A STUDY OF CONSUMER PERCEPTION TOWARDS MOBILE

WALLET IN DELHI NCR

Dissertation submitted in partial fulfillment of the requirements for the award of

the two year full time degree of POST GRADUATE DIPLOMA IN
MANAGEMENT

By

Rajat Pandey
Roll No GM

Under the guidance of

Ms. Komal kapoor

GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA
2017-19
 DECLARATION

BY STUDENT

I hereby declare That “A study of consumer perception towards Mobile Wallet In Delhi NCR” is
the result of the project work carried out by me under the guidance the in
partial fulfillment for the award of two year full time degree of POST GRADUATE DIPLOMA IN
MANAGEMENT from G L Bajaj Institute of Management and Research, Greater Noida.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or Diploma or
Certificate.

Place: Greater Noida Name:

Date: Roll No: GM

 CERTIFICATE

Date:

This is to certify that the Project Report, titled “A study of consumer perception towards
Mobile Wallet In Delhi NCR” submitted by RAJAT PANDEY Roll No. : GM were carried out
under my guidance and supervision.

To the best of my knowledge and belief, the information presented by him/her has not been
submitted elsewhere.

(Dr. Anand Rai)

Signature of Dean/Signature of Director General

Dated:
 ACKNOWLEDGEMENT

A project report is an assessment of one’s great skill and aptitude. One needs to devote in
immense patience, time and brains for the compilation of one such rewarding outcome of true
efforts.

I am indeed thankful to honourable Director general ( G.L. Bajaj Institute of management &
Research) Dr. who has provided the wonderful opportunity of getting exposed to
industrial and business working know – how.

I would like to render my sincere heart full gratitude to my project mentor Dr. for
guiding me right from the inception till the completion of the project. I sincerely acknowledge
him for extending his valuable guidance, support for literature, critical reviews of the project
and above all the moral support provided to me in all stages of this project. He has been an
inspirational mentor guiding me through every step of my project, thus making the entire
Dissertation a complete learning process.

Also I am thankful for my family, faculties and friends for their continued guidance and
immense support as well as invaluable encouragement.
 ABSTRACT
In today-world, smartphone has become important part of everyday life. As it has become more
affordable, the number of smartphone users has increased dramatically. Along with
smartphone production, plenty of services have been created to utilize the possible functions of
smartphone. Not only smartphone are used as communication devices reforms after
demonetization of high value currency of Rs. 500 and 1000 (86%, but also to be used as
socialized tool, entertainment tool, internet access tool, and even payment tool .Thanks to
technology, mobile users can nowadays use their smartphones to make money transaction or
payment by using applications installed in the phone. Besides payment, people can also store
receipts, coupons, business cards, bills…in their smartphones. When smartphones can function
as leather wallets, it is called “Digital Wallet” or widely known as “Mobile Wallet”.

INTRODUCTION
Motivation of the research came from various factors. First of all, the mobile wallet is a recent
term. In other words, it is a “trendy” topic that has been discussed in technical forums and
financial websites in several years lately. One can see the word “Mobile Wallet” multiple times
from the internet, yet he does not know what mobile wallet is. Therefore, the research is made
due to personal curiosity to gain practical knowledge about mobile wallet during the research
process in order to understand how consumers perceive this new technological service.
Secondly, I am one of a smartphone users and I would like to exploit the capability of the
phone. Other users perhaps also have this desire. For that reason, I conduct this research to
observe people’s opinions about this new service.

Digital Payment Modes in India .There are several mode of digital payment available in India.
These are:

Online or mobile wallets: They are used via the internet and through smartphone applications.
Money can be stored on the app via recharge by debit or credit cards or net-banking. Consumer
wallet limit is Rs. 20,000 per month and the merchant wallet limit is Rs. 50,000 per month after
self-declaration and Rs. 100,000 after KYC verification.
Prepaid credit cards: Pre-loaded to individual’s bank account. It is similar to a gift card;
customers can make purchases using funds available on the card -and not on borrowed credit
from the bank. Can be recharged like a mobile phone recharge, up to a prescribed limit.

Debit/RuPay cards: These are linked to an individual’s bank account. Can be used at shops,
ATMs, online wallets, micro-ATMs, and for e-commerce purchases. Debit cards have overtaken
credit cards in India. The number of debit cards in December 2015 increased to 630 million
compared to 22.75 in 2014

AEPS: The Aadhaar Enabled Payment System uses the 12-digit unique Aadhaar identification
number to allow bank-to-bank transactions at PoS. AEPS services include balance enquiry, cash
withdrawal, cash deposit, and Aadhaar to Aadhaar fund transfers.

USSD: Stands for Unstructured Supplementary Service Data based mobile banking. It is linked to
merchant’s bank account and used via mobile phone on GSM network for payments up to Rs.
5,000 per day per customer.

UPI: The United Payments Interface (UPI) envisages being a system that powers multiple bank
accounts onto a single mobile application platform (of any participating bank). Merges multiple
banking features, ensures seamless fund routing, and merchant payments. It facilitates P2P
fund transfers.

INDUSTRY & COMPANY INTRODUCTION

Back to history, mobile wallet is developed from a concept called “Digital Wallet”. It dated back
in 1996 when the founder of Digital Wallet, Sam Pitroda, who filed the patent in the United
States. He “professed that a digital wallet would consist of a liquid crystal display not much
bigger than a regular plastic bank card, which preferably a touch-sensitive screen and simple
user interface that lets the user flip through the digital wallet in the same manner he/she flips
through a leather wallet”. (Pitroda S., Desai M., 2010)

So far, there has not been yet a proper definition for the word “Mobile Wallet” written by
specific scholars. In the Non-Confidential GSMA White Paper, mobile wallet was defined as “a
software application on a mobile handset that function as a digital container for payment cards,
tickets, loyalty cards, receipts, vouchers and other items that might be found in a conventional
wallet. The mobile wallet enables the user to manage a broad portfolio of mobile NFC [Near
Field Communication] services from many different companies” (GSMA, 2012). In other words,
mobile wallet is “formed” when your smartphone functions as a leather wallet: it can have
digital coupons, digital money (transaction), digital cards, and digital receipts...etc. all in your
smartphone. This means, you install the application that are created by some companies such
as Google Inc., Apple Inc. or PayPal in your phone, and use those applications to pay directly for
the products you have purchased (online/offline).

One view, expressed by Kevin Erickson (2013) - a technology blogger from Credera (a
technology consulting firm from the USA) is that mobile wallet tries to perform these following
features for single user (Erickson, 2013):

 Display and store coupons or account offers from businesses which users subscribed or
engaged with
 Identify real time discounts and offers from different business locations
 Provide search engine and evaluation tool for restaurants and shops based on location
 Act as payment tool with credit and debit cards
 Organize receipts

LITERATURE REVIEW

LITERATURE REVIEW

This part introduces some of the foundation concepts of consumer adoption toward
technological products or any innovation in general.

Adoption concept

In diffusion of innovation literature, “adoption” is one of the oldest and most important
concepts (Eveland, 1979). “Adoption can refer to a process, an event, or a state of being -
sometimes all at once…Adoption is laden with positive value and implied finality. Adopters are
those who adopt, as opposed to rejecters who decide not to adopt, or non-adopters who have
yet to begin the process of becoming adopters” (Zenobia, 2008). Many diffusion of innovation
research has been using adoption concept as the main variable and it has successfully given the
main basis for the generalizability (Eveland, 1979).

Zenobia (2008) summarized the 3 types of adoption decisions suggested by Rogers (2003, 5th
edition) in his Diffusion of Innovations book: - Optional adoption decision is made by single
individual such as the consumers’ decision. - Collective adoption decision is taken place by
group consensus. - Authority adoption decision is established by more or less a few individuals
who hold positions of power, status or technical professionals in a group. This research paper
will focus mainly on Optional adoption decision which means that it studies the adoption
decision of consumers. However, “optional” does not imply that the adoption is made without
the influence of such factors as opinions of others (family, friends...etc.) or the impact of the
image imposed by advertising agency (Katz, 1962). Hence adoption is intrinsically a social
process (Zenobia, 2008).

Innovation-decision process

The Innovation – Decision Process of Rogers (1983, p.165) is “a process through which an
individual (or other-decision making unit) passes from first knowledge of an innovation, to
forming an attitude toward the innovation, to a decision to adopt or reject, to implementation
of the new idea, and to confirmation of this decision” (Figure 4). The process was called as the
Technology Adoption Decision Process (TADP) by Zenobia (2008) and it has been also the most
frequent cited model. For a sizable number of studies such as the scale of this research, TADP
model is very suitable to put in practice (Ettlie, 1980).

According to Rogers (1983, p.163), there are 5 stages included in this conceptualization:

- Knowledge: the existence of innovation is exposed to an individual so that

she/he gains some basic understanding of the innovation’s functionalities.
- Persuasion: favorable or unfavorable attitudes toward the innovation are formed
in an individual.
- Decision: when an individual perform activities or actions leading to the choice
of adoption or rejection toward innovation.
- Implementation: when the innovation is put into used by an individual. -
Confirmation: when an individual requires the reinforcement of an innovation-
decision already made. However, he/she can also reverse the previous decision
in case the innovation’s messages are conflicting.
 RESEARCH METHODOLOGY

Research method and data collection

The results of a qualitative research conducted by Niina Mallat have been found and used as
important secondary data to support for the answer of the question “What factors influent the
adoption of mobile wallet from the mobile consumer in Finland?” This qualitative research did
an effective and qualitative work in finding the possible influencing factors toward mobile
payment. It can also apply to mobile wallet case.

This research utilizes quantitative method in order to get the statistic results from respondents.
Not only quantitative method emphasizes on testing and verification, but also it focuses on
facts and /or reasons for social events. Moreover, its results can be generalized by population
membership .Using quantitative method will be able to answer the research questions how the
factors influent the adoption of mobile wallet in Finland and how mobile wallet has been
adopted in Finland

Secondary data and primary data have been selected to define key words: mobile wallet,
technology adoption and consumer adoption. The most used model of Technology Adoption
Decision Process (Zenobia, 2008) is rooted from the Innovation-Decision Process which was
created in 1962 by Rogers and developed throughout decades (also by him). The main primary
data collected for this research paper is dated in 1983 by Rogers (3rd edition). And secondary
data was gathered from dynamic sources including internet sources and variety of journals.

Title of The Study:

A study of consumer preference towards M- wallets.

Need of The Study:

The study was mainly conducted to identify the preference towards m-wallets.
OBJECTIVE:

 To find out the awareness and preferences of the consumers towards M-wallet service
providers.

 To study the services provided by the M-wallet providers and the services used by the
M-wallet users.

 To know the strategy of M-wallet to increase consumer engagement.

 To know the problems and challenges adopted to link in the adoption of M-wallet.

RESEARCH METHDOLOGY:

This part will explain thoroughly how this research paper is conducted. The aim of this research
is to answer the fore-mentioned research questions which are:

a) What factors /and how those factors influent the adoption of mobile wallet from the mobile
consumers in Finland?

b) How mobile wallet has been adopted by consumers in Finland?

In In this study, a combination of both Primary & secondary data will be used .Primary data is
used in the form of questionnaire method , which will be created by using Google forms & by
distributing among social media users . In addition to it, secondary data will be used to support
the study.

RESEARCH DESIGN

“A study design is the arrangement of the condition for the collection and analysis of data in a
manner which helps the purpose of the study.” As the study was made on the distribution
channel of PepsiCo and such documents being considered confidential, the questionnaire
method of surveying the distributer was adopted and separate questionnaire was prepared for
the customers and retailers. Each question has 2-4 options, giving sufficient options to the
respondents. On the bases of the answers to these questions, the findings are analyzed.

The quantitative method used is Questionnaire. The questionnaire was designed via online
survey tool called Google form .The respondents are introduced about mobile wallet at the
beginning of the survey including word explanation and a video example sourced from
YouTube: a video made by Westpac Company in New Zealand, which advertises about its
mobile wallet. The video was presented due to the fact that many consumers do have the
knowledge of mobile wallet, yet they can misunderstand it with other general terms (such as
mobile payment). Hence, a direction is drawn at the beginning of the questionnaire to guide
respondents to the right thought.

The respondents are divided into 3 categories after they have answered general questions such
as information about their age and whether or not they use smartphones. Each group will have
slightly different questions depending on the category and some identical questions. The
divided groups include:

- The Unknown: who have not heard about “mobile wallet” term until they did the
questionnaire? - The Awareness (Yes, I’ve known/ I’ve heard but I’ve never used): the title has
expressed the characteristics of this group. The questionnaire was sent to potential
respondents who reside in Finland (including Finnish and other nationalities) via Facebook
messages. They are mostly friends and friends’ circles. The duration for response is two weeks.
As a result, the number of respondents is 91 out of 100 leading to 91% answer rate. The other 9
respondents did not meet the due date which was set by researcher

RESEARCH METHODOLOGY:

Method of research- Description research was used.

Tools used for data collection: A questionnaire was structured together the primary
Information.

SOURCES OF DATA COLLECTION:

The data has been collected from both primary and secondary methods have been used.

Primary data- It was collected by interacting people face to face and with the help of
questionnaire.

Secondary data- it was collected from, internet, books ,magazines, online portals.
Structured questionnaire: Structured questionnaire is a printed list of questions to be filled by
the respondents. The structured questions are being made as short as possible and simple to
understand. The questionnaire is designed such that it helps to elicit the accurate information.

TOOLS AND TECHNIQUES:

The first-hand information was collected by interviewing the smartphone consumers. A

questionnaire was formulated and circulated to the retailers and customers. Hence the survey
method is the tool used here for data collection

Sampling Method: Convenience Sampling

Convenience sampling was a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher. A statistical
method of drawing representative data by selecting people because of the ease of their
volunteering or selecting units because of their availability or easy access. The advantages of
this type of sampling are the availability and the quickness with which data can be gathered.
The disadvantages are the risk that the sample might not represent the population as a whole,
and it might be biased by volunteers.

SAMPLING DESIGN:

• Sample unit: Consumers in Delhi NCR.

• Sample size: 80respondents

• Sampling method: Non Probability sampling technique.

• Place of study: Delhi , NCR

PLAN OF ANALYSIS:
The questionnaires were tabulated using tally method. The tabulated data was analyzed and
inferences were drawn. The tabulated data has been depicted in the form of a graph. The
promoters of different brands working there were not taken for sample size.

LIMITATION OF THE STUDY:

 Unawareness about the Mobile wallet

 Many people don’t know how to use it.
 Unavailability of the platform.
 Some of the respondents not answer to all the questions, it delays the data collection
 The time period of the study was limited.
 The primary data collection was through questionnaire only. The responds from the
respondents may not accurate.
 Due to time limitations the sample size for the study was limited to 50
 As the usage of M-Wallets may differs to person to person, the findings of the study
may not be accurately suitable to others.