EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
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E-WALLETS: AN INNOVATION AND ITS
PERCEPTION AMONG YOUTH
1
Dr. Dilip Singh, 2Ms. Aishwarya Singh
1
Professor, Department of Business Administration, University of Rajasthan
2
Research Scholar, Department of Business Administration, University of Rajasthan
ABSTRACT
As Digital world continues to evolve, presenting the real world with new technologies capable of simplifying and enthralling
regular activities, adapting with the pace of new developments is a necessity, not an option. Electronic wallet is one such
innovation which has found its place in smartphones of almost every buyer and seller in every nook and corner of the
society. The present study aims to understand the significance of e-wallets from customers’ perspective by analysing their
experience. The study evaluates the positive and negative impacts of using e-wallets for payment from the perspective of
youth, i.e., the college going students who constitute the major section of the society frequently transacting through latest
tools and are quite aware about the latest digital payment options. The beneficiaries of the research findings shall be the e-
wallet operators or fintech companies involved in digital payment infrastructure services to make subsequent improvements
for furthering the scope of digital inclusion.
KEY WORDS: customer, e-wallet, impact, youth
INTRODUCTION
The advent of e-wallets reflects a transition from cash payments to cashless way of making payments at a
broader level. The plastic money has undoubtedly made its way in methods of online payment while e-wallets
have tended to bring about a revolution by ensuring its presence in each person’s smartphone.
A digital wallet, also known as e-wallet, is an electronic device, online service, or software program that
allows one party to make electronic transactions with another party bartering digital currency units for goods and
services.(Digital Wallet - Wikipedia, n.d.) .Electronic wallet is a cashless way of making payments, using online
and app-based services for transaction. These wallets are either linked to bank accounts, or are filled with cash
using debit/credit cards and can be used as regular wallets to make payments at both online and offline points of
sale. As per a recent directive by the central bank, to push digital transactions in rural and semi-urban areas, the
Reserve Bank of India (RBI) has issued a framework allowing offline payments up to Rs 200 per transaction,
subject to an overall limit of Rs 2,000.
E-wallet has mainly two components, software and information. The software component stores personal
information and provides security and encryption of the data. The information component is a database of details
provided by the user which includes their name, shipping address, payment method, amount to be paid, credit or
debit card details, etc.
Applications
There are various applications of e-wallet. These can be as follows:
• Bill payments
• Money transfer
• Faster payments in shops
• Ticket booking (Air, Train, Bus)
• Bank account management
• E-Commerce
• M-Commerce
REVIEW OF LITERATURE
Singh (2021), in his article titled, “E-wallets are similar to bank accounts, but more convenient: Experts”,
provides a comparative analysis of bank account and e-wallet mentioning the advantages of latter making it more
------- 2022 EPRA ECEM | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra0414 ----------10
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
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popular and convenient. The author explains the security and privacy related features of e-wallets and talks about
the interoperability and authentication through KYC made mandatory by RBI.
Kolandaisamy & Subaramaniam (2020), have summarised that e-wallets have gained popularity over
traditional modes of payment, especially, among the young generation due to convenience and ease of use while
the older people still feel susceptible about safety and security related to digital payments as a whole, but are
gradually making up their mind to switch to digital mode.
Brahmbhatt (2018), has studied consumers’ perception towards e-wallets in Ahmedabad City in which she
has concluded that 92% respondents of the study have preferred e-wallet in place of conventional payments and
to spread their usage further, the company operator need to adopt better marketing strategies.
Pachpande & Kamble (2018), in his research have pointed out that the presence of mobile wallet has spread
on a large scale from urban to rural areas due to three major factors which play an important role in consumer
adoption are convenience in Ease of use, quick online transaction and usefulness of E-wallet, which play an
important role in their adoption. The authors also mention safety and interoperability as important areas which
need to be improved.
Hodiwalla Fali & Aneja Dheeraj (2016), in their article in Financial Express, titled, “Emergence of e-
wallets in India; here is how the payments industry is growing rapidly” advocated that digital wallet operators
have built a significant customer base as they have simplified the transaction experience and complimented it with
multiple promotional offers to attract a wide customer base.
Salodkar Ambarish, Morey Karan and Shirbhate Monali (2015), in their study on electronic wallet have
advocated that the elements like the mobile environments and devices, the electronic wallet and standards meant
to increase the flexibility of the transactions shall determine the future of the electronic payment systems.
According to them E-wallet will definitely pave the way for a secure, fast and futuristic way of transactions. They
also feel that e-wallet will give a user the liberty to shop and pay from anywhere with just a click of a button and
without any kinds of worries regarding the security.
RESEARCH METHODOLOGY
The Research Methodology used for the study was a combination of Descriptive and Exploratory research.
It included surveying college going students aged between 18-25 taken as sample for the study from Jaipur city
with the help of a close-ended questionnaire. The questionnaire was sent across to 85 respondents who were
mostly college going young people. Around 82 respondents answered in which 7 questionnaires were not properly
filled, so the study is based on the data received from 75 respondents. The proposed answers were in the form of
three statements: ―yes ―no and ―Up to some extent.
Secondary data was collected from books, journals, magazines etc. Various research publications related
to the topic were referred in the course of the study. The main aim of the research was to analyse the perception
regarding e-wallets.
RESEARCH FINDINGS
E-wallet as a quicker medium of payment
100%
80%
60%
40%
20%
0%
Yes No Up to some
extent
92% respondents agreed that using e-wallets is a quicker medium to make payments whether on websites or in
person on point-of-sale. There is no mess of counting the notes or searching for change. The receipt is instantly
generated without any need to wait for the merchant to verify the transaction or the amount paid.
------- 2022 EPRA ECEM | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra0414 ----------11
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
------------------------------------------------------------------------------------------------------------------------------------------------------
E-wallet helps to manage budget
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
48% respondents agree that the discounts offered and rewards provided after each transaction attract them to use
the e-wallet often. 28% respondents denied such offers and rewards as attractive and were least concerned about
it. The rest 25% said that up to some extent, sometimes, they considered these discounts and rewards as the
deciding factor.
E-wallet helps to manage budget
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
56% respondents accepted the fact that using e-wallets help them to manage their budget, prioritizing the
transactions and avoiding unnecessary expenses. 20% denied any such impact while 24% of them had mixed
review that up to some extent they can manage their transactions while using e-wallets.
Cashless medium and ease of use
100%
80%
60%
40%
20%
0%
Yes No Up to some
extent
88% respondents admired the cashless feature of e-wallets which makes it easy for them to pay anywhere and
anytime, any amount needed, without worrying for cash in hand. 4% denied while 8% said that up to some extent
they find the feature attractive.
------- 2022 EPRA ECEM | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra0414 ----------12
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
------------------------------------------------------------------------------------------------------------------------------------------------------
Prompt customer services
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
64% respondents admitted to contact customer care while faced with any issues and agreed that prompt services
helped them to prefer making payments using e wallets and enhanced their satisfaction level. 28% of the
respondents responded in negative which implies they either did not avail the customer care services or their issues
were not resolved satisfactorily. Rest of the respondents, i.e., 8% said that up to some extent such feature attracts
them as they do not contact the support often.
Limited adoption makes e-wallets less reliable
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
24% respondents agreed that universal availability of e-wallets not being there, poses a problem, especially while
transacting with street vendors, small shopkeepers, etc. 60% denied such drawback to be impacting the reliability
of e-wallets much, while rest of them 24% said that up to some extent they find e-wallets due to such reason, less
reliable.
E-wallet triggers reckless spending
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
------- 2022 EPRA ECEM | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra0414 ----------13
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
------------------------------------------------------------------------------------------------------------------------------------------------------
48% respondents agreed that 24/7 availability of wallet in hand, in form of e-wallet, leads to reckless spending,
while 44% respondents denied and rest 8% said that up to some extent such happens.
Technical issues faced
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Up to some
extent
76% denied facing any technical issues while making payment through e-wallets, 12% said that up to some extent,
sometimes, they face such issues while just 4% said that most of the times technical issues lead to failure of
transactions.
Security related issues faced
100%
80%
60%
40%
20%
0%
Yes No Up to some
extent
84% responded in negative about facing any security threats when using e-wallets for transactions, while 12%
agreed that they found it risky to link their bank accounts with e-wallets and rest 4% responded for ‘up to some
extent’.
CONCLUSION
The research findings depict that the consumer perception towards e-wallets is on favourable side with
majority respondents agreeing to the digital payment mode to be quicker, easy to use, economic and cashless.
Cashless payments are now becoming a popular trend in almost every field. Demonetization has forced a lot of
places to accept digital payments. Use of e-wallets helps in moving away from a cash-based economy. In the
process, all the transactions get accounted in the economy, which has the effect of reducing the size of the parallel
economy. Although some disadvantages in term of interoperability and standardization of security and formats
persists, still people have favourable perception towards them. As a result, the major factors which play an
important role in consumer adoption are convenience in ease of use, quick online transaction, prompt customer
services and usefulness of e-wallet in terms of prioritizing the transactions. Users of e-wallets are satisfied with
the services provided to them but some are quite sceptical about security aspect. The most adored feature of e-
wallets is that they are hassle free and quick mode of making an online payment. The study concludes that digital
wallets see a wide consumer base implying bright future in near time.
------- 2022 EPRA ECEM | www.eprajournals.com | Journal DOI URL: https://doi.org/10.36713/epra0414 ----------14
EPRA International Journal of Environmental Economics, Commerce and Educational Management
Journal DOI: 10.36713/epra0414 |ISI I.F Value: 0.815|SJIF Impact Factor (2021): 7.743 ISSN: 2348 – 814X
Volume: 9 | Issue: 2 | February 2022
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REFERENCES
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https://en.wikipedia.org/wiki/Digital_wallet
3. Kolandaisamy, R., & Subaramaniam, K. (2020). The Impact of E-Wallets for Current Generation. Journal of
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