CUSTOMER PERCEPTION TOWARDS GROWING OF MOBILE

WALLET IN MOGADISHU SOMALIA

BY

A PROPOSAL CHAPTER

PRESENTED TO THE FACULTY OF BUSINESS AND ECONOMICS

SOMALI INTERNATIONAL UNIVERSITY

MOGADISHU – SOMALIA.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE BACHELOR OF

BANKING AND FINANCE

ZAKARIYE MOHAMED IBRAHIM 128227

FEYSAL NOOR MOHAMED 127017

YONIS ALI HASHI 127161

JANUARY, 2022
 APPROVAL

I confirm that the work in this proposal will be done by the candidate of Somali
international University this study under my supervisor

Supervisor: Dr. Ismail Jawiye

Signature………………………………………..

Date _/ _/2022
 DECLARATION

This report is our original work and has not been presented for a degree or any
other academic award in any university or institution of learning

Zakariye Mohamed Ibrahim

Signature…………………….

Date:----/----2022

Feysal Noor Mohamed

Signature……………………

Date:----/----2022

Yonis Ali Hashi

Signature……………………

Date:----/----2022
 TABLE OF CONTENTS

APPROVAL................................................................................................................................................II
DECLARATION........................................................................................................................................III
TABALE OF CONTENTS........................................................................................................................IV
CHAPTER ONE..............................................................................................................................................1
1.0 INTRODUCTION.................................................................................................................................1
1.2 background of the study........................................................................................................................1
1.3 Problem of statement.............................................................................................................................5
1.4 Objectives of the study..........................................................................................................................5
1.4.1 General objective................................................................................................................................5
1.5 Research questions................................................................................................................................6
1.6 Scope of the study.................................................................................................................................6
1.6.1 Geographical scope.............................................................................................................................6
1.6.2 Time scope.........................................................................................................................................6
1.6.3 Content scope.....................................................................................................................................6
1.7 Significance of the study.......................................................................................................................6
1.8 operational Definitions of key terms......................................................................................................7
CHAPTER TWO.........................................................................................................................................8
2.0 Literature Review..................................................................................................................................8
2.1 Introduction...........................................................................................................................................8
2.2 The concept of mobile wallet.................................................................................................................8
2.3 Customer perception..............................................................................................................................9
2.3.1 Ease of use........................................................................................................................................10
2.3.2 Trust.................................................................................................................................................10
2.3.3 Security and privacy of mobile wallet..............................................................................................10
2.4 Theoretical Framework of the Study...................................................................................................11
2.5 related study........................................................................................................................................12
CHAPTER THREE...................................................................................................................................15
3.0 METHODOLOGY..............................................................................................................................15
3.1 Introduction.........................................................................................................................................15
3.2 Research Design..................................................................................................................................15
3.3 Study area............................................................................................................................................15
3.4 Study population..................................................................................................................................16
3.6 Sample Technique...............................................................................................................................17
3.7 Research Instrument............................................................................................................................17
3.8 Data collection method........................................................................................................................18
3.9 Data gathering procedures...................................................................................................................18
3.10 Data analysis......................................................................................................................................19
3.11 Validity and reliability.......................................................................................................................19
3.12 Ethical Considerations.......................................................................................................................19
3.13 Limitations of the study.....................................................................................................................19
Reference...................................................................................................................................................20
Appendix 1-Questionnaire:........................................................................................................................22
 CHAPTER ONE
1.0 INTRODUCTION

1.1 introductions

This study will focus on customer perception towards growing mobile wallets in Mogadishu.
This chapter, consist of the introduction of study, the background of the study, problem
statement, objective of the study, research questions, significance of the study, scope of the
study, operational definitions of key terms.

1.2 background of the study

The mobile wallet is the digital equivalent to the physical wallet in which we carry money. It is
an online platform which allows a user to keep money in it, just like a bank account a user needs
to make an account with a mobile service provider. After which money is added to the mobile
wallet account using a debit, credit, online transactions from the account or via cash. The main
difference between a mobile wallet and online transactions via bank account is that unlike banks
mobile wallet does not charge any amount of money on every transaction and saves the customer
from the hassle of entering card details and pin number for each and every transaction. The
mobile wallet is often confused with mobile banking but is a much broader concept that includes
using the mobile phone as a mode of payment. It is the digital equivalent to the physical
wallet we already have in our pockets/bags today. Our mobile phones are with us at all times,
and as we use them for payments to retailers, traveling on public transport and a myriad
other things, the need for physical cash diminishes.(C,vijai,2019)

The mobile wallet generally refers to payment services operated under financial regulation and
made through a mobile device. Instead of paying with cash, checks or credit cards, a consumer
can use a mobile phone to pay for a wide range of products and services. M-wallet has become
the most important contributor in the promotion of electronic transactions and without cash.
Mobile wallet is the digital equivalent of a physical wallet in which we store cash and make
payments. It is a prepaid electron account, which can be used to make payments even without
passing a card or using a paper currency. The appearance of the smartphone as a payment tool
leads to the growth of mobile wallet transactions in the country. A mobile wallet application is a
virtual wallet where customers can charge certain money in advance with any service provider,
which can be used for several bill payments. While the main players are talking about a growing
market share, many smaller ones are also entering the market. (sujith, et all. 2019)

Since 2007, innovations in mobile and digital wallets have resulted in a proliferation of wallet
models and solutions, all intended to improve consumer convenience, leverage data, serve up
offers, lessen friction, or lower the cost of payments.(Forum, 2018)

The earliest wallet innovators, staring around 2007, were financial technology companies.
Startups, including Braintree, Klarna, and Ayden, were launched to solve the problem of
enabling in-app and mcommerce payments.(Forum, 2018)

In 2010, AT&T, Verizon, and T-Mobile formed Softcard (formerly Isis) to realize the vision of a
Near Field Communication (NFC) wallet with payment credentials securely provisioned in the
secure element (SE) by the mobile network operators (MNOs). That same year witnessed the
launch of Stripe. Stripe reduced the amount of time it took a new merchant to accept online card
payments from weeks to minutes.(Forum, 2018)

A flurry of merchant wallet introductions followed, including LevelUp and Starbucks in 2011,
and Dunkin’ Donuts in 2012. Also in 2012, the Merchant Customer Exchange (MCX)
consortium was created, with the intent to launch a multi-merchant mobile wallet, called
CurrentC. MCX, owned by more than a dozen large U.S. retailers comprising convenience store,
fuel, grocery, big box retail establishments, and restaurants, claimed to serve nearly every
smartphone-enabled American and account for approximately $1 trillion in annual sales.(Forum,
2018)

October 2014 marked a seminal moment in the history of mobile wallets with the announcement
of Apple Pay. Although Google had announced the first device-centric NFC wallet, Google
Wallet, in 2011, the industry had been eagerly awaiting Apple’s technology decision.(Forum,
2018)

In 2016, a year of retrenchment, Google recast its wallet for person-to-person (P2P) purposes
only, Android Pay was launched, Softcard shut down and sold its assets to Google, and Amazon
closed down its mobile wallet. At the same time, a proliferation of bank-centric wallets appeared
(Capital One, Chase Pay, and Wells Fargo). Walmart Pay was launched at almost the same time
that MCX apparently shut down after a series of delays and bad publicity. (Forum, 2018)

In today world mobile play an important part of everyday life. Because of technology, mobile
user can 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. (anjali, a & richa, j, 2018).

Perception is the process through which one gathers, processes, and interprets information from
the environment. How a consumer perceives a particular product is important for the marketer in
the sense that it will affect consumer’s decision. There are two basic theories that explain
consumer behavior. Marketers should be aware of these theories. They should also understand
different modes of perception to decide on the type of stimuli that they should give to the
consumers.(Page, n.d.)

Perception is the process of selecting, organizing, and interpreting sensations into a meaningful
whole. In the past, methods of studying stimuli and measur- ing responses to them were
restricted to examining the five senses. Today, however, the view that perception uses merely
sight, hearing, smell, taste, and touch to comprehend the environment is inadequate. Although
the senses do play a major role in our comprehension of an event, our interpretation of a
sensation may lead to a false perception. Perception is highly subjective and therefore easily
distorted.(Objectives, 2015)

Perception is the process by which people select, organize, and interpret sensations, i.e. the
immediate response of sensory receptors (such as the eyes, ears, nose, mouth, and fi ngers) to
such basic stimuli as light, colour, odour, texture, and sound. Anything that activates a receptor is
called a stimulus. The study of perception focuses on what we add to raw sensations in order to
give them meaning. Each individual interprets the meaning of a stimulus to be consistent with his
or her own unique biases, needs, and experiences.(Madichie, 2015)
In India, according to techsci research report, mobile wallet market in India is projected to reach
us$ 6.6 billion by 2020. The mobile wallet market in India is projected to exhibit exponential
growth on account of rising smart phone penetration rate, growing mobile internet user base, and
increasing government support. In addition, mobile wallet companies operating in India are also
offering attractive deals and incentives to attract new users. In recent years, wallet companies
have increasingly formed collaborations with service providers and financial institutions to offer
a robust and seamless mobile wallet platform to the users. Usage of the mobile wallet is growing
across various applications such as money or banking transactions, mobile recharge and bill
payments, ticket bookings, utility applications, etc. In addition, approval of payment bank
licenses of major companies such as paytm, Vodafone, Airtel, etc. Is projected to drive growth in
the number of banking transactions through mobile wallet over the next five years. . (c, vijai,
2019)

In Kenya, mobile money” services started i in 2007 through m-pesa (“m” for “mobile”, “peso”
for “money” in Swahili), a popular mobile money service offered by a local mobile network
operator, Safaricom. Since then, the mobile money industry has rapidly expanded, particularly in
developing economies in Africa and south Asia such as India, Bangladesh, and Pakistan. It has
been optimistically described by policymakers, the media and above all mobile phone companies
as a prospective means to economic development and poverty reduction, even without the
support of an adequate evidence-base. (iom, 2014)

In Somalia, the recent year’s usage of mobile wallets and in particular its payments has increased
in Somalia. The local names of mobile wallets are called premier wallet, from premier bank and
t-plus from som-bank and WAAFI form salaam-Somali-bank. Som bank was the first who
lunched by mobile wallet in Somalia. While premier bank was the last one that launched by this
service in 2020. All these various types of mobile-wallets used by different banks and has
significant perception on customers for usage of mobile wallet, so this study attempts to
investigate customer perception towards growing mobile wallet in Mogadishu.
1.3 Problem of statement
Over the last decade, mobile money has been disrupting traditional financial services and
transforming the lives of hundreds of millions of people across developing countries. Today,
with over $1.3 billion a day processed by over 866 million registered accounts in 90 countries,
mobile money has evolved into a broader payments platform that provides access to life-
enhancing services, such as healthcare, education, employment, transportation and social
protection.(gsm,2019)

However, mobile wallet has been one the fastest growing in Mogadishu and still growing at last
years, in addition the banks offering to this service is attracting dynamic number of customers to
its usage but most of customer have different.

understanding because lack of enough information, in-effective of working and not know well
its features of using mobile wallet, therefore many studies related to this problem have been
conducted in many parts of the world, however there is a gab literature that has been written on
growing mobile wallet in Mogadishu. So the purpose of this research is establish the customer
perceptions towards growing mobile wallet in Mogadishu.

1.4 Objectives of the study

1.4.1 General objective

The main objective of this study is Customer perception towards growing of mobile wallets in
Mogadishu, Somalia. .

1.4.2 Specific objectives

1: To investigate ease of use has effect towards growing of mobile wallet in Mogadishu Somalia.

2: To find out security of digital payment service has effect towards growing of mobile wallet
Mogadishu Somalia.

3: To identify trust of digital payment service has effect towards growing of mobile wallet
Mogadishu Somalia.
1.5 Research questions

1: How ease of use has effect towards growing of mobile wallet Mogadishu Somalia?

2: How security of digital payment service has effect towards growing of mobile wallet
Mogadishu Somalia?

3: How trust of digital payment service has effect towards growing of mobile wallet Mogadishu
Somalia?

1.6 Scope of the study

The scope of the study will in terms of geography, time, and content.

1.6.1 Geographical scope.

The research will conduct in Mogadishu, the capital of the federal republic of Somalia.
Mogadishu has been chosen because it hosts largest number of the country population, also most
of the mobile wallet users in Somalia operate in the city.

1.6.2 Time scope

This study has being conduct between December 2021 up to June 2022

1.6.3 Content scope

This study’s content will limit independent variable to the customer perception towards and
dependent variable mobile wallet in Mogadishu.

1.7 Significance of the study

The study will be of significance to the service providers of mobile wallets to implementing
strategies to help and encourage their clients.

This study will be useful for future researchers because it will act as a source of information
and also a guideline for them to follow in the subsequent studies related to same problem under
investigation.
The study will also be benefited by mobile wallet users because it creates conscious awareness
of the severity of a particular problem and also the urgency of the need for a solution.

This study will also be benefited by the banks because they aware off the role that their wallets
play in the community in Mogadishu.

The finding would also be of significant to the government in formulating policies for promoting
mobile wallets in Somalia. Finally, the discoveries will contribute to the existing literature in the
field of finance and banking

1.8 operational Definitions of key terms

Customer’s perception is the process by which people select, organize and interpret sensations.

Mobile wallet is a virtual wallet that stores payment card information on a mobile device.
(sujith, et all, 2019)

Trust is a set of beliefs that customers perceive towards a product or service based on their
purchase behavior and experience (Ahmed et al., 2019).
 CHAPTER TWO
2.0 Literature Review

2.1 Introduction

A large number of existing studies in the broader literature have examined the customer
perception towards growing mobile wallets because banking wallet providers play an important
role in economic growth in supporting financial improvement through productive and ease of
access to use. This chapter is divided into four subtopics which include, the concept of
independent variables, dependent variable, theoretical framework and also related study.

2.2 The concept of mobile wallet

The mobile wallet is an electronic account on a mobile phone that can be used to store and
transfer the value and has the functionality to supplant a conventional wallet. It also helps to
manage your payment information and view your transaction history. Mobile wallet has different
transaction methods including customer-tocustomer, customer-to-business, customer-to machine
and customer-to-online. As a multifunctional application, mobile wallet can also support
different elements such as membership and loyalty cards, online shopping accounts and booking
details. In addition, mobile wallet stores personal and sensitive information such as passports,
credit card information and PIN codes in an encrypted or password-protected format (Caldwell,
2012). By increasing smartphone users, merchants started to communicate with customers
through their mobile handsets by sending them new products lists, provide coupons and facilitate
purchasing processes (Yang et al., 2012). On the other hand, mobile wallet provides functions
such as enabling customers to compare product prices between different merchants. 8 The
mobile wallet ecosystem involves a number of industries acting together. The ecosystem is
complex because mobile wallet is where three value chains – mobile operators and end users,
service providers and technology. Dahlberg, Mallat, Ondrus & Zmijewska (2008) via Aydin &
Burnaz (2016) defined mobile payment as “the capability of the mobile device to facilitate
payments for goods, services, and bills by exploiting the wireless and other communication
technologies”. In another source, mobile payment is” any payment transaction performed by a
mobile device capable of connecting to the cellular networks”. (Amoroso & Magnier-Watanabe,
2012). Mobile payment is a wider term, which include payment methods performed by mobile
devices, including the mobile wallet.Mobile wallet is digital wallet that operates on a mobile
device. In other words, it is an application that can be downloaded from Appstore, Google Play
Store and installed on the mobile device. In an introductory research paper of mobile wallet.
(Kostova, m. 2017) defined the mobile wallet as “a digital cardholder for different payment
instruments which provide payment account information. This method typically use the “tap and
go”, in other words, the Near Field Communication (NFC) technology to facilitate payment”.
The GSMA White Paper further interprets that not only payment cards are digitized, the mobile
wallet al.so holds items such as tickets, receipts, coupons, vouchers – things that can be found in
a leather wallet.

2.3 Customer perception

Rust and Oliver (1994) were keen on measuring customers’ satisfaction on new technology, and
pointed out that product quality and its convenience decides customers’ perception, and
influence satisfaction level and preference for any new technology. Various research studies are
available to determine factors like flexibility, effectiveness, ease of use, delights, social
influence, convenience and perks to measure customers’ perception and awareness towards new
technology Kannan, 2003).

Mansumitrchai (2011) surveyed Indian customers, and used factors like ease of use, trust,
usefulness to understand the customers’ views on the adoption of online banking.
Vinayagamoorthy and Sankar (2012) found security, trust and privacy concern are the most
significant factors, because Indian customers are still not aware about the importance and
consequences of these factors to adopt any new technology.

Amin (2009) found similar results for Malaysian customers, and found that security, social
identity, are the most influencing variables. (Agus et al., 2007; Yang and Lee, 2010). These
studies confirmed that ease of use, security, trust and efficacy are the most influencing variables
towards the technology adoption and usage. Low rating of these variables can lead to low
preference and poor satisfaction level in adopting any new mobile technology (Suls and
Wallston, 2008). This implies the influence of perception on the preference and use of a
technology. Our study is an extension of the existing literature for the Indian customers and
proposes to determine the association of considered variables on mobile wallets usage and
preference in North India. Dahlberg et al. (2008) also identified few preferred transactions of
customers like bill payment, fund transfer, shopping which are done through the electronic
mobile payment system and found a strong connection between customers’ satisfaction and
preferences.

2.3.1 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.

2.3.2 Trust

Trust is a set of beliefs that customers perceive towards a product or service based on their
purchase behavior and experience (Ahmed et al., 2019). A group of thoughts is linked to its
ability and customers to rely on honesty and reliability. Besides, a company's physical
appearance and customers' purchase experience contribute to customer trust (Shamsudin, Hassan,
et al., 2020). Through trust, customers believe that the company has the capability and credibility
to satisfy their needs and demands (Dinçer et al., 2019). Gaining customer trust leads to customer
satisfaction, which benefits a business. Moreover, trust also substantially impacts a business
because it leads to purchase intention among customers. According to (Rambocas et al., 2018),
trust developed based on prior affective experience plays a crucial role in facilitating repurchase
intention among customers. When trust is created, customers feel secured and safe when they
perform transactions with the business. It would lead to repeat purchases as they would continue
their investment, which benefits the company in terms of profits and strengthen its financial
performance (Phan & Ghantous, 2013).

2.3.3 Security and privacy of mobile wallet

While there are widespread enthusiasm and hope about mobile wallet service, there are also
fears of security breaches and identity theft. Mobile wallets provide many functions on a single
mobile phone, so that having all your personal and sensitive information stored on a phone poses
a great risk if the phone is lost, broken, or stolen. Mobile payments can be made more secure
with combination of contactless chip and personal identification number, known as “chip-and-
PIN”. In Europe and US widespread, this system is more secure by using signature as the means
of authorizing a Card transaction (Lindholm-Leary, 2012). Even relative to card-based chip-
andpin, the additional functionality of a contactless mobile device provides extra opportunities
for security enhancements. Contactless payment systems typically generate a new account
number for each transaction, so there is little value to accessing stored account numbers or
stealing an account number “out of the air.

2.4 Theoretical Framework of the Study

As per the Reserve Bank of India, there are three kinds of ewallets in India: closed, semi-closed
and open. Closed e-wallets: These are wallets issued by an entity for facilitating the purchase of
goods and services from it. These instruments do not permit cash withdrawal or redemption. As
these instruments do not facilitate payments and settlement for third party services, issue and
operation of such wallets are not classified as payment systems. Hence, RBI approval is not
required for issuing them. Eg. Cab services, e-commerce and mobile companies create e-wallets
for making payments towards Theoretical framework : Types of e-wallets permitted in India
purchase of products from them /for usage of their services. They provide cash backs for
payments made through this channel. This is one way of ensuring loyalty of their customers.

Semi-Closed e-wallets: These are wallets which can be used for purchase of goods and
services, including financial services at a group of clearly identified merchant locations/
establishments which have a specific contract with the issuer to accept them. These wallets do
not permit cash withdrawal or redemption by the holder. Wallets for amounts upto Rs.10,000/-
can be created under this category by accepting minimum details of the customer, provided the
amount outstanding at any point of time does not exceed Rs. 10,000/- and the total value of
reloads during any given month also does not exceed Rs. 10,000/-. Amount upto Rs.50,000/- can
be created in wallets by accepting any 'officially valid document' which is compliant with anti-
money laundering rules. Such wallets are non-reloadable in nature. Amount upto Rs.1,00,000/-
can be created by with full Know Your Client norms (KYC) and can be reloaded. Eg.AirTel
Money, which is used for making payments for a range of services like money transfer from
Airtel Money to another bank account or any other Airtel Money Wallet or paying select utility
bills.

Open e-wallets: These are wallets which can be used for purchase of goods and services,
including financial services like funds transfer at any card accepting merchant IUJ Journal of
Management 12 locations [point of sale (POS) terminals] and also permit cash withdrawal at
ATMs / Banking Correspondents (BCs). However, cash withdrawal at POS is permitted only
upto a limit of Rs.1000/- per day subject to the same conditions as applicable hitherto to debit
cards (for cash withdrawal at POS). Eg. M-Pesa is an open wallet run by Vodafone in partnership
with ICICI Bank. Axis Bank's eWallet Card', can used for making payments on sites that accept
Visa cards, with a minimum limit of Rs 10, and a maximum limit of Rs 50,000, and a validity of
48 hours.

2.5 related study

According to Katti, (2020) he was investigated e awareness among the consumers/citizens about
the cashless economy. And also helps in determining the factors motivating consumers to use
digital payments instead of physical cash, specially he explored the concept of digital wallets in
India, factors motivating consumers to use digital wallets, perception of consumers concerning
preference, security & ease of use towards digital wallets. The research follows both exploratory
and descriptive research methodologies. Secondary data was analyzed through the literature
review. Ebsco and Google scholar were used to collect the literature concerning digital wallets.
The secondary data analysis was followed by data collection using a semistructured
questionnaire. The data was collected by online means by using google form. Data analysis was
carried out by using software for data analysis SPSS. The sampling technique for the research
was a nonprobabilistic convenience sampling technique and 125 was the sample size for the
study.

According to Brahmbhatt, (2018) he was investigated measure the customers' perception

regarding E-wallets in Ahmedabad city, specially he investigated the customers' awareness and
satisfaction about E-Wallet services, security concerns about related services. A survey has been
used to collect primary data and 102 questionnaires were used in final analysis. SPSS and
Microsoft Excel have been used to analyze and interpret the data. Graphical Representation, t-

test, ANOVAs and chi-square analysis have been used. Results show thatpeople are aware and
willing about the online payments through E-wallets and there is a tremendous increase in
growth rate after demonetization. Word to Mouth publicity have higher impact on information
spread compare to other methods such as advertisement on social media, Magazine, TV and
Government promotion. So companies and government both should create awareness by
organising cashless society workshops/seminars.

According to Sujith et al., (2019) they investigated customer perception towards mobile wallet
among youth with special reference Thrissur city, specially they were investigated the awareness
of youth towards the Mobile wallets in Thrissur city, the preference of mobile wallets among
youngsters, the perception of users towards the mobile wallet. This study is designed as a
descriptive nature. Both primary as well as secondary data are used for the study.

According to(H, 2018) he was attempt to evaluate the consumer perception towards e- Payment
System and Digital Wallets, specially they investigated the top 5 digital wallet service providers
in India, the awareness and perception of the users towards digital wallets, the merits and
demerits of E-payment system, whether rural people are getting updated themselves to the
updating technology. The questionnaire was used as research tool to collect the primary data
from the respondents chosen for the study. The collected data through the questionnaire were
then analysed to reach the research objectives.

According to Batra & Kalra, (2016) they were investigated are the digital wallets the new
currency?, specialty they investigated the customer awareness and perception towards digital
wallets, the customer preferences and usage pattern with regards to digital wallets, the reasons
for adoption of digital wallets and customer satisfaction regarding the same, the challenges faced
and barriers in adoption of digital wallets. This study is based on primary data collected from 52
respondents from the regions of Jalandhar and Adampur. The respondents for the study
comprised of students, bankers, retailer business men and service men selected on the basis of
convenience. A well structured questionnaire was designed to collect the information from the
respondents.
According toAssistant Professor et al.,( 2021) they were investigated Consumer Perception of

Digital Payment Methods in times of Covid Pandemic , The objective of the study was to find the
consumer perception of digital payment methods in times of Covid Pandemic and to analyse the
impact of demographic characteristics like gender, age, education, profession, and income on
these perceptions. The present study analysed primary data collected from 107 respondents from
Ernakulam district of Kerala to study the consumer perception of digital payment methods on the
basis of demographic characteristics such as gender, age, education, profession, and
employment. Correlation and ANOVA were used to analyse the data and found that there was no
significant variance in consumer perception of digital payment methods even in times of Covid
pandemic based on the key demographic characteristics.
 CHAPTER THREE

3.0 METHODOLOGY
3.1 Introduction

This is the third chapter of the study is customer perception towards growing of mobile wallets in
Mogadishu, at some will select users of mobile wallets and provide methodology that will be
under taken in this research. This chapter will contain to research design, research area, research
population, sample size determination, sampling technique, data gathering procedure, research
instrument, data analysis, reliability and validity, ethical consideration and limitation of the
study.

3.2 Research Design

The study will adopt a descriptive research method. Descriptive Research Design according to
Kothari (2004) is one that seeks to explain the particular characteristics of an individual, group or
a phenomenon. It describes the special features attributable to a particular phenomenon and
concerns special predictions with specific narration of facts regarding the phenomenon.

It allows the researcher’s to collect quantitative data, which can analyze, quantitatively using
descriptive statistics. It is possible to generate findings that are representative of the whole
population at a lower cost than collecting the data for the whole population using information
gained from the questionnaire. This design is selected for this study because it is effective, less
cost and easily accessible for collecting information from the target population.

Descriptive research design is more appropriate because the study seeks to build a profile about
the customer perception towards on growing mobile wallet in Mogadishu.

3.3 Study area

Mogadishu is the capital city of Somalia and most of the mobile wallet providers in Somalia are
operating in Mogadishu. Hence, this study will conduct in Mogadishu.
3.4 Study population
Population is defined is a group of people of the same species living and intervene within a given
area.

During data collection, the researchers shall target some users of mobile wallet in Mogadishu. ,
the target population of this study will be 100 including companies and individuals that uses
mobile wallet actively.

The researchers will consider companies and individuals that will select users of mobile wallet
mentioned above to summarize the following table one.

Table (1) 3.1 Target population users of mobile wallet

Users of mobile wallet Number of users in

mobile wallet
1.companies that uses mobile 74
wallet
2. individuals that uses mobile 26
.
wallet
Total 100

3.5 Sample size

The researchers will use Slovene’s formula (1978) to determine the minimum sample size and
acceptable.
N
n¿ 2
1+ N e
N: Stands the populations
n. Stands the sample
e. Stands acceptable error or 0.5%
n = 100
1+ 100 (0.0025)
= 100
1+ 0.25

= 100
1.25

= the sample size of the study will be 80 companies and individuals , we shall select only users
of premier wallet in Mogadishu.
Table 3.2 Sample size users of mobile wallet

Name users of mobile Number of Sample Size

wallet companies and
individuals
1.companies 74 65

2.individuals 26 15

Total 100 80

3.6 Sample Technique

In this study sampling technique is a description of the strategies we will use to select
representative elements, subjects, respondents from the target population (Owen , 2000).

The sampling technique will use in this study purposive sampling. Purposive sampling will use
to ensure the balance distribution of respondents from unlike sectors. Purposive sampling is a
sampling method in which all members of a group have an equal and independent chance of
being selected (Dawson, 2002).

3.7 Research Instrument

This study will use a questionnaire as a tool of data collection from every respondent. The main
purpose of the questionnaire will collect a lot of information short period of time. Because they
are suitable if a population is large and time is limited. we will adopt the questionnaire of Islamic
banking by (Mushtaq & Arshed, 2016) and also the questionnaire of economic growth by (Yusof, 2013).
The selecting of this survey will guide by the nature of the data to be collect questionnaire tool will
administrate to collect quantitative data from the selected respondents. Therefore the structure of this
questionnaire will consist of two parts first part will be five personal information questions including
Gender, Age, Marital status, Educational background and how long have you worked with your current
organization, or experience career job and another part will consist of 15 questions based on research
objectives and that make it total of 20 questions which states the following scales such as 1, Strongly
Disagree, 2, Disagree, 3, Agree 4, strongly Agree.

3.8 Data collection method

Research instruments are measurement tools designed to obtain data on a topic of interest from
research subjects. Closed questionnaire used to collect research data. Respondents were briefed
about the study and its objective. The researchers will prefer this method because it is the most
appropriate in collecting view respondents whose place was geographically spread. The selection
of this tool is Guided by the nature of data will collect, the time available as well as by the
objectives of the study and the overall aim of study. The content of the questionnaire explained
for them and also requested to answer the questions as honest as possible.

Questionnaire and were define a technique of data collection in which each person is asking to
respond to the same set of questions in predetermine order.

3.9 Data gathering procedures

This study will use for primary data, as well as also be collected from respondents in the area of
study. Data will collect using a pre-code structured questionnaire for the survey. The close end
questions are questions in which all possible so as to prespecify answers and the respondents
make the choice from the answers provide. Also, the researchers will translate the questionnaire
into Somali language because it is helping the respondent to understand the questions by
interpreting them to fit the respondent’s understanding. The data require will collect through
distributing of bank providing mobile wallets in Mogadishu-Somalia. The mobile wallet users
are the most appropriate respondents. Therefore, the selection of this tool has been guided by the
nature of data to be collected, the time available as well as by the objectives of the study and the
overall aim of study is to investigate the customer perception towards on growing mobile wallet
in Mogadishu

3.10 Data analysis

Data will analyses using statistical package for social science - SPSS. Descriptive analysis was
done and then frequency tables and charts will be used in order to present study results for easy
understanding.

3.11 Validity and reliability

Research validity is to ensure the correctness of the research findings to get validity of
information.

In order to make sure the reliability and validity of the study; questioners had been distributed to
some of respondents. Each test has been given twice to the same people at different times to see
if the if the scores are the same.

3.12 Ethical Considerations

In this research study, issues relating to the ethical conduct of research such as informed consent,
confidentiality, privacy and anonymity will be upheld. According to (Saunders et al, 2009),
ethics is the norms or standards of behavior that guide moral choices about our behavior and our
relationships with others. Participants and respondents will be given full information on the
purpose and objectives of the study in order for them to make informed decisions as to whether
to take part or not. Moreover, all information concerning the identity and personality of
respondents will be treating with utmost confidentiality. Additionally, all information gathered
will be used for the sole purpose of this research study.

3.13 Limitations of the study

As this research may meet the major limitations which may affect researchers across on its
research procedure such obstacles may include: The researchers may encounter that some of the
repliers will not respond the questionnaire exactly or correctly because they think if they answer
fully they may under value their banks. Other obstacles may encounter the researcher language

barrier. Since managers and supervisors are busy their day to day activities schedules, the
researchers may challenge that will not get as much time from them expecting to respond the
questionnaires
 REFERENCE

Assistant Professor, S., M, S. K., & Professor, A. (2021). Munich Personal RePEc Archive A
Study on Consumer Perception of Digital Payment Methods in times of Covid Pandemic A
Study on Consumer Perception of Digital Payment Methods in times of Covid Pandemic.
107002. https://mpra.ub.uni-muenchen.de/107002/1/MPRA_paper_107002.pdf

Batra, R., & Kalra, N. (2016). Are Digital Wallets the New Currency? Apeejay Journal of
Management and Technology, 11(1).
https://apeejay.edu/aimtc/aimtc-journal/docs/volume11/Volume11No1Article4.pdf

Brahmbhatt, M. (2018). A Study on Customers ’ Perception towards E-Wallets in Ahmedabad

City. IUJ Journal of Management, 6(1), 11–15.

Forum, P. (2018). Mobile and Digital Wallets : U . S . Landscape and Strategic Considerations
for Merchants and Financial Institutions About the Mobile and Contactless Payments.
January, 1–50.

H, A. P. (2018). Study on consumer perception towards digital wallets. 5(3), 385–391.

Katti, S. (2020). Perception of Indian Consumers towards Digital Wallets a Study. 1–7.

Mushtaq, A., & Arshed, N. (2016). Islamic Banking and Economic Growth: Case of Pakistan.
3(1), 14–28.

Page, B. (n.d.). Perception Affecting Consumer Behavior.

Sujith, T. S., Sumathy, M., & Anisha, T. (2019). CUSTOMER PERCEPTION TOWARDS
MOBILE – WALLETS AMONG YOUTH. 10(3), 148–154.

Yusof, R. M. (2013). Islamic banking and economic growth in GCC & East Asia countries A
panel cointegration analysis. 4(2), 151–172. https://doi.org/10.1108/JIABR-07-2012-0044
 APPENDIX 1-QUESTIONNAIRE:

We are researchers conducting a study on customer perception towards growing mobile wallets
in Mogadishu. Dear respondent, you have been selected to participate this study. Information
shared will be kept confidential and will only be used for the purpose of the study. I kindly
request you answer the questions as honesty as possible.

Section A: Socio demographic data/personal information

1. Gender of the respondents

a. Male

b. Female

2. Age of the respondents

a. 15 – 24 years

b. 25 – 34 years

c. 35 – 44 years

d. Above 44 years

3. Marital status of the respondents

a. Single

b. Married

c. Divorced

d. Widowed

4. Educational level of the respondents

a. Primary Secondary

b. University/tertiary
c. Informal education

5. Occupation of the respondents

a. Employed

b. Unemployed

Section B: customer’s perception towards growing mobile wallet

6. Are you aware regarding the functionality of mobile wallet?

a. Fully aware

b. Partially aware

c. Not aware

7. Where did you get information about mobile wallet?

a. Social media b. Advertiser/marketing

c. Radio or television d. Friend

8. Did you use mobile wallet for financial transaction?

a. Yes

b. No

9. How did you consider mobile wallet against other sort payment methods?

a. Alternative choice

b. Substitute

c. Supportive instrument

a. Money transfer

b. Recharge
c. Bill payment

Section C: factors that influence customers in adaptation of mobile wallet

11. Did you have a smartphone to use mobile wallet?

a. Yes

b. No

12. Have you used a smartphone for making online payment?

a. Yes

b. No

Section D: the ease use of mobile wallet

13 how do you see the use of mobile wallet against other e-money transfer?

a. the easiest from others

b. the hardest from others

c. same from others

14. Are you face an obstacle for lack of internet on using mobile wallet?

a. Yes

b. No

Section D: security problems using of mobile wallet

15. Did you encounter security problem when you use mobile wallet?

a. yes.

b. no.

16. What type of security problem did you encounter when you were using mobile wallets?
a. hacker on internet

b. thieves staying on way

c. both

17. is there better than mobile wallet in terms of security other types of e-money?

a. yes.

b. no.

Section E: Trust using of mobile wallet

18. do you have confidence using of mobile wallet?

a. yes.

b. no.

19. At what type in these e-payments make mode of payment?

a. Debt card

b. Credit card

c. Mobile wallet

d. Other

20. Are mobile wallet services useful mode of payment?

a. Strongly agree

b. Agree

c. Disagree

d. Strongly disagree