COVER PAGE & TITLE PAGE

A STUDY ON CONSUMER BEHAVIOUR AND SATISFACTION

TOWARDS DIGITAL WALLETS
Dissertation submitted in partial fulfillment of the requirements for the
award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of
BANGALORE UNIVERSITY

Name: CHETHAN T N
Reg. No:19JQCMD027

Under the guidance of

DR. USHA PRABHU
PROFESSIOR
CITY COLLEGE
Bangalore University
2019-2021

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION

Commerce goes mobile. In 2014, smartphones have become the dominant net get entry to
device across the world, changing computer and pc computers, and through 2020, there may
be 2.6 billion related smartphones withinside the world. 1 Metcalf’s regulation, the regulation
that “the fee of a telecommunications community is proportional to the rectangular of the
quantity of related customers of the system,” has in no way had a greater effective instance
than the increase of the telephone. With each new telephone user, the capacity for
interconnectivity via chat apps consisting of WeChat and social media consisting of
Facebook and Snapchat will increase exponentially, and it’s converting the material of
worldwide society. Along with the social extrade enabled through mobile, trade is being
impacted on the equal pace. E-trade is developing at a price of 32%

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A huge a part of this boom originates from cell trade. In North America and Europe
combined, on-line income initiated with the aid of using cell gadgets grew with the aid of
using 58 tween 2014 and 2015, in comparison to simply three% for desktop-initiated trade.2
In rising markets, the significance of cell trade is even higher, because the cell community is
the number one infrastructure for on-line trade. While the boom of cell on-line trade has been
rapid, use of a phone for purchases at a bodily factor of sale (POS) is nascent, and the boom
price is a whole lot slower than that of cell on-line. This is logical, for the reason that phone
already “lives” withinside the digital international. Its transition right into a tool for POS
utilization is complex with the aid of using a loss of accepting terminals, conflicting
protocols, and restricted distribution of payment-enabled telephones. All of those elements
are converting speedy, however, and the boom price for bodily-international bills is
increasing. In Europe, for example, the attractiveness and utilization of contactless card bills
has speedy accelerated. Visa

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transactions (i.e., pay merchants online, in-app, or in-store).

 The funding of the wallet payment may come from a debit or credit card, prepaid card,
bank account, e-money account, virtual currency, or any other store of value.

ECONOMICS AND GROWTH POTENTIAL

In phrases of economics, cell wallets have a tendency to be an enabler of trade instead of a

standalone sales generator for companies that provide them. For retail monetary institutions,
the cost rests with the capacity to growth transaction extent for his or her fee playing cards
via way of means of making sure that the monetary institution’s card is pinnacle of pockets
withinside the cell offering. An extra gain is the capacity to growth consumer retention via
way of means of growing the relationship among the consumer and his or her monetary
institution. Depending upon the ecosystem, pockets vendors can generate sales via way of
means of taking a fee on income made via the pockets. For instance, withinside the United
States, Apple Pay costs 0.15% of the fee cost to issuers for transactions dealt with via the
pockets. Marketplace pockets vendors, together with Alipay, fee traders an in advance rate to
take part withinside the marketplace, at the side of a fee on every sale. Others, together with
Baidu Wallet, make their cash via seek and show marketing and marketing on their
platform.With the increase price of cell and on line trade, the plethora of smartphones, and
the kind of strategies being taken to supply a virtual pockets, it’s clean that the gap goes to
develop hastily in definitely each nook of the globe.

THE EVOLUTION OF DIGITAL WALLETS

The aggregate of full-size net access, accelerated bandwidth, and gadgets which could
capitalize on that bandwidth to supply a brand new patron enjoy is using the explosion in
pockets improvement and patron usage. And even as physical-international cellular wallets
and on-line virtual wallets are presently on separate however parallel improvement paths, it's
miles inevitable that the traces among the 2 will blur and hybrid price gear the usage of on-
line and cellular will emerge. It’s not possible to expect the direction of improvement with
certainty, however there are some signposts and landmarks which could manual the vision.
The following

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supported via way of means of the steady availability of 4G cellular bandwidth and complex
retail POS. In China and India, the cellular pockets is specifically used on line to store on
marketplaces like Alipay, Tenpay, and Paytm.In growing nations wherein little or no price
infrastructure has been in place, absolutely new price systems were advanced to capitalize at
the ubiquity of fundamental cellular gadgets which could use text-primarily based totally
payments. In many cases, those price systems were advanced and are being controlled via
way of means of MNOs in place of conventional economic establishments and price
processors. The first-class acknowledged instance is M-Pesa, operated via way of means of
Vodafone and its subsidiaries. Vodafone’s M-Pesa cellular cash switch and price provider is
the main cellular cash product withinside the global. It has extra than 20 million energetic
customers throughout Africa, the Middle East, Asia, and (Eastern) Europe. With offerings
like M-Pesa, economic offerings emerge as to be had to the 2.five billion humans which have
confined get right of entry to to economic offerings.

WALLET ECONOMICS

Up to now, wallet business cases have been supportive of other economic value. For instance,
Apple Pay charges a nominal fee to issuers for each transaction, but its intent is not to make
cash on the use of Apple Pay. Instead, it desires to feature greater fee to the Apple product
providing and boom the chance that a consumer will preserve to buy Apple hardware and
continue to be withinside the Apple ecosystem. Digital pockets carriers typically price traders
a transaction price, however they do now no longer price immediately for the pockets itself.In
the net space, virtual wallets assist traders to transform greater consumer virtual buying carts
to real income through offering a unbroken checkout experience. As there aren't anyt any
more charges involved, on line traders have a clean financial case to apply virtual
wallets.Amazon has identified that the loyalty of its clients may be precious to different
traders. With Amazon Payments, purchasers can use their Amazon wallets to pay on service
provider web sites which have reduced in size with Amazon Payments.For proximity
payments, the enterprise case relies upon on fee introduced offerings. To make cellular
wallets appealing for purchasers and traders, they must provide fee-introduced offerings like
rewards, coupons, and focused advertisements.Going forward, the enterprise case for wallets
will remain embedded in different elements of the issuer’s enterprise. It’s very tough for a

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virtual pockets to offer enough fee to behave as a stand-by myself income center.One
exception is Paysafe Group, which reviews one by one on its virtual pockets enterprise.
Paysafe Group is a international issuer of fee answers in e-commerce, on line gambling, and
on line gaming verticals. The company’s Skrill and Neteller pockets services offer traders
with greater than a hundred fee alternatives and forty currencies. In 2015, Paysafe’s Digital
Wallet enterprise had said sales of US$159.1 million, 78 ltter than 2014’s US$89.6 million;
this boom changed into pushed through the Skrill acquisition. On a seasoned forma consistent
foreign money basis, virtual wallets noticed 17 months-on-12 months sales boom. Digital
Wallet contributed 29% of Paysafe Group’s second-1/2 of 2015 seasoned forma price
sales.For agencies which include Paysafe, PayPal, Alipay and others, virtual wallets are
center enterprise. With their complete providing, they may be capable of guide traders coping
with the complexities of doing enterprise globally.

THE WAY FORWARD FOR DIGITAL WALLET PROVIDERS

FINANCIAL INSTITUTIONS

Mobile and virtual wallets offer economic establishments with possibilities to deepen
consumer relationships, enhance consumer retention, function their fee playing cards as
pinnacle of pockets, and shield their clients and the group from fraud. Given the evolution of
the space, it's miles now not a query of whether or not a economic group has a pockets
approach however is alternatively a remember of what the approach consists of and the way
that approach is implemented. For cell wallets withinside the bodily world, the options are to
provide one or extra of the present OS/OEM wallets, Apple Pay, Android Pay, Samsung Pay,
etc., presenting a proprietary economic-group-branded pockets, or presenting clients with
each options.Depending at the group’s function, any of those options will be appropriate. For
important economic establishments with very famous brands, a branded pockets creates fee
for his or her unswerving clients and offers extra advertising and marketing possibilities,
positioning the group as a frontrunner withinside the technological evolution of the space. For
smaller or nearby economic establishments, a proprietary pockets approach ought to middle
on consumer retention and fee proposition enhancement. The integration of the pockets right
into a economic group’s cell banking app can beautify the UX through simplifying

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onboarding (the pockets may be routinely provisioned through the economic group) and
through growing messaging possibilities with the consumer. With any proprietary economic
group pockets, it's miles crucial that the UX on the factor of sale is as frictionless as possible.
Additional safety necessities or different strategies that upload friction to the transaction may
want to bring about consumer rejection of the pockets and migration to an opportunity with
much less friction, likely at some other group.Whether they determine to supply a proprietary
pockets or not, economic establishments ought to provide clients the capacity to apply the
third-birthday birthday celebration OS wallets (Apple Pay and Android Pay) and likely the
OEM wallets (Samsung Pay, LG Pay, etc.). These wallets are already shifting in the direction
of essential mass and might be the desired desire for a big phase of the consumer base. If the
group’s fee playing cards are well-placed and are the consumer’s first fee choice, there is
little risk that offering a payment card in a third-party wallet could result in disintermediation.

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MERCHANT STRATEGIES

Starbucks changed into an early adopter of virtual wallets and cell proximity bills, and it
proved that the proposition labored for its customers. With its sturdy emblem and constant
purchaser base, the espresso dealer changed into a hit in launching the supermegacelebrity
instance of a cell bills implementation.The query is that if Starbucks might make the identical
selection today. There is a excessive possibility that the enterprise might have selected to
feature third-celebration wallets to its very own app, permitting bills however now no longer
growing its very own price application. Indeed, Starbucks withinside the U.K. accepts Apple
Pay and Android Pay.Starbucks is a unprecedented instance of service provider success.
Many store tasks have didn't deliver, as proven with the aid of using the current failure of
MCX withinside the U.S. (CurrentC pockets).There can be traders which might be capable of
release their very own virtual pockets answers and consist of price. Still, we consider that the
full-size majority of traders will pick out to put into effect thirdparty wallets for bills.It has
been stated that each disruption creates possibilities and one such disruption changed into the
statement of demonetization with the aid of using Prime Minister Mr. Narender Modi on 08
November 2016. Demonetization created massive increase possibility for virtual price in
India and the virtual pockets businesses garbed the possibilities with each the fingers to
extend their

marketplace share. Demonetization has supplied a completely unique platform for adoption
of virtual price, as an opportunity to coins for Indian consumers.Adoption of cashless

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transaction has been appreciably driven with the aid of using Prime Minister Mr. Narender
Modi as a part of authorities reforms after demonetization of excessive fee foreign money of
Rs. 500 and 1000 (86% of coins circulation). The demonetization led to unparalleled increase
in virtual price. By February this year, virtual pockets businesses had proven a increase of
271 percentage for a complete fee of US$2.eight billion (Rs. 191 crores) [1], Indian
authorities and personal region businesses inclusive of Paytm, Freecharge and Mobikwik
have been aggressively pushing numerous virtual price applications, which include the
Aadhaar Payment app, the UPI app, and the National Payments Corporation of India (NPCI)
advanced the Bharat Interface for Money (BHIM) app. Digital transfers the use of apps has
introduced behavioral extrade and helped withinside the adoption of virtual price. This has
led to ease of switch of cash in rural regions which changed into now no longer touched in
advance with the aid of using the virtual price method. Now many overseas buyers need to
spend money on virtual price enterprise that's new appealing locations due to scope of
incredible growth in India.There are wide variety of facilitators which might be main to the
increase of virtual price and transition from coins financial system to much less coins
financial system. These facilitators consist of penetration of net connectivity on clever
phones, non-banking monetary group facilitating virtual price, one contact price, upward
thrust of monetary generation region and push with the aid of using authorities both with the
aid of using giving incentives or tax breaks. These all elements are developing high quality
environment for increase of virtual price in India.

Rationale for the Study

Doing bills thru cellular telephones has been in use for decades and is now set to explode.
Also mobiles are an increasing number of being utilized by customers for making bills.
“Digital Wallet “has emerge as part of customers which might be not anything however
clever telephones that may characteristic as leather-based wallets. Digital pockets supplied
many blessings at the same time as moving cash which includes comfort, protection and
affordability. Growth in era has opened many modes of bills via which customers can do
transactions which might be extra convenient, reachable and acceptable, customers have a
tendency closer to cellular fee apps usage. Offering diverse blessings which includes flexi fee

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virtual pockets manufacturers are imparting more comfort to customers. Major component in
adoption of

Statement of Problem As continuation of demonetization process, the digital wallet

transaction activities are implemented impact the significant changes in the behavior of
consumer. In India most of the consumers are heavily dependent only on the cash economy,

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now the consumers have to switch from cash to cashless electronic transactions. There has
been a growth in

consumers using more on digital wallet for purchase of products and service except few.
Currently the government announced that all restrictions for the traditional cash transaction
and offers for electronic transfer push the consumers to adopt and implement cashless
transaction for their needs. In the context of the above, this study makes an attempt to analyze
and find out how the digital wallet transaction has caused to changes in the behavior of
consumers and level of awareness about the cashless transaction, faith of the electronic
transmission and problems of consumers while using digital wallet payment. Solutions will
then be proposed on how to enhance its services in order better to encourage repeat patronage

and loyalty, and attract new customers.

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UPI:
 The United Payments Interface (UPI) envisages being a device that powers a couple of
financial institution debts onto a unmarried cell utility platform (of any collaborating
financial institution). Merges a couple of banking features, guarantees seamless fund routing,
and service provider bills. It allows P2P fund transfers.Digital bills in India were
experiencing exponential increase and with increase of net and cell penetration, in coming
years the usa is prepared to witness a large rush withinside the adoption of virtual bills.
According to Ratan Watal , essential consultant Niti Aayog and previous finance secretary,
virtual bills grew 55% through quantity and 24.2% through price in 2016-17 over the
preceding yr. Data from the Reserve Bank of India (RBI) shows that the fee of adoption of
virtual bills had increased following demonetization ultimate yr however has slowed in latest
months of 2017. Total virtual transactions in April 2017 of Rs109.fifty eight trillion are
26.seventy eight decrease from Rs149.fifty eight trillion in March 2017 .The quantity of
virtual transaction has witnessed exponential increase in quantity and price whether or not it's
far virtual wallet, interbank switch or transaction through debit or credit score card. At
service provider locations the wide variety of card transaction at factor of sale (PoS) terminal
have witnessed a large serge which displays that humans have commenced making charge
through debit card in preference to chickening out coins from ATM to make charge. In
January 2017 the wide variety of transaction of debit card extended to a billion from 817
million in preceding yr. It has been found that ATM transaction are extra or much less
identical at seven-hundred million, the transaction at PoS terminal has extended 3 instances

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from 109million in January 2016 to 328 million in Jan 2017.According to Lokvir Kapoor,
leader govt officer at PineLabs “the cardboard transaction submit demonization noticed large
increase due to infrastructure for the popularity of card at specific service provider location.”
PineLabs has helped this increase through deploying a large wide variety of Pos at stores
throughout the usa. Also the wide variety of initiative consisting of coins back, no transaction
fee as much as positive restriction with similarly assist in increase of virtual transactions. The
authorities placed stress on banks to set up a million addition Pos terminal in 3 months
increase the supply of PoS and through January 2017, their wide variety rose to 2.fifty two
million.

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Table 1: Top five digital wallets in India.

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What Is An E-Wallet?

Think of a pockets on your pocket. You hold cash in it and on every occasion you want to
shop for some thing or pay for a provider you obtained shape a person else, you pull out
pockets, take out cash and make fee. When you run out of cash on your pockets, you top off
your pockets. E-pockets is your bodily pockets absolutely grew to become in digital shape.
There could be a pockets in which you may be capable of hold coins and you could pay for
items and offerings. That is exactly what an E-pockets is. So E-pockets is your pockets that
has misplaced the bodily shape and brought digital shapeIn gift world, cellphone has end up
critical a part of each day existence. Along with cellphone production, some of offerings were
generated to make use of the feasible features of smartphones. Smartphones are used as
conversation devices, as socialized tool, leisure tool, net get admission to tool, or even fee
tool. Due to generation, cellular customers can these days use their smartphones to make cash
transaction or fee with the aid of using the use of packages established withinside the phone.
Besides fee, humans also can keep receipts, coupons, enterprise playing cards, payments of
their smartphones.A cellular pockets is a much-superior flexible utility that consists of factors
of cellular transactions, in addition to different objects one may also locate in a pockets,
including club playing cards, loyalty playing cards and tour playing cards. (Shin, 2016).
Since remaining couple of years the usage of virtual wallets has taken pretty a leap. Digital
wallets were covered as fee opportunity with the aid of using many ebusiness gamers in
conjunction with present internet banking or card primarily based totally fee methods. With
smartphones turning into an inseparable a part of one's existence and therefore a handy
manner of creating digitalized payments, the adoption of virtual wallets has been distinctly
increasing. Through virtual wallets, the fee infrastructure with tremendous development in
generation has end up pretty customer friendly. (Kunal Taheam, 2016). owever, the concept
of a virtual pockets isn't always new. Indeed, Japan, America, Sweden and South Korea have
already rolled out mobileular phone-primarily based totally virtual pockets solutions.
Consumers in the ones nations can use their mobileular telephones to pay for groceries, order
beverages from a merchandising machine, or even perceive thdmselves at airline ticketing
counters. (Rathore, 2016).

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You'll ought to spend what you load. Table 1 beneath affords information of famous E-
wallets in India at a glance. These E-wallets are provided wide variety of gamers throughout
diverse industries consisting of non-public marketers which gives simplest and simplest E-
wallets and not anything else, banking enterprise gamers who've provide you with E-wallets
to combat towards the non-public gamers, and telecom enterprise gamers that have include E-
wallets to leverage on their telecom infrastructure and consumer base. Table 1 additionally
affords different information about given E-wallets like Promoter Company, availability of
financial institution switch facility, availability of facility to ship cash on cell, cell structures
supported via way of means of E-wallets and accessibility of Unified Payment Interface
(UPI). UPI is a charge device that lets in cash switch among any financial institution money
owed via way of means of the usage of a smartphone. It lets in a consumer to pay
immediately from a financial institution account to distinct traders each on line and offline,
with out the problem of typing credit score card information, IFSC code or internet banking
password

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Top 15 Best Digital Wallets in India

Do you realize which might be Top 15 Best Digital Wallets in India? If not, right here is
some thing exciting for you. Here is a listing of Top 15 Best Digital Wallets in India. Gone
are days in which coins become required to carry out any transaction. Now it's far an
technology of virtual cash in which the whole lot occurs on line with a click on of a button. A
want of bodily pockets is sort of removed, humans are properly familiar with virtual wallets.
They use smartphones, clever watches or pill for making payment.A virtual pockets is a
pockets in which you may shop cash digitally. You can do on line or offline transactions the
usage of a virtual pockets. A virtual pockets is likewise referred to as cell pockets or e-
pockets. Millions of humans in India are doing a day by day transaction the usage of virtual
wallets. The number one motive for the usage of virtual pockets is the convenience of
appearing transaction and cut price gives and advantages furnished with the aid of using
pockets provider providers.

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Advantages of using Digital Wallet
 Instant cashless payment, no need to swipe a credit card or debit card.
 No need to access your bank account for making e-payment.
 As e-wallet is prepaid account no chance of declining payment.
 Get extra cashbacks for every amount spent using wallet.
 Get reward and discount offers on every purchase using wallet.
 The money will be refunded in case of failure in the transaction.
 Wallet to wallet money transfer benefit

Drawbacks of using Digital Wallet

 You cannot redeem your money back from the wallet you need to make purchase to
use this money.
 If you lose your mobile your wallet is lost.
 You can use wallet till your mobile battery lasts.
 It may be possible that you will end up spending more money using wallet.

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Top 15 Best Digital Wallets in India
#1 PayTm
PayTm is one of the most popular and best digital wallets in India. It is very easy to
download and use PayTm wallet. It is semi closed wallet. Best part of PayTm is it offers
multiple cashback and discount. Paytm is user friendly application. You can do e-commerce
transactions using Paytm for mobile recharge, bill payment, transferring money and much
more.

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#2 Mobikwik
Mobikwik is one of the oldest mobile wallet in India. It is a semi closed wallet which allows
user to load money using debit card, credit cards and mobile banking. This wallet is famous
for doing utility payment and mobile recharge. You can also use this wallet for transferring
money from one wallet to other.

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#3 PhonePe

PhonePe is mobile wallet app by Flipkart. PhonePe is semi closed wallet which support
multiple merchant payment. It is UPI based app. It also allows you to make payment using
QR code. It offers multiple mode of payment including debit card, credit card and wallet.

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#4 Airtel Money
Airtel Money is next in the list of best digital wallet. Airtel money provide best online
experience. You can earn cashback & discount on movies, bus, flight ticket and hotel
bookings. Airtel money allows you to send money to bank, friends or relatives.

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#10 SBI Buddy
SBI Buddy is open digital wallet. You can add money to SBI buddy by debit card, net
banking or IMPS. You can send money, ask money, recharge mobile, pay bill, book movie
ticket and perform many other things. If you are SBI customer you should use this wallet.

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#13 ICICI Pockets
ICICI Pocket is mobile wallet by ICICI bank. Using Pockets, one can send/receive money,
make online recharge, book tickets, shop and pay online, and share gifts with friends. It offers
fast, convenient and secure mobile transaction.

#14 LIME
LIME is mobile wallet by Axis Bank. LIME is wallet that provides banking and online
shopping facility on the move. You can pay your shopping bills, mobile recharge, buy movie
tickets and many more things using LIME.

#15 Chiller
Chillar is one of the best mobile wallet. Chiller is launched by HDFC Bank. Chiller has tie up
with multiple banks. You can manage your all account at one place using this wallet. You can
do mobile recharge, send/receive money, book flight, hotels at discounted rate using Chiller.

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5 trends driving growth of digital wallets

Merchant holdouts are subsequently warming to the likes of Apple Pay, years after the
cellular pockets's launch. Competitive services have additionally flourished from cellular
running structures and speak to carriers like Google and Samsung, opportunity bills carriers
consisting of China’s Alipay or even the enablement of P2P pockets carriers consisting of
Venmo for use in apps consisting of Uber.The most important extrade Apple Pay delivered
changed into full-size enterprise help from monetary establishments to permit their playing
cards for use in a third-celebration app, in addition to the use of Apple's clout to get traders to
put in NFC readers that might receive cellular wallets in-stores. As cellular pockets utilization
has grown, together with extended cellphone penetration levels, extra use instances are
coming to market, consisting of invoice pay and transit fare.

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 CHAPTER 2
REVIEW OF LITERATURE AND RESEARCH
DESIGN

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 LITERATURE REVIEW
Several theories were evolved to recognize the purpose of the client to apply an IS
technology. TAM version were studied substantially in numerous literature (Davis, 1989) and
it's miles in truth the idea of statistics offerings that version how customers undertake and use
a selected technology (Dauda , et al., 2015). Number of researchers have prolonged the TAM
version and carried out it to many exclusive technology such as e-learning (Cheung and
Vogel, 2013; Al-Maroof and Al-Emran, 2018), m-commerce (Barry, et al., 2018) and quick
message service (Muk, et al., 2015). According to Vijayasarathy (2004), TAM variables are
quality appropriate for a selection concerning to just accept new technology. To observe the
recognition and utilization purpose of latest technology, TAM is taken into consideration as
well-identified extensions in educational research (Aydin , et al., 2016). However, the
authentic TAM variables might not sufficiently seize center ideals that have an effect on the
mind-set of customers closer to eshopping. In order to reinforce the version it's miles in
addition cautioned to consist of few extra variables to take a look at the appropriateness of the
TAM (Jaradat, 2013). Privacy and protection is one of the prolonged variable that become
determined to be fantastic on behavioral purpose to apply new technology (Barry, et al.,
2018). Based at the above statements, this observe consists of privateness and protection as
one of the prolonged variables (Barry, et al., 2018) to take a look at the behavioral purpose to
apply e-wallet. Other variables are perceived usefulness and perceived ease of use.
Use E-pockets is as an utility that lets in an man or woman to make any e-trade transactions
via way of means of storing their credit score card information. Payment thru e-pockets is
taken into consideration as one of the maximum outstanding transaction approach at gift due
to the fact an digital transaction the usage of a virtual pockets has the gain of ease, flexibility
and protection (Uddin , et al., 2014). Mobile pockets is likewise identified for its modern
blessings inclusive of customization and on the spotaneous communication (Osakwe, et al.,
2016). As the wide variety of e-fee structures is growing e-pockets has already benefit repute
via way of means of supplying its enormous wide variety of offerings in driving sector, meals
shipping and invoice payments (Rosnidah et al., 2019). It isn't always most effective
tremendous for buyers; buyers are accepting e-pockets as a fee approach due to its quickest
transaction process, green coins control and much less price of labor (Hayashi , et al., 2014).
These forms of transactions are typically being carried out in bodily shops wherein clients

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test the (QR) code via way of means of the usage of their cellular tool to verify the fee (Lu,
2018). In bodily shops, NFC-supported devices (Near Field Communications) are being
located close to to the fee terminal to make the transaction easier (Taylor , 2016). Based at
the above literature, it may be defined that the usage of e-pockets amongst teens is in
particular due to its compatibility, flexibility and consumer pleasant transactions this is
carried out the usage of clever devices.Intention may be described as a direction of motion
that an man or woman objectives to achieve (Zhao, et al., 2010). Behavioral goal is
someone’s subjective opportunity this is meant to be attained inside a time period (Ajzen ,
1988). It refers back to the manner someone will act withinside the destiny (Fishbein, et al.,
1975). Ewallet is a brand new shape of fee structures this is broadly accepted. In destiny it's
miles anticipated to have a splendid growth of e-pockets in Malaysia (Nizam et al., 2018).
Many pupils determined fine and large courting among behavioral goal (BI) and new
generation use (Barry and Jan , 2018; Faqih and Jaradat , 2015; Jaradat, 2013). According to
Mun and Hwang (2003), behavioral goal (BI) has definitely and considerably impacts real
use (AU). (Venkatesh et al., 2003) Postulates an prolonged Technology Acceptance Model
with 4 variables; findings from the version exhibits that behavioral goal to apply has a large
and fine impact on utilization behavior. Based at the statements above, the subsequent
speculation is formed:
H1: Behavioral intention to use e-wallet will have positive influence on e-wallet use.
Perceived usefulness refers to a point to which an person believes that the usage of a specific
data gadget will prolong their productivity (Davis, 1989). In TAM framework, perceived
usefulness is hypothesized to are expecting the direct courting with behavioral aim to apply
the technology (Park et al., 2014). Perceived usefulness additionally prescribed as a diploma
to which someone believes the usage of a specific gadget will decorate his or her task
performance. Perceived usefulness is a most powerful element of TAM that has a great have
an impact on on behavioral aim (Davis, Bagozzi & Warshaw, 1989). Using TAM version Al-
Maroof and Al-Emran (2018) observed the great courting among perceived usefulness and
behavioral aim to apply specific technology.
H2: perceived usefulness of e-wallet will have positive influence on behavioral intention to
use ewallet.

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The time period perceived ease of use indicates to “the volume to which the usage of a
selected machine could be unfastened from effort” (Davis, 1989). Behavioral goal to apply
generation is definitely and drastically motivated via way of means of perceived ease of use
(Jackson, Chow & Leitch, 1997). A look at of Venkatesh et al. (2002) exhibits that perceived
ease of use and behavioral goal to apply are definitely and drastically associated. Similarly,
behavioral goal to apply records machine is expected via way of means of perceived ease of
use (Eze, Ten & Poong , 2011). The look at of Barry and Jan (2018) determined fine and
enormous impact of perceived ease of use on perceived usefulness and perceived use of use
on behavioral goal to apply precise machine. Four longitudinal area of TAM prolonged via
way of means of (Venkatesh, et al., 2000) exhibits that perceived ease of use is definitely
impact perceived usefulness and behavioral goal to apply. Al-Maroof and Al-Emran (2018)
carried out a look at on undergraduate college students who understand that the usage of net
provider generation is straightforward and user-pleasant thus, it has fine impact on perceived
usefulness and behavioral goal. Mun and Hwang (2003) posited that there may be a
enormous courting among perceived ease of use and behavioral goal to apply records
machine. Based at the above statements the subsequent speculation id
H3a: perceived ease of use will have positive influence on perceived usefulness of e-wallet.
H3b: Perceived ease of use will have positive influence on behavioral intention to use e-
wallet.
Privacy is defined as an individual's capacity to in my opinion display self-applicable records
(Cliquet et al., 2015). It is an critical function that everybody is conscious off. Based at the
look at of (Soodan , et al., 2020), one of the elements that have an effect on the usage of e-
pockets is privateness and safety that is located to be extra suggestive. Lack of safety and
privateness is one of the troubles that maintain clients farfar from buying items except it's far
protected (Milberg, Smith & Bruke, 2000). However, price via e-pockets with out safety
function might also additionally lead an unauthorized get right of entry to of private records
and a profitable possibility for cybercriminals to breach the data (Kaur et al., 2018).
According to Marimuthu and Roseline (2020) the e-pockets has benefit its recognition
because of have convenient transactions however nevertheless lack of information and
consciousness amongst humans and worry to make transaction because of have safety
troubles are the main elements that need to thought. Customer won't agree with the records

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machine issuer and they'll deny making any transaction via e-price except the privateness and
safety capabilities are involved (Gitau , et al., 2014). Customer and not using a enjoy
withinside the subject of the use of generation might also additionally have subject
concerning safety and privateness. Because the speedy boom of generation and its safety
troubles are a remember of great subject amongst purchaser who makes use of clever
generation for transactions. Ahmad et al. (2010) posits that because of the speedy evolution
of generation, customers have come to be a lot extra involved approximately privateness and
safety topics and this has contributed to their refusal to reveal their monetary records (i.e.
debit or credit score card details) over net and e-trade sites. Based at the abovementioned
literature, the subsequent speculation is formed:
H4: Privacy and security will have positive influence on behavioral intention to use e-wallet.

Proposed Model for this Study

Perceived
Usefulness
of e-wallet
Behavioral
Perceived E-wallet
Intention to
ease of use use
use e-wallet

Privacy and
Security of
Bamasak accomplished observe in Saudi Arabia located that there's a vivid destiny for m-
e-wallet
price. Security of cell price transactions and the unauthorized use of cell telephones to make a
price have been located to be of awesome worries to the cell telecellsmartphone users.
Security and privateness have been the essential worries for the customers which have an
effect on the adoption of virtual price solutions . Doan illustrated the adoption of cell pockets
amongst customers in Finland as simplest at the start degrees of the Innovation-Decision
Process.Doing bills thru cell telephones has been in use for decades and is now set to
explode. Also mobiles are an increasing number of being utilized by customers for making
bills. “Digital Wallet “has end up part of customers which can be not anything however
clever telephones that can characteristic as leather-based wallets . Digital pockets presented

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many advantages whilst moving cash which include comfort, safety and affordability .
Growth in era has opened many modes of bills via which customers can do transactions
which can be greater convenient, handy and acceptable , customers have a bent closer to cell
price apps usage . Offering numerous advantages which include flexi price virtual pockets
manufacturers are supplying more comfort to customers . Major thing in adoption of virtual
pockets is comfort in shopping for merchandise on-line with out bodily going from one
vicinity to any other vicinity . There has been many research performed in beyond on cell
price software to locate purchaser hobby and that they located purchaser has fine inclination
for the same .The elements which include perceived ease of use, expressiveness and believe
have an effect on adoption of virtual pockets as price method. These elements are termed as
facilitators and performs critical position in adoption of virtual price solution . Usage of
virtual pockets amongst children withinside the country of Punjab changed into located to be
related to societal affect and usefulness, controllability and safety, and want for overall
performance enhancement. Premium pricing, complexity, a loss of vital mass, and perceived
dangers are the limitations to adoption of virtual price systems.A complete version ‘Payment
Mode Influencing Consumer Purchase Model’ changed into proposed with the aid of using
Braga and Mazzon. This version taken into consideration elements which include temporal
orientation and separation, strength of will and ache of price constructs for virtual pockets as
a brand new price mode. Consumer attitude of cell bills and cell price technology are
maximum critical elements of cell bills research . Mallat studied purchaser adoption of cell
bills in Finland. Study located that cell price is dynamic and its adoption relies upon on loss
of different bills techniques and sure situational
elements.Digital pockets bills carry more comfort to buyers with the aid of using imparting
bendy price additions and accelerating exchanges . Shin and Ziderman examined a complete
version of purchaser reputation withinside the context of cell price. It used the unified idea of
reputation and use of era (UTAUT) version with constructs of safety, believe, social affect,
and self-efficacy. The version showed the classical position of era reputation elements (i.e.,
looked as if it would users’ attitude), the consequences additionally confirmed that users’
attitudes and intentions are prompted with the aid of using perceived safety and believe. In
the prolonged version, the moderating outcomes of demographics at the family members
some of the variables have been located to be significant. Digital wallets provide the

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customers the ease of bills with out swiping their debit or credit score cards. Instant Cash
availability and renders seamless mobility

Being provided via way of means of Mobikwik in order to facilitate coins to be immediately
brought to MobiKwik pockets in which clients of even smaller cities may be benefited.As
according to Ministry of Finance Report (December 2016) on Digital fee, monetary inclusion
is one of the most important venture going through India. fifty three percentage of India

Page 44
populace had get right of entry to to formal monetary offerings. In this context, virtual fee can
act as accelerator to monetary inclusion . Increasing availability of cell telecellsmartphone,
availability of statistics community infrastructure, rollout of 3G and 4G networks and
massive service provider eco gadget are the essential enablers of virtual fee in India. It is
similarly supported via way of means of the coordinated efforts of enterprise, regulator and
government. As according to RBI’s report ‘Vision 2018’ 4 pronged method specializing in
regulation, sturdy infrastructure, powerful supervisory mechanism and consumer centricity
has been followed to push adoption of virtual fee in India .The percent of coins for
transactions has visible a fast decline withinside the beyond few years in India. In 2010, the
proportion of coins in all bills became 89% as compared with 78% in 2015. This fast decline
is a end result of an accelerated adoption of non-coins gadgets along with playing cards and
virtual bills along with cell wallets, digital transfers, etc. Stored price gadgets like cell wallets
(Paytm, Mobikwik, Citrus, etc.) and pay as you go and present playing cards have made bills
aleven though net gadgets handy and easy. India represents certainly considered one among
the biggest marketplace possibilities for virtual bills. With a populace of 1.25 billion, India
money owed for more or less 18% of the worldwide populace. The key drivers of virtual
bills-cell telephones and net customers are already nicely hooked up in India. To date, India
has approximately 1.zero billion cell telecellsmartphone subscribers and three hundred
million net customers, rating 2d on each metrics globally.SINGAL, NIDH (2016) the thing
discusses the cell pockets that hundreds cash for fee of payments that is problem loose and
saves time. subjects referred to consist of the excessive fulfillment fee on making bills with
transactions in much less than 10 seconds, the loading of cash which does now no longer
danger the credit score card and financial institution account limit, and the provided offerings
via way of means of digital trade corporation along with shopping for tickets, establishments
costs fee, and cash transfers.KORZENIOWSKI, PAUL (2014) the thing discusses the
emergence of cell wallets and the way it modified consumer revel in in fee process. Topics
consist of the attraction of cell trade features in smartphones to clients, the usage of greater
customized purchasing experiences, and the close to subject communication (NFC) gadget.
Also referred to is statistics at the function of PayPal, the formation of fee infrastructure
corporation Merchant Customer Exchange (MCX), and the choice of an open or near loop
layout in transactions.Holmes, Tamara E. (2012) the thing gives recommendation on a way to

Page 45
defend one's monetary statistics in virtual wallets from moving into the incorrect hands. It
warns of spoofed invoices which appearance valid and request bills via cord switch or direct
financial institution switch. It additionally advises in opposition to clicking on hyperlinks in
e-mails and to keep away from supplying non-public statistics along with Social Security
number. It indicates putting a passcode on smartphones to keep away from turning into a
sufferer of identification fraud.Adams, John (2012) the thing discusses the outlook for digital
pockets fee structures from the angle that the U.S. banking enterprise has to draw customers
withinside the cell pockets marketplace and recognize the cell pockets marketplace's
ecosystem.Bell, Stephanie (2011) the thing offers statistics approximately a deal among
Littlewoods Europe corporation and Optimal Payments PLC for Optimal's Neteller digital
pockets and discusses how the digital fee technique works for on-line purchasing. Quittner,
Jeremy (2012) the thing specializes in a protection hassle in Google Inc.'s virtual pockets,
that is connected to pay as you go money owed in which customers keep funds. The studies
company Zvelo Inc. located the PIN (non-public identity number) code used for
authentication and different person statistics in Google's Wallet software may be extracted via
way of means of a laptop hacker

Methodology

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Research Design

➢ The study is based on descriptive nature, primary source of data were used. The primary

source of data collected through self-constructed questionnaire. A sample of 100

respondents from different socio-economic characteristics was selected from bangalore city
was taken for the study. The study based on Simple random sampling method.

Hypothesis

➢ There is no significant relationship between socio-economic characteristics and cashless

transactions.

Limitation of the Study

➢ The study was confined only in Bangalore city only and the results of the study cannot be

generalized.

OBJECTIVES

 To identify the factors influencing use of digital wallets

 To analyse the demographic profile of the users of digital wallets
 To understand the consumers perception of digital wallets
 To analyse the satisfaction level of consumers on usage of digital wallet

RESEARCH METHODOLOGY

The current study is based on primary data collected from 100 respondents from the different
parts of Bangalore. A well-structured questionnaire was designed to collect the information
from the respondents the questionnaire was designed to study perception of customer towards
adoption of digital payment mode. Likert five point scales were used for obtaining responses.

Page 47
The responses have been collected by means of face-to-face interviews by authors.

Page 48
 CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

Factors influencing use of digital wallets

Results of the factor “Perceived Benefits”

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Table 2
Factors Percentage
As compared to traditional modes of payment, 25
less efforts are required for payments done
through digital Wallets
Learning to use digital Wallets is easy 20
Digital Wallets minimizes the time spent on 26
payments
Using digital Wallets is beneficial 9
It is easy to conduct most financial 13
transactions using digital Wallets.
Digital Wallets keeps a record of spending 7

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 Perceived Benefits

As compared to traditional modes of

payment, less efforts are required for
payments done through digital Wallets

Learning to use digital Wallets is easy

7%
13% 25%
Digital Wallets minimizes the time spent
on payments
9%

20%
26% Using digital Wallets is beneficial

It is easy to conduct most financial

transactions using digital Wallets.

Digital Wallets keeps a record of spending

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Results of the factor “Perceived Security”

Table 4

Factors Percentage
E-Wallets removes the burden of carrying cash 28
Coupons/reward points/discounts attract 13
people towards E-Wallets
E-Wallets maintains the privacy of personal 19
information against unauthorized access
E-Wallets provide multilevel securities like 40
one time password, transaction passwords, etc.

Perceived Security

E-Wallets removes the burden of

carrying cash
28% Coupons/reward points/discounts
attract people towards E-Wallets
40%
E-Wallets maintains the privacy of
personal information against
unauthorized access
E-Wallets provide multilevel
13% securities like one time password,
transaction passwords, etc.
19%

Table showing result of factor “Perceived Accessibility”

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Table 5

Factors Percentage
E-Wallet system provides proper receipts 38
after making payments
E-Wallet system can be accessible from 12
any location.
E-Wallets promotes paperless transactions 30
E-Wallets are acceptable for wide range of 20
the services.

Perceived Accessibility

20% E-Wallet system provides proper

receipts after making payments
38% E-Wallet system can be accessible
from any location.
E-Wallets promotes paperless
transactions
E-Wallets are acceptable for wide
30% range of the services.
12%

Profile of Respondents

The respondent profile as displayed in Table 2 replicate the population generally engaged in
use of digital payment. Most of the respondents are male (56%), employed ans most of the

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respondent are self-employed are either graduate. And the people who are familiar with
digital wallet are comes under the age group of 21-34 and with the family income of over
20k-40k and less than 20k under this maximum are having 1 to 2 year of experience in the
use of digital wallet.

Table 6: Respondents Demographic Profile.

Frequency Percentage

Variable Characteristics

Gender Male 56 56

Female 44 44
Age group Under 20 16 16

21-34 51 51

35-49 27 27

50-64 6 6
Education SSLC 21 21

PUC 23 23

UG 18 18

PG 23 23

DIPLOMA 15 15
Profession Student 26 26

Others 74 74
Family income Less than 20k 37 37.4

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 20k to 40k 38 37.4

40k to 100000 17 17.2

100000 and above 8 8.1

Marital status Married 65 65

Single 27 27

Divorced 8 8
Family type Nuclear 56 56.1

Joint 43 43.9
Living region Urban 30 30.3

Semi urban 36 36.4

Rural 34 33.3
Hour spend on mobile Less than an hour 12 12.2

1 to 2 hours 50 50

More than 2 hours 37 37.8

Experience in wallet Less than a year 24 24.2
payment
1 to 2 year 44 44.4

More than 2 year 31 31.3

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer

and out of 100 respondent 56% respondent are male respondent and remaining 44% are
female respondents

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Interpretation:

From the above chart it is understood that more than 56% of male and 43% female are using
digital wallet

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s majority people who responded are comes under the age group between 21-
34 compare to other age group

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Interpretation:

From the above chart it is understood that 51% people who are using digital wallet are
comes under the age group of 21-34 and 27% are comes under the age group of 35-49 and
16% people comes under the age group of below 20 and remaining 6% comes under the age
group of 50-64

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondents’ most of them are graduated

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Interpretation:

From the above chart it is understood that 23% people who are using digital wallet are
graduated and 21% done with there secondary education and 18% are under graduated and
23% are done there PUC and 15% are done there diploma in graduation

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 98 are responded and in that majority were students

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 Chart Title

26%
Student
Others

74%

Interpretation:

From the above chart it is understood that 74% who are using digital
wallet are students and remaining 26% are from other profession

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer out of 100
people 99 people were responded that most of them are having a family income between 20k-
40k and less than 20k

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Interpretation:

From the above chart it is understood that 37.4% who are using digital wallet are
having a income between 20-40k per month and 37.4% people comes under the income
group of below 20k and 17.2% people comes under the income group of 40k-100000 and
remaining 8.1% comes under the income group of above.

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s 65% people are unmarried or single

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Interpretation:

From the above chart it is understood that 65% people who are using digital wallet
there marital status is singe and 65% were married and remaining 8% were divorced.

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s 98 people were responded to this question where majority are from nuclear
family

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Interpretation:

From the above chart it is understood that 56.1% people who are using digital wallet
were from nuclear family and remaining 43.9% are from joint family.

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s 99 were responded that they are from semi urban background

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Interpretation:

From the above chart understood that 36.4% people who are using digital wallet were
from semi urban background and 33.3% from rural and 30.3% from urban.

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s 98 people were responded to this question that majority they spent 1 to 2
hour on mobile

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Interpretation:

From the above chart it is understood that 50% people who are using digital wallet
were spends time on mobile for at least 1 to 2 hour per day and 37.8% spends around more
than 2 hour per day and remaining 12.2% less than an hour per day.

Analysis:

From the above TABLE 6 it determines the demographic profile of a consumer and out of
100 respondent’s 99 were responded that they are having at least 1 to 2 years of experience in
the use of digital wallet

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Interpretation:

From the above chart it is understood that 44.4% people who are using digital wallet are
having at least 1 to 2 years of experience over it. And 31.3% are having experience more
than 2 years of experience in that and remaining 24.2% are having less than a year of
experience.

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Consumers perception of digital wallets
Table 7:
Statement Highly Important Moderately Slightly Not
important Important Important important

Brand 21 57 7 6 8
loyalty
Continence 47 33 8 7 2
In usage
Secured 38 44 10 2 4
transaction
Time 49 35 7 5 1
saving
through
digital
payment
mode
Acceptance 38 40 13 5 2
wallet or

Page 66
 digital
payment
mode
Price of 47 31 15 5 2
using
digital
payment
mode

Analysis:

From the above TABLE 7 it determines the consumer perception of digital wallet of a
consumer and out of 100 respondent ‘majority gave importance to brand loyalty (57) and (47)

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people gave highly importance to continence in usage and also people gave equal importance
to secured transaction and 49 people responded that its time saving

Interpretation:

From the above chart it understood that majority people who are using digital wallet
are having good perception towards the use of digital wallet. consumer and out of 100
respondent ‘majority gave importance to brand loyalty (57) and (47) people gave highly
importance to continence in usage and also people gave equal importance to secured
transaction and 49 people responded that its time saving.

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Table 8:

Attributes Strongly Agree Moderate Disagree Strongly

agree disagree
Digital 48 42 8 3 0
wallets are
capable of
providing
benefits to
individual
for purchase
of product.
Using the 37 37 15 6 5
digital wallet
improves the
quality of
my decision
making for
buying
products
Believe 26 52 15 6 2

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 digital
wallets are
useful in
buying
products
than the
traditional
methods.
Think that 33 37 16 12 1
using online
wallets can
offer me a
wider range
of banking
services and
Payment
options
Trust the 35 46 5 10 4
service
providers of
digital
wallet

Analysis:

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From the above TABLE 8 it determines the Satisfaction level of consumers on the usage
of digital wallet

Page 71
 Chapter 4
Summary of Findings, Conclusions

Summary of Findings:

Page 72
 Over 90-100% of population use digital wallet because of “Perceived Benefits” as
follows
o As compared to traditional modes of payment, less efforts are required for
payments done through digital Wallets (25% responded that they are
influenced by this factor)
o Over 20% of responded that using digital wallet is easy and user friendly

 Many people are using digital wallet as a Results of r “Perceived Security” as follows
a) over 28% people accepted that they are using E-Wallets to burden of carrying
cash
b) over 40% people accepted that they are using E-Wallets because it provide
multilevel securities like one-time password, transaction passwords, etc.
 many of the respondent are using digital as a factors of “Perceived Accessibility” as
follows
a) more than 30% people responded that E-Wallet system provides them a
proper receipts after making payments
b) Over 30% people responded that they are using E-Wallets to promotes
paperless transactions

 Over 90% population use digital wallet as a Results of “Perceived Security”

 Over 60% males are using digital wallet compare to female.

 Over 51% population using digital wallet are comes under the age group of 21-34

 Over 90% people who are using digital wallet are well educated
 More than 50% people who are using digital wallet were spends time on mobile for at
least 1 to 2 hour per day
 More than 80-90% who are using digital wallet are having good perception towards
the use of digital wallet

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Page 74
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R

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Doan N (2014) Consumer adoption in mobile wallet: a study of consumers in
Finland. http://theseus.fi/bitstream/handle/10024/86343/Ngoc_Doan.pdf?sequence=1.

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