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Mobile Wallet Project

1. The document discusses the growth of mobile wallet payment services in India, as mobile phones and digital technology have changed shopping and payment behaviors. 2. It outlines several types of mobile wallets (closed, semi-closed, open), and factors that affect consumer perception and adoption of mobile wallets, such as privacy, flexibility, mobility, convenience, trust, usage costs, transaction speed, and ease of use. 3. The objectives of the document are to study the growth of mobile wallet providers, consumer awareness and preferences, services provided and used, and the impact of demographic shifts on mobile wallets.

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Geetika Arora
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0% found this document useful (0 votes)
2K views21 pages

Mobile Wallet Project

1. The document discusses the growth of mobile wallet payment services in India, as mobile phones and digital technology have changed shopping and payment behaviors. 2. It outlines several types of mobile wallets (closed, semi-closed, open), and factors that affect consumer perception and adoption of mobile wallets, such as privacy, flexibility, mobility, convenience, trust, usage costs, transaction speed, and ease of use. 3. The objectives of the document are to study the growth of mobile wallet providers, consumer awareness and preferences, services provided and used, and the impact of demographic shifts on mobile wallets.

Uploaded by

Geetika Arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

INTRODUCTION
The entire world of business depends upon the behaviour of customer. With the advent of
technology it’s not only the shopping behaviour of the customer that is changing, the
payment modes are also changing. The environment for payments is expanding in India. The
increase usage of mobile phones and the development of technology are bringing a
turnaround change in the landscape of payments. Traditionally there was a cash based
economy leading to card based economy. But now it is finally followed by mobile payments.
With the adoption and ownership of mobile phones the mobile users prefer to make money
transactions with the help of mobile applications. It’s not only about payments; besides
payments you can also store coupons, codes, receipts and bills in m-wallet. In mobile
payments the focus is more on increase towards the use of electronic mode of payment
leading to decreases of cash payments. The field of mobile payments is growing rapidly.
After the advent of demonetization adoption of m-wallets is significantly encouraged by our
Prime Minister Shri. Narendra Modi. Mobile payments have unique set of capabilities to
meet the challenges posed by the traditional payment system. It works as a cashless payment
mode. Various companies are entering the arena. Service providers like Paytm, Oxigen
wallet, Google pay and are bringing new digital payments offerings in the market.
Furthermore Banks in India are also launching digital wallets to create a competitive
environment. State Bank of India (SBI) launched the first State Bank Buddy mobile wallet in
August 2015. Other digital wallets launched by banks include Pockets (ICICI Bank) and
Lime (Axis Bank) in 2015. Many studies have explored the breakthrough in this technology.
Many have discussed it in reference to technology and adoption. This study investigates the
consumer behaviour for acceptance and adoption of mobile payments

In today world mobile play an important part of everyday life. Because of technology,
mobile user can nowadays use their mobile to make money transaction or payments by using
different applications installed in their mobile. Besides payment, we can also store receipts,
coupons and cards, bills in the mobile . When mobile can perform as leather wallets, and it is
called “Mobile wallet or digital wallets. Mobile wallet is virtual wallet service provided by
certain service providers, here in people can load certain amount of money. The digital
payment service works as a cashless payment service, where people do not have to pay cash
or swipe their debit or credit card at offline merchants.
Mobile wallets are defined as virtual wallets. These are the services provided by various
service providers which may include private as well as government owned. As part of M-
Wallets customers can load some money in it which they can spend later on with online or
offline merchants listed with the service provider. The digital payments serve as the cashless
payments where the customers do not have to debit or credit with the merchants. There are
four types of m- wallets in India:
Closed wallet: Points are provided by company to the user of account. Money can not be
withdrawn. Example: Amazon wallet, Ola Money.
Semi Closed Wallet: In case of semi closed wallet also money cannot be withdraw These are
also can be used to purchase the goods and services. Issuer and the merchant have a specific
contract between them. Example: Paytm , phonepay wallet.
Open Wallet: Money can be withdrawn at ATM with the help of cards provide by the service
provider. This types are also can be used to purchase the goods and services. It also includes
the service of fund transfer at merchant location. Example: Visa and Master Cards.
FACTORS THAT AFFECT CONSUMER’S PERCEPTION TOWARDS M-WALLETS
1) Privacy and Anonymity
Privacy and Anonymity are important for mwallet usage and demonstrate the ability to
enable the access to protected data by authorized entities only. Privacy is defined as the
protection of sensitive user data and therefore plays an important role in the user decision
to use or not use the mwallets. Privacy and anonymity concerns arise on personal
information of the users. The companies facilitating online transactions tend to collect
personal information of users and lack of protection of this information leads to
unauthorized access and usage of data for other purposes without the users’ consent.
2) Flexibility
of usage Flexibility of usage refers to the facility of using the mwallet across various user
devices. Also these days when people keep on changing their mobile devices frequently,
flexibility is also important for the consumers to be able to switch their mobile devices easily
so the uses do not have to put much time or effort in transferring data or apps from one
mobile device to another.
3) Mobility
Mobility means the ability to move or be moved freely and easily. It is the main factor which
is used to calculate how much a person wants its advantages in terms of space, time and
accessibility. Today, mobile technology has given scope to users to communicate and
transfer the data anytime and anywhere. Mobile payments and services provides the way
for making payments for all products and services wherever and whenever they want
without any time or space boundation. Using smart phone and internet connection, people
can pay their bills, do online shopping etc.
4) Convenience
Convenience means the state of being able to proceed without difficulty. With mobile
driven technology, it becomes easy and comfortable to use and adopt services provided. If
we compare it to traditional services, where user has to stand in long queues and wait for
any bill payments, it is now convenient to avail these services through mobiles. Even the
inconvenience caused of carrying devices like laptops, workstations is eliminated with the
usage of mobile phones and payments through mobile wallets.
5) Trust
Trust is defined as a willingness to use the new service with a sense of comfort, safety, and
risk acceptance. Customer’s trust has been recognized as an important factor for the
success of mobile banking in the context in which the transactions are made in a telephone
network that is more vulnerable and uncertain than the traditional payment transaction.
The transactions conducted through a mobile network are vulnerable and more uncertain
than traditional settings, thus entail greater potential risk. Trust in the payment system will
help reduce the need to understand, control, and monitor activities, thereby allowing
customers to use services easily and efficiently without much effort in translation of online
service.
6) Usage Cost
The cost of using the m-wallets for transactions may also affect the users’ decision to use or
not use the m-wallets. There are transaction costs associated with online payments and the
user will use a particular payment method if he or she feels that the costs associated with
the payment method are not causing any loss to him/her. To attract the users, the
companies are even providing various discounts and cashbacks on payments through m-
wallets. Transaction costs can be a barrier towards usage of m-wallets.
7) Speed of Transaction
Transaction speed is an important factor for online payments. The same holds true for m-
wallets. The time taken for a particular transaction would influence the user’s decision to
adopt m-wallets. The users are more likely to use m-wallets if they feel that they can
complete the payments faster than other traditional methods. The possibility of pre loading
cash into the m-wallets makes the payments faster than other online payment methods.
This plays a motivating factor for m-wallet adoption.
8) Ease of use
Whenever the users are presented with a new technology, the ease of use plays an
important role in the decision to accept or reject it. In case of m-wallets also the ease of use
will impact the users’ intention to accept. The users will accept the m-wallets easily if they
are able to understand the working process clearly. The design of the m-wallet app should
be user friendly in order to make it easier for the users to adapt to this method of
payments.
OBJECTIVES
1. To study the growth of M-wallet payment gateway services.
2. To find out the awareness and preferences of the users towards M-wallet service
providers.
3. To study the services provided by the M-wallet providers and the services used by
the M-wallet wallet users.
4. To identify the impact of demographic shift towards M-wallet.
REVIEW OF
LITERATURE
Prof Trilok Nath Shukla in his paper “Mobile Wallet: Present and the Future” (June 2016)
has discussed about mobile wallet, working, types and its advantages and disadvantages. His
analysis included perception of consumers and retailers about mobile wallets. He concluded
that mobile wallets will be used to engage with the customer by the marketers and digital
businesses. Irrespective of the market status of these mobile wallets, marketers should take
advantage of the emerging opportunities.
Dr. Karminder Ghuman and CS Shruti Srivastava in their paper “Recharging: the Right
Way?? A case study on e-payment giants: Freecharge & PayTM”has asked readers a
strategic question that in the emerging internet based service provision industry, whether it
is a better strategy to develop a unique positioning on the basis of single key service or it’s
better for an organization to offer multiple services, thereby reducing risk, increasing
traction and thus increasing its valuation? And thus they have compared Paytm and
Freecharge who are employing opposite strategies to find out which one is better.
Key Pousttchi and Dietmar G. Wiedemann in their paper “What Influences Consumers’
Intention to Use Mobile Payments?” (2008) studied the adoption of mobile payments and
evaluated what key influences affected consumers to use mobile payments and found that
subjective security was not a primary driver of mobile payment acceptance. They found that
perceived confidentiality of payment details and perceived trustworthiness were strongly
correlated. Four key variables were found to directly impacting consumer intention and
usage behavior: performance expectancy, effort expectancy, social influence, and facilitating
conditions
ThaeMin Lee in his paper “The impact of perceptions of interactivity on customer trust
and transaction intentions in mobile commerce” (2005) investigated the impact of
perceptions of interactivity on consumer trust and transactions in mobile commerce and
concluded that trust does in fact play a significant role in determining consumer transaction
intentions. Hsin-Hui Lin and Yi-Shun Wang in their paper “An examination of the
determinants of customer loyalty in mobile commerce contexts” (2005) examined the
factors that contributed to customer loyalty in mobile commerce; perceived value and trust
were found to be directly related to customer satisfaction and customer loyalty; customer
satisfaction was also suggested to positively affect customer loyalty; and habit was proposed
to determine customer loyalty. They also found that customer loyalty was directly affected
by perceived value, trust, habit, and customer satisfaction. Customer loyalty was evaluated
to be a strong determining factor in acceptance of mobile commerce.
Sanaz Zrrin Kafsh (2015) , made a study on ‘Developing Consumer Adoption Model on
mobile wallet in Canada “ by taking a sample of 530 respondents through convenience
sampling. The focus of the study was to identify the factors that influence the consumer’s
adoption of mobile wallets. The study was based on technology acceptance model (TAM)
and innovation diffusion theory (IDT).
Ngoc Doan (2014) , considered a study on “ Consumer adoption in Mobile wallet . This study
was undertaken to understand about the consumers adoption status of mobile wallet . The
study states that the adoption of M-wallet among consumers is only at the beginning stage
and the success of M-wallets depends on the marketing strategies of M-wallet companies .
RESEARCH
METHODOLOGY

A Research Methodology defines the purpose of the research, how it proceeds, how to
measure progress and what constitute success with respect to the objectives determined for
carrying out the research study.
The study will be conducted to achieve aforesaid objectives
Method of Research
 Survey was done by QUESTIONNAIRE method.

SAMPLING TECHNIQUE:
 Convenient Sampling.

SAMPLE SIZE:
 Sample size of the survey is 50.

RESEARCH AREA:
 NCR & Delhi

Collection of data

The data has been collected from both primary and secondary methods.
The collection of data in this project has been done through getting questionnaires filled online
with the help of various people and this method is used because it is the most used tool in
collection of data because it is very inexpensive.

ANALYSIS AND INTERPRETATION


1.

Analysis:- From the above graph it can be observed that 66.7% people lies in the age
between 18-25 , 18.5% people lies in the age between 26-35 and 7.4 % in between 35-45.
Remaining 7.4% are above the age of 45.

2.

Analysis:- From the above graph it is observed that 59.3% consumers are students who
use mobile wallets, 11.1% of the people are employed, 22.2% of them are self employed and
7.4% are housewives using mobile wallets in their daily life.
3.

Analysis:- From the above graph it is observed that 66.7% people have there income
between 0-2,50,000 RS , 11.1% of them have between 2,50,000-5,00,000 RS , 11.1% of
people have between 5,00,000-10,00,000 RS , and remaining have there pocket money within
10,000 RS.

4.
Analysis:- From the above graph it is clearly observed that 100% people , which means
everyone has used or are using the mobile wallets.

5.

Analysis:- From the above graph it is observed that 92.6% people use their
smartphones for online payment and remaining have not done online payments.

6.

Analysis:- From the above graph it is observed that 51.9% people prefer mobile wallets
for online payment , 33.3% people use debit card for online payment , 7.4% people prefer
credit card for online payment and remaining use cash as a mode for payment.
7.

Analysis:- From the above graph it is observed that

8.

9.
10.

11.
12.

13.

14.
15.
LIMITATIONS OF THE STUDY

1. Unawareness about the mobile wallet.


2. Many people don’t know how to use it.
3. Unavailability of the platform.
4. Some of the respondents not answer to all the questions, it delays the data collection.
5. As the usage of mobile wallets have been different from person to person, the findings
of the study may not be accurately suitable to others.
6. Consumer’s perception changes from time with the advancement in the technology
7. The research studies only about the consumer’s perception towards mobile wallets
and not the merchant’s perception towards mobile wallets as it plays an important role
in carrying the business operation.
REFERENCES
 Bertoni, S. (2014, February 21). How Do You Win The Mobile Wallet War? Be Like
Starbucks. Retrieved November 2014, from Forbes:
http://www.forbes.com/sites/stevenbertoni/2014/02/ 21/how-do-you-win-the-mobile-
wallet-war- be-likestarbucks/

 Ettlie, J. (1980). Adequacy of stages model for decisions on adoption of innovation.


Psychological 0Reports, 991-995.

 Eveland, J. D. (1979). Issues in using the concept of ―adoption of innovations‖.


Journal of Technology Transfer, 1-13.

 G. W.-H. Tan, K.-B. Ooi, S.-C. Chong, and T.-S. Hew, ―NFC mobile credit card:
Thenext frontier of mobile payment?,‖ Telemat. Inform., vol. 31, no. 2, pp. 292–307,
May 2014.

 Kurkinen, L. (2013). Mobile Wallet Services. Europe, North America: Berg Insight
AB.

 Mallat, N. (2006). Exploring consumer adoption of mobile payments - a qualitative


study.
Working Papers on Information Systems.

 N. Doan , 2014 Cosumer adoption in mobile wallet

 8.Pitroda S., Desai M. (2010). The March of Mobile Money - The Future of Lifestyle
Management. The Mobile Wallet, 127-155
 9 Rajgopal, K. (2012). McKinsey on Payments. Payments wave, commerce ocean:
The arrival of the mobile wallet, 38-46. [10] P. De, K. Dey, V. Mankar, and S.
Mukherjea, ―Towards an interoperable mobile wallet service,‖ in Emerging
Technologies for a Smarter World (CEWIT), 2013 10th International Conference and
Expo on, 2013.

 11 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, pp. 87-92.
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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