments (Misra & Wickamasinghe 2004). It can be understood as the
belief that vendors will perform some activity in accordance with customers expectations
(Gefen & Straub 2004; Pavlou & Gefen 2004). Basically trust in mobile payment system can
be formed by maintaining anonymity, security and most importantly reliability of the service
model (Egger, 2001). According to Gefen et al, (2003), it is trust variable that plays crucial
role in facilitating adoption of e-commerce adoption. Gefen was the scholar used trust widely
to explore behavioural intention or adoption of technologies. When it comes to mobile
payments, Pousttchi (2003) arrives at a conclusion after his survey revealed that over 96% of
the respondents he surveyed wanted confidentiality of data they exchange with the service
provider otherwise trust was very difficult to develop among people. According to Dahlberg
(2003) TAMs capability to predict behavioural intention can be strengthened by adding trust
element to the model.
2.5 The article has published in International Journal of Hybrid Information
Technology. The title of article was on consumer Awareness towards Internet banking:
A Comparative study of Public, Private & Foreign Banks.
The past researches make available direction and basis for the new research area. The review
of past researches helps in finding the research gaps in the vast area of knowledge. Here an
attempt in this section has been made to recapitulate the existing literature. A good number of
studies have been reviewed. Some of the important studies are: In their study concluded that
the customers of private sector banks are more loyal towards Internet banking than customers
of public sector banks. The public sector banks are facing fierce competition from the private
sector banks primarily because these banks have advanced technology and innovations.
Private Banks in India are the early adopters of IT enabled banking. Examined the customers
perceptions towards internet banking facility and also analyzed the customers satisfaction on
various parameters of internet banking services. In total 180 respondents were surveyed to
achieve the objective of the study. The study found that perception of customers towards
internet banking service quality was largely influenced by the reliability, user-
friendliness, responsiveness, accuracy, speed of service, whereas compatibility,
efficiency, customer support, security, approachability and availability are the major
factors which influence the customer perception in private banks. Further it was observed that
the least score is given to the accuracy in public sector banks whereas security gets the
minimum score in case of private sector banks which is leading to the dissatisfaction of
customers as compared to the other dimensions. Further in their study concluded that
electronic banking is changing the face of banking industry with major impact on banking
relationships. Overall the performance of private sector banks is better than that of the public
sector banks. The level of customer satisfaction is higher for private sector banks than for
public sector banks. Public sector banks must focus on their functioning to compete with the
private banks. Study carried out by [6] revealed that all the banks are at different stage of
electronic banking adoption. However private banks are very fast and quick in providing the
services in comparison to public sector banks. The study also revealed that all the banks
irrespective of their category are providing 100 percent services of ATMs. So effective use
of electronic banking services has enabled the banks to hold various positions in the banking
sector and top two positions out of ten are held by private sector banks which show that they
are more efficient and providing better customer services as compared to public sector banks.
According to the banking sector in India has become more competitive over a period of time.
Thus the facility of electronic banking has gained a lot of recognition in order to attract and
retain the customers. The Indian banking is now easily available to almost each and every
individual because of the computerization process adopted by the banking sector. In his
research paper examined the adoption and impact of ATM, internet banking and tele-banking
services on customer satisfaction and retention by leading Indian banks. The information and
communication technology channels have positive impact on the customer satisfaction. Some
characteristics such as availability of cash and location of ATM and time to process
request have very high customer satisfaction across both private and public sector banks. In
their study concluded that the environment of internet banking is very vibrant and due to
constant changes in web technology an understanding of the users viewpoint is necessary for
policymaking. The study contributes to the literature by evaluating the internet banking
websites based on users viewpoint of banks in India and allows bankers to identify the grey
areas in order to take corrective action by introducing facilities and features on their banks
web pages. The findings of the study indicated that the new private sector and foreign banks
lack a strong branch network in India and they were in the forefront of adopting innovative
service delivery channels like internet banking. Public sector banks recorded a significant
progress by fully computerizing their branches. The number of fully computerized branches
was 9.7 percent at the end of March 2008. This indicated that the public sector banks are not
far behind and may soon catch up with the foreign and private banks in adopting Internet
banking. Attempted to reflect the present status of internet banking in India and the extent
of internet banking services offered by internet banks. They examined the factors affecting
the extent of Internet banking services. The data for this study was based on a survey of bank
websites explored during July 2008. The sample consisted of 82 banks operating in India at
31st March 2007. Multiple regression technique was employed to explore the determinants of
the extent of Internet banking services. The study concluded that the private and foreign
internet banks have performed well in offering a wider range and more advanced services of
Internet banking in comparison with public sector banks. Among the determinants affecting
the extent of internet banking services, size of the bank, experience of the bank in offering
internet banking, financing pattern and ownership of the bank were found significant.
Explained the use of internet banking in customer relationship management. Today the
internet banking is also considered an important tool by the banks and used as a business
strategy to create, retain and maintain long-term profitable customer relationship by
satisfying customers needs. The author analyzed the opinion of 400 customers of two public
sector and two private sector banks. ANOVA was applied to find out the significant
differences and the results found that private sector banks were better in their performance.
The website of private sector banks was also found more attractive.
In her study observed that, In todays increasingly competitive environment, it has become
important for the banks to satisfy their customers in all aspects. With the nationalized banks
giving a tough competition to the private banks, satisfaction and retention of the customers
has become the need of the hour. If the unquenchable needs of the customers are not fulfilled
on time, no matter how hard the bank tries to retain them, the customers will switch over to
some other bank in search of contentment. The findings of the study showed that the most
important factors that can add to a customers delight are: technology savvy, good investment
advisory services, efficient and co-operative staff and better approach to customer
relationship management. According to [4] public sector banks have remained laggards in the
race for adopting internet banking practices. According to public sector banks have initiated
the process of technological development by computerization of branch operations, but new
generation private banks have well focused business vision, with technology integral
component in it. Thus all the banks are trying their level best to take the maximum advantage
of technology in the public sector banks. A number of studies focused on the fact that
different electronic channels such as ATMs, mobile banking, debit cards and credit cards are
changing the concept and the total philosophy of banking. Private sector banks have started
offering all such kinds of facilities and thus attracting the consumers. In order to meet the
competition the public sector banks have also started working in the same direction.
2.6 The article has published in Apeejay Journal of Management and Technology. The
title of article was in Are Digital Wallets The New Currency?
With the advent of technology, consumers have an enormous array of payment modes
(Pulina, 2011; Soman, 2001, 2003; Srivastava & Raghubir, 2008;) which facilitates payment
for transactions by being more convenient, acceptable and accessible (Soman, 2001). Prior
studies suggest that there is a general consumer interest towards using mobile payment
applications (Dewan & Chen, 2005; Kreyer et al., 2003). The initial adoption of mobile
payments has not, however, been as rapid or widespread as expected (BIS, 2004). Different
factors have come into play which affect the adoption of digital wallets as a payment medium
such as trust, expressiveness and perceived ease of use, playing a crucial role in facilitating
adoption of digital payment solutions (Padashetty & SV,2013). Mallat (2007) presented a
qualitative study on consumer adoption of mobile payments in Finland and found that the
relative advantage of mobile payments were different from that specified in adoption theories
and included independence of time and place, availability, possibilities for remote payments,
and queue avoidance. Furthermore, the adoption of mobile payments was found to be
dynamic, depending on certain situational factors such as a lack of other payment methods or
urgency. Several other barriers to adoption were also identified, including premium pricing,
complexity, a lack of critical mass, and perceived risks. The findings provided a foundation
for an enhanced theory on mobile payment adoption and for the practical development of
mobile payment services. During the same period Dahlberg et. al., (2007) proposed a
framework of four contingency and five competitive force factors of mobile payment
research. The study examined the two most important factors in contemporary mobile
payments research namely, mobile payment technologies and consumer perspective of mobile
payments. Braga & Mazzon (2013) proposed a comprehensive Payment Mode Influencing
Consumer Purchase Model, considering the temporal separation, temporal orientation,
selfcontrol and pain of payment constructs, and adding the digital wallet as a new payment
mode. Digital wallet payments bring extra convenience to shoppers by offering flexible
payment additions and accelerating exchanges (Liu & Zhuo, 2012). Shin (2009) tested a
comprehensive model of consumer acceptance in the context of mobile payment. It used the
unified theory of acceptance and use of technology (UTAUT) model with constructs of
security, trust, social influence, and self-efficacy. Structural equation modeling was used to
construct a predictive model of attitudes toward the mobile wallet. Individuals responses to
questions about attitude and intention to adopt/use a mobile wallet were collected and
analyzed with various factors modified from usefulness and ease of use are key antecedents
UTAUT. While the model confirmed the classical role of technology acceptance factors (i.e.,
perceived to users attitude), the results also showed that users attitudes and intentions are
influenced by perceived security and trust. In the extended model, the moderating effects of
demographics on the relations among the variables were found to be significant. According to
a report by Mc Kinsey & Co. (2014) the US consumers enthusiasm for certain benefits
enabled by mobile payments remained high, especially around easier usage of coupons and
loyalty points. But excitement is moderating as delivery of these benefits remains fragmented
across many providers, with none of them commonly accepted by a broad sets of merchants.
In fact, the results indicated that consumers were less excited about many of the various value
propositions enabled by mobile payments (including leaving their wallet at home), and they
were more skeptical about the broad promises of mobile wallets than they were one year ago.
More recently, Rathore (2016) identified convenience in buying products online as the major
factor in consumer adoption of digital wallet. Taheam et al., (2016) suggested that
controllability & security, societal influence &usefulness and need for performance
enhancement as the factors which drive the usage of digital wallet among youth in the state of
Punjab. Security and privacy were the major concerns for the consumers which affect the
adoption of digital payment solutions (Dahlberg & Mallat, 2002). Later, Bamasak (2011)
showed that there is a bright future for m-payment in Saudi Arabia as majority of respondents
showed their willingness to participate in such an activity. However, security of mobile
payment transactions and the unauthorised use of mobile phones to make a payment were
found to be of great concerns to the mobile phone users. Another study by Doan (2014)
illustrated the adoption of mobile wallet among consumers in Finland as only at the
beginning stages of the Innovation-Decision Process: Knowledge Stage and Persuasion Stage
(Rogers, 1983). Moreover, it seemed to be a challenge in making them move to the Decision
Stage where they actually start using mobile wallet. However, the good news is that
consumers in Finland express positive attitudes toward mobile wallet. Yet, security issues in
transaction and privacy were the most concerned factors among the users.
2.7 The article has published in Life Science journal. The title of article was in Indian
Perspective on Mobile Payments at retail point of scale.
Several studies over the last decade have focused on mobile commerce and looked at the
Technology Acceptance Model (Davis 1989) and its modified version proposed by Venkatesh
et al. (2003). Briefly put, TAM proposes that for a person to adopt a new technology, he must
perceive usefulness in adoption the technology, e.g. in terms of cost/time savings and he must
find the technology easy to learn and consequently easy to use and a combination of this
leads to an intent to use the technology. Earlier researches by various authors have shown that
the success or failure of m-commerce is underpinned by how the customers will react to the
payments or good/services using their mobile phone as a virtual wallet. TAM and related
theories however do not account for many enablers/disablers of a new technology adoption.
For instance, it does not give serious weight to the issue of trust and security in the specific
area of m-commerce. To address many of these issues the model itself has been revised and
elements added to make it more relevant to the current day requirements. (Venkatesh et al.
2012) According to the extended TAM, BurtonJones & Hubona (2005) clarify the drivers as:
External Variables such as individual users beliefs or differences with technology. Their
evaluation is reflected in Perceived Usefulness (PU) and Perceived Ease of Use (PeU).
Perceived Usefulness using the new system will increase his/her performance o Perceived
Ease of Use is the extent to which using the new system will require minimal effort on users
Attitude: The consequence of the users beliefs of using a technology drives the users
attitude towards accepting/rejecting the technology.
Intention: The attitude predicts the desirability of the user using the system and the extent of
them using it.
Actual Use: Users intentions determine how well they will actually use the system. Several
studies have also used TAM to study m-payment adoption and its critical success factors and
impediments. Dahlberg et al. (2004) have reviewed extensively the literature and identified
several constructs drawn from literature and attempts to expand the model. Dahlberg and
Mallet (2002) earlier had also proposed the Technology Acceptance Contingency Model
which addresses several issues including the changing environments, buyer power, retailer
power and the choice of alternate forms of payment. The drivers for this model was
substantially elaborated earlier by Dahlberg (2004) and refined by(Chen, 2008) to include
parameters which included trust, security, social norms, compatibility and an assertion that
buyer behaviour would also be governed by socio-economic consideration and prior exposure
to related technology in a larger measure. A few studies are being conducted to understand
the market needs. The largest ongoing one is the Mobinet series conducted by AT Kearney
(2006). Respondents are asked a series of questions on mobile Internet through interviews on
periodic cycles. The fifth series (July 2002) indicated that for Europe, 40% mobile phone
users were aware of m-cash and intend to use it when made available. This was down from a
figure of 46% in the fourth series (February 2002). In earlier series, a steep decline was note
from 29% to 1% of European users intending to use the mobile phone for Internet purchasing.
The study also noted that the increased penetration of Internet enabled phones in Europe was
due to the highest uptake by the youth market. The outcome seems to suggest that mobile
commerce can find a niche in this segment. In the near future it is expected that transactions
will be location or time related purchases and may be most suited where time is of the
essence and also for impulse buys. Mallat(2007) suggests that the relative advantage of
mobile payments is different from that specified in adoption theories and include
independence of time and place, availability, possibilities for remote payments, and queue
avoidance. A review of literature did not provide any substantive studies vis--vis Indian
retailers/vendors perspectives and experiences of the mobile payment ecosystem and
establishing a relationship of the UTAUT model to them which would be equally important
and relevant to the success/failure of any mobile payment system. This study examines the
perspective from the retailers point of view and findings indicate issues which need to be
considered beyond the stated elements of the UTAUT model, given the cultural and business
context of India. Currently mobile banking and payment services are operational in India
Indian regulations require cellular operators to seek prior permission from the central bank,
the Reserve Bank of India to provide mobile payment and thus can be viewed as non-banking
finance corporation. Current regulations mean that mobile payments services must be a
separate entity for the airtime service provider. WAP interface payments through credit/debit
card payments, bank transfers ain operation but primarily for online shopping. Payments
through NFC( near field communications) devices was tried by Citibank in Bangalore in
2009 and whilst the trail was termed successful, the requirement for an NFC- enabled phone
could itself prevent adoption of this technology especially across various socio-economic
segments(Swedberg 2013)
Debit cards/credit cards now possible Responsibility of Payment to supplier Mobile network
provider Transaction costs Low to medium, primary costs can be the SMS costs which may
have to be borne by both parties, Transaction records/history Possible. Via SMS
confirmation, online access to mobile service providers website Possible Transaction range
Micro to large payments possible ( e.g Rs.5 to 10,000)- but subject to regulations from the
Reserve Bank of India. Materials and Methods In February 2012, a leading telecom company
announced the launch of its mobile payment services in India and by early 2013 had
completed the national roll-out of the scheme to over 300+ cities. A study was conduct in
Coimbatore during the first quarter of 2013. Coimbatore is a large industrial town in south
India and a center for excellence in manufacturing, education and medical care and the
population has good diversity in terms of the mix. A survey was conducted amongst all the
dealers who had registered with the telecom company to accept mobile payments for
purchase of goods and services from customers. The spread of retailers were across the city
andseveral well-known regional and local retail brands had enlisted for the payment service.
Thirty three retailers were identified for Coimbatore from the data given at the telecom
companys website. These were then classified into categories for better analysis.
As to the reason to the non-use of the mobile payments at retail point of sale, the top six
reasons given by respondents included:
1. No training or exposure to the system for retail transactions to the staff. Whilst all
respondents were aware of the mobile payment scheme, over 24 respondents stated that they
had not been trained to use it or that the mobile device was with the owner-retailer who was
not available at the point of sale. Whilst they had some experience in mobile talk-time top-up,
none had any experience of completing a retail purchase transaction through mobile phones.
None had any knowledge of the charges incurred either by the retailer or by the customer.
2. No requests from customers for using the mobile payments for retail purchases All the
respondents confirmed that very few(less than 5 reported) had approached them for a retail
POS transaction. Primary mode of payment was cash followed by credit card where the
retailer offered such facilities. In the majority of the shops, (around 25) the range of
transactions was between Rs. 10 to 500 at the point-of sale and a minimum buy was required
before they would accept credit cards. Cash was the preferred mode for payment.
3. Lack of clarity as to refund/credit process Respondents did not have any idea about how
the refund or a credit transaction would work and whether there would be a surcharge. The
perception was that it was not possible with the scheme and in the event it was, surcharges
would have to be incurred by the retailer. There was no clear information or mechanism
available to either the retailer or the customer as to the process.
4. Risk of wrong billing or overcharging. Retailers perceived that customers would not risk
payment via their mobile phone as there was insufficient documentary evidence in case of
wrong billing/overcharging. Many retailers perception of transaction being as expensive as
credit cards thus the erosion of margins and their own prior experiences of overbilling by the
telecom companies made them perceive as the risks to be moderate to high.
5. Perception about creating records of sales which would be available to tax authorities
around 50% (17) respondents stated that they were encouraged to requested cash payments
whenever possible as this would avoid creating tax records. Retail points which did not
accept credit card also perceived that sales records would be available to third party. 6.
Involved effort for smaller transaction Retailers who offered credit card payments required
customers to spend a minimum amount before they would accept credit cards as they had to
pay charges and the process took time. The same perspective was offered for mobile
payments by the retailers The study confirms that the merchant readiness is very poor for
successful implementation. There is still a trust deficit as regards to the usage of mobile
payments by retailers and whilst other studies may indicate a high intend to use, additional
studies have to be undertaken to understand the social and cultural context which is specific
to India. There may be substantive variation in perceived use, usefulness within the market
and adoption cannot be taken for granted by extrapolating the data as regards to mobile
telephone penetration, device availability and usage and data like downloads mobile internet
payments. The merchants have a lot to gain in terms of customer insights, higher store
security by less cash in their tills, automated transactions, eliminating small-change issues,
creating an effective mobileCRM for their stores and also participating in a business-network
promotions or getting local services/schemes benefits through customer aggregation which
the mobile service providers can offer current market environment, at least in the city in
which the study was undertaken does not seem to be conducive to the success of any mobile
wallet Respondents did not have any idea about how the refund or a credit transaction would
work and whether there would be a surcharge. The perception was that it was not possible
with the scheme and in the event it was, surcharges would have to be incurred by the retailer.
There was no clear information or mechanism available to either the retailer or the customer
as to the process.
2.8 The article has published in International journal of Emerging Trends of Technology
in computer science (IJETTCS). The title of article was in Influence of demographic
profile on perceived Security & level of adoption of internet banking in a developing
Since, 1998 when the first important study on Internet banking was conducted by England et
al. (1998) estimating the number of US banks offering Internet banking and analysing the
structure and performance characteristics of these banks, many research scholars and surveys
all over the world have tried to explore various issues pertaining to adoption of Internet
banking. To name a few, Hasan et al. (2002) studied the adoption of Internet by banks in
Italy; DeYoung (2001a, 2001b, 2001c and 2005) studied the performance of pure-play
Internet banks in U.S; Delgado et al. (2004 and 2006) found similar results for Internet only
banks in the EU; Hernando and Nieto (2005) examined the performance of multi-channel
banks in Spain; etc. These studies were primarily focused that adoption of Internet banking is
often related to economical and statistical improvement in bank profitability. Mirza et al,
(2009) investigated empirically the internet banking adoption by Iranian Customers. Lack of
technological knowledge, security concern and awareness were the main barriers reported in
the study. Burcu et al, (2009) found that the demographic variables are the most influencing
way to identify the target consumers. They further classified the usage of consumer
perception attributes and found that internet banking appeared to be a valuable alternative
channel for Turkey. While many factors have been identified to influence e-banking adoption,
security is found to be the common factor in most of these studies (Kim and Prabhakar, 2000;
Grabner- Krauter and Faullant, 2008). This is in congruence with the fact that internet
banking is delivered online, which basically is vulnerable to all the risk associated with
online activities (Md, Nor and Pearson, 2007). As technology uses Internet as its delivery
platform, it is expected that potential users may perceive it to be exposed to faceless online
negative activities. The activities of hackers and the widespread phishing websites, for
instance, have highlighted the perceived unsafe nature of the Internet and these have been
frequently projected in the media and also on the banks websites. These indirectly have
affected consumers perceptions regarding security of the online technology and services,
including e-banking. Studies have often stated that security and privacy have a direct and
significant effect on consumer trust in the online banking context (Casalo et al., 2007). When
people have the confidence and assurance about the absolute privacy and security related
with the Internet banking then certainly it induces them for future transaction using the same
system. The issue of security is among the most critical obstruction for the acceptance of
online banking (Laforet and Li, 2005). Manzano et al. (2008) stated that perceived risk
consists of security, privacy, performance and social factors, and have strong bearing on
Internet banking adoption. Though a number of studies have been conducted regarding
adoption of Internet banking, most of these studies have been focused only on factors
affection the adoption of Internet banking. Only a few studies could be traced that
comprehensively focus on trust inducing security issues of Internet banking. Further, there
seems to be a dearth of literature specific to adoption of Internet banking in developing
countries like India. Most developing countries suffer from low penetration of banking and
Internet banking is being viewed as an instrument of achieving financial inclusion. These
countries also suffer from weak IT infrastructure and low levels of IT skills. This coupled
with weak regulatory framework makes the Internet banking user more vulnerable that
creates impediments in the adoption of Internet banking. This paper makes a modest attempt
to find a relationship between various demographic profiles of the users of Internet banking
and their respective level of adoption particularly in the context of developing countries.
2.9 The article has published in journal of Electronic Commerce Research. The title of
article was in Using E-Cash in the new Economy: An Economic analysis of
Micropayment system.
Security and Anonymity: Hypothetically, the potential security of virtual money is greater
than that of conventional money given the sophisticated printing and counterfeiting methods
used for conventional cash. For e-money however, adoption of widely available technologies
that are tamper-resistant is limited by the US government's regulation of strong
cryptography, including export limits on long (i.e. complex) keys. It is only in practice and
because of governmental constraints that the security and privacy of e-cash systems is limited
(Swire, 1997). Many existing e-cash systems, particularly those that can be used with a
number of different merchants, are not completely anonymous because the monitoring of
their use is actually essential to the proper operation of these systems in order to prevent the
double spending of virtual coins. This monitoring may be very costly requiring collusion
between institutions. The use of a conventional cash system allows direct interaction between
buyer and seller and so it is not possible to monitor transactions taking place mediated using
conventional cash. Anonymity is ensured. Conventional cash will be preferred by those
involved with criminal activities as long as criminals and tax evaders believe that electronic
transactions will always leave some trace (Goodhart, 2000). It can be argued that complete
anonymity is not desirable from a social welfare point-of-view (de Solages and Traore, 1998).
In theory, a system of anonymity that is only revoked by some trusted authority when
criminal activities take place would mean that criminal activity could be more effectively
monitored and punished in a world of e-cash. But, in practice, the whole point is that
criminals would not use a system that they believe allows effective monitoring and
punishment. Even with such a system, until complete anonymity can be assured electronic
cash cannot substitute completely for conventional cash for illicit transactions and there will
always be a demand for conventional cash, whether or not agents admit their real reasons for
holding it. Partial / complete transferability and multiple payment systems: Within any
system of e-cash, there are difficult trade-offs to manage between anonymity/privacy and
security/reliability. These trade-offs surface in assessing the desirability of easy transferability
of e-cash. Sander and Ta-Shma argue that non-transferability is an important feature for e-
cash systems as it imposes limits on criminal abuses (Sander and Ta-Shma, 1997). However,
whilst limiting transferability will reduce the potential for fraud, non-transferable e-cash
systems will be less flexible and more costly. Assuming that double spending of electronic
cash can be prevented, an e-cash system that allows multiple-payments is likely to lower the
monetary costs of transactions. However, for many e-cash systems devised so far (e.g. lottery
ticket and voucher systems) each unit of e-cash can only be spent once, even if the
tickets/tokens/vouchers are transferable before use (Rivest, 1997; Foo, 1997). So each unit of
currency is only partially transferable, i.e. it is transferable only until it is spent. In contrast,
conventional cash is spent many times by many different people; it is completely transferable.
In response to this problem, some multiple-payment schemes have been suggested (Pagnia
and Jansen, 1997). In multiple payment systems, the costs of issuing electronic cash will be
greatly reduced as long as there is an effective mechanism to allow a given unit of currency to
be transferred easily between many buyers and sellers. If this transferability is possible and a
token can be spent many times, then the average cost per transaction of issuing a given unit of
currency will tend towards zero. The use of methods such as Chaum's blind signature scheme
(BSS) have some potential to promote transferability if a central-bank can issue signed coins
and release its public signature key to all traders and consumers so that they can authenticate
e-cash received (Chaum, 1992). Concerns about crime and fraud can also be addressed within
such schemes, i.e. by using fair BSS in which trusted authorities have the power to monitor
suspect transactions (de Solages and Traore, 1998). However, the problem remains that large
databases of past transactions must be maintained in BSSs in order to prevent double
spending. This requirement adds to the costs and limits the scalability of such systems.
Transactions costs are reduced in systems such as NetCash because only outstanding tokens
are monitored (Neumann and Medvinsky, 1998). However, these tokens are still not perfectly
transferable because the holders of digital tokens/coins do not have to relinquish ownership
of the digital coin when they spend it and the prevention of double-spending requires
processing time even if this is reduced in comparison with other BSSs. In contrast, for
conventional notes and coins, holders relinquish ownership of a physical entity when they
spend a conventional note or coin and so the monitoring of double spending is not necessary.
The advantages of e-cash over other forms of electronic payment Evidence suggests that on-
line consumers are dissatisfied with the way they spend money on-line and analysts predict
that the use of credit cards to fund on-line transactions will decline significantly in the near
future (Economist, 2000b). Quite apart from the constraints outlined above, does e-cash
bestow any advantages relative to other forms of electronic payment? Electronic payments
via credit card still dominate the market and, as explained above, many e-cash systems have
not stood the test of time. Do we need a system of electronic cash when most people currently
purchase goods and services over the Internet using credit cards? One of the main challenges
confronting e-cash suppliers is providing effective micro-payments systems, whereby small
amounts of money can be used electronically. Checks and credit/debit cards do not suit small
purchases; the key problem for checks and credit-card systems is that they are not necessarily
effective for micro-payments because of the costs involved in interactions between financial
institutions (Neumann and Medvinsky, 1998). Using credit cards and checks involves
financial intermediaries thus adding to the transactions costs involved in on-line purchases. If
credit-card payments incur additional interest costs and other charges upon buyers this will
also add to the costs involved with using credit cards. Another shortcoming emerges because
credit-card purchases on the Internet are not anonymous and a person's spending patterns can
be tracked using credit-card records. The same is true for mechanisms using electronic
checks. There is also an increased danger of fraudulent use of credit-card numbers by third
parties. Using ATM cards/machines to access conventional cash is not susceptible to the same
level of fraud because dedicated physical devices and anonymous PINs are essential to such
transactions. It is costly to tap into telephone networks but it is relatively easy to collect
databases of credit card numbers over the Internet because it is easy to intercept information
(MacKie-Mason and Varian, 1998). So the use of credit cards to buy goods and services over
the phone is not as susceptible to fraud as the use of credit-cards numbers over the Internet.
Whilst e-cash may well suffer from the same shortcomings as other forms of electronic
payment, the financial risks for individual consumers are reduced. If a consumer is only
risking the loss of a not-particularly-valuable electronic coin, he/she is far more likely to
conduct transactions over the Internet than if he/she risks an enormous credit-card bill
emerging because someone has illicitly intercepted his/her credit-card number. Electronic
cash therefore has financial potential that is not matched by alternative electronic financial

3. Statement of Problem
The need for convenience & usefulness has fuelled enormous interest in the use of mobile
banking services. Compared to other banking delivery channels, mobile phone has an
advantage in terms of reach and cost to serve, though it may not yet score high on of ease of
use. Mobile phones are already being used by approximately 17 million Indians for banking
purpose and its usage for banking and payment transactions is on the rise. (Deloitte Sep 2013)
Latest figures from RBI website state that the Mobile Bankers in the country is a mere 22.5
Million in FY 12-13. There has been a slow acceptance of mobile banking services Vis a Vis
the actual potential. It is pertinent to state that mobile banking in India has failed to achieve
the much desired critical mass required. This research, therefore, is a conceptual framework
to examine factors influencing the acceptance of mobile banking services.

4. Objectives of Study
a) Study on awareness of mobile banking
b) Study on usage level of mobile banking
c) Study on influence of usefulness and intention of using mobile banking

5. Scope of the study

Mobile phones are already being used by approximately 17 million Indians for banking
purpose and its usage for banking and payment transactions is on the rise. (Deloitte Sep 2013)
Latest figures from RBI website state that the Mobile Bankers in the country is a mere 22.5
Million in FY 12-13. There has been a slow acceptance of mobile banking services vis a vis
the actual potential. It is pertinent to state that mobile banking in India has failed to achieve
the much desired critical mass required. This research, therefore, is a conceptual framework
to examine factors influencing the acceptance of mobile banking services.
Banked & Unbanked users: The study would clearly spell out differences in mobile
banking adoption behavior among the banked (mobile users who have a bank
account) and unbanked (Mobile users who do not have a bank account)
Gender specific findings: Women are increasing becoming mobile, getting employed,
playing the double role in family and hence the research would be of prime

6. Hypotheses

H0: There is a significant and positive relationship between the awareness and usage level
of mobile banking
H1: There is a negative usefulness relationship between perceived intentions of using
mobile banking.

7. Methodology

Research design: In order to achieve the objectives of this study, a quantitative

methodology will be used. The current study will be designed as a causal study with
statistical control research design to study the factors which influence adoption of mobile
banking. A questionnaire survey method will be used to seek responses from the student,
working man and women etc.
Sources of data will be primary data and secondary data (Journals,websites)

8. Plan of analysis
Tools for collection of data Questionnaire
Statistical tool Graphs, Chart,% Analysis, Chi-square test

9. Limitations of the Study

a) Data collection will be done by using survey method
b) Restricted to Bangalore