Institute of Management, Nirma

University

Principles of Research Methodology

Individual Assignment- Research Paper

Topic= Mobile Wallet in India- Its Rise and the

Future Scope

Submitted on- 4th April, 2016

Submitted to- Prof. Sunita Guru
Submitted by- Mahir Savla
137133
 Table of Content

Sr. No Particulars
1. Introduction

2. Research Gap

3. Research Objectives

4. Research Hypothesis

5. Literature Review

6. Research Design

7. Findings and Conclusion

8. Limitations

9. Further Research

10. References

11. Annexure
 Introduction

Mobile wallet is essentially digital version of the traditional wallets that people used to carry in
their pockets. They generally use digital information about the credit & debit card for making
payments, store coupons and loyalty programmes, etc. A user can utilize all of his/her stored
information by simply opening an app on their phone, entering in a PIN, password or fingerprint
and then selecting the information they need to access. The app then utilizes information transfer
technology such as Near-Field Communications (NFC) to interact with mobile wallet ready
payment terminals. One of main advantage is that there is lower processing fee and it takes less
time.

Since the introduction of Mobile Wallet in India, it has become very convenient for a person to
make cashless transaction. Though there is a rise in mobile wallet users in this country, there is
still lack of awareness among people about the concept and utility. Also, the main target industry
is young tech savvy students and professionals. One of the key advantages of mobile wallet is
speed and convenience in a transaction. Earlier people without Debit or Credit card could not do
online payment and hence they had to rely on Cash on Delivery (COD) option only. But with
introduction of Mobile Wallet, people can transfer money to Mobile Wallet and do online
payments. Also, 60% population is unbanked. Hence, the major cause of concern is to convert
cash to digital money and mobile wallet is the best solution for this problem. The concept of
mobile wallet has huge scope as the cost of transferring cash from point to point is huge. Thus,
mobile wallet is a crucial way. So, digital currency has a lot of perspective in the ecosystem that
is developing at this stage and mobile wallet will evolve.

Currently Paytm has the largest customer base in India. The growth of this company has been
exceptional. Currently, it is the main sponsor of BCCI, the Indian Cricket Board. With its mobile
first strategy, Paytm does more than 30 million orders of various digital and physical goods
every month. Paytm is still the most dominant player in the industry. Though it has a strong
competition from Mobikwik, Oxigen and other brands, Paytm has always maintained its Number
1 position and stands out from the rest of the crowd.
Research Gap

 Mobile Wallet is still in developing stage.

 There are research papers on rise of mobile wallets but very few have pointed out the
reason for its rise and the future scope is still not predicted.
 Hence, through this paper, we would get the reason for the rise of mobile wallet as well
as its future scope.

Research Objectives

1. To find out the advantages and disadvantages of Mobile Wallet.

2. To find out the biggest players in the industry.
3. To find out why Mobile Wallet’s usage is growing day by day.
4. To find out the future scope of Mobile Wallets.
Research Hypothesis

 H1: People prefer using the Debit or Credit Card than Mobile Wallet users for doing
online transactions.
 H2: Many people have little or no awareness about benefits of Mobile Wallets.
 H3: There is rise in number of Mobile Wallet users.

Literature Review

Research Title Author Year of Learning

Publication
Mobile Banking: Deb Stewart 2015 There are various features
What’s Next? available in mobile banking like
pre- login, Cardless ATM
withdrawal, management of
Debit & Credit Card, etc. There
is increase in activity of Mobile
Wallet with development of
partnerships across the payment
ecosystem. The good news is
that there is currently work in
the industry to deliver faster,
same-day payments. Person to
Person payments are easy, quick
and more reliable. These days,
customers are choosing a bank
based on mobile offerings.
Lastly, the future is bright and
mobile banking is surely going
to develop and expand a lot.
Four Ways Members Robb Gaynor 2015 These days, real people moving
Move Money in money and making payments
Mobile Banking inside mobile banking are
increasing. They do this through
Mobile cheque deposit i.e.
depositing the cheque through
camera, mobile photo bill pay,
Person to Person payment and
Card Management. There are
also other benefits such as
loyalty, rewards and offers.
Mobile wallet is surrounded by
better technology that helps in
secure channels and payment.
Overabundance Of ISO & Agent 2012 Card and payment industry is
Plastic Benefits going for a revolution. Google
Wallets wallet has the support of many
prominent retailers but it
struggled in its first year to
attract customers. Many people
are ready to take their plastic
cards to a more digital offering.
Real time data is the biggest
advantage of Mobile Wallet.
People are fascinated for this
type of technology but the
problem is getting people aware
about this type of technology.
While consumers are intrigued
by mobile wallets, many fear
security issues and
 malfunctions.
How SBI, Axis & 2015 SBI, Axis Bank and Yes Bank
Yes Bank are have decided to launch their
gearing up to take on own mobile wallet to take on
Paytm, Mobikwik Paytm and Mobikwik who lure
customers with easy payment
options and attractive retail
offering. M Wallets would help
banks overcome the edge that
pre-paid users have. SBI, Axis
& Yes Bank gear up to take on
Paytm, Mobikwik as bank
details of customers are already
electronically stored in the
customer’s m-wallet, multiple
layers in a transaction are done
away with. For the young and
the affluent, often shopping
while on the move, m-Wallets
appeared irresistible. Banks
hope their m-wallets would be
as convenient as those offered
by players like Paytm, Citrus,
Oxigen and MobiKwik if they
tie-up with merchant and e-
commerce sites. Another
advantage is that while using
debit or credit card, users need
to remember lot of details but in
case of Mobile Wallet they just
need a 4-5 digit password.
Mobile wallets 2015 According to RBI (Reserve
shaping future of Bank of India), the number of
digital banking RTGS users went up by almost
17% in 2014. Mobile banking
also saw an increase of almost
89% in 2013. Also, mobile
wallet saw an increase of 170%
in 2013 which is a great sign.
We can see that digital
transformation is leading to
delivery of new consumer
propositions. Banks could be
one shop stop for many
services. Banking through
social networking is seen as
more interactive and
convenient.
Given that 50% of 2015 ICICI bank launched India’s
transactions are first digital bank for youth and
done on mobile, named it Pockets. This wallet
ICICI Bank uses a virtual VISA card which
launches helps or enables the users to
India's first digital transact on any website or an
bank 'Pockets' app in India. This was aimed at
instant and fast banking.
Technology set to 2015 Reserve Bank of India released
transform the a list of applicants for small
banking sector banks and payment banks which
through smart cards can make us believe that some
& mobile wallets: of them are toy shops or
Are banks ready? provisional stores. One
 important thing to remember is
that it is not the bankers who are
transforming customer
experience, but those with
technological power are
transforming the banking sector.
Mobile wallet 2015 It was surprising to see that
outshines credit within a short period of time,
cards in India; numbers of Paytm users are
Paytm has more more than number of credit
users than cards issued in India. According
total number of to RBI (Reserve Bank of India),
credit cards issued in the total number of Credit cards
India issued in India are 19.9 million.
But Paytm has more than 20
million users. In mobile wallet,
users can digitally store cash for
mobile and online transaction
but they don’t have the option
of withdrawing. Paytm aims to
cross 100 million users by the
next year. It is seen that Some
independent shop-keepers have
created mobile wallets for the
unbanked people using their
own credit cards or online
banking facilities, while
physically accepting cash for
the amount they deposit in the
mobile wallets. This is a new
trend which is likely to grow

M Wallet in India to 2015
grow three fold to
Rs. 1,210 crore by
2019
Now, transfer money 2015
through your mobile
recharge shop
and expand further.
It is seen that there are positive
indications about mobile wallet
with more and more consumers
being introduced for the first
time and many companies
making their first mobile related
investment in India. Experts are
of the opinion that payment
industry is slowly approaching a
tipping point and mobile wallet
will become a viable everyday
tool in the days to come.
Airtel Money, Vodafone M-
Pesa and Oxigen have started
offering cash deposit facility
which enabled online
transactions. This money can be
used for online shopping,
paying utility bills, insurance
premiums and recharging DTH
& mobile phones. Through tie-
ups with banks, these e-wallets
also offered facility of cash
withdrawal. RBI is also testing
cash-out facility which will
enable a user to send money
through an ordinary phone and
also withdraw money from a
retailer by providing Aadhaar
card. India needs more banks
 and through this project, we are
trying to bridge the gap. Also,
for basic money transfer, we
need not have bank account.
Through direct linkage to
Unique Identification Authority
of India (UIDAI) and the
Aadhaar card system, this
payment option is secure and
safe.
Oxigen launches 2015 Oxigen has recently launched a
India's first social new service. They have tied up
mobile wallet with Fastacash. Through this
service, has tied up service, the users of Oxigen will
with be able to share their money
Fastacash to offer with their friends or family over
the services preferred social networking
sites like Facebook, Twitter,
Google+, etc.
Innovating digital 2013 People in India might have an
payments: With its option of making payment
many advantages, through mobile rather than debit
the mobile wallet & credit card for basic things
may soon make which they didn’t have earlier
credit cards and like recharges, buying groceries
debit cards online, etc. Mobile Wallet is
redundant often confused with Mobile
banking, but it is a broader
concept. This includes using
mobile in making payment
rather than relying on hard cash
 or cards. The use and scope of
mobile wallet is endless but it is
in its developing stage. Credit &
Debit cards might soon become
redundant once mobile wallet
are more widely used. Also,
physical cards are clumsy and
easily breakable. Hence, mobile
wallet is like a prepaid account
which makes transactions easy
and convenient.
Facebook to join 2015 Facebook is all set to join
mobile-payments mobile payment race
race with remittances and electronic
remittances and services on the social network.
electronic money The company is to obtain
services on the social approval from Central Bank of
network, say sources Ireland to start a service that
would allow the users to store
money on Facebook and use
this money to pay or even
exchange with someone.

Research Design

1. Method- Descriptive as well as Exploratory.

Why Descriptive Research-Majority of the research will be Descriptive. This type of

research can be best done through primary research as finding the result through questionnaire
will be the best, most accurate and most accurate option. Also, this is descriptive because it will
take comparatively less time as questions will be easy, short and to the point. There won’t be any
biasness in collecting data.

Why Exploratory Research- This research paper includes comparison between Mobile
Wallet and Debit & Credit Card. Hence, collecting information through secondary sources would
be more feasible as this section of research is more subjective and would need expertise as well.
Secondary sources like books, research papers and internet would be used.

2. Methodology- After the data was collected, there was Statistical Analysis done
through the help of Google Analytics and help of secondary sources like published
research papers and newspaper articles was also taken to analyse the results. In total 100
responds were received and analysis was done without any biasness.

3. Details of Sample-
 Population- For this research, I would include Students and Working Professionals in
Mumbai, Ahmedabad and Hyderabad.

 Sampling Frame- The sampling frame would include the list of all the students and
working professionals to whom I distributed the questionnaire and then I would draw
insights on the given topic as a part of the descriptive research.
 Sample- The sample size would be 100 respondents who live in Mumbai, Ahmedabad
and Hyderabad. Hence, questionnaire was given to these 100 respondents and data was
collected and analyzed through the help of Google Analytics.

4. Data Analysis-

As mentioned above, data was collected by the help of questionnaire as well as there was some
secondary research as well. Firstly in primary research, a total of 100 responds were collected
through questionnaire. There was no biasness in collecting the data. The questionnaire was send
online to students and professionals living in Mumbai, Ahmedabad and Hyderabad. The analysis
is done with the help of Google Analytics. The questions and their analysis are explained below-
 1. Mobile Wallet brand used by the respondents.

Firstly, this pie chart gives the detail of the most used Mobile Wallet brand. Here, 83.5%
respondents are using Paytm. Hence, Paytm clearly stands out from the rest and is very dominant
in this business.

2. Awareness of Mobile Wallet through which medium.

Most of the people came to know about mobile wallet and its benefits through advertisement.
Many respondents also came to know by getting promotional offers of Mobile Wallet by using
another app or service. Some of them also got suggestion from friends or family members.
 3. Medium through which research was conducted.

51% of the respondents conducted their research on usage of mobile wallet through Internet.
24% respondents did no research at all. And lastly, 23% took opinion from friends or family.

4. Usage of Mobile Wallet.

Majority of the users (31%) used mobile wallet once a month. There are 23% respondents who
regularly use mobile wallet i.e. once a week. There are few respondents who use mobile wallet
only once in two weeks. And only 8 respondents use it daily.

5. Reasons for using Mobile Wallet

Majority of people i.e. 76% respondents use Mobile Wallet for online recharges and payment of
mobile, electricity, gas bills. 59% people used it for booking movie tickets. There were
surprisingly 37 percent respondents who used mobile wallet for making payment for cab
services.

6. Saving Debit or Credit Card details- a Better option?

There was very little to choose between the two options. 58% respondents felt saving debit or
credit card details was a better option than using the mobile wallet. Hence, no proper conclusion
can be made from this.

7. Are promotional offers and free coupons received helpful?

Majority of respondents feel that promotional offers like cashback offers and free coupons
received are helpful. Though there were 32 respondents not agreeing to this, but going through
secondary research it is evident that these offers are helpful to the customers.
 8. Does Mobile Wallet save Time?

54% respondents strongly agreed that one of the main advantages of mobile wallet is that it saves
time. 38% agreed that it saves time. Hence, over 90% respondents agreed that it does save time
than using the traditional debit or credit card mode of payment.

9. Is there ease of use and convenience?

54% respondents agreed and 34% respondents strongly agreed that mobile wallet is easy to use
and is more convenient to do online payments. Only 11% didn’t agree nor disagreed with this
factor. Hence, mobile wallet is easy to use and convenient.
 10.Are Cashback offers important?

41% respondents strongly agreed and 42% respondents agreed that Cashback offers are
beneficial and important to them. Only 15% neither agreed nor disagreed that this factor was not
important to them. Hence, Cashback offers are beneficial to them.

11.Are Promotional offers Important?

47% respondents agreed that promotional offers like getting food vouchers or additional discount
are beneficial and important to them. Surprisingly 34% strongly agreed to this. 16% respondents
didn’t agree neither disagree that these offers are beneficial.
 12.Problems in Mobile Wallet.

45% respondents didn’t find any problem in using Mobile Wallet. Though others found problem,
there was not one specific problem which was a major issue. Since, mobile wallet is in
developing stage and is new to our country, some issues are there.

13.Recommendation to others.

Majority of respondents i.e. 86% would recommend Paytm to others. Hence, this shows the
domination of Paytm and how well it has created its brand image and given the best services to
its customers.
 14.Age group.

Since this survey was conducted to students and professionals, the respondents were mostly in
the age group of 20-30 years. Surprisingly, there were 8 respondents who were in the age group
of 15-17 and they used mobile wallet. Hence this shows Mobile Wallet is growing and has a
bright future.

15.Occupation.

Majority of the respondents i.e. 86% were students. All other respondents were very few in
number. Hence, getting response from students was very helpful as they are very tech savvy and
are well accustomed to all types of technologies.
 16.Household Income.

Here, there was no clear majority in terms of household income of the respondents. 36%
respondents had income from Rs. 10000-40000 which was highest and 22% had income more
than Rs. 200000. Hence, there is a great variation.

In secondary research, I went through some research papers and mostly newspaper articles. I also
read various articles on internet. The main purpose of going through secondary resources was to
support the results of the primary research. Hence, I conducted it to find if the results collected in
primary research are satisfactory and there is not a lot of deviation. After going through the
secondary sources and comparing it with the primary result i.e. the responds received in the
questionnaire, I found the result in primary data was correct and there wasn’t much deviation.
Also, the research requires some secondary data as the topic is very new in Indian context. So to
properly come up to the conclusion, it is important to go through secondary resources.

Findings and Conclusion

Though Mobile Wallet is in the developing stages in India, there are quite a lot of users here.
Interestingly, Paytm has more number of users than the total number of Credit Cards issued in
India. This number speaks a lot about the growth of this sector. To be precise, mobile wallet saw
an increase of 170% in 2013 which is a great sign. Currently, there are over 50% people in India
who don’t have a Bank account as of today. Hence, for these people Mobile Wallet offers the
perfect solution as it doesn’t require a person to have a Bank account. Also, for basic money
transfer, we need not have bank account. Through direct linkage to Unique Identification
Authority of India (UIDAI) and the Aadhaar card system, this payment option is secure and safe.
Hence, these features of Mobile Wallet are making it advantageous and popular.

After collecting the result from the questionnaire, we can do a thorough analysis on the topic.
Firstly, Paytm is the most dominant player in the mobile wallet industry. It is the market leader
and the next competitors are far behind. Based on the responds received, 83% users are using
Paytm. These users also agreed that they would recommend this brand to others. After going
through secondary research, we can see that Paytm is the most preferred brand and it has the
largest customer base. The main reason behind their success is their effective marketing strategy.
They also provide a lot of cashback offers and many discount vouchers of different restaurants,
retail outlets, etc. The other brands like Mobikwik, PayUMoney, etc. are growing but they are far
behind Paytm. Next, most of the users came to know about Mobile Wallet through
advertisements. All the major players are spending huge chunks of money on marketing and
branding. Next, many of them were using different apps or services and while using those apps
or services, they came to know about Mobile Wallet. Hence, these apps and services had tie ups
with the mobile wallets and together they used to provide various offers and deals. Hence, these
offers and deals used to promote the mobile wallets and hence, they became so popular. A
thorough research is very necessary before using some new technology. Hence many of them did
conduct research. Most of them conducted the research through internet and some of them took
suggestion from family or friends. There were quite a few who didn’t conduct any research at all.
They already had some prior knowledge or they got accustomed to it.

According to the primary research, most of the respondents i.e. around 35% used it once a
month. Next around 20% used it once a week and only 10 respondents used it daily. According
to secondary research, there are a lot of users of Mobile wallet in India. But these numbers tell a
different story. If we compare the primary and secondary data, the numbers of mobile wallet
users are huge in number but their usage of mobile wallet is comparatively less. Hence, people
have started mobile wallet but their usage is still limited only. Most of the Mobile Wallet users
use it for doing recharges and payment of bills. Hence, these payments are done on occasional
basis only. So, majority of people using it once a month use it mostly for bill payment and
recharges. There are some who use it for booking tickets which include movie, events, rail,
flight, bus tickets, etc. hence, people use mobile wallet for the above stated purpose frequently
but not on a regular basis. After going through secondary research, it was seen that people who
use it daily, use it for transferring money or when they make payment for cab services. Hence,
the numbers of people in this category are quite less. So, people mainly use mobile wallet for
paying bills and booking tickets.

Many users felt promotional offers like cashback; free vouchers are helpful to them. Also 58%
respondents felt the option of using the saved debit and credit card in online payment is better
while the rest didn’t feel. Here there wasn’t much difference and hence, no conclusion can be
made. Majority of the people agreed that Mobile wallet did save their time and it is easy to use as
well as it is convenient. Based on secondary research, it was found that these factors were most
important for respondents to use Mobile Wallet. Other reason like cashback offers and
promotional offer were important to the respondents as well.

Coming to the problems faced in Mobile wallet, 45% respondents didn’t find any issue with
using Mobile wallet. This is a great number given that mobile wallet is still in the developing
stage. Other 55% found problems like interruption from 3rd party and mainly, they had fear about
security of personal information. Hence, they didn’t find it that safe. Also, they were not aware
about the technological aspect of mobile wallet and hence these problems are bound to be faced
and it slowly will be solved. Majority of the respondents were students. The age group was
between 18-26 years. There were quite a few working professionals above the age of 25. The
reason for collecting the information from this age group is that the people are very tech savvy
and they give a very accurate view of the situation. Hence as my part of suggestion, I would
recommend the Mobile Wallet players to-

 Focus on the security issue.

 They should create more awareness about Mobile Wallet and its advantage.
 They should fix all the technical issue.
 They should make the service more user-friendly.

To conclude, Mobile Wallet is growing at a very fast rate and is solving many issues in the
online payment system. Though the Indian residents are not that accustomed to such type of
technology. But in the coming years with fixing of many technological issues, mobile wallet will
emerge as the next big thing.

Limitations

The data is mainly from the user’s point of view. Hence some conclusions are too committed and
there is lack of reasonableness. This paper is a business research papers and it has a deficiency of
scientific research for network technologies and network operations, and lastly how to use the
network technology to implement the research results is still a problem which can’t be solved.
Also, the data collected is only from the age group of 15-30 years. Lastly, this topic is quite new
and very less secondary data can be found in the Indian context. With more data, the research
can be more thoroughly done and the findings and conclusion would be more accurate.

Further Research

According to the limitations of the research, there are some suggestions about the further
research. Firstly, research should be conducted for all age group. Hence, a more clear and
accurate result can be obtained. Secondly, this research should also be conducted across different
demographic and geographical areas. These two dimensions would affect the results and a
clearer and distinct view would be obtained. Also, the questionnaire could cover more factors.
Lastly, for analysis more advanced tools like SPSS could be used to get a very accurate result
and there should be a Hypothesis test also.
References
1. http://www.dqindia.com/top-6-mobile-wallets-in-india/
2. http://www.digitalvidya.com/blog/panel-discussion-on-mobile-wallet-adoption-how-it-
could-transform-the-retail-scenario-in-india-at-the-9th-india-digital-summit/
3. https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUK
Ewj_0qefpvPLAhWLc44KHUTSChgQFgghMAE&url=http%3A%2F%2Findianexpress.
com%2Farticle%2Ftechnology%2Ftech-news-technology%2Fbeyond-recharges-bills-
your-digital-wallet-wants-to-be-present-everywhere%2F&usg=AFQjCNGu-
xfHDHBpUlEno8EugKpSoJA_YA
4. https://www.techinasia.com/talk/mobile-wallet-wars-india
5. http://www.altimetrik.com/wisdometrik/mobile-wallets-market-opportunities-and-
challenges/
6. http://articles.economictimes.indiatimes.com/2016-01-16/news/69816355_1_paytm-
mobikwik-wallet-companies
Annexure
The questionnaire is given below-

Which Mobile Wallet do you use? *

o Paytm
o Oxigen
o Mobikwik
o PayUMoney
o Vodafone M-Pesa
o Other:

How did you come to know about services of Mobile Wallet and its Benefits? *

o Advertisement
o Suggestion or Recommendation from Friend or a Family Member
o Billboards
o Promotional Offers by using other apps or services
o Other:

Through which medium did you conduct your Mobile wallet research before
actually using it? *

o Internet
o Opinion from Friends or Family
o No Research
o Other:

How often do you use Mobile Wallets? *

o Daily
 o Once a Week
o Once in 2 weeks
o Once a Month
o Once a year
o Used only once or Twice

2. Rate the following Factors based on their Importance. *

Neither Agree Strongly

Strongly Agree Agree Disagree
nor Disagree Disagree

It saves
Time
It is easy to
Use
There are
Cashback
Offers
There are
Promotional
Offers

There is an option of Saving your Debit Card/ Credit Card details on websites or
apps. Is this a better and less complicated option than using Mobile wallet? *

o Yes
o No

Are Promotional offers & Free coupons beneficial to you? *

o Yes
o No
 Why do you use Mobile Wallet? *

o Online Recharges and Bill Payment

o Booking Tickets
o Transferring Money
o Making Payment for Cab Services
o Others

What Problem (s) did you find while using Mobile Wallets? *

o You didn't trust Mobile Wallet fearing Information can be stolen and misused.
o Unwanted interruptions from 3rd Party.
o There was Lack of Knowledge in Using Mobile Wallet. Hence, using Traditional
Debit or Credit Card is a better option.
o Difficulty in getting used to the Technology.
o No Problem.
o Other:

Which Brand would you recommend to others? *

o Paytm
o Oxigen
o Mobikwik
o PayUMoney
o Vodafone M-Pesa

Name

Age *
o 15-17 years
o 18-20 years
o 21-23 years
o 24-26 years
o Above 26 years

What is your Occupation? *

o Student
o Business
o Employed
o Homemaker
o Other:

What is your Monthly Household Income? *

o Rs. 10000- 40000

o Rs. 40001- 80000
o Rs. 80000- 1,20,000
o Rs. 1,20,001- 2,00,000
o More than Rs. 2,00,000