Amity University

Greater Noida, Uttar Pradesh

NTCC Report

A study to analyze the consumer adaption of Digital Wallet in reference to Noida

SUBMITTED TO: SUBMITTED BY:

Ms. Riya Ghai Dolly Singh
B.COM(H) 5th Semester
A42304618011
 Declaration:

Topic of the Report: A study to analyze the consumer adaption of Digital Wallet in reference to Noida.

 All the work in this report under the particular is done by me and not copied from anywhere else.

 The guidelines and the methods of the report that are to be followed are strictly followed without any
ignorance.

PREPARED BY: DOLLY SINGH

B.COM(HONS.) 5TH SEMESTER
2018-2021
 Certificate

This is to certify that Dolly Singh pursuing B.COM(HONS.) bearing Enrollment No. A42304618011 from
Amity College of Commerce and Finance (ACCF), Amity University Greater Noida has done the work
under the teaching of Ms. Riya Ghai from 21/08/2020 to 18/09/2020 and has successfully fulfilled the
criteria of submitting Report.
 Acknowledgement

I would like to present my gratitude towards all those people who have come up in order to help me out with
this task of completing this report on time.

Firstly, I would like my college which gave this subject to us so that we can collect different information on
a particular topic. I would like to thank all those people who presented their view on my topic. I would also
like to thank my teacher in charge of this subject Ms. Riya Ghai for her constant follow ups and friendly
support, perfect teaching or guidelines and motivational words.

Thanking you.
 Index

 Abstract
 Introduction
 Literature Review
 Objective of Report
 Methodology of Study
 Data Analysis
 Findings
 Limitations of Study
 Conclusion
 References
 Abstract

In this report we are going to discuss about digital wallet. Digital wallet is an app that keeps your money safe
and at one place. Some of the examples of digital wallet are Paytm, phonepe, Google pay etc. Digital Wallet
is defined as software that helps you to make all the payments, store funds and see to the history of payments
done. The survey is done to know about the consumer adaption of digital wallet in Noida. A questionnaire
was made and sent to different people of Noida region to fill and know about their perspective and usage of
digital wallet. There were many factors that show the usage of digital wallet i.e. age, gender and occupation.
This study also told about different advantages and disadvantages of digital wallet which can help a person
to know more about digital wallet. It also says if the security system of digital wallets becomes good it will
have more chances of consumer to use digital wallet more.

I. Introduction

In this report we are going to discuss about digital wallet so for that at first, we should know the actual meaning
of wallet i.e. an object that is used to keep money or important cards etc. together at one place. Therefore,
digital wallet is an app that keeps your money safe and at one place. Some of the examples of digital wallet are
Paytm, phonepe, Google pay etc. Digital Wallet is defined as software that helps you to make all the payments,
store funds and see to the history of payments done. It also helps in online transactions, online shopping etc. For
using digital wallet, you first have to download a digital wallet app and then you can use a digital wallet either
by adding money to it prior of making and order or transaction or you can simply link your bank account with
your digital wallet.

Indian government has started a programme of Digital Wallet in order to change the country from cash to
cashless and digital. Cashless, paperless and faceless is the main function of Digital India. In India digital wallet
got promoted after demonetization was introduced by our Prime Minister MR. Narender Modi during the year
2016 and the digital India initiative was started in 2015. After demonetization was introduced many people
stopped keeping cash and started to go cashless. They started using digital wallet like people started to opt net
banking, debit card, credit card etc. instead of cash on delivery for the orders they have given or for shopping
whether online or offline.
 There are four phases of digital payment system i.e.

1. Registration
2. Invoicing
3. Payment Selection
4. Payment Confirmation

Digital wallet is also helpful in transactions like shopping, payments like water bill, electricity bill, fees,
recharge, etc. buying movie tickets, booking train and flight tickets and many more. There are many benefits of
using digital mode of payments. It is very safe no problem of carrying cash all the time that decreases the
chance of having some duplicate notes and also it promotes cashless transactions. In journey of making Indian
economy cashless there are many facilitators for the growth of digital payment were present in the market.
Some of these facilitators are like net banking, through smart phones, financial institution digital payment apps,
initiatives that are taken by the government to promote digital payment mode, all these things helped in growth
of digital payment in India.

Modes of Digital Payment in India:

Some of the modes of payment that are available in India are:

Mobile or Online wallet: this is carried out with the help of smartphone applications and internet. In these
apps money can be kept with the help of debit card, credit card or net banking whichever is suitable by the
customer. There are different limits set by the government on the type of wallet that you are using. For
consumer wallet the limit is Rs.20000 per month, for merchant wallet after self-declaration the fixed limit is
Rs.50000 per month and at last after KYC the limit is Rs.100000.

Prepaid Credit Cards: these are the rechargeable cards that are recharged by the used up to a fixed limit. It is
like a gift card. The payment of the purchased product is made using the amount in the card up to a given limit
and not like the borrowed credit card from the bank.

Debit Cards: debit cards are linked with an individual’s bank account. In debit card you can only spend the
amount that is present in your bank account. There is a limit of spending an amount by Debit card in one day
i.e. you can’t spend more than a given amount with debit card from a debit card. The use of Debit Card can be
done at shops, ATM’s, online wallet and e-commerce purchase.

AEPS: Stands for Aadhaar Enabled Payment System that is used with a 12- digit unique Aadhaar ID number
that allows you to do transaction from one bank account to another at point of sale. AEPS also allows the
 facility of checking the balance, deposit of cash, withdrawal of cash, and also transfer of funds from one
aadhaar to another.

USSD: full form of USSD Unstructured Supplementary Services Data is dependent upon mobile banking. This
service is introduces for the people those who are not using internet. This service works without any internet,
there is a number that is given by which the money can be transferred from one bank account to another
through GSM network. The limit for this payment method is Rs.5000 per customer per day.

UPI: UPI (United Payment Interface) is the system that links different bank accounts to one mobile application
platform and helps to make payment by the choice of the bank account they want to make the payment with. It
increases the peer to peer fund transfer.

The way to digital revolution of money transfer has started in India. The economy in future can turn out to be
cashless only when people will start making their payment with the help of digital mode of payment i.e. through
internet banking, smart phone, card transactions, etc. for increasing digital payment. One of the focus of this
study is to know the response of people on adaption of digital payment in India. For this study I have taken a
sample space of 60 people who have given me the response about the preference, perception and satisfaction
level of using digital wallet.

The five top most digital wallet payment mode in India are given below.

Sl. Wallet Name Key Features

No.

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. Google Pay  Send and receive money instantly in your bank account using
Google Pay UPI. 
 Google Pay is directly connected to your bank account and your
registered phone number.

3. PhonePe  PhonePe is an all-in-one UPI-based digital payment app.

 Gives great deals and cashback on bill payments, food outlets,
shopping, and much more through PhonePe.
 PhonePe assures data security against cyber-criminals.
 The app is available in English, Hindi, Marathi, Tamil, Bengali, and
more. 
4. BHIM   This app is made by The Reserve Bank of India (RBI) and
launched by The National Payments Corporation of India
 BHIM is probably one of the best digital wallets in India based on
UPI. 
 BHIM enables QR code scan-and-pay option.
 BHIM lets you send and receive money using Virtual Payment
Address (VPA) wherein you can transact without disclosing your
bank details.

5. Mibikwik  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.

II. Literature Review

Many researches have been done on the topic of digital wallet payment instead of the fact that there is a
tremendous rise in the adoption of e wallet in today’s time. In India most the people now have started digital
mode of payment for different purpose like shopping, bill payment, recharge, etc. After demonetization when
there was a sudden stop on 1000 and 500 notes so the customers have changed their preference form cash to
cashless economy and to make economy cashless digital wallet has helped a lot by providing an easy way of
making payments. [4]To attract more people towards digital wallet the companies brought many coupons and
cashbacks to the consumers for online as well as offline shops.

We have come across through a huge change in consumer adaption of digital wallet. Digital wallet has brought
the change from the shopping, payment, fund transfer, recharge, etc. method of traditional time to a faster and
easiest mode of doing things. As the whole world is now adopting more of technologies like smartphone,
tablets that are easy to carry as well as easily accessible also we can connect many people through different
social media sites. [5] As per stated by Rana in 2017 it was a really hard challenge for a country like India
where most of the people use paper currency but the digital wallet has helped the country to digitize the
payment method and make the people to adopt the day to day technologies that has made the life easier. The
government of India has come up for the innovation by introducing various types of strategies and schemes.
After the implementation of demonetization there was another level of innovation given to the cash transaction
i.e. transfer of money was digitalized. [7] The new way of money transfer being easier way helped many
suppliers by providing them the alternative method of money transfer and also the digitized way of money
transfer has helped many companies to increase the funds flow in economy. The computerized way of payment
has been started to be used by the buyers so that more options and various connections are made between the
suppliers and their customers. 500 and 1000 notes after getting banned the companies and the government
thought about the promotion of cashless India by providing the customers with different offered services [3].
Whereas the government is trying to start digitized mode of transfer of money but still when it comes to transfer
of money between two countries the preference is not given to digital transfer because of the quality of the
framework and the telecommunication preparation is not that good. [2] The use of the transfer and payment
service with the help of Internet and phones are increasing rapidly in advanced Economy. The payment done
electronically is very safe as the chances of having fake currency, torn notes or old currency is not there. A
person having digital wallet can add as number of cards he/she has whether its credit card or debit card the data
is saved and without revealing the information and also without giving any threaten as there is no third party
involved in between the payment so there is no problem of money getting lost or taken away in between.
Technologies have made the payment mode so easily accessible and user friendly that it has made many people
to opt for digitalized payment method [9].

There is a flagship program that was started by the Government of India which took the initiative to make
cashless India named as “Digital India”. Digital India was started by our Prime Minister Narender Modi on 1 st
July, 2015. It was started so that the reach to the public of government services should be in the electronical
form so that makes the online infrastructure is improved and the internet availability and connectivity has
increased. The plan also includes connecting the rural areas with the high-speed internet and giving them
knowledge about the different use of Internet for different works. [8] The three main components that are
present in Digital India are the development of the secure and a constant digital infrastructure, universal literacy
of digitization and availing Government Services in digital mode. The digital payment of India has been
boosted up by this program started by Government of India. There were some more initiatives taken up by the
government like BHIM and UPI after Demonetization to increase the transaction and adapting the digital mode
of payment.

There are different phases that are within the process of digital payment. These phases are: -

1. Registration
2. Billing
3. Choice of payment
4. Payment Confirmation

There are three electronic payment systems that are generally included as payment instruments i.e. cash, card
and checks. There has been a change in the trend of e-commerce business after demonetization as the mode of
payment has been changed from cash on delivery to payment through cards, net banking or digital wallet has
increased the chance of people leaving without money [6].

Consumers need not to do payments by swiping their debit card or credit card because of the digital wallet.
[1]Digital wallet also provides the availability of cash instantly and also it is an efficient method of taking the
payment because of the seamless renders mobility which is an unique feature given within the digital wallet for
e.g. if we are going to a shop and you don’t have money in your wallet option then you can transfer from your
bank account and make the payment and also in this case we can pay the exact amount without worrying about
giving the change or something. The are some more advantages of doing the payment through Digital wallet.
Some of these advantages are: -

1. Less Time Taking: the fund in digital wallet is in electronical form so it is easily accessible and is gives an
easy way of making the payment without entering the card details.
2. Easily accessible: the digital wallet only requires the card details once at the starting so the consumer is not
required to fill the information of the card again and again whenever they make payment so it makes the
application easy to use without facing any issue.
3. Security: the security is strictly taken care of as when the payment is done with any e wallet no information
or details of the card is not reviled at any sites also there no other person can pay from your e wallet without
your permission as it has a lock that is protected by an unique passcode that is set by you.
4. All in one Store: we can find almost all the things under one application for example fund transfer from
one bank to other, shopping, recharge, paying bills etc. also there is a plus point that all the accounts from
different banks can be managed easily under one platform.
5. Convenient: digital wallet is convenient as you don’t have to carry your physical wallet everywhere as
everything is available in your mobile phones.
6. Attractive Discounts/Coupons: there are many discounts and coupons that are offered by many e-wallet
companies on different payment made on different platforms. These discount coupons can be used as per
the given information the coupon also there are some cashbacks are also given on making payments that
attracts more and more customers for using E-Wallet.
7. No physical contact: during the situation of COVID-19 when most of the people avoid touching things at
that moment Digital Wallet has turned out to be a really good option for making any payment as there is no
way of transmission of virus from anywhere because if the payment is done through cash then there is a
chance of transmission of germs or viruses.

Disadvantages of Digital Wallet are:

1. International restriction: people those who are in travelling to other countries may face this problem as
there are many countries in which the digital wallet of other country does not work so at that moment the
person is stuck and has to opt for other payment method.
2. Limited Merchants: even though most of the business are giving the option of payment via any digital
payment mode but still there are some merchants those who don’t give the facility of digital payment on
their sites.
3. Security: there are lot of issues with concern with Digital Wallet people have the doubt that there
information is safe or not. The security of digital wallet is not as good as that of a credit card or debit card
according to the consumers because in case if the smart phone gets stollen the other person can easily
crack the password and make a payment through it whereas if card gets stollen then you have the option of
blocking the card with the help of the bank.
4. Dependency on other devices: the digital wallet is dependent on either a laptop, smart-phone or a tablet if
a person is not carrying any of these that person is unable to use digital payment mode of payment. So, the
 digital wallet can be used only if the person contains the device otherwise there is no use of digital
payment.

III. Objective of the Report

1. To identify the consumer adaption of Digital wallet in Noida Region.

2. To know about the attitude of consumers towards Digital Wallet in Noida
3. To know which percent of age group is using the Digital Wallet the most.
4. To suggest the ways of increasing Digital wallet consumers in Noida.

IV. Methodology of Research

There are some specific steps or procedures or techniques that are used for identifying, selecting, analyzing
and processing data and information on a particular topic. The Research Methodology gives a knowledge
about the collection of data. Design of research, Process of data collection, source from which data is
collected are the points are discussed under this topic.

Design of Research

The methodology and the procedures employed to conduct a study is called research design. It tells the type
of study methods to collect data statistical analysis plan. It includes two types of research design:

Quantitative Research: it is done when a statistical data is used for designing of the report. Numbers gives
an accurate and calculated data while making an important decision. As it gives the data about the adaption
of Digital Wallet in the Noida region.

Source of Data

There are mainly two ways of source of data collection i.e. Primary Source of data collection and Secondary
Source of data collection.

Primary Data is the original data that is taken and analyzed by the researchers of that field. Primary data is
collected from the response from the people with the help of either a questionnaire, observation, semi
structured interview and many different ways.

Secondary data source is the data that has been collected from the researches that have already been done
earlier. The type of data collection by using the information different researches is not case specific instead
is related to studied problem. We have used both the sources primary as well as secondary source of data
collection. There is some data that has been taken from the research papers of previous researchers. The
survey was done in Noida region to know that how many people use digital wallet.

V. Data Analysis
The process of calculating and evaluating collected data with the help of graphical or statistical tools to find
out the useful information and gives the benefit in decision making is called Data analysis. While doing this
data analysis there was a survey done having 70 respondents living within the Noida region to know the
consumer adaption of digital wallet in Noida and also it gives the information about the digital wallet that is
being used by the people.

1. Percentage of people who are aware of Digital wallet

2. Gender of people knowing about digital wallet

3. Age group of the people knowing digital wallet

4. Occupation of people using digital wallet

5. How often is Digital wallet used by respondents?

6. Which Digital wallet service is used by respondents?

7. What is the preference of the respondents?

 8. Do respondents have security issues?

9. Do respondents want to learn more about Digital Wallet?

VI. Findings of the study

1. Out of 70 respondents 61.8% were male and 38.2% were females. Most of the respondents were in
age group of 15-20 with 52.9%. Out of respondents 67.6% of people were students and rest of them
were in private services. 52.9% of respondents use prefer digital wallet over cash or credit/debit
card.
2. 32.4% of respondents use digital wallet on daily basis, 23.5% people use it once in a month 17.6%
people do it on weekly basis.
3. 61.8% of the respondents use Paytm as a digital wallet app and 20.6% of the respondent’s use
google pay. Therefore, the most used digital wallet app is Paytm and Google Pay.
4. Even though most of the people are using digital wallet still there are 55.9% respondents those who
have security issue with digital wallet. They want the security be tighter and privacy of the customer
should be maintained.
5. 55.9% people even want to know and learn more about digital wallet. They want to know more
advantages and disadvantages of digital wallet.
6. Despite of having security issue and other disadvantages with digital payment mode there are many
people those who are using digital wallet in there day to day life. Most of the people don’t even
carry their physical wallet they just take their smart phones and go anywhere.
VII. Conclusion
The study was done to know the adaption of digital wallet by the people and its impact on the
consumers of Noida region. The study also gave the information about the different aspects that helped
in the increase of digital payment in India i.e. Demonetization that has worked as a catalyst to digital
wallet as people started to keep less of cash with them and this increased the use of digital wallet. There
are many advantages of digital wallet that has helped out people getting many services at a single place.
While doing this study when the survey was done, we came across many factors that affected the use of
digital wallet (age, gender, occupation) and this was observed that the age group of 15-20 are mostly
using Digital Wallet and most of them are male and are students.
The consumers of digital wallet can increase if the problem with the security is resolved as most of the
people have suggested to improve the security of digital wallet so that they can relay more on digital
wallet.
VIII. Limitations of study
1. The sample space of study was 70 that can be increased for more realistic view.
2. The region taken is Noida that can be made NCR for getting review from more people.
3. The interview method can be opted for getting the review as it will give more accurate data.
IX. References

1.

H Shin, A. Z. (2009). Students Loan Repayment and Recovery: International Comaprision. Higher Education 57, 315-333.

2. 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.

3. NasinSha, S. (2018). A Study On Paytm Services in promoting cashless Economy after Demonetization in India and an outline
on its support towards making India Digital. International Journal of Pure and Applied Mathematics, 263-278.

4. Pooja Tiwari, V. G. (2019). A study of Consumer adoption of Digital Wallet special referance of NCR. NCR:
https://www.researchgate.net/publication/334764085.

5. Rana, S. (2017). A STUDY OF PREFERENCE TOWARDS THE MOBILE WALLETS AMONG THE UNIVERSITY STUDENTS IN
LUCKNOW CITY. Scholedge International Journal of Management & Development, 46-57.

6. Sambhay, G. S. (2014). Study of Mobile Payment Services in India. Stockholm, Sweden.: School of Information and
Communication Technology .

7. Shasher Singh, R. R. (2018). Study of Consumer Perception of Digital Payment Mode. Journal of Internet Banking and
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8. shree, Y. N. (2015). A Study on New Dynamics in Digital Payment System – with special reference to Paytm and Pay U
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9. Vally, K. S. (2018). A Study on Digital Payments in India with Perspective of Consumer‟s Adoption. International Journal of
Pure and Applied Mathematics, 1259-1267.