A Project Report

Submitted for the degree of B.Com Honours in Accounting & Finance under
the Calcutta University

Consumer Behaviour Towards Digital Wallet

Submitted by

Name: AAYUSHI SARKAR

University Registration No.: 171017-11-0014

University Roll No.: 017-1211-2209-17

The Bhawanipur Education Society College

 Supervisor’s Certificate

This is to certify that Miss. Aayushi Sarkar, a student of B.Com Honours in Accounting &
Finance of The Bhawanipur Education Society College under Calcutta University has worked
under my supervision and completed his project report with the title “Customer Behaviour
Towards Digital Wallet”.

The Project report, which he is submitting is his genuine and original to the best of my
knowledge.

Place: Signature:

Date: Name: RAJESH KUMAR SHAW

Designation:

Name of the College:

2
 Student’s Declaration

I hereby declare that the project work with the title “Consumer Behaviour towards
“Customer Behaviour Towards Digital Wallet” submitted by me for the partial fulfillment of
the degree of B.Com Honours in Accounting & Finance under the Calcutta University is my
original work and not has been submitted earlier to any other University Institution for the
fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.

Place: Signature:

Date: Name: Aayushi Sarkar

Registration No.: 171017-11-0014

C.U. Roll No.: 017-1211-2209-17

3
 Acknowledgement

It is a matter of great pleasure to present this project on

“Consumer Behaviour Towards Digital Wallet”

I take this opportunity to thank all the persons who contributed directly or indirectly for the
successful completion of this project.

I would like to thank our respected Teacher-in-Charge Dr.Suchandra Chakravarty for giving
me an opportunity to work on this field.

I am eagerly grateful to our head of the department of Commerce (afternoon & evening
section) Mr.Saspo Chakraborty.

I am very thankful to my supervisor Mr.Rajesh Kumar Shaw for his full support in
completing this project.

Finally, I gratefully acknowledge the support of my family/friends and would also like to
thank all the persons who co-operated with me with the information I collected during the
survey and helped me filling the questionnaire.

4
 Table of Contents
Chapters Particulars Page No.
1 Introduction 06
1.1 Background of the Study 07
1.2 Objectives of the Study 08
1.3 Literature Review 08
1.4 Research Methodology 09
1.5 Limitations of the Study 10
2 Conceptual Framework 11
2.1 History of Digital Wallet 12
2.2 The Concept of Consumer Perception 13
2.3 The Role of Consumer Perception 14
2.4 Objectives of Digital Wallet 15
2.5 Features of Digital Wallet 16
2.6 Factors Determining Consumer Perception 17
2.7 Advantages of using Digital Wallet 19
2.8 Disadvantages of using Digital Wallet 20
3 Analysis and Findings 21
4 Conclusions and Recommendations 41
Bibliography 43
Annexure- Questionnaire 44

5
 CH-1
INTRODUCTION

6
Background of the Study

A digital wallet refers to an electronic device or online service that allows an individual to
make electronic transactions. This can include purchasing items on-line with a computer or
using a smart phone to purchase something at a store. An individual's bank account can also
be linked to the digital wallet. They might also have their driver's license, health card, loyalty
card(s) and other ID documents stored on the phone. The credentials can be passed to a
merchant's terminal wirelessly via near field communication (NFC). Increasingly, digital
wallets are being made not just for basic financial transactions but to also authenticate the
holder's credentials. For example, a digital wallet could verify the age of the buyer to the
store while purchasing alcohol. The system has already gained popularity in Japan, where
digital wallets are known as "wallet mobiles". A crypto currency wallet is a digital wallet
where private keys are stored for crypto currencies like bitcoin.

A digital wallet has both a software and information component. The software provides
security and encryption for the personal information and for the actual transaction.
Typically, digital wallets are stored on the client side and are easily self-maintained and fully
compatible with most e-commerce Web sites. A server-side digital wallet, also known as a
thin wallet, is one that an organization creates for and about you and maintains on
its servers. Server-side digital wallets are gaining popularity among major retailers due to
the security, efficiency, and added utility it provides to the end-user, which increases their
satisfaction of their overall purchase. The information component is basically a database of
user-input information. This information consists of your shipping address, billing address,
payment methods (including credit card numbers, expiry dates, and security numbers), and
other information.

Digital wallets are being used more and more in Asian countries as well. One in five
consumers in Asia are now using a digital wallet, representing twofold increase from two
years ago. A recent survey by MasterCard's mobile shopping survey shows on 8500 adults
aged 18–64 across 14 markets showed, 45% users in China, 36.7% users in India and 23.3%
users in Singapore are the biggest adopters of digital wallet. The survey was conducted on
between October and December 2015. Also analysis showed (48.5%) consumers in these
regions made purchase using smart phones. Indian consumers are leading the way with
76.4% using a smart phone to make purchase which is a drastic increase of 29.3% from
previous year. This has made companies like Reliance and Amazon India to come out with its
own digital wallet. Flipkart has already introduced its own digital wallet.

7
Objectives of the Study

 To understand the concept of Electronic Payment System and its security services.
 To bring out solution in the form of applications.
 To understand working of various Electronic Payment System based applications.
 To ascertain the acceptance of the concept of E-wallet among potential consumers;
 To determine the extent of acceptance of this application in various consumer
options;
 To determine factors that influence consumer purchase of E-wallet options and
other similar options.
 To make paperless money transaction easier.

Literature Review

KORZENIOWSKI, PAUL (2014)

The article discusses the emergence of mobile wallets and how it changed customer
experience in payment process. Topics include the appeal of mobile commerce functions in
smart phones to consumers, the use of more personalized shopping experiences, and the
near field communication (NFC) system. Also mentioned is information on the role of
PayPal, the formation of payment infrastructure company Merchant Customer Exchange
(MCX), and the selection of an open or close loop design in transactions. INSETS: A Digital
Wallet versus a Mobile Wallet; Back to Square One.

SINGAL, NIDH (2016)

The article discusses the mobile wallet that loads money for payment of bills which is
hassle free and saves time. topics mentioned include the high success rate on
making payments with transactions 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 fees payment, and money
transfers.

8
Research Methodology

This chapter focuses on data and research methodology. The chapter discusses the rationale
used while drafting the questions for sample study and the differences in questionnaire for
Plastic Money and Virtual Mobile Wallet. The survey explored the unexplored area
comparing the users of Plastic Money and Wallet.

Currently acceptability of mobile wallet payment is limited at outlets though Paytm has
increased acceptance at many outlets. But the wide acceptability of wallets is still required
to gauge the correct impact of wallet on payments services. The current effort captures the
data set considering the limitations of the system.

Data was collected from both primary and secondary sources. Data on the use of virtual
wallet was done by a questionnaire which are similar in nature and constitute the primary
data source for this research. Pilot test was carried out using a set of questionnaire. The
questionnaire is well structured and starts from collecting the user’s demographics, then
user usage and perception on virtual wallet. The questionnaire was devised after working
out the various surveys and literary contents. The central idea was to use the data collection
to bring out the usage and preferences of customers and non-customers.

Sample Size- In this survey the sample size decided was 25.

9
Limitations of the Study

 Sample Size- often studies wish to understand a specific topic but only conducts a
study with 25 participants. Considering that the population that has around millions
of people, can we generalize the results based on only 25 respondents? Clearly NOT!
So consider your sample size in relation to the population of your study.
 Sample Profile- for example, many academic studies have used student sampling.
There are many advantages for it, such as easy access and low costs for data
collection. Nonetheless, using purely student sampling is also extremely limiting if
the population of the study is comprised of people with varies profiles.
 Method- very often, a method is accurate for a research aim, but it also includes
many limitations. For example: Imagine you wish to understand consumers’ use of
toilet paper (weird topic, isn’t it?) and the researcher uses in-depth interviews, as
the study has an exploratory nature. Would you, as a respondent, feel comfortable
to describe your use of toilet paper to a stranger? Probably not! Thus, your answers
might be highly biased according to what is expected from him/her or to what is
socially acceptable. So your answers might not exactly resemble the truth, due to the
method.
 Time- often students have a deadline to turn in their work. Other academics have
conference or journal deadlines. Would we do a better work if we have more time?
Of course! Do we have unlimited time to do research and collect data? NO! For this
reason, “time” is a very common limitation for many studies.
 Financial Resources- money is always a problem. Sometimes we need it to purchase
the necessary equipment for a study, to hire people for data collection, to purchase
a specific statistical software or to simply reward participants with products or
giveaways for having participated in the study. When financial resources are scarce,
all of these possibilities are compromised. Consequently, such limitations might be
reflected on the results of the study.

10
 CH-2
Conceptual
Framework

11
History of Digital Wallet

Digital wallets have actually been around since the late 1990s, even though they weren't
widely adopted by consumers at that point in time. In fact, we're now in the third
generation of digital wallets—and it's quite likely that the third time is the charm.

The first generation of digital wallets was developed by a variety of entrepreneurial

companies during the height of the dot-com boom. These early electronic paymen t
programs didn't fail because they didn't work or weren't needed, but rather because they
weren't well publicized. In addition, most of these first-generation programs were offered
by small and relatively unknown (at least to the general public) software publishers, and
thus didn't have the aura of authority that consumers demand when it comes to dealing
with their financial information. These early digital wallets pretty much came and went with
little fanfare, sliding into oblivion with the onset of the turn-of-the-millennium dot-com
implosion.

The second generation of digital wallets had some big-name backers—in particular,
MasterCard, Visa, and other leading banks and lenders. The problem with this generation of
digital wallet services is that they were proprietary—MasterCard's e-wallet worked with
MasterCard only, Visa's e-Visa worked with Visa only, MBNA's Shop Safe service was only for
MBNA customers, and so on. None of these solutions let you store all your credit card
information; you had to have a separate program for each of your credit cards.

Also riding the second generation wave were a few ambitious online security services,
typified by Microsoft .NET Passport. Early versions of Passport not only let you automatically
sign into the network of Passport-friendly websites, but also included the Express Purchase
option that offered digital wallet functionality. Unfortunately, Passport suffered from the
same problem as the bank-specific services; customers were limited to using only those sites
that were part of the network. It wasn't a universal solution, so it wasn't used.

Today, the third generation of digital wallets appears to have gotten it right. These new
services are actually software programs that reside on your PC, store information from
multiple credit cards, and work with virtually any website—just what the customer ordered,
like Paytm, Google Pay, PayUMoney, etc.

12
The Concept of Consumer Perception

The Business Dictionary defines consumer perception as a “marketing concept that

encompasses a customer’s impression, awareness or consciousness about a company or its
offerings. Typically, customer perception is affected by advertising, reviews, public relations,
social media, personal experiences, and other channels.”

The truth is that everything affects customer perception, from the way you position your
product vertically and horizontally on a shelf, to the colors and shapes you use in creating
your logo. Even things outside of your control, which may seem innocuous, such as the time
of the day when your customer interacts with your brand - even this will affect consumer
perception. Your customers might have a positive perception of you if they come across
your products and your niche during a certain time of the day, but they may hold a negative
perception at another time of day. This dual perception might not have anything to do with
you; some people are not morning people, and the worst time to try to sell 'not-
morning' people is in the morning hours, especially before they’ve had breakfast and coffee.
You would do better to catch them right after dinner, when they’re relaxed. Other people
simply can’t concentrate on anything in the evening, and would rather that you had caught
their attention in the morning. Others as somewhere in between, are preferring that you
reach them during the main part of the day. So, as you can see, something as harmless as
calling at the wrong hour or showing a potential customer the right color at the wrong time
and at the wrong place, might reward you with a significant number of customers in at one
time of day but a disappointing result at a different time of day

Perception theory begins from a simple premise: that all our senses and the inputs that go
into them must be categorized and studied. Perception is simply the moment when we
become aware of something via our senses. When we perceive something, we either react
to it via our instincts or via the faculty of decision. We can either react toward a perceived
opportunity or a perceived threat, or we can ignore the perceived phenomena and continue
with our merry lives. A subset of this theory is self-perception theory, which deals with an
individual’s perception of himself within the context of his surroundings

13
The Role of Consumer Perception

The idea of perception theory is often capitalized by haunted houses and amusement parks.
The visitors are forced to walk into a dark are, which is pretty small and claustrophobic.
Visitors are led to a panoply of attractions that look and and sound like like monsters,
rodents, and so on. All this to overwhelm our senses. The idea is to stimulate an adrenaline
rush, which would then surge through the patrons as they are forced to face their fears. The
people who enjoy these things usually love the idea of conquering their fears, and they
often find this experience exhilarating. However, this can be turned on its head. If you're in
the wrong neighborhood, attractions in a haunted house could easily attract customers to a
haunted house but could easily chase customers away from your storefront.

As a business owner, you want to maximize the amount of time that customers spend in
your store. You want them to purchase an item on a whim, and to then go on a spree of
impulse buying. You want them to browse your shelves, and walk through your aisles,
discovering and exploring with each step. Whether your store is a brick-and-mortar store or
an online store, you want them to browse and buy, so that you increase your sales.

As a business owner, you should seek to improve their experience and give them the right
perception, no matter what.

14
Objectives of Digital Wallet

Perceived ease of use mobile wallet. Perceived ease of using mobile wallet comes
from perceived usefulness of mobile wallet, attitude towards using mobile wallet, behaviour
alintention of using mobile wallet and social influence.

 Mobile Consumer Adoption – The propensity of a user accepting the digital wallet for
their use.
 Perceived ease of use – The degree to which a user believes engaging in digital wallet
without much effort.
 Perceived Usefulness – The degree to which an individual believes that using digital
wallet would enable him to increase his performance.
 Attitude Towards Using – The user’s feeling either positive or negative towards using
a digital wallet.
 Felicitating Conditions – The believe of accessibility of resource necessary to avail the
service of digital wallet.
 Perceived Value – Trade off between what consumers receive in terms of value,
benefits and utility after spending their effort, time and money.
 Perceived Security and Privacy – The degree to which a user believes using digital
wallet would be secure.
 Social Influence – The degree to which a user gets influence from others to use
digital wallet.
 Trust – The degree to which a user believes the value given to him will be complete
without any discrepancies.
 Behavioral Intention to use – The measure of strength of one’s intention in
performing a particular behavior towards a service.
 Perceived Risk – The subjective belief of getting a loss from the outcome of a service.
 Attractiveness of Alternatives – The extent to which user perceives other viable
options to digital wallet.

15
Features of Digital Wallet

 Easy Payment and Checkout- with the micropayment plug-in, you can say goodbye
to the days of having your users run back and forth between payment platforms for
every purchase. Now they can make all their purchases without ever leaving your
site.
 Make Your Own Online Currency For Your Community- create your own virtual
currency which users can use as a point system. You have the power to define its
points value for cash value for any international currency you would like. For
example: 100 points for $1.
 Boost Community Engagement- this plug-in is a great option for those looking to
boost community engagement. Create a rewards program through the points
management program. The more points a user earns through
community engagement they can use towards future purchases on your site!
 Users Can Pay The Way They Want- allow users to pay the way they want without
ever having to leave your site. With just a few clicks, easily integrate with external
plug-ins such as EDD (Easy Digital Downloads) or Woo Commerce to connect with
payment systems such as PayPal or 40+ other payment platforms.
 Discounts- convert virtual currency points into discount points for users with EDD
and Woo Commerce platforms.
 Micropayments Across Multiple Sites- with the multiple license package, users will
be able to make micropayments and access their virtual wallet with the same login
information across your network.
 Create Reports and Track Payments- track payments by creating lists or graphs and
keep your users up to date and in the loop by sharing transaction reports with users.
 Transfer Virtual Currency and Points Between Users- your community will now be
able to share and transfer your virtual currency between one another. Through the
use of a short code, users can easily make direct transfers between each other.
 Customize It How You Would Like- the CM Micropayments Plug-in infrastructure is
easy to customize and integrate with your own plug-ins and themes which add
endless possibilities.
 Speak Your Language- for those that have websites in multiple languages or speak a
language other than English, micropayments speak your language. Adjusting plug-
in labels is easy. Frontend labels can be easily changed to any language so that the
user interface will speak your language.

16
Factors Determining Consumer Perception
1. Economic Factors:
 Price- it is an important factor determining the behaviour of the consumer. On the
basis of price as per the quality of the product the consumer makes its choice.
 Income- income of an individual makes his choice of the product. Depending on the
size of his income he will buy products on the price range he can afford.
 Distribution of Income- the purchasing behaviour of individual will vary as per the
distribution of income. Where the income level is high they will be able to variety of
luxury products and where it is low they will have to purchase daily required
products.
 Competition with Substitutes- there are many companies dealing with similar
variety of products. Depending on the quality and pricing of the companies towards
its product the consumer will purchase its required product.
 Consumer Preferences- consumer preference is a big factor as because after all it
comes to the consumer’s desire for which product or company he will go for.

2. Social Factors:

 Culture- the type of culture one inhibits will determine his taste of products and will
increase the demand as per that culture.
 Attitude of Society- the attitude of a society towards a particular company or
product makes its purchasing demand. Only a positive attitude shown by a society
towards a product can increase the sale of a product
 Social Values- a company must keep in mind the social values and responsibilities
before stating or launching a product so that any statement towards the product
doesn’t harm the social values.
 Life Style- life style varies from person to person depending on their income or their
choice. Depending on the life style an individual chooses the types of product he will
buy.
 Size of Family- the amount of products to be bought also depends on the size of a
family. Depending on the size of a family the quantity of a product will vary.
 Education- educational qualification increases the choices of an individual. As much
as one is educated he will understand his demand and can buy the perfect product
that is required by him.
 Health Standards- depending on the quality of the product purchase demand will
form. Products causing health issues will not create a good market demand.

3. Psychology- it decides the personality, taste, attitudes of individuals or groups, life

style, preferences especially on occasions like marriage. The demonstration influence is also
dependent upon psychology of an individual.

17
4. Anthropology & Geography- climate, region, history all effect, consumer behaviour.
In hot countries like India certain products which keep us cool like squashes, sarbatas, are
demanded but they have no demand in cold regions. The dress is also influenced by climate
along with other factors. Culture is also influenced by climate.

5. Technology- in case of equipment’s whether for consumer use or industrial use is

affected by technological innovations and features. Innovations and introduction of new
product also depends upon technological development and technological change.

6. Others- knowledge-technical or otherwise and information. Government decisions,

laws, distribution policies, production policies have also big affect on consumer behaviour.
All these factors are studied by consumer behaviour scientists and then they decide what
marketing strategy should be adopted to develop a particular product, change the existing
product and what pricing and marketing mix should be used to attract more customers
towards the product/service in question to optimize sales and profits.

18
Advantages of using Digital Wallet

 A competitive differentiation for businesses

 Instant payment and higher conversion rate for customers
 The mobile device has become more significant for users today
 Mobile wallet ensures smooth transfer of payments from one party to another
 It provides a database marketing opportunity to marketers
 Mobile wallet ensures cost savings for the business by ensuring transparency in
payments
 Since the business can reach out to a larger number of customers, the revenue
would automatically rise
 Location based services helps businesses in doing customized promotions for their
customers
 Mobile wallets also ensure security of payment for customers
 Running loyalty programs with customers becomes easier with the help of mobile
wallets

19
Disadvantages of using Digital Wallet

 It is not fully available worldwide - The number of retailers which accept payments
from an electronic wallet depends on the actual wallet you choose. In December
2016, just 36% of retailers accepted Apple Pay. 34% of retailers accepted PayPal as a
form of payment. Just 25% of retailers accepted Master Pass. About 2 million
retailers in North America currently provide access to some form of mobile payment
through an electronic wallet.
 It still requires you to carry something - Although an electronic wallet offers more
convenience for many consumers, it doesn’t fully eliminate the requirement of
carrying something with you. If you don’t have your mobile device on your person,
then you have no way to complete a transaction. Because these wallets don’t store
your identification and other needed items, you’re still forced to carry a traditional
wallet or purse with you as well.
 It requires your device to have a charge - There’s also the disadvantage that an
electronic wallet requires you to have a charged device to have it operate. If you’re
carrying a traditional wallet, you won’t need to worry about how much battery life is
left on your phone.
 It doesn’t eliminate your security risks - The security of your smartphone or mobile
device is dependent on the settings you use. If you don’t have your device protected
with some type of password, then someone could steal your device and potentially
access the funds in your bank account or credit cards. There are definite security
advantages to consider which make an e-wallet a beneficial technology, though it
requires responsible management of it to maximize them.
 It may charge you more to process payments - Many of the electronic wallets which
offer a rewards program will charge you a fee to transfer those rewards. You may be
required to process payments in a specific way to access these benefits as well.
When using the PayPal debit program, for example, consumers receive 1% cash back
when their transaction is a standard signature credit transaction. Using a PIN
through a digital wallet eliminates this benefit because you’re changing how the
point-of-sale treats the transaction. If you spend $900 per month, you’d be losing
over $100 each year for the convenience of this payment method.

20
 CH-3
Analysis and
Findings

21
 1. Age group of respondents
Age group of respondents No. of respondents
Less than 24years 14
25-39years 8
40years and above 3

Age group of respondents

16

14

12

10

0
Less than 24 25-39 40 and above

This chart provides us with the information that out of the data received from
25 persons, 14 persons belong to the age group of less than 24years and 8
persons in the age group of 25 to 39years and the rest 3 persons belong to
40years and above. It is understandable that more of the younger generation is
using digital wallet as a payment method.

22
 2. Respondents of gender
Respondents of gender No. of respondents
Male 20
Female 5

Respondents of gender
25

20

15

10

0
Male Female

From the above chart it is understandable that out of the 25persons involved
in this analysis 20 were male and the rest 5 were female. Mostly the males
took interested in the study and are using the digital wallet.

23
 3. Are you aware regarding the functionality of
digital wallets?
Are you aware regarding the No. of respondents
functionality of digital wallets?
Fully Aware 16
Partially Aware 9
Not Aware 0

Are you aware regarding the functionality of

digital wallets?

Partially Aware
36%

Fully Aware
64%

From the above chart it can be understand that out of the 25persons involved
in the study 16persons are fully aware of digital wallet and only 9 are partially
aware of it. It is also understandable that everyone is aware about the digital
wallet and it is really good.

24
 4. Do you use digital wallet for financial
transactions?
Do you use digital wallet for No. of respondents
financial transactions?
Yes 23
No 2

Do you use digital wallet for financial

transactions?

No
8%

Yes
92%

This chart shows that from the data we have received only 2persons out of the
25persons are not using digital wallet. It is also a good indication that most
people are into the use of digital wallet.

25
 5. Why do you prefer digital wallet over other
modes of payment?
Why do you prefer digital No. of respondents
wallet over other modes of
payment?
Time Saving 18
Ease of Use 6
Security 1

Why do you prefer digital wallet over other

modes of payment?
Security
4%

Ease of Use
24%

Time Saving
72%

From the above chart it is understandable that 18persons use digital wallet as
it is time saving. 6persons use digital wallet as it is easy to use. Only 1 out of
the 25persons use digital wallet as it is a secured mode of transaction.

26
 6. Which device do you use for making the
payment via digital wallet?
Which device do you use for No. of respondents
making the payment via digital
wallet?
Smart Phone 14
Computer 11
Both 0

Which device do you use for making the

payment via digital wallet?

Both
44%

Smart Phone
56%

From the above chart it is found that 14persons are using digital wallet through
their smart phones only. 11persons are using digital wallet from both smart
phones and computer. No one out of the 25persons are using only computer
to make digital transaction.

27
 7. Which digital wallet do you prefer the most?
Which digital wallet do you No. of respondents
prefer the most?
Paytm 14
Google Pay 11
PayUMoney 0

Which digital wallet do you prefer the most?

Google Pay
44%

Paytm
56%

From the above chart it is understandable that 14persons are using Paytm to
make their digital transactions and 11persons are using Google Pay to make
their online transactions. It is also understandable that no one is using
PayUMoney for online transactions.

28
 8. How do you consider digital wallet against
other sort of payment methods?
How do you consider digital No. of respondents
wallet against other sort of
payment methods?
Alternative Choice 13
Substitute 5
Supportive Instrument 7

How do you consider digital wallet against

other sort of payment methods?

Supportive
Instrument
28%

Alternative Choice
52%

Substitute
20%

From the above the chart it is understood that 13persons sees digital wallet as
an alternate to real cash while 5 of them thinks it to be a substitute to real cash
and the rest 7 of them sees it as a supportive instrument to real cash.

29
 9. What is your purpose of using digital wallet?
What is your purpose of using No. of respondents
digital wallet?
Money Transfer 2
Recharge 2
Utility and Bill Payment 0
All of the above 21

What are your purpose of using digital

wallet?

Money
Transfer
8% Recharge
8%

All of the above

84%

From the above chart it is understandable that a couple of persons use digital
wallet only for money transfer and another couple of persons use it for
recharge and the rest 21persons use digital wallet for money transfer, recharge
and utility and bill payments.

30
10. What do you keep in mind while using digital
wallet?
What do you keep in mind while No. of respondents
using digital wallet?
Available Discounts 9
Premium Offers 7
Cash Back 9

What do you keep in mind while using

digital wallet

Available
Cash Back Discounts
36% 36%

Premium Offers
28%

From the above chart we can say that 9persons are using digital wallet for the
available discounts provided by the companies. 7 of them use digital wallet to
get the premium offers provided and the rest 9 of them use it for the cash
backs provided to them on making transactions.

31
11. How many times have you used digital
wallet?
How many times have you used No. of respondents
digital wallet?
Less than 10 times 1
10-50 times 9
More than 50 times 15

How many times have you used digital

wallet?
Less than 10 times
4%

10-50 times
36%

More than 50
times
60%

From the above chart it is understandable that only 1person have used digital
wallet less than 10times, while 9 of them have used it for around 10 to 50times
and the rest 15 of them used it more than 50times till now.

32
12. How often do you use digital wallet?
How often do you use digital wallet? No. of respondents
Daily 10
Weekly 9
Monthly 6

How often do you use digital wallet?

Monthly
24%
Daily
40%

Weekly
36%

From the above chart we can state that 10persons use digital wallet on a daily
basis while 9persons use it on a weekly basis and the rest 6 of them use it once
a month or such.

33
13. How much do you spend via digital wallet on
a monthly basis?
How much do you spend via digital No. of respondents
wallet on a monthly basis?
Less than 1000 5
1000-5000 9
More than 5000 11

How much do you spend via digital wallet on

a monthly basis?

Less than 1000

20%

More than 5000

44%

1000-5000
36%

From the above chart we see that 5persons use digital wallet to make
transactions less than 1000 rupees a month while 9persons use it to make
transactions around 1000 to 5000 rupees a month whereas the rest 11 of them
spends more than 10000 rupees via digital transaction monthly

34
14. Would you like to continue using digital
wallet?
Would you like to continue using No. of respondents
digital wallet?
Yes 20
No 3
Neutral 2

Would you like to continue using digital

wallet?

Neutral
8%
No
12%

Yes
80%

From the above chart it is understandable that 20 of them 25persons are

happy using digital wallet and wants to continue with it while 3 persons are not
going to continue using digital wallet and the rest 2 of them are not sure
whether to continue using it or discontinue and hence have a neutral feeling
about it.

35
15. Do you think digital wallet should be widely
available in India?
Do you think digital wallet should be No. of respondents
widely available in India?
Yes 19
No 3
Neutral 3

Do you think digital wallet should be widely

available in India?

Neutral
12%

No
12%

Yes
76%

From the above chart we get to know that 19persons believes that digital
wallet should be widely available and used throughout India. 3persons thinks
that it shouldn’t be available throughout India and the rest 3 of them thinks it
to be alright to be available or not available throughout India thus having a
neutral decision.

36
16. Do you believe your transactions are
secured?
Do you believe your transactions are No. of respondents
secured?
Yes 22
No 3

Do you believe your transactions are

secured?

No
12%

Yes
88%

From the above chart we come to know that 22persons believe that their
transactions are secured and no harm will happen to their account or money
while using or making payments through digital wallet. 3persons thinks the
opposite that it they think that their transactions are not secured.

37
17. Does using digital wallet promote cashless
payment to the next level?
Does using digital wallet promote No. of respondents
cashless payment to the next level?
Yes 23
No 2

Does using digital wallet promote cashless

payment to the next level?

No
8%

Yes
92%

From the above chart we get to know that 23 persons think that yes digital
wallet promotes cashless payment to the next level while the rest 2 of them
thinks it doesn’t promotes.

38
18. Would you like to refer your friend to use
digital wallet?
Would you like to refer your friend to No. of respondents
use digital wallet?
Yes 20
No 1
Neutral 4

Would you like to refer your friend to use

digital wallet?

Neutral
No 16%
4%

Yes
80%

From the above chart we can say that 20persons are ready to refer their
friends to use digital wallet while 1 of them is not ready to do the same.
4persons also have a neutral feeling towards referring their friends to use
digital wallet.

39
Development of Digital Wallet

Mobile wallet has become a mainstream payment instrument in India. GlobalData’s survey
shows that the share of cash or cheque (cash on delivery) in total e-commerce transaction
value declined from 31% in 2013 to 16% in 2017, whereas the mobile wallet share jumped
from just 7% to 29% during the same period. The usage of payment cards dropped from
38% to 32% during this period.

India is one of the fastest growing economies of the world, and it is home to over 1.3 billion
people. The country recorded strong GDP growth of 6.5% in 2017, despite some headwinds
from GST. India's digital payment industry showed promise and registered double digit value
growth during 2013-17. India's middle class continues to grow and IMF's GDP growth
forecast for FY2019 is much better at 7.4%, this will improve business sentiments and
benefit different industries including mobile wallet market.

According to India Mobile Wallet Market Size & Analysis, Forecast & Opportunities, 2018-
2023, mobile wallet market registered whopping double digit value growth, with a CAGR of
67.10% during review period of 2013-17 despite headwinds like mandatory KYC. The market
advanced on the back of rising digital awareness, increasing smart phone ownership
coupled with surging internet penetration, and convenience associated with such services.

The market is forecast to gain immensely during forecast period of 2018-23 to reach
around USD 7 Billion by 2023, on account of Government's increased focus to make India a
cashless and digital economy. This will help the industry and directly benefit companies like
Paytm, Mobikwik, FreeCharge, Oxigen and many others.

As far as competitive landscape is concerned, Paytm continues to dominate the market by

significant margin followed by tens of players. India mobile wallet has seen growing
investment from companies like Google and WhatsApp, who have announced significant
investments in the country. Digital payment awareness is anticipated to continue through
2023 and onwards and mobile wallet penetration is likely to go up even in Tier II and Tier III
cities through 2023.

40
 CH-4
Conclusions and
Recommendations

41
Conclusion

In today’s fast moving world where people live very stressful life, this approach and
innovativeness in wallet making would provide some help to people while shopping,
travelling, recharge and other bills payments and utilities as it is very easy to use and can be
done in very fast. It also have tracking device which would provide safety to your cards and
ultimately to your money. So people should start using these wallets because of the safety
purpose, easy to use and quick transfers. There is no need of finding shops for your
recharges anymore. No need of waiting in the queue outside the ATM to take out money for
shopping, no need to visit banks for transferring money. All can be done being at your
location in a few minutes with a few clicks. Digital wallet has made life easy and for this
reason it is widely spreading all over the nation and more and more number of people are
using it.

Recommendation
 Companies should research continuously for quality improvement.
 Companies must have their own applications to serve the purpose.
 Companies should develop simple user interface so that the customers can interact
easily.
 Companies must look to provide more offers such as discounts, cash backs, etc to
attract customers.
 Develop more advertising campaigns.
 Advertising messages should both be persuasive and reminder-oriented.
 Comparative advertising is useful in this regard.
 Television and digital marketing combine’s motion, sound and special visual effects
for which it is the most preferred media for advertisements.
 To employ integrated advertising of their product.
 More budgets could be devoted to TV adverts and social media influencers in view of
the consumers.

42
Bibliography
Shukla, T. N., Mobile wallet: present and the future, Vol. 5, No. 3, June 2016 (ISSN 2278 –
5973). Available: ssijmar.in/vol5no3/vol5no3.6.pdf

Ghuman, , S., Recharging: the Right Way?? A case study on e-payment giants: Freecharge
& PayTM, IOSR Journal of Business and Management, available:
www.iosrjournals.org/iosrjbm/papers/Conf.15010/Volume%201/14.%2087-92.pdf

Pousttchi, K., Wiedemann, D., (2008, October) What influences consumers’ intention to use
mobile payments [Online]Available: http://classic.marshall.usc.edu/assets/025/7534.pdf.

Lee, T., The Impact of perceptions of interactivity on customer trust and transaction
intentions in mobile commerce, Journal of Electronic Commerce Research, vol. 6, no. 3, pp.
165-180, 2005.

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http://www.knowthis.com

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http://www.researchgate.net

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Annexure- Questionnaire

Name : Age : Gender :

Q.01 Are you aware regarding the functionality of digital wallets?

i) Fully aware ( ) ii) Partially aware ( ) iii) Not aware ( )

Q.02 Do you use digital wallet for financial transactions?

i) Yes ( ) ii) No ( )

Q.03 Why do you prefer digital wallet over other modes of payment?

i) Time saving ( ) ii) Ease of use ( ) iii) Security ( )

Q.04 Which device do you use for making the payment via digital wallet?

i) Smartphone ( ) ii) Computer ( ) iii) Both ( )

Q.05 Which digital wallet do you prefer most of the time?

i) Paytm ( ) ii) PayUMoney ( )

iii) Google Pay ( )

Q.06 How do you consider digital wallet against other sort of payment methods?

i) Alternate choice ( ) ii) Substitute ( ) iii) Supportive Instrument ( )

Q.07 What are your purpose of using digital wallet?

i) Money Transfer ( ) ii) Recharge ( )

iii) utility &bill payment ( ) iv) All of the above ( )

Q.08 What do you keep in mind while using digital wallet?

i) Available discount ( ) ii) Premium offers ( ) iii) Cash back ( )

Q.09 How many times have you used the digital wallets?

i) Once ( ) ii) 10-50 times ( ) iii) More than 50 times ( )

Q.10 How often do you use digital wallet?

i) Daily ( ) ii) Weekly ( ) iii) Monthly ( )

44
Q.11 How much do you spend via digital wallet on a monthly basis?

i) Less than 1000 ( ) ii) 1000-5000 ( ) iii) More than 5000 ( )

Q.12 Would you like to continue using digital wallet?

i) Yes ( ) ii) No ( ) iii) Neutral ( )

Q.13 Do you think digital wallet should be widely available in India?

i) Yes ( ) ii) No ( ) iii) Neutral ( )

Q.14 Do you believe your transactions are secured?

i) Yes ( ) ii) No ( ) iii) Neutral ( )

Q.15 Would you like to refer your friend to use digital wallet?

i) Yes ( ) ii) No ( ) iii) Neutral ( )

Q.16 Does using digital wallet promotes cashless payment to the next level?

i) Yes, of course ( ) ii) No ( )

45