A STUDY

ON
ADOPTION AND IMPACT OF PAYMENT WALLETS IN
INDIA
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE
DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION 2021-21
UNDER THE GUIDANCE OF
Ms. Deepika Chhikara
FACULTY, VIPS
SUBMITTED BY:
AMAN BEDI
Roll No. 00717701718
BBA (General) 6A

Vivekanand School of Business Studies 

Vivekananda Institute of Professional Studies
AU Block (Outer Ring Road) Pitampura
Delhi - 110034
 Table of contents

Particulars Page No.

 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled “TO STUDY ADOPTION AND

IMPACT OF PAYMENT WALLETS IN INDIA” under the guidance of “MS. DEEPIKA

CHHIKARA” in partial fulfillment of the requirement for the award of degree of Bachelor of

Business Administration (BBA) at Vivekananda Institute of Professional Studies, Vivekananda

School of Business Studies, New Delhi. This is an original piece of work and has not been

submitted elsewhere.

AMAN BEDI

STUDENT SIGNATURE
 CERTIFICATE

This is to certify that the Project titled “TO STUDY ADOPTION AND IMPACT OF
PAYMENT WALLETS IN INDIA” is an academic work done by “AMAN BEDI” submitted in
the partial fulfillment of the requirement for the award of the Degree of BBA from Vivekananda
Institute of Professional Studies.  It has been completed under the guidance of MS. DEEPIKA
CHHIKARA. The authenticity of the project work will be examined by the viva examiner which
includes data verification, checking duplicity of information etc. and it may be rejected due to
non-fulfillment of quality standards set by the Institute.

Signature of the Faculty Guide

Executive Summary
 Chapter 1
Introduction
1.1 BACKGROUND OF THE STUDY
The way we do transactions have changed a lot in recent years. Now money in form of cash is no

longer a medium of exchange. With the advent and proliferation of Digital India, we are heading

towards a cashless society. This has paved way for a number of payment wallets so enter the

Indian markets and transformed the way of payment and transaction in India.

A CASHLESS SOCIETY
HISTORY OF CASHLESS SOCIETY
The WAY we used to PAY.

6000
Bartering big and small
Before money; cows, salt, human
skulls and smaller commodities
such as dried corn and fur were
all used as a form of payment.

Coinage the coin

Elsewhere in the world, coins
were already freelyexchanging 100 BC
hands, but it wasn’t until 100 BC
that we saw the first coins
produced in Britain.

Cash for gold

Goldsmiths became earliest bankers.
Goldsmith-bankers started to take 1500s
in gold and offer receipts or
‘running cash notes’ for its value
that could be redeemed in gold.

Cheque, please!
The first cheque was written
at a goldsmith’s bank in 1600
London. Cheques were made
out for large amounts and only
really used by merchant traders.
Paying with paper
Before 1759, banknotes came in large
values, but gold shortages meant that
1759-
bankers couldn’t redeem their full value.
The solution? Smaller value banknotes 1793
we could exchange instead of gold.
A license to print money
Handwritten and signed banknotes
1853
became a thing of the past as
cashiers could now distribute
printed money.

Charge cards arrive

A few businesses provided charge
cards so people who travelled 1920s
around didn’t have to visit
their hometown’s bank for cash.

Cardboard credit cards

Based on an American Dinner’s Club
card, which allowed dinners to pay
off their meal receipts in a monthly 1950s
bill, was this when the first sign of
credit cards appeared.

Internet banking and

SMS-enabled payments
By 1997 we could access our
finances online and the first
contactless payment arrived.
Coca-Cola created vending 1997
machines that would vend a
drink after receiving a text
message payment.

The debit boom

By the year 2000 80% of people in the
UK had debit cards- but they weren’t
using them very often. Mainly because
2000
 Invention of Bitcoin
Bitcoin, the first cryptocurrency 2009
was invented. In 2008,
contactless payment using NFC
was first trailed in Australia

The rise of mobile wallets

Google wallet was released in 2011 2011-
Followed by WeChat pay 2013. 2015
Paytm wallet and Apple pay was
started in 2014. Android’s samsung pay
released in 2015

Growth of cashless payments

Whether it is making payments
using cards, digital currencies or
mobile devices, there is no doubt
that cashless payments are NOW
becoming the dominant force
with some countries boasting up
98% of the value of payments
made as cashless payments
1.2 CONCEPTUAL FRAMWORK

What is a payment wallet?

A payment wallet or mobile wallet is a virtual wallet that stores preloaded money and payment
card information on a mobile device. Payment wallets are a convenient way for a user to make in-
store payments and can be used at merchants listed with the payment wallet service provider.

The business-consumer relationship is swiftly becoming digital. From e-commerce platforms to

retail stores businesses are transforming the way they operate to meet the ever-changing needs of
their clients and the increasing use of mobile phones and devices.

The payment wallet is an app that can be installed on a smartphone or it is an existing built-in
feature of a smartphone. A payment wallet stores credit card, debit card, coupons, cash or reward
cards information. Once the app is installed and the user inputs payment information, the wallet
stores this information by linking a personal identification format such as a number or key, QR
code or an image of the owner to each card that is stored.

When a user makes a payment to a merchant, the mobile app uses a technology called near-field
communication (NFC). NFC uses the personal identification format created for the user to
communicate the payment information to the merchant’s POS (point-of-service) terminal. The
information transfer is usually triggered when the user waves or holds an NFC-enabled mobile
device over the store’s NFC reader. Not all smartphones or mobile devices are equipped with
NFC technology. Nowadays, payment wallet allows users to make payments using their mobile
phone numbers during checkout. The phone number has to be linked to the user’s account for the
transaction to be approved. payment wallet Also uses QR codes which can be scanned at the
checkout

Fraudulent activities, such as identity theft, are harder to initiate with payment wallets. While a
user’s credit card can easily be stolen or duplicated, smartphones are not that easy to steal. A
smartphone that is stolen may be hard to access if there is an access password or fingerprint
check installed. Payment wallets may also have encrypted keys. Payment wallets are also useful
for retail businesses that experience high volumes of transactions per day because payment
wallets help to reduce wait and payment times. This is a win-win for both the customers and the
business.

Usage, benefits of payment wallets

Few years ago, the payment wallets seemed to be an unlikely thing but now it has become the
reality and a common practice. The number of users and adoptions have increased a lot in recent
years.

A 2018 Survey shows that about 7.6% of population of India is using these payment wallets.
The major advantages of using these wallets are:

1. They are easily accessible at the click of phone with us every time.

2. Over the years security concerns have been resolved and strengthened.

3. All facilities under one roof.

4. A number of attractive offers and discounts.

But along with advantages there are certain disadvantages also;

1. Not a ready acceptance everywhere

2. Internet problems and connectivity issues

3. Problem for those who do not have smartphones or their phones do not support certain apps.

4. Any problem with phone will lead to hampering of use like battery die etc.
1.3 Industry profile

Globally

With the flourishing m-commerce industry, there has been a significant rise in mobile shopping
and mobile banking activities. The flourishing m-commerce industry paired with the proliferation
of smartphones and Internet penetration is driving the mobile wallet market worldwide. This, in
turn, is favoring market demand. These factors are expected to contribute towards a double-digit
compounded annual growth rate (CAGR) during the forecast period 2020-2028.

Mobile wallets have increasingly gained market traction amid the ongoing COVID-19 pandemic
as the current health crisis continues to keep bank branches closed, pushing customers to seek
digital alternatives to fulfill their daily needs. For instance, mobile transactions processed by
Mercado Pago, an Argentine e-commerce company, surged by more than 50% during the
lockdown. This has spurred the adoption of mobile wallets as shopping platforms and industry
regulators, encouraging the use of contactless mobile payments during the pandemic.

The mobile wallet market is witnessing a dynamic transition in customer behavior as shoppers
are adopting digital payment methods at a rapid pace due to convenience and easy use. The
digital disruption and generational shifts are causing fundamental changes in customer behavior
as millennials are embracing digital payments and avoiding physical bank branches or ATMs.

The increasing customer preference toward mobile payments has driven companies, such as
Apple and Samsung, to launch their solutions and change the way marketers connect with
consumers, creating new avenues for market expansion.

APAC (Asian-Pacific) held above 50% of the global mobile wallet market share in 2019 owing to
the widespread adoption of mobile technology in emerging markets. This has offered market
players a new way to reach unbanked & underserved customers in remote areas. In 2019, Asia-
Pacific was the largest mobile wallet market in terms of both revenue and number of transactions
followed by Europe and North America. In 2019, the region accounted for over 30% of the global
market revenue.

The global mobile wallet industry is characterized by large-scale investments by fintech players
as mobile wallets and digital payments become mainstream. For instance, in November 2019,
Paytm, a major fintech company in India, raised USD 1 billion in investor funding led by Alipay
and Softbank. The company utilized these funds in strengthening its payments and e-commerce
business along with expanding in new South Asian markets.

The mobile wallet market has also witnessed several strategic alliances between key players to
launch new products with robust functionalities and garner a wider customer base. For instance,
in March 2020, TransferWise partnered with Alipay to introduce international mobile payments
via the mobile wallet. The new feature allows TransferWise’s users to make payments in Chinese
yuan to Alipay users from 17 currencies supported by TransferWise mobile wallet.

Some of the key players operating in the market are: -

 Amazon.com, Inc.,
 American Express Company,
 Ant Financial Services Group,
 Apple Inc.,
 AT&T Inc.,
 Barclay’s plc
 First Data Corporation,
 Google LLC,
 ICICI Bank Limited,
 J.P. Morgan Chase & Co.,
 Mastercard Incorporated
 One Morikis System Pvt Ltd.
 One, Communications Limited
 PayPal Holdings, Inc.
 Samsung Electronics Co., Ltd.
 Tencent Holdings Limited.
 Visa Inc.
 Vodafone Group PLC.
.

Mobile commerce and money transfer were the two leading application segments in the global
mobile wallet market in 2020. The segments collectively accounted for over 60% of the global
market revenue in the same year. The trend shall continue and the mobile commerce segment is
presumed to retain its leading position throughout the forecast period 2020-2028

As of 2020, retail was the largest end-use segment in the global mobile wallet market in terms of
both revenue and number of transactions. The segment accounted for over 40% of the global
market revenue in the same year. The trend shall prolong and the segment is presumed to hold on
to its dominant position throughout the forecast period 2020-2028. The retail sector, which
currently boasts of the highest penetration rate, is a key segment for vendors and mobile
operators. As the technology matures, more retailers are expected to adopt the technology for
effective and easy payment procedure.

Mobile Wallet Market size crossed USD 100 billion in 2019 and is poised to register gains at
over 15% CAGR between 2020 and 2026. The global mobile transaction volume exceeded 100
billion in 2019 with transaction value about USD 7.5 trillion. The industry is witnessing a
significant market disruption with the increasing availability of VoLTE and the rapid
proliferation of inexpensive smartphones. It is estimated that, smartphones will account for
around 77% of the internet-connected devices by 2025. Technology players and banking
establishments are developing multiple proprietary mobile wallet applications for smartphones,
spurring the demand for mobile payments

Evolution of Payment Wallets in India

India has already become world’s second biggest smartphone market after overtaking the United
States. Apart from growing economy and population growth, India is also witnessing other
trends, like surging internet penetration, rising smartphone ownership, modernization of lifestyle
due to urbanization coupled with improvement in education level. These trends make India a
favorable market for multitude of products and services like mobile wallets.

The market is forecast to gain immensely during forecast period of 2017-22, due to
Government’s decision to demonetize INR 500 and INR 1000 currency notes and focus to make
India a cashless and digital economy. This will help the industry and directly benefit companies
like Paytm, Free Charge, Oxigen and others
The growth in adoption of payment wallets in India seemed to be promising since the inception
but
Post demonetization in India the growth has been unprecedented. It has grown manifolds and the
number of people adopting these payment methods are rising across the length and breadth of our
country. Demonetization has led to a significant increase in the use of mobile wallets in India,
and the government has announced a host of initiatives to realize its vision of a cashless India. It
has driven a 207% increase in the number of mobile wallet transactions, and a 120% increase in
the value of transactions on mobile wallets.

POS devices grew by 68% in the five months after demonetization.

Debit cards account for 71% of transaction volume and 85% of transaction value
TYPES OF MOBILE WALLETS IN INDIA
1. Closed PPI – Issued by a company to buy goods and services only from that company; it does
not permit cash withdrawals or redemptions
2. Semi-closed PPI – Can be used to buy goods and services from merchants that have a contract
with the Issuer to accept the payment instrument; it does not permit cash withdrawals or
redemptions
3. Open PPI – Allows a user to buy goods and services, withdraw cash at ATMs or banks, and
transfer funds

SMART PHONES AS MOBILE WALLETS

Mobile wallet is a very young concept in India that has taken on consumer psyche rapidly.
Everyone is loving mobile wallets and embracing them with open arms. Today, mobile wallet is
one of the successful business ideas for start-ups. The evidence lies in the fact that it has
surpassed credit cards in terms of the number of users in just a fraction of time. Vijay Shekar
Sharma’s venture Paytm alone has 20 million active users. The number is higher than the
cumulative number of credit cards in India. At present, there are 10-12 mobile wallet companies
operating in the country.

The top mobile wallet companies in India are as follows:

1.PayTM

According to Vijay Shekhar Sharma, chairman and managing director of One97

Communications, which operates Paytm, which received the mobile wallet service license from
the Reserve Bank of India last year, aims to cross the 100-million users mark by 2016. Paytm is
India's biggest versatile installments, e-wallet, and business stage. Paytm is one of the fast-
growing companies in wallet. Paytm has changed itself into an Indian mammoth managing
versatile installments, banking administrations, commercial center, Paytm gold, energize and
charge installments, Paytm wallet and many other provisions which serve around 100 million
enlisted clients. Paytm is accessible in 11 Indian dialects and offers online use-cases like versatile
energizes, service charge installments, travel, motion pictures, and occasions appointments. In-
store installments at markets, leafy foods shops, cafés, stopping, tolls, drug stores and instructive
establishments can be accessed through the Paytm QR code. With its 350+ million users, Paytm
wallet is India’s dominating mobile payment service.

2. PhonePe

PhonePe started in 2015 and in just 4 years it has been able to cross the 100 million download

mark. From UPI payments to recharges, money transfers to online bill payments, you can do it all

on PhonePe. It’s got a very good user interface and is one of the safest and fastest online payment

experiences in India. PhonePe is accepted as a payment option at over 17.5 million offline and

online merchant outlets across 500 cities in India covering food, travel, groceries, medicines,

movie tickets etc. The app crossed 100 million user mark in June 2018 and also crossed 5 billion

transactions in December 2019.It currently has over 280 million users. The company launched

the PhonePe ATM in January 2020.The PhonePe ATM allows neighborhood Kirana stores to

dispense cash in real-time to customer.

3.MobiKwik

Started in 2009, MobiKwik is an independent mobile payment network that supposedly connects
25 million users with 50,000 retailers and more. This e-wallet app lets its users add money using
debit, credit card, net banking and even doorstep cash collection service, which can, in turn, be
used to recharge, pay utility bills and shop at marketplaces. Another unique feature they have is
their expense tracker which allows setting budget for your expenses across all payment
instruments and it uses your SMS data to analyze and control spends. No wonder it made to the
list of top online payment apps in India.

4.Amazon Pay

Amazon Pay is an online payment processing service that is owned by Amazon. It is also a top
online payment app in India and the global market. Launched in 2007 globally and India in 2017,
Amazon Pay uses the consumer base of Amazon and focuses on giving users the option to pay
with their Amazon accounts on external merchant websites, including apps like Big Bazaar etc.
You also get to shop on Amazon using Amazon Pay. Amazon Pay has also tied up with fintech
companies such as Zest Money to enable no-cost EMI payment options on its platform. This
makes it easy for consumers to purchase products on Amazon and pay for it through affordable
monthly instalments.
5.Dhani

Dhani App is part of the Indiabulls group and has multiple features. It is not only a regular e-
wallet app but it can also be combined with Dhani SuperSaver Card. Dhani also has a reward &
loyalty program for Dhani customers wherein customers can play games and win cash to pay for
mobile recharge, EMI payments, Insurance, and also for new Dhani products. This can be
combined with Dhani Super Saver Rupay (physical and virtual card) which has assured 5%
cashback on all purchases done via the card and its completely free for the first month.

6.Yono by SBI

This mobile wallet application was launched by State Bank of India to let users transfer money to
other users and bank accounts, pay bills, recharge, book for movies, hotels, shopping as well as
travel. This semi-closed prepaid wallet offers its services in 13 languages and is available for
non-SBI customers as well. This app also allows its customers to set reminders for dues, money
transfers and view the mini-statement for the transactions carried out. Apart from this YONO can
be used for fund transfers and even to get a loan/overdraft against your Fixed Deposit. YONO is
a one-of-a-kind digital banking platform and offers a range of customized products, including
offers and deals from more than 60 e-commerce players.

7. ICICI Pockets

Pockets by ICICI is a digital bank that offers a mobile wallet for its customers. It provides the
convenience of using any bank account in India to fund your mobile wallet and pay for
transactions. With Pockets, one can transfer money, recharge, book tickets, send gifts and split
expenses with friends. This wallet uses a virtual VISA card that enables its users to transact on
any website or mobile application in India and provides exclusive deals or packages from
associated brands.

8.Jio Money

JioMoney is one of the Indian payments banks which started its operations during 2018,
JioMoney was started as a joint venture between the Reliance Industries and State Bank of India,
with a stake ratio of 70:30. JioMoney app will help the users to perform any kind of financial
transaction be it paying for bills, recharging DTH or mobile number recharge, sending or
requesting money or online shopping, payment of insurance premium and so on by using the
wallet and usually, the failure rate in wallet transaction is very negligible. You can pay for your
purchases via Jio Money at a range of shops or registered merchants. These stores can be
recognized by "JioMoney accepted here" logos that are shown prominently. You can use Jio
Money at a store in the below given several ways.

9.Freecharge

Founded in 2010, Freecharge is one of the popular mobile payment apps in India that is owned by
Axis Bank claims to be strong in the mobile space with 20 million registered users. It is not a
mobile wallet but a mobile recharge platform. The application is used by customers to recharge
their mobile phones, pay utility bills, do online shopping and also use the unique ‘Chat n Pay’
service. The Freecharge wallet service was launched in September 2015, and has ever since
introduced a number of attractive features. Recently, the wallet company joined hands with the
Bharat Interface for Money (BHIM) and Unified Payments Interface (UPI) system, this will
enable all customers to send and receive funds through the UPI system and initiate fund transfers
instantly on a 24/7 basis on all 365 days in a year, including bank holidays
1.4 Objectives of the study: -
 To see the pattern of adoption of payment wallet in term of gender, age, and
Profession.

 To analyze the usage and preference of people toward various payment wallets

 To assess the attitude of people toward payment wallets

1.5 Scope of the study

The scope of the study is restricted to be of respondents of age more than 18. Data was collected
from respondents of Delhi and NCR region both working and non-working. The age ranged 25-
60.
 Chapter 2
Literature Review
 [CITATION ASt \l 1033 ]
They explored the factors determine the adoption of mobile banking (m-banking) services
among students who are more technically knowledgeable. The questionnaire is prepared
based on the qualitative approach. Based on the extension of the Technology Acceptance
Model, the theoretical framework is developed to investigate the factors that determine
student’s acceptance of mobile banking. The constructs of TAM for mobile adoption such
as Perceived Ease of Use, Perceived usefulness, Perceived Value, Trust Intention to Use,
and Usage Behavior were used. The statistical tool multiple regression analysis was used
to examine the influence of independent variables on the dependent variable of intention
to use m-banking. The independent variables trust, perceived value, perceived ease of use
and social influence may account for 42percent on the influence of dependent variable.

 [ CITATION Jas16 \l 1033 ]

They have conducted a study to identify various factors influence on the adoption of
mobile wallet payment among customers They considered the various variables for the
study are Convenience, Trust, Security, and Adaptability which have an impact on the
satisfaction of mobile wallet usage. The study was conducted in the Kuali city, District of
Punjab. Pearson's Correlation Analysis was to investigate the relationship between the
different basic variables of the study. The study findings show that mobile wallets are
considered as the futures of cash

 [ CITATION Paw16 \l 1033 ]

This paper stresses upon paperless transaction of e-currency that is getting popular all
over the world, i.e., digital wallet. The researcher in this paper has tried to get information
on the awareness and use of Payment wallets in youth of India. The study shows that
popular wallets are the ones which are associate to the online business companies and
those with the banks are doing fine.
 [ CITATION DrR16 \l 1033 ]
this study targeted among the population of Jalgaon the preference towards mobile wallets
and carefully examine the effects of demographic variables on the use of m-wallets along
with the factors influencing and refraining for the use of m-wallets. The study concludes
that India needs to move towards a cashless from cash-based electronic payment system.
This will be useful in reducing currency management cost, check tax avoidance / fraud,
track transactions, etc., integrate the parallel economy with main stream with financial
inclusion. This paper concludes that in pushing cashless and electronic payments, the
most significant contributor emerged is the M-wallet.

 [CITATION ABH17 \l 1033 ]

They tried to analyze the use of Paytm by users of mobile phones and also to find out
various issues faced by users of Paytm. The research categorized on the basis of, age,
Purpose of usage, Frequency of usage and average monthly spending on Paytm by the
respondents. Study further elaborates that Paytm is quite convenient owing to wide
network of partners. This paper concludes that to improve the transaction efficiency it
needs to work upon the payment gateway as 70% people face issues with it. In order to
cater the requirement of maximum customers, the service needs to improvise as indicated
by only 5% people respondents to have got help every time they encounter a problem in
it.

 [ CITATION Mad17 \l 1033 ]

Analyzed that youngsters are becoming more aware and responsible towards digital
payments and are contributing in some or the other way towards growth and success of
making India digital. She also states that a lot of security aspects are still left unexplored.
Information technology has to work hard towards making the transactions secure and
complete as this is one of the major hindrance in the success of digital payments. In spite
of many security issues, people are inclined towards e-payments because of its
convenience, ease of use, quick service and availability.

 [ CITATION Piy17 \l 1033 ]

conducted a study an analysis of growth pattern of cashless transaction system concluded
 that the cashless transaction system is reaching its growth day by day, as soon as the
market become globalized and the growth of banking sector more and more the people
move from cash to cashless system. The cashless system is not only requirement but also
a need of today society. All the online market basically depends on cashless transaction
system. The cashless transition is not only safer than the cash transaction but is less time
consuming and not a trouble of carrying and trouble of wear and tear like paper money. It
also helps in record of the all the transaction done. So, it is without doubt said that future
transaction system is cashless transaction system
 [ CITATION KSu18 \l 1033 ]
The study examines the effect of adopting digital payments impact on consumers of the
banking sector of India. The result put together gives us an important policy direction
towards what can enable the country to increase cashless payments. The results indicate
that the deployment of technology for digital payments have improved the performance of
banking sector and able to achieve the motive cash less country. The study gives emphasis
to the percentage of awareness on maximum utilization of technology. Banks should take
effective measures in creating awareness towards the effective usage of technology and
security

 [ CITATION Anj18 \l 1033 ]

The study was done about the customer perception concerning Mobile wallets. In this
study they examined that the factors exploration technique is used to classify the factors
which influence customer opinion towards Mobile wallets. The study has been conducted
about the different types of mobile wallets in India. The data is collected from both
secondary data and primary data. The survey was conducted among 139 mobile
respondents in the telecommunication industry.

 [ CITATION Sat18 \l 1033 ]

The study is to find out whether customer demographics influence adoption intention for
payment wallets in India and to identify the parameters that are most important in
predicting consumers’ adoption intention and whether the market can be segmented into
different customer groups. To develop and test a model to better understand the factors
which are most important in predicting consumers’ adoption intention to adopt digital
wallets in India. To find out if the market can be segmented into different customer groups
with their own unique criteria of adoption intention for payment wallets services. It was
discovered that several constructs not included in the original UTAUT model, like
perceived self-efficacy, personal innovativeness & individual playfulness, attractiveness
of alternatives and perceived value that play a significant role in influencing consumers’
attitude towards payment wallets services
 Chapter 3
Research Methodology
3.1 PURPOSE OF THE RESEARCH

The research might generate knowledge specific to the problem situation and has limited relevance,
it’s known as applied research. However, in this case, the research is conducted with a wider and all
en-compassing purpose, where the benefits generated would be applicable to the entire business
community, thus, making it a basic research.
The purpose of the study can be granulated and divided between exploratory and conclusive
research. Exploratory Research is principally used to gain a deeper understanding of something. It
allows the researcher to gain a better understanding of the concept and provides direction in order to
initiate a more structured research. Conclusive research, on the other hand, tests and authenticates
the propositions revealed by exploratory research. It is carried out to test and validate formulated
hypothesis and specified relationships. A descriptive study was carried out to identify factors
affecting customer perception towards Payment wallets. The data was collected from both primary
and secondary sources
employing a self-designed standardized questionnaire as the major tool for collecting primary data
while journals, Magazines, internet and other relevant manuals/publications as secondary sources of
data collection

3.2 RESEARCH OBJECTIVES OF THE STUDY

In this study we try to analyze the behavior of people and their redemption to adopt
Payment wallets. The following are the research objectives –
 To see the pattern of adoption of payment wallet in term of gender, age, and
Profession.

 To analyze the usage and preference of people toward various payment wallets

 To assess the attitude of people toward payment wallets

3.3 RESEARCH METHODOLOGY

Research methodology is concerned with the process we use to achieve the desired objectives.
In this we decide that how will we collect data, decide the sampling technique, sample size,
technique for analysis etc.
3.3.1 Research design
Research design can be considered as the structure of research it is the “Glue” that holds all of the
elements in a research project together, in short it is a plan of the proposed research work.
Research design stands for advance planning of the methods to be adopted for collecting the relevant
data and the techniques to be used in the analysis, keeping in view the objective of the
research and the audibility of staff, time and money.
Research designs are categorized broadly into two categories exploratory research design and
conclusive research design. Conclusive research design is further divided into descriptive and
causal/ experimental research design.
Explanatory (casual) research explores the effect of one or more variables on other variable(s), with
reasonable level of certainty by controlling the impact of other influencing variables. Rigid,
sequential approach to sampling, data collection and data analysis.
The suitability of a research design for a specific research depends on nature of the problem, method
of data collection and analysis.
Explanatory (casual) research design is appropriate for this study. Exploratory research is defined
as a research used to investigate a problem which is not clearly defined.
3.3.2 Data collection
Data collection is a methodical process of gathering and analyzing specific information to proffer
solutions to relevant questions and evaluate the results. It focuses on finding out all there is to a
particular subject matter.
This section presents explanation of the methodological issues and considerations regarding
obtaining and handling the data used in the study. The section consists of two parts, each
representing a different component of the data collection process. The first part contains information
regarding the data collection tools and the second part contains information regarding the
incorporation and construction of the questionnaire.
Data collection tools
The study used both primary data and secondary sources of data.
• Sources of primary data
Primary data collection by definition is the gathering of raw data collected at the source. It is a
process
of collecting the original data collected by a researcher for a specific research purpose.
Quantitative research method (questionnaire) is used in this study to establish facts
about the topic. Quantitative research is defined as a systematic investigation of
phenomena by gathering quantifiable data and performing statistical, mathematical, or
computational techniques.
A structured questionnaire is used with the objective of gathering information on
people’s intention and attitude towards Chatbots. A questionnaire is a research
instrument consisting of a series of questions for the purpose of gathering information
from respondents.
• Sources of secondary data
Secondary data collection, on the other hand, is referred to as the gathering of second-hand data
collected by an individual who is not the original user. It is the process of collecting data that is
already existing, be it already published books, journals and/or online portals. In terms of ease, it is
much less expensive and easier to collect.
Secondary data is the readily available form of data collected from various sources like censuses,
government publications, and internal records of the organization, reports, books, journal articles,
and websites.
The data collection technique used were the google forms online propagated using WhatsApp.

3.3.3 Sampling
 Sampling method
Non-Probability sampling (Convenience Sampling)
Non-probability sampling is defined as a sampling technique in which the researcher
selects samples based on the subjective judgment of the researcher rather than random
selection. It is a less stringent method.
Convenience sampling is a non-probability sampling technique where samples are
selected from the population only because they are conveniently available to the
researcher.
For this study, convenience sampling technique is used

 Sampling unit
For the purpose of this study the population is from Delhi NCR region and is limited to be of age
greater than 18.
 Sample size
100 Respondents
Questionnaire was prepared keeping objectives in mind. The structured questionnaire
comprises of total 21 Questions
Data analysis tool
The data collected from the questionnaire was subjected to statistical analysis. It is
collated, tabulated, employing bar graph frequency and percentages to analyze
the data and derive results.
 Chapter 4
Analysis & Interpretation
Here is the detailed analysis and interpretation of the responses collected from questionnaire with
the help of MS word and MS excel.

Gender

With regards to Gender , the population of male is likely high as compared to women. In this
above chart , 51% of male have filled the Questionnaire as 43% women has filled
Questionnaire.
The adoption of usage of payment wallets seem to be equally adopted by both men and women.
However, it is observed that men tend to be more equipped with the use of technology and
internet as their interaction in terms of payment etc. is more. Amongst women those who are
working ,young and educated tend to use these payment wallets.

Age

In this above chart, the percentage is based upon the age of the person who has filled the

questionnaire.

57% of age between 18-25

18% of age between 26-35

16%of age between 35-50

And least with above 50 with 9%.

Annual Income

In this above chart, the chart is divided upon on the basis of Annual Income.

Not employed are 45%

Under 2.5 lacs are 25%

2.5-5 lacs are 11%

 5-7.5 lacs are 7%

7.5 lacs and above are 12%

The annual income play a important role as people with diff income determines the

amount of time and convenience the working professionals wish to have.

Question 1

In this above chart, the data shows that mostly people use payment wallets and
74%people says yes and 26% says NO.
 The widespread use of payment wallets indicate the ready acceptance by people to use
these wallets and a ready market for them.

Amongst our respondents, 74% of them use payment wallets in their day to day lives.

Question 2

In this above chart, the data shows the number of people who know how to use payment wallets
and 89%people says Yes and 11% says No.
This shows that majority of people are well known to the usage of payment wallets
Question 3

In the above chart, its shows that the payment wallet are successful to pay as 80% of people say

yes , 12 % says no and 8% can’t say . Majority of people agreed to the fact that payment wallets

offer a convenient mode of payment as compared to cash or cards.

Question 4

In this above chart, the data shows us the number of time people use payment wallets in a month.

People the use payment wallets :

0-3 times are 21%

3-6 times are 17%

6-9 times are 27%

More than 9 times are 35%

The percentage shows that majority people use payment wallets frequently.

Question 5

In the above chart , its shows that payment wallets is most preferable with 47% followed by card

33 % and cash by 20%.

This shows the changing trends and evolution towards a digital economy growing from the

shackles of cash based economy.

Question 6
In above chart, it shows the medium that people use to pay their utility bills with Payment wallets

cash and Physical cards.

61% of people use payment wallet to pay

22% use cash to pay

And other 17% uses physical cards to pay.

Question7

In this chart, that data is shown about household consumables purchase

49 %people choose cash

32 % people choose payment wallet

And 19% chooses cards.

Question 8
In this above chart, the payment of luxury goods is done through- 42% through payment wallet ,

20% through cards and 38% through the cash.

Payment wallets are least preferred in the payment of luxury goods, this may be because of

security issues with payment wallets or people may tend to avoid make high value transactions

with them

Question 9
In this chart , people finds payment wallet more liable as 52% people choose payment wallets ,

26% choose cards and 22% chooses cash

Payment wallets are considered to be a reliable and trustworthy sources with added security

features.

Question 10
In this chart, people find easy to kept payment wallet as it is in the mobile apps and most of the

people have smartphones.

64% people choose payment wallet

21% choose cards

And 15%cash.

Question 11
 In this above chart, the percentage shows that the payment wallets are highly preferable as

compared to cash and cards with

50% payment wallets

26%cash

and 30 % cards

Question 12

In this above chart, 58% of people recall paytm,

18% of people recall Phonepe,
16 % of people recall Google Pay,
9% of people recall Mobikwik. When they think of payment wallets.
Paytm, being the biggest player in the market has the most brand recall as compared to others

Question 13

In this above chart, majority of people think there should be a cashless society in future as
 59% people choose Yes

19% people say No

And other remaining 22% are not sure about that.

Question 14

The above chart displays the factors on which the payment wallet get preference over other
mediums of payment.
51% of people use them because of Ease of use
33% of people use them because of time saving
And, 16% of people use them because of security

Question 15

In the above chart, an opinion was taken that making India, a cashless society will uplift the standard
of living.
Majority of people i.e 58% said Yes,
20% said No
And remaining 22% said maybe

Question 16
The above chart shows the willingness of people to use payment wallets it they charged some fees

53% of people said No

33% of people said Maybe

And, 14% of people said Yes

Question 17
The above chart tells about the user experience with payment wallets
56% of people said they have experienced problem while using payment walllets
44% of people said they never experienced any problem
Payment wallet companies should look upon the possible reasons which make their consumers face
these problems as majority of people have faced some or other problem while using the payment
wallets.

Question 18
The above bar graph shows the responses from the people who had faced any problem while using
payment wallets , many people had faced more than one problem.

Transaction failure was the most experienced problem while duplicate payment was the least
experienced

Question 19
In the above chart, responses were recorded about whether they feel that there are still some security
issues with payment wallets

53% of people feel that there are some security issues

47% of people don’t feel that there are any security issues

Question 20
In the above chart, data is displayed about what think about payment wallets in safety versus
convenience factor

28% said that it is Highly convenient and safe

21% said that it is Moderately convenient but safe

18% said that it is Neutral.

16% said that it is Moderately convenient and risky too

15% said that it is Highly convenient but risky

2% said that it is Inconvenient and risky

Question 21
 In the above chart , the data is shown about whether they will continue to use payment wallets or

not.

79% said of people yes

12% of people said no

9% of people said maybe

FINDINGS
The following are the findings from the responses collected in respect of the objectives of the research

 To see the pattern of adoption of payment wallet in term of gender, age, and
Profession.

 To analyze the usage and preference of people toward various payment wallets

 To assess the attitude of people toward payment wallet

 Adoption of payment wallet can be seen alomost evenly between males & females

 75% Respondents between the ages of 18-35 years use payment Wallet more.
 45% of respondents who use payment wallets are not employed they were the students that use
or recommend payment wallet
 Users were significantly more likely to say that they would use or recommend online payment
wallet
 Nearly 74% of the respondents found using payment wallets.
 89% of people were aware of the usage of the payment wallets.

 35% of respondents used payment wallets more than 9 times in a month

 80% of the Respondents were significantly more satisfied with payment wallets than cash
 35 – 40% of respondents noticed a lifestyle change since they started payment wallet
Suggestions
As students mostly prefer payment wallets , should get offers or any type of coupons and maitnain a
health password for security
• Payment wallet apps should develop a much smoother user interface in terms of
location finding a. They should ensure proper directions of delivery to avoid more time
consumption.
• Websites/Apps should continuously work on their sites and bugs in their sites.
They should experiment with more techniques which can help to place payment
quickly and
.efficiently.
2
Chapter 7
3
SCOPE AND LIMITATIONS OF THE STUDY
❖ Regarding the growth of mobile wallet, a continuous evaluation and assessment is required
until it becomes a major mode of transaction like other modes such as cash and other banking
channels like RTGS, cheques, debit card and internet banking, etc.
❖ Pre and Post KYC regulation relating to total number and total value of transactions in
mobile wallet can also be studied to know the effect of KYC norms and regulations on the mobile
wallet industry.
❖ The perception and acceptance of newly formed ‘Payment Banks’ with the platform
of mobile wallet can also be considered as newer scope for further research.
❖ A comparative study of different mobile wallet issuers and their various kinds of payment
instrument can also be studied.
❖ Regarding the adoption and practices of mobile wallets, the variables studied here can be
extended to other geographical parts of India.
4
BIBLIOGRAPHY
 Abhijit m. Tadse, h. S. (2017). A study on usage of paytm. Pune research scholar, 1-11.
 Anjali ahuja, r. J. (2018). Customer perception towards mobile wallet. Ijrdo-journal of
business management , 52-60.
 Irene govender, w. S. (2014). A study of mobile banking adoption among university students
using an extended tam. Mediterranean journal of social sciences, 451-459.
 Jaskirat singh, m. G. (2016). An empirical study of customer adoption of mobile wallet
payment services. Splint international journal of professionals, 88-95.
 K.suma vally, d. K. (2018). A study on digital payments in india with perspective of
consumers adoption. International journal of pure and applied mathematics, 1-9.
 Kalyani, p. (2016). Journal of management engineering and information technology, 18-41.
 Kumar, p. (2017). Demonetization and its impact on adoption of digital payment:
opportunities, issues and challenges. Abhinav national monthly refereed journal of research
in commerce & managment, 1-14.
 Madhu chauhan, i. S. (2017). Future of e-wallets: a perspective from under graduates.
International journals of advanced research in computer science and software engineering,
146-150.
 Mehra, p. (2015, march 29). All you need to know about payment banks. New delhi: the
hindu. Retrieved from the .
 Sardar, d. R. (2016). Preference towards mobile wallets among urban population wallets
among urban population. Journal of management, 1-11.
 Satadruti chakraborty, d. M. (2018). A study on consumers’ adoption intention for digital
wallets in india. International journal on customer relations, 38-57.
ANNEXURE
QUESTIONNAIRE

Basic information:

Gender: *Male *Female

Age: *18-25 *25-35 *35-50 *above 50 yrs.
Profession: *student *Business *service *Government Employee
*other, specify___________
Annual Income: *Under 2.5 lacs *2.5-5lacs *5-7.5 lacs *7.5 lacs and above

Please Tick (󠇢√) in the box given below the questions to answer: -
Q1. Do you use payment wallets?
*YES
*NO
Q2. Are you aware of usage of payment wallets?
*Yes
*No
Q3. According to you, are payment wallets a convenient way to pay?
*YES
*NO
*Can’t’ say
Q4. How frequently do you use payment wallets?
*0-3 times
*3-6 times
 *6-9 times
* More than 9 times
Q5. Which mode of transaction you mostly prefer?
*Cash
*Physical Cards
*Payment wallets

Q6. How do you prefer to pay your utilities Bills (like electricity, water, telephone etc.)?

*Cash
*Physical Cards
*Payment wallets

Q7. How do you make payment for purchases of household consumables?

*Cash
*Physical Cards
*Payment wallets
Q8. How do you make payment for purchases of luxury and Durable goods ?

*Cash
*Physical Cards
*Payment wallets
Q9. Which you consider more reliable?

*Cash
*Physical Cards
*Payment wallets
Q10. Which can be carried and kept easy and has more life?

*Cash
*Physical Cards
*Payment wallets
Q11. While travelling, according to you which is the preferred way of payment?
 *Cash
*Physical Cards
*Payment wallets
Q12. Which brand do you recall first when you think of payment wallets?
*Paytm
*Phonepe
*Mobikwik
*Google Pay
*other
Q13. Do you feel, there should be a cashless society in future?
*Yes
*No
Q14.If payment wallets are your first preference, then why?
*Time saving
*Ease of use
*Security
Q15.Do you think making India, a cashless society will uplift the standard of living?
*Yes
*No
*Maybe
Q16.Would you use mobile wallet if it's charged at some taken or facility fees?

*Yes

*No

*Maybe

Q17.Do you face any problem while using payment wallets?

*Yes
*No
*Sometimes

Q18.If yes, What kind of problems you faced with Payment wallets? (you can select more than one)
 *Transaction Failure

*Duplicate Payment

*Auto Debit

*Security Breach

*Delayed Payment

*Long transaction time

Q19.Do you still feel that there are security issues with the payment wallets?

*Yes

*No

Q20. Rate the safety versus convenience as a factor for adopting Mobile Wallet

* Highly convenient and safe

*Highly convenient but risky

*Moderately convenient but safe

*Moderately convenient and risky too

*Inconvenient but safe

*Inconvenient and risky

*Neutral.

Q21. Would you want to continue payment wallets?

*Yes
*No
*Maybe