Our Heritage - gfgc.kar.nic.in

Our Heritage ISSN: 0474-9030

Vol-68-Issue-1-January-2020

P a g e | 12162 Copyright ⓒ 2020Authors

A Study on “Consumer Perception towards Digital Wallets with

Special Reference to Udupi District”

Manjunatha B

Assistant Professor in Commerce,

ManjunathaPai Memorial Government First Grade College,

Karkala- 574104

[email protected]

9880894441

&

Vijendra ShenoyH

Assistant Professor in Commerce, Government First Grade College,

Hebri.

[email protected]

9663093700

Abstract

Mobile phones are used everywhere in this modern world. The technological advancement has

made everything possible under one touch. By using the applications installed in the mobile

phones the users can pay any bills and transact their money to anyone at their convenience.

Increase in use of mobile phones and internet is the main reason for mobile wallet penetration.

Government of India‟s initiative such as „Digital India‟ and increased use of mobile and internet

are the main reasons for the exponential growth in use of digital payment. Even though the

thought of digitalization raised long years ago, it took growth pace recently. This is because of

lack of awareness and knowledge among people, fear to make online payment, security issues

etc. The E-Payment system will be boosted only when the awareness is created in the minds of

the people. But in the current scenario, India has seen a substantial increase in the number of

digital wallets available and is slowly moving towards a cashless economy. Digital Wallets have

eased our buying experience by providing another convenient money transfer platform. The




consumer perception towards e-payment has a significant and positive impact on adoption of

digital wallets.

The present study is an attempt to evaluate the consumer perception towards e- Payment System

and Digital Wallets in Udupi District. The questionnaire was used as research tool to collect the

primary data from the respondents chosen for the study.

Keywords: Digital Wallets, Digital Payment, Digital India, E- Payment System and Mobile

Wallet.

INTRODUCTION

Digital wallets or e-wallets have changed the way consumers pay for various goods and services.

A digital wallet is nothing but an electronic version of a traditional or physical wallet, through

which one can make payments. When a digital wallet is used on a Smartphone, it is referred to as

a mobile wallet. With the focus in India shifting towards a cashless economy and a digital future,

the government has also been taking various measures to promote and encourage the use of such

technology. This has been made possible through the various government-backed digital

payment apps such as BHIM app or the Unified Payments Interface (UPI) payments app.

The government is working hard to make India a cashless economy. It has put limits on

withdrawing cash from the bank or ATMs. And also there are too many E-payment payment

apps available in the play store. And they can easily replace the physical wallet and make

cashless. One can use these E-payment payment apps to send money or pay at shops.

When payment is made through a digital wallet for goods and services, the time taken will be

lesser when compared to credit or debit card payments. Digital wallets can be used for paying

utility bills, DTH plans, and mobile bills or to recharge a prepaid connection. Purchases can also

be made on e-commerce sites through digital wallets. Most e-commerce sites have tie-ups with

many of the digital wallet companies and hence allow customers to make payments through the

same.

Scope of Digital Wallets

Digital wallets can be used to make online purchases from e-commerce websites

To pay various utility bills such as electricity, prepaid recharge, booking movie tickets,

telephone bills, etc




Can be used to order food online

Can be used for travel bookings

Online fund transfer can be made through a digital wallet

Many financial products such as mutual funds and insurance can be purchased.

Top 8 Digital Wallets App in India

1. PayTM

It was launched in 2010 and followed a semi-closed model, which takes advantage of the

enormous mobile and Smartphonemarket.Any user can use the app to make payments in

stores that have tie-ups with the company. Other uses of PayTM include making bill

payments, transferring cash, and avail the services of travel and entertainment websites.

Currently, it is also utilized to make cashless fee payments in educational institutes.

2. Amazon Pay

It was launched internationally in 2007 and widely used by Amazon‟s massive customer

base. Secure and extremely efficient, we can use it to easily make payments while using

the balance in our Amazon account. It can be used in external merchant websites, as well.

3. Google Pay

It has a massive user base; it can be used to quickly send money to friends, pay bills, buy

anything online, order food, recharge your phone, or shop at stores. It links our existing

bank account to the app and does not requireloading wallets or verifying KYC since it is

directly connected to our bank.

4. PhonePe

Another digital wallet app in India that launched in 2015, PhonePe has been downloaded

by more than 100 million users to date. It can be used to conduct UPI payments, do

recharges, and ensure secure money transfers as well as online bill payments.Since it

comes with a very easy-to-use user interface, it is one of the most common apps in India.




5. Mobikwik

MobiKwik is a widely used digital wallet app in online retail stores. We can add money

using our debit, credit card, and net banking account into the mobile wallet and then utilize

this money to recharge or pay bills and shop at online sites.

6. Yono by SBI

When SBI launched the Yono application, it turned out to be one of the best digital wallet

apps in India. We can use this software to transfer money to other users and bank accounts.

We can also use Yono to pay bills, do recharges, make movie bookings, hotel reservations,

and online shopping.

7. HDFC PayZapp

PayZapp by HDFC is extremely popular as it has the option of making all payments in just

one click. We can use it to recharge phone, DTH connection and data card, make utility bill

payments, book flight tickets, make reservations for buses and hotels, shop, purchase

movie tickets, and shop at music and grocery stores. We can also use it to transfer cash to

anyone on contact list.

8. BHIM Axis Pay

Rounding up the list of the most secure and best digital wallet apps in India is BHIM Axis

Pay, which works on UPI banking and allows to transfer money immediately to anyone

through ourSmartphone. We can use it to do mobile and DTH recharges as well.

Objectives of the study

1. To find out the awareness and perception of the consumers towards digital wallets.

2. To identify the factors that affects consumer preference towards mobile wallet.

3. To know whether people are getting updated themselves to the updating technology.

Research Methodology

1. Primary Data

This includes questionnaire survey of people from Udupi District.

2. Secondary Data

Various published articles from journals, books, and internet websites.

3. Sampling size:




The sample size consists of 200 respondents.

4. Data collection method:

Questionnaire was prepared with the intension to collect the data from the respondents at

Udupi District.

5. Statistical Analysis:

The primary data which has been collected by the survey using a standard questionnaire

has been systematically originated, tabulated and edited so as to draw a meaningful

conclusion to achieve the desired objective.

DATA ANALYSIS

Use of smart phone for making a monetary transaction

Interpretation

In the survey conducted, 84% respondents opined that they are using smart phone for making a

monetary transaction and 16% respondents opined that they are not using smart phone for

making a monetary transaction.

Awareness about the mobile wallet payment gateway




Interpretation

The above diagram states that 68% respondents heard about digital wallets and used it, 4%

respondents hearing about digital wallets for the first time and 28% respondents heard about

digital wallets but never used it.

Mobile wallet payment services consumers’ prefer using the most

Interpretation

The above diagram states that 24% respondents prefer to use Paytm, 8% respondents prefer to

use Amazon Pay, 36% respondents prefer to use Google Pay, 10% respondents prefer to use

PhonePe, 4% respondents prefer to use Mobikwik, 10% respondents prefer to use YONO by

SBI, 2% respondents prefer to use HDFC Payz App, 6% respondents prefer to use BHIM Axis

Payz.

24%

8%

36%

10%

4% 10%

2%

6%Paytm

Amazon Pay

Google Pay

PhonePe

Mobikwik

Yono by SBI

HDFC Payz App




Using Mobile Wallets for making monetary transactions

Interpretation: In the survey conducted, 74% respondents opined that they use mobile wallet

for transfer money, 66% respondents opined that they use mobile wallet for recharge, 24%

respondents opined that they use mobile wallet for payment of utility bills, 26% respondents

opined that they use mobile wallet for booking Bus/Train/Air Tickets, 14% respondents opined

that they use mobile wallet for Food/Movie Tickets, 52% respondents opined that they use

mobile wallet for Online Shoping and 2% respondents opined that they use mobile wallet for

other purpose.

Reasons to start using mobile wallet payment gateway services

Interpretation

In the survey conducted, 82% respondents opined that they stated to use mobile wallet because it

saves time, 44% respondents opined that they stated to use mobile wallet to take advantage of

74%

66 %

24%

26%

14%

52%

2%

0 10 20 30 40 50 60 70 80

Transfer Money

Recharge

Utility Bill Payment

Booking Bus/Train/Air Tickets

Food/Movie Tickets

Online Shoping

Any other

82%

44%

46%

30%

0 10 20 30 40 50 60 70 80 90

Mobile wallet saves time

To take advantage of reward points and discounts

Convenience of the mobile payment gateway services

Comfortable with the security of the mobile payment gateways




reward points and discounts, 46% respondents opined that they stated to use mobile wallet

because of convenience of the mobile payment gateway services and 30% respondents opined

that they stated to use mobile wallet because they are comfortable with the security of the mobile

payment gateways.

Number of times consumers’ use mobile wallet for making monetary transactions per

month

Interpretation

In the survey conducted, 38% respondents opined that they use mobile wallet once in a month,

6% respondents opined that they use mobile wallet twice in a month, 2% respondents opined that

they use mobile wallet thrice in a month and 54% respondents opined that they use mobile wallet

more than thrice in a month.

Obstacles faced while using mobile wallet




Interpretation

In the survey conducted, 28% respondents opined that they have faced obstacles while using

mobile wallet and 72% respondents opined that they have not faced obstacles while using mobile

wallet.

Prefer to continue using mobile wallet

Interpretation

The above diagram states that 96% respondents prefer to continue using mobile wallet and 4%

respondents not prefer to continue using mobile wallets.

.FINDINGS OF THE STUDY

1. The respondent‟s awareness about mobile wallet payment services is high.

2. Majority of the respondents are aware and prefer using Paytm followed by PhonePe.

3. The respondents prefer using digital-wallets for Recharge purpose followed by Online

Shopping and also for Food/Movie tickets.

4. The Availability, Convenience, Service acceptance, Security and Reward points are the

major factors which influences most of the respondents to use digital -wallets.

5. Majority of the respondents use digital -wallet frequently.

6. A large number of the respondents are satisfied with the service provided by them whereas

a few number of the respondents are highly satisfied with the service used.

7. Majority of the respondents have not come across any obstacle while using digital -wallet

and major problem faced by some of the users is network server issue.




8. As most of the respondents are satisfied with the service provided, majority of the

respondents prefer to continue using digital -wallet.

9. As security is a major issue, most of the respondents fear of digital -wallet provider sharing

the confidential information with other companies, misuse of information if phone stolen,

rise in the number of cyber crimes and virus being installed on the phone.

10. The willingness to use the services is very high if the problems are addressed.

11. Most of the respondents prefer using Paytm for other services followed by other wallets.

12. Security, necessity, time and services used are the factors which influence the preferences

of the respondents.

CONCLUSION

The study was accomplished to explore consumer awareness ,perceptions and willingness to use

digital wallets. Specifilcally thestudy explored awareness,usage,likelihood of using smart phones

for completing the monetary transactions. With the increased penetration of internet connectivity

and smart phones has led to an increase in the number of digital wallet users. Digital-wallet is

getting more and more trendier among the consumers. As per the findings of the study, digital-

wallet is getting popularity among the young lots such as students and employees.The study

witnessed that Google Pay is leading among the other wallet providers. When a user is making

an online payment via digital-wallets, the respondents are affected by various assorted

factors.One of the main obstacle is security issues, due to which the users get anxious about his

or her confidential information which may get disclosed. Therefore the digital-wallet providers

need to understand and meet the users trust and expectations. Digital-wallets are growing in

INDIA as the consumers are relying upon the digital life style to make things convenient and

faster and the consumers are embracing digital-wallet with open arms.

REFERENCE

1. Neeharika P et al, (2014), “A Novel Interoperable Mobile Wallet Model with Capability

Based Access Control Framework”, International Journal of Computer Science and Mobile

Computing, Vol.3 Issue 7, pg. 888.904

2. Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014), “A study on Paytm”

Guru Gobind Singh Indraprastha University, Delhi.




3. Ngoc Doan (2014) “CONSUMER ADOPTION IN MOBILE WALLET – A Study of

Consumers in Finland”, TURKU UNIVERSITY OF APPLIED SCIENCES

4. Nikita Rai, Anurag Ashok, Janhvi Chakraborty, Prajakta Arolker, Saumeel Gajera (2012),

“M-wallet: An SMS based payment system”, International Journal of Engineering

Research and Applications, ISSN: 2248-9622

5. https://paytm.com/

6. https://www.mobikwik.com/

7. https://www.oxigenwallet.com/about-oxigen-wallet

8. http://www.citruspay.com/about-us.html https://www.freecharge.in/

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