Consumer spending via electronic/digital wallets: A study on Indian

community
Name: -Janu Patel
BBA 2017-20
Guide by: - Ms. Mayanka Singh Chokar
(in-dept interview)

ABSTRACT
The last decade has seen tremendous growth in the use of internet and mobile phone in India.  In
this digital world, millennials user of internet and smartphones as their psychological needs.
Smartphones are not just useful for social media, videos and taking selfies, now it has become a
platform to create efficiency for payment of goods and services which we purchase. Electronics
Consumer transaction made at point of sale for services and products either through internet
banking or mobile banking using a smartphone or card payment are called digital payment. This
becomes a positive impact on consumer adoption of digital payment. A consumer can buy a
range of products from airline tickets to groceries without swiping debit or credit cards using E-
wallets, it can satisfy consumers want, regardless of the expense. E-wallets is an innovative
facilitating, easier payment in any circumstances.

KEYWORDS
Digital payment, cashless, E-wallets

PAPER TYPE
Report

INTRODUCTION
Prime minister of India Mr. Narendra Modi took an initiative to create a significant growth
opportunity for digital payment in India. After demonetization of the high value of the currency
of Rs. 500 and Rs. 1000 (86% of cash circulation). The demonetization resulted in
unprecedented growth in digital payments. India’s most popular online destination for prepaid
mobile recharge. Consumers can now connect to the World Wide Web on their mobile/handheld
devices through a stand-alone software commonly known as mobile applications (Hoehle and
Venkatesh, 2015). The service sector companies like Uber, Ola cabs, book my show, make my
trip also prefer E-wallet as a medium of payment. E-wallets such as Paytm works with all mobile
operators in all states in India for payments of bills like a postpaid bill, DTH bill, landline bill,
electricity bill, data card and recharges like prepaid mobile and DTH. Companies offering
mobile wallet services have also partnered with the various national banks, for credit card, debit
card and net banking payments. Even IRCTC (Indian Railways Catering and Tourism
Corporation) is now started with E-wallet service to make customer easier to make their
payments at the time of requirement.

E-wallet services generally enables a user in terms of (1) Ease of use without having to enter
debit/credit card details for every single online transaction. (2) For some sites, there is no
minimum amount and you can deposit an amount as low as Rs 10. (3) Benefits of e-wallet can be
shared with and family (4) There is no chance of a decline in payment since E-wallet is a prepaid
account, these are some of the benefits that can be availed by using E-wallet.

Digital Payment Modes in India:

There are several modes 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 like a gift card, customers can
make purchases using funds available on the card -and not on borrowed credit from the bank.
Additionally, it 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 has increased to 630 million
compared to 22.75 million in 2014.
The Aadhaar Enabled Payment System (AEPS) 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.
Unstructured Supplementary Service Data (USSD) based mobile banking. It is linked to the
merchant’s bank account and used via mobile phone on the GSM network for payments up to Rs.
5,000 per day per customer.
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 ensure seamless fund routing and merchant payments.

Top Five E-wallet in India:

NO. Wallet Name Features

1. Paytm Transferring money instantly to the bank from Paytm account

Safe to store customer’s CVV number.
Paytm has launched an app password feature for Paytm Wallet in order to ensure
the money is safe even if the customer lose or misplace his/her phone.
A customer can use Paytm even without a Smartphone.
2. Mobikwik Introduction of M-Wallet for easy storing and transaction of money.
Instant recharge without sign-up.
Encrypted and highly secured transactions.
User friendly mobile application.
3. PayUmoney Auto read of OTP.
Picking up the transaction where it dropped.
Risk monitoring
4. Citrus Fastest among all the digital wallets.
CitrusPay wallet offers and discounts
5. Oxigen Send money to other mobile phones
Shows transaction history
(Source: http://www.socialbeat.in/2015/09/29/top-10-mobile-wallets-in-india/)

LITERATURE REVIEW
Singal Nidh (2016); The article discusses the mobile wallet that loads money of payment of bills
which is hassle-free and save time. Topics mentioned include the high success rate on making
payment with a transaction in less than 10 seconds, the loading of money which does not risk the
credit card and bank account limit, and the offered services by electronic commerce company
Paytm including buying tickets, institutions fee payment, and money transfers. Korzeniowski
Paul (2014); discusses that the emergence of mobile wallets and how it has changed customer
experience in the payment process. Topics include the appeal of mobile commerce functions in
smartphones to consumers, the use of more personalised shopping experiences. Quittner Jeremy,
(2012); The article focuses on a security problem in Google Inc.'s digital wallet, which is linked
to prepaid accounts where users store funds. The research firm zvelo Inc. found the PIN
(personal identification number) code used for authentication and another user information in
Google's Wallet application can be extracted by a computer hacker. Holmes Tamara E. (2012);
offers advice on how to protect one’s financial information in digital wallets from getting into
wrong hands. It warns of spoofed invoices which look legitimate and request payments through
wire transfer or direct bank transfer. It also advises against clicking on links in e-mails and to
avoid providing information such as social security number. It suggests setting a passcode on
smartphones to avoid becoming a victim of identity fraud. Ernst & Young LLP, (2016); Stated
that the number of mobiles across the world far exceeds that of any other device and its adoption
is increasing rapidly. There are 997 million mobile phone subscribers and 239 million
smartphone users in India. Bamasak (2009); carried out a study in Saudi Arabia found that there
is a bright future for mobile-payment. Security of mobile payment transactions and the
unauthorized use of mobile phones to make a payment were found to be of great concerns to the
mobile phone users. Security and privacy were major concerns for consumers which affect the
adoption of digital payment solution.

OBJECTIVES
1. To ascertain the acceptance of the concept of E-wallet among potential consumers.
2. To determine the extent of acceptance of this application in various consumer options.
3. To determine factors that influence consumer purchase of E-wallet options and other similar
options.

RESEARCH AND METHODOLOGY

This study is explanatory in nature, it describes the status and nature of E-wallet in the study
unit. Along with explaining the acceptance of digital payment on basis of respondent options. A
sampling method is a definite plan for obtaining the data from potential consumers from
among the users of various e-wallet services, mobile recharge, booking for cinema, air ticket
and using various options and where these respondents were chosen at random. The current
study is based on primary data collected from 15-20 respondents from the different parts of the
Surat district. A well-structured questionnaire was designed to collect the information from the
respondents the questionnaire was designed to study the perception of the consumer towards
spending via digital payment mode. The responses have been collected by means of face-to-
face interviews by me.

Sampling unit: This call is for defining the target population to be surveyed. In this research, the
sampling unit was the customers who have been using the digital payment modes.

FINDING AND RESULTS

As my report is based on an in-depth interview, I used a sampling method to know how many
people adapted e-wallets fully. Sampling size is 15- 20.

1. How often do you prefer mobile payment?

Answer: 18-36 age group said that they prefer always digital payment for their day-to-day
activity. But age group of 45-80 said they don’t use this often.

Interpretation: Education impact on this, age group of 45-80 were not known about
technology, as we see that technology change day by day. Age group of 18-36 were used digital
payment. Because mobile payment gave lots of advantage to millennials. So, youth going to
take advantages.

2. Does demonetized impact on digital payment? If yes, then why?

Answer: 80% people gave the same answer that it impacts on digital payment, and yes,
according to me also it impacts on digital payment. 50% were saying that it’s a good impact on
our Indian economics.

Interpretation: Yes, they are saying right. It impacts greatly on the Indian economy. More than
82% of people are using mobile wallets after demonetization.

3. Do you think mobile wallets providing more security and privacy?

Answer: youth saying yes, e-wallet provide more security. We shouldn't be afraid of stealing
from our wallet, we can use e-wallet whenever we needed with one PIN or figure print. So,
insecurity there is no problem.

Interpretation: whosever use e-wallets in their day to day life, they are saying that yes, e-
wallets maintain in term of security. But who is not using e-wallet in their mind they think that
e-wallet has no security in term of keeping personal data.

4. Do you think you influence to use a digital wallet?

Answer: yes, it influences us to use mobile wallets, because they offer a discount, coupon and
many exciting offers which influence us to use digital wallet.

Interpretation: yes, it influences us to use digital, and 80% people are using it. Youth keep
checking what they are offering and trying to take advantages of that.

5. Do you think e-wallet is time-saving?

Answer: This answer is given by 60-year-old man, he thinks that yes, it saves my time to go in
the bank and do payment and all. In this age, I am not able to go to the bank. And age group of
30-40 is saying that in due a busy schedule in life we do payment by our own gadget so for us,
it’s too important.

Interpretation: yes, 90% people have agreed with this that e-wallet is time-saving for everyone
who is using it in their purchases of goods and services.

CONCLUSION
E-wallet which is considered as a hi-tech platform for money transacting and payments have
been perceived to be comfortable and reliable, indicating high levels of acceptance. The e-
wallet service providers need to strategies targeting not only at students and the youth but also
other age groups. This m-commerce is developing through technology rapidly growing in India.

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Consumer spending via E-wallets Questionnaire designed from this:

[1]
(source: http://www.icommercecentral.com/open-access/study-of-consumer-perception-of-
digital-payment-mode.php?aid=86419)