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Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Additional Editor in Chief)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
 

Adoption of E-wallets: A Post Demonetisation Study in Ahmedabad City

 

Dr. Jasmin Padiya

Associate Professor,

Faculty of Management,

GLS University,

Ahmedabad

 

Prof. Ashok Bantwa

Assistant Professor,

Faculty of Management,

GLS University

Ahmedabad


 

Abstract

On 8th November 2016 honorable prime minister of India took a phenomenal step by declaring that two highest denomination currency notes in India (500 rupee notes and 1000 rupee notes) will not remain legal tender. Demonetization decision coupled with government’s initiative to make India a cashless economy is expected to bring a phenomenal transformation in the way people make payments and expected to increase inclination towards online payment. Among the various modes of online payments the mode gaining popularity during present time is E-wallets. In a nation such as India where larger part of clients   still favors Cash-On-Delivery, it is difficult to fasten the pace of process of innovation diffusion such as digital wallets. This generates research interest to study the   readiness of people to use E-wallets and factors influencing the adoption of E-wallets including the factors refraining the usage of it, during the post demonetization period. This research paper is aimed at examining the adoption of E-wallets as a mode of payment in Ahmedabad City and to ascertain the factors encouraging and preventing the usage of E-wallets during the post demonetization period. This paper also throws light on adjuvant issues like impact of demonetization decision on preference for online payments, impact of various demographic factors on usage of E-wallets, problems faced by people while using E-wallets etc. The study is based on 318 valid responses received through a structured questionnaire. Data collected was analyzed by using percentages, cross tabulation and statistical tools like ANOVA. Through this study researchers found that, E-wallet users give very high level of importance to attributes like security, privacy concerns and pricing (Fees). The major problems frequently encountered by the respondents while using E-wallet are long transaction time taken by E-wallet for processing the transaction, security breach and delayed payment. Demonetization drive of government of India has contributed immensely towards awareness, usage and acceptance of online payment.

 

Keywords:

E-wallet, Demonetization, Online Payment, Smart Phone Users, Mode of Payment

 

 

 

  1. Introduction

On 8th November 2016 honorable prime minister of India took a phenomenal step by declaring that two highest denomination currency notes in India (500 rupee notes and 1000 rupee notes) will not remain legal tender. Through this decision nearly 86% of the currency in circulation was withdrawn. This historical decision was aimed at manifold objectives like curbing black money, eradicating counterfeit currency notes, combating terror financing, controlling tax evasions and a shift towards cashless economy. Demonetization decision is a major driver for making India a cashless economy. Amidst all shouting and chattering on demonetization and digital transactions, India is gradually moving towards adopting cashless economy.In a country like India where E-commerce and online shopping is growing by leaps and bounds, demonetization decision has given a new impetus to already growing use of digital payments.Among various modes of online payments the most fledgling mode is E-wallets. After demonetization decision the number of transactions through E-wallets have increased manifold. And with the transaction limit on digital wallets being increased to Rs 20,000, it just keeps getting better.

“According to the government data, the number of daily transactions through e-wallet services such as Oxigen, Paytm and MobiKwik has shot up from 17 lakh — recorded on November 8 when demonetisation was announced — to 63 lakh as on December 7 (a growth of 271%). In terms of value, the surge has been 267%, from Rs 52 crore daily to Rs 191 crore now.”(As reposted by times of India on December 10, 2016)

 

1.1 What is an E-Wallet?

Think of a wallet in your pocket. You keep money in it and whenever you need to buy something or pay for a service you received form someone else, you pull out wallet, take out money and make payment. When you run out of money in your wallet, you refill your wallet. E-wallet is your physical wallet completely turned in electronic form. There will be a wallet where you will be able to keep cash and you can pay for goods and services. That is precisely what an E-wallet is. So E-wallet is your wallet that has lost the physical form and taken electronic form.

 

In present world, smartphone has become essential part of daily life. Along with smartphone production, a number of services have been generated to utilize the possible functions of smartphones. Smartphones are used as communication devices, as socialized tool, entertainment tool, internet access tool, and even payment tool. Due to technology, mobile users can nowadays use their smartphones to make money transaction or payment by using applications installed in the phone. Besides payment, people can also store receipts, coupons, business cards, bills in their smartphones. When smartphones can function as leather wallets, it is called “Digital Wallet” or widely known as “Mobile Wallet”. (Rathore, 2016). Electronic-Wallet allows users to make electronic commerce transactions quickly and securely. (Upadhayaya, 2012)

 

A mobile wallet is a much-advanced versatile application that includes elements of mobile transactions, as well as other items one may find in a wallet, such as membership cards, loyalty cards and travel cards. (Shin, 2016). Since last couple of years the utilization of digital wallets has taken quite a leap. Digital wallets have been included as payment alternative by many e-business players along with existing net banking or card based payment methods. With smartphones becoming an inseparable part of one’s life and hence a convenient way of making digitalized payments, the adoption of digital wallets has been tremendously increasing. Through digital wallets, the payment infrastructure with immense advancement in technology has become highly consumer friendly. (Kunal Taheam, 2016). However, the idea of a digital wallet is not new. Indeed, Japan,America, Sweden and South Korea have already rolled out cell phone-based digital wallet solutions. Consumers in those countries can use their cell phones to pay for groceries, order drinks from a vending machine, and even identify themselves at airline ticketing counters.  (Rathore, 2016).

 

1.2 E-Wallets in India

Considering the growing use of online shopping and online payments in India a handful of E-wallet services have been started in India during last few years. Particularly during post demonetization period, the use of E-wallets for online payments is growing at very high rate. As per Reserve Bank of India guideline ’E-wallets’ in India can be classified into three categories.

 

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. Hence, RBI approval is not required for issuing them.

E.g. Cab services (Like Ola Cabs), e-commerce (like Jabong, First Cry, Flipkart) and mobile companies create e-wallets for making payments towards purchase of products from them /for usage of their services.

 

Semi-Closed e-wallets: These are wallets which can be used for purchase of goods and services, including financial services at 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.MobiKwik, PayU, PayTM, Citrus, and Airtel Money are the best examples under this category of e-wallet.

 

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 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 to debit cards (for cash withdrawal at POS).E.g. M-Pesa is an open wallet run by Vodafone in partnership with ICICI Bank. Airtel Money is a semi-open wallet, which allows you to transact with merchants that have a contract with Airtel. You can't withdraw cash or get it back. You'll have to spend what you load.

 

Table 1 below provides an overview of popular E-wallets in India. These E-wallets are offered number of players across various industries including private entrepreneurs which offers only and only E-wallets and nothing else, banking industry players who have come up with E-wallets to fight against the private players, and telecom industry players which have come with E-wallets to leverage on their telecom infrastructure and customer base. Table also provides other details about given E-wallets like Promoter Company, availability of bank transfer facility, availability of facility to send money on mobile, mobile platforms supported by E-wallets and accessibility of Unified Payment Interface(UPI). UPI is a payment system that allows money transfer between any two bank accounts by using a smartphone. It allows a customer to pay directly from a bank account to different merchants both online and offline, without the hassle of typing credit card details, IFSC code or net banking password

 

Table 1 Overview of Popular E-wallets in India

E-Wallet

Industry

Company

UPI

Availability Bank Transfer

Send on Mobile

Mobile Platform

Airtel Money

Telecom Industry

Airtel

No

Yes

Yes

Android, iOS

Axis Bank Lime

Private

Axis Bank

No

No

No

Android, iOS, Windows Phone

BHIM App

Public

 National Payments Corporation of India

Yes

Yes

Yes

Android

Citrus Pay

Private

Citrus Pay

No

No

Yes

Android, iOS

Freecharge

Private

Snapdeal

No

No

No

Android, iOS, Windows Phone

HDFC PayZapp

Banking Industry

HDFC Bank

No

No

Yes

Android, iOS

ICICI Pockets

Banking Industry

ICICI Bank

Yes

Yes

Yes

Android, iOS

ItzCash

Private

ItzCash Card Ltd.

No

Yes

Yes

Android, iOS

Mobikwik

Private

One MobiKwiK Systems Pvt.Ltd.

Yes

Yes

Yes

Android, iOS, Windows Phone

mRupee

Telecom Industry

Tata Tele Services Ltd.

No

No

Yes

Android, iOS, Windows Phone

Oxigen Wallet

Private

Oxigen Services India Pvt. Ltd.

No

Yes

Yes

Android, iOS, Windows Phone

Paytm

Private

One97 Communications

No

Yes

Yes

Android, iOS, Windows Phone, Blackberry

SBI Buddy

Banking Industry

SBI Bank

No

No

Yes

Android, iOS

Vodafone M-Pesa

Telecom Industry

Vodafone

Yes

Yes

Yes

Android, iOS, Windows Phone

Jio Money

Telecom Industry

Reliance

No

No

No

Android, iOS, Windows Phone

(Source:www.pmjandhanyojana.co.in)

 

 

 

 

  1. Literature Review

Many empirical studies have been conducted on the subject of cashless society in India and abroad. The major emphasis of research has been on various issues like frauds, security, usage pattern, new method of e-payment, etc. However, very few literature is available on E-wallets.

Rathore Hem Shwetastudied various factors affecting adoption of digital wallet as a mode of payment by consumers and different risk and challenges encountered by users while using digital wallet. The study was conducted by collecting primary data through a structured questionnaire from 132 smart phone users (respondents). Researcher found that main factors contributing towards the adoption of digital wallet as a mode of payment are convenience in making payment online, brand loyalty and usefulness of digital wallet. It was found that users of digital wallet are satisfied with the services provided by them. The most crucial and challenging issues for adoption of digital wallet are security and safety. Shoppers are adopting digital wallets at an incredibly rapid pace, largely due to convenience and ease of use. (Rathore, 2016)

TahemKrunal, Sharma Rahul, Goswami Saurabh (2016), conducted a descriptive study to examine the factors driving use of digital wallets in state of Punjab.The study was conducted during the fourth quarter of 2015 by collecting primary data from 386 (Selected using snowball sampling)  users of digital wallets in state of Punjab. The results of this study indicated that People in Punjab have been found using digital wallets due to the motives of controllability & security, societal influence & usefulness and need for performance enhancement. This study indicates that people of Punjab use any type of digital wallet due to one or all of these identified motives. (Kunal Taheam, 2016)

KalyaniPawan in his paper studied the awareness and usage of paperless E-Currency transaction like E-Wallet using ICT in the youth of India. The paper elaborately explains features of various E-wallets in India. Researcher found that the most preferred modes of payment among the selected respondents are Cash on Deliver (COD) and credit card and debit card. It was found that respondents have good amount of information about the e-payment and e-wallet services available in India, but they know very little about the same types of services available outside India. Researcher concluded that awareness and practical usability of the E-wallet is low, that should be increased by adding more value added services to it. (Kalyani, 2016)

Sardar Ramesh studied the preference towards mobile wallets among the urban population of Jalagon city of Maharashtra. The study was collected by collecting primary data from 60 users of mobile wallet through a structured questionnaire. The study aimed at examining the awareness and preference towards the usage of Mobile wallets in Jalgaon and to find out the impact of various demographic variables on the usage of mobile wallets. Data was analyzed using chi-square and t-test. It was found that Majority (29%) of the respondents are preferred to use Mobile wallet payment to transfer money followed by recharging mobile or DTH payment and so on. Majority of respondents (90%) believes that an instant payment is an important factor to opt for Mobile payments. Respondents opined that security is the most critical issue while making online payment. (Sardar, 2016)

Shukla TrilokNath  in his research paper “Mobile Wallet: Present and the Future” stated that Based on current developments, it is safe to say that mobile wallets will soon be a self-reliant ubiquitous ecosystem. In the near future, mobile wallets will be used to engage with the customer by the marketers and digital businesses. With the addition of the value-added services that go beyond just payment, experts believe that mobile wallets will become a new marketing channel. Mobile wallets won’t just be about mobile payments; they would become one of the major contributors of a seamless shopping experience for the customers. Simply offering faster and more-secure payments would no longer be good enough; the industry players will have to counter the real pain points such as giving consumers the ability to see what’s on stored value cards at any moment in time, access loyalty points, or automatically receive digital copies of payment receipts. (Shukla, 2016)

Hee Shin-Dong, in his study “Towards an understanding of the consumer acceptance of mobile wallet” seeks to validate a comprehensive model of consumer acceptance in the context of mobile payment. It uses the unified theory of acceptance and use of technology (UTAUT) model with constructs of security, trust, social influence, and self-efficacy. Structural equation modeling is used to construct a predictive model of attitudes toward the mobile wallet. While the model confirms the classical role of technology acceptance factors (i.e., perceived usefulness and ease of use are key antecedents to users’ attitude), the results also show that users’ attitudes and intentions are influenced by perceived security and trust. (Shin, 2009)

 

 

In electronic commerce, the challenges of payment transactions were initially underestimated. Business via the internet and mobile telephony has so far been dominated by the methods of payment systems in traditional business. However, in light of advances in e-commerce, traditional business models are increasingly coming up against their limits. Electronic wallets being very useful for frequent online shoppers are commercially available for pocket, palm-sized, handheld, and desktop PCs. They offer a secure, convenient, and portable tool for online shopping. (Upadhyay, 2012). Virtual Wallets in near future are for sure going to disrupt both the online and offline business. The Companies that will foster are those which will quickly align their business model and strategies aligning them to the changing trends. It is not a distant day where we will see most of purchase happen either by flashing our mobile cameras scanning against the teller to pay the bills for purchases via Virtual wallets. In Parallel to the implementation of the technology in the mobile application, it is also equally important to educate the customer so that the quicker adoption will increase the user base. (Kalyan Kumar, 2016).  Varsha R and M Thulsiram undertook a study to ascertain the acceptance of E-wallet among the potential users. They found that The price related factor namely ‘cost saving’ and discount benefits seemed to be low considered by the respondents whereas secured privacy and secured transaction are more primary reasons for e-wallet preference. More than ninety-five percentage of the respondents had a possible apps in the mobile phones for making e-payments (Thulsiram, 2016).

Indian consumer will use mobile wallet when they are convince by the fact that many relative advantages compare conventional leather wallet. They will use mobile when they are convince that there will be no loss or security concern for using mobile wallet. Intent to use the mobile wallet would increase if the customer trust their service provider and the technology and there by develop confidence on to the system . (Sinha, 2016)

 

 

 

 

 

 

 

  1. Methodology

This research paper is aimed at examining the adoption of E-wallets as a mode of payment in Ahmedabad City and to ascertain the factors encouraging and discouraging the usage of E-wallets during the post demonetization period. The paper also throws light on ancillary issues like impact of demonetization decision on preference for online payments, impact of various demographic factors on usage of E-wallets, problems faced by people while using E-wallets etc.

 

The study has been conducted in urban area of Ahmedabad city which is considered as economic capital of Gujarat state. Study is based on primary data collected through a structured questionnaire. In total, 458 smart phone users selected through non-probability convenient sampling method were approached for the response and 327 responded. After data editing 5 invalid questionnaires were removed so we left with 318 valid responses. Data was collected in the month of January 2017 (two months after the demonetization decision). Data collected was analyzed by using percentages, cross tabulation and statistical tools like Chi-Square and ANOVA.

 

3.1 Objectives of the Study

  1. To ascertain the preference for and adoption of E-wallets in Ahmedabad City
  2. To study the factors influencing the adoption of E-wallets
  3. To study factors refraining the usage of E-wallets
  4. To study the problems faced while using E-wallets
  5. To study the impact of demonetization on preference for online payment
  6. To examine association of various demographic variables on usage of E-wallets

3.2 Hypothesis

H0: There is no significant difference between preferences for various modes of payments

H0: There is no significant relationship between various demographic factors and adoption of E-wallets 

H0: There is no significant difference between influence of various factors and adoption of E-wallets

3.3 Rationale for Study

Demonetization decision coupled with government’s initiative to make India a cashless economy is expected to bring a phenomenal transformation in the way people make payments. The preferredmode of payment is expected to change from offline to online. Among the various modes of online payments the mode gaining popularity during present time is E-wallets.In a nation such as India where larger part of clients still favors Cash-On-Delivery, it is difficult to fasten the pace of process of innovation diffusion such as digital wallets.  (Kunal Taheam, 2016).  This generates research interest to study the alacrity of people to use E-wallets and factors influencing the adoption of E-wallets including the factors refraining the usage of it, during the post demonetization period.

 

  1. Data Analysis and Interpretation

Table – 2 Usage of E-wallet

Use of E-wallet

Frequency

Percentage

Yes

162

50.94

No

156

49.06

Total

318

100

(Source: Compiled from primary data collected through structured Questionnaire)

Result in table - 2 reveals that more than 50 percent of respondents are using /have used E-wallets as mode of payment. This represents good adoption level of E-wallet by respondents in Ahmedabad city.

Table – 3 Reasons for not using E-wallet.

Reasons

Weighted Score

Rank

It’s poses threat to security

3.54

3

It’s inconvenient

3.10

6

Privacy concerns

3.72

2

Charges (fees)

3.52

4

Do not know how to use it

2.50

8

Don’t have internet access

1.98

9

Lack of/difficult record keeping

3.35

5

I prefer to use my usual payment methods

4.25

1

The outlets were I shop do not accept payment through wallet

3.08

7

(Source: Compiled from primary data collected through structured Questionnaire)

Finding suggest that major reason for not using wallets is ‘Resistance to Change’, majority would not like to move out of comfort of using traditional mode of payments. The other significant reasons for not using E-wallet are privacy concerns, security threats and fees. Almost all smart phone users having net-connectivity and usage know-how.

Table – 4 Frequency of using E-wallet

Time Intervals

Frequency

Percentage

Once a month

81

50

Once a fortnight

15

9

Once a week

36

22

Two or three times a week

24

15

 Daily

6

4

Total

162

100

(Source: Compiled from primary data collected through structured Questionnaire)

Majority users are using E-wallets once in a month suggesting that still there is no broad based usage of E-wallets on routine bases. This data corresponds to results indicated in table-4 showing that E-wallets are mainly used for monthly transactions like mobile recharge, payment of bills etc.

Table – 5 Types of Purchase using E-Wallets

Purchase

Frequency

Percentage

Mobile recharge

57

35

Payment of bills

48

30

Online shopping

30

19

Online ticket bookings

24

15

Other

3

2

Total

162

100

(Source: Compiled from primary data collected through structured Questionnaire)

E-wallet is preferred mode of payment for mobile recharge and payment of bills. Still for shopping of goods and other services there is no wide spread usage of E-wallets.

Table – 6 Frequency of using various modes of payment

Modes of Payment

Weight

Rank

Cash

4.09

1

Debit Card

3.43

2

Credit Card

2.04

5

Internet Banking

2.39

4

E-Wallet

2.91

3

(Source: Compiled from primary data collected through structured Questionnaire)

Cash and debit cards are the most preferred mode of payments followed by E-wallet, internet banking and credit cards.

Table – 7 Factors diving use of E-wallet

Attributes

Weight

Rank

Security

2.81

1

Privacy

2.76

2

Pricing (Transaction fees, service fees)

2.63

3

Transaction can easily be refunded in case of default

2.58

4

Ease of use

2.54

5

I am able to make payments from anywhere

2.43

6

 Discount offers

2.39

7

It helps me to keep track of my transaction history

2.37

8

I can avail cash back

2.37

9

It give me greater control over my day to day transactions

2.24

10

Almost every e-commerce site supports Digital Wallet payment

2.13

11

It’s trendy to use

1.67

12

My friends use it

1.34

13

(Source: Compiled from primary data collected through structured Questionnaire)

Data in table – 7 provides information about factors encouraging use of E-wallet by the respondents. Majority users rank security and privacy as major attributes for selection of E-wallet as mode of payment. Factors like use of E-wallet by friends, trend of using E-wallet, support by majority of E-commerce site etc. have very poor role to play in encouraging usage of E-wallet.

Table – 8 Brand Recall for various E-wallet brands

Brand

 Top 3  Brand Recall

Paytm

162

Mobiquick

114

Freecharge

105

(Source: Compiled from primary data collected through structured Questionnaire)

Paytm has become synonym with E-wallet. Mobiquick and Freecharge are on second and third position in terms of brand recall by respondents.

 

 

 

Table – 9 Problems faced with E-wallet

Problems

Most Frequently

Often

Rarely

Total Percentage

Transaction Failure

15

33

52

100

Duplicate Payment

6

11

83

100

Auto Debit

2

28

70

100

Security Breach

19

24

57

100

Delayed Payment

17

43

41

100

Long transaction time

22

41

37

100

(Source: Compiled from primary data collected through structured Questionnaire)

The major problems frequently encountered by the respondents while using E-wallet are long transaction time taken by E-wallet for processing the transaction, security breach and delayed payment. Problems like auto debit, duplicate payment are very rare for E-wallet users.
Table – 10 Impact of demonetization on usage behavior towards online payment

Statement 

Frequency

Percentage


I was not making online payment before demonetization; I started making it after demonetization

57

35

I was making online payment before demonetization also; but I increased its frequency after demonetization

66

41

I was not making online payment before demonetization;  I am also not making it after demonetization

9

6

I was making online payment before demonetization also;  I am making it after demonetization with same frequency as before

30

19

Total

162

100

(Source: Compiled from primary data collected through structured Questionnaire)

Significant percentage (35%) respondents have started making online payment after demonetization drive. Further 41% respondents have increased the frequency of making online payment particularly after demonetization. Thus demonetization has contributed immensely towards awareness, usage and acceptance of online payment. In case of 19% respondents there is no change in frequency of making online payment after demonetization.

 

 

 

Table – 11 One Way ANOVA – Mode of Payment and Gender

ONE WAY ANOVA –MODE OF PAYMENT AND GENDER

 

 

 

Sum of Squares

df

Mean Square

F

Sig.

Association

E-Wallet

Between Groups

.711

1

.711

.725

.396

Yes

Within Groups

156.900

160

.981

 

 

Total

157.611

161

 

 

 

Internet Banking

Between Groups

.100

1

.100

.082

.775

Yes

Within Groups

194.400

160

1.215

 

 

Total

194.500

161

 

 

 

Credit card

Between Groups

5.878

1

5.878

3.920

.049

No

Within Groups

239.900

160

1.499

 

 

Total

245.778

161

 

 

 

Debit card

Between Groups

.711

1

.711

.566

.453

Yes

Within Groups

200.900

160

1.256

 

 

Total

201.611

161

 

 

 

Cash

Between Groups

3.211

1

3.211

4.339

.039

No

Within Groups

118.400

160

.740

 

 

Total

121.611

161

 

 

 

(Source: Compiled from primary data collected through structured Questionnaire)

Table – 10 depicts results of ANOVA test conducted to examine association between mode of payment and gender. Result shows that at 5% significance level there is significant association of gender with E-wallet, internet banking and debit card.

 

 

Table – 11 One Way ANOVA – Mode of Payment and Education

ONE WAY ANOVA –MODE OF PAYMENT AND EDUCATION

 

 

 

Sum of Squares

df

Mean Square

F

Sig.

Association

E-Wallet

Between Groups

6.685

3

2.228

2.333

.076

Yes

Within Groups

150.926

158

.955

 

 

Total

157.611

161

 

 

 

Internet Banking

Between Groups

4.451

3

1.484

1.233

.299

Yes

Within Groups

190.049

158

1.203

 

 

Total

194.500

161

 

 

 

Credit card

Between Groups

3.167

3

1.056

.687

.561

Yes

Within Groups

242.611

158

1.536

 

 

Total

245.778

161

 

 

 

Debit card

Between Groups

8.232

3

2.744

2.242

.086

Yes

Within Groups

193.379

158

1.224

 

 

Total

201.611

161

 

 

 

Cash

Between Groups

5.552

3

1.851

2.519

.060

Yes

Within Groups

116.059

158

.735

 

 

Total

121.611

161

 

 

 

(Source: Compiled from primary data collected through structured Questionnaire)

Data in table -11 shows result of NAOVA test conducted to study association between mode of payment and education. At 5% significance level education is significantly associated with all the modes of payment.

 

 

Table – 12 One Way ANOVA – Mode of Payment and Occupation

ONE WAY ANOVA –MODE OF PAYMENT AND OCCUPATION 

 

Sum of Squares

df

Mean Square

F

Sig.

Association

E-Wallet

Between Groups

16.841

4

4.210

4.696

.001

No

Within Groups

140.770

157

.897

 

 

Total

157.611

161

 

 

 

Internet Banking

Between Groups

15.512

4

3.878

3.402

.011

No

Within Groups

178.988

157

1.140

 

 

Total

194.500

161

 

 

 

Credit card

Between Groups

21.196

4

5.299

3.704

.007

No

Within Groups

224.582

157

1.430

 

 

Total

245.778

161

 

 

 

Debit card

Between Groups

16.078

4

4.019

3.401

.011

No

Within Groups

185.534

157

1.182

 

 

Total

201.611

161

 

 

 

Cash

Between Groups

10.204

4

2.551

3.595

.008

No

Within Groups

111.407

157

.710

 

 

Total

121.611

161

 

 

 

(Source: Compiled from primary data collected through structured Questionnaire)

 

Data in table -12 shows result of NAOVA test conducted to study association between mode of payment and occupation of respondents. Result of ANOVA test proves that at 5% significance level occupation is not significantly associated with any mode of payment.

 

 

Table – 13 One Way ANOVA – Mode of Payment and Family Income

ONE WAY ANOVA –MODE OF PAYMENT AND FAMILY INCOME

 

 

Sum of Squares

df

Mean Square

F

Sig.

Association

E-Wallet

Between Groups

19.282

3

6.427

7.848

.000

No

Within Groups

124.488

152

.819

 

 

Total

143.769

155

 

 

 

Internet Banking

Between Groups

30.531

3

10.177

10.180

.000

No

Within Groups

151.950

152

1.000

 

 

Total

182.481

155

 

 

 

Credit card

Between Groups

18.468

3

6.156

4.177

.007

No

Within Groups

224.013

152

1.474

 

 

Total

242.481

155

 

 

 

Debit card

Between Groups

.168

3

.056

.043

.988

Yes

Within Groups

200.313

152

1.318

 

 

Total

200.481

155

 

 

 

Cash

Between Groups

5.758

3

1.919

2.519

.060

No

Within Groups

115.800

152

.762

 

 

Total

121.558

155

 

 

 

(Source: Compiled from primary data collected through structured Questionnaire)

Data in table -12 shows result of NAOVA test conducted to study association between mode of payment and family income. At 5% significance level family income is not significantly associated with any mode of payment except debit card.

 

 

 

Table – 14 One Way ANOVA Importance of Attributes and Occupation

ONE WAYANOVA – IMPORTANCE OF ATTRIBUTES AND OCCUPATION

 

Sum of Squares

Df

Mean Square

F

Sig.

Association

Pricing

Between Groups

4.332

4

1.083

2.680

.034

No

Within Groups

63.445

157

.404

 

 

Total

67.778

161

 

 

 

Ease of use

Between Groups

2.496

4

.624

2.593

.039

No

Within Groups

37.782

157

.241

 

 

Total

40.278

161

 

 

 

Security

Between Groups

2.311

4

.578

2.260

.065

Yes

Within Groups

40.134

157

.256

 

 

Total

42.444

161

 

 

 

Privacy

Between Groups

3.568

4

.892

2.799

.028

No

Within Groups

50.043

157

.319

 

 

Total

53.611

161

 

 

 

Discount offers

Between Groups

10.318

4

2.580

7.761

.000

No

Within Groups

52.182

157

.332

 

 

Total

62.500

161

 

 

 

Its trendy to use

Between Groups

2.866

4

.716

1.627

.170

Yes

Within Groups

69.134

157

.440

 

 

Total

72.000

161

 

 

 

 Usage by peers

Between Groups

5.706

4

1.427

.930

.448

Yes

Within Groups

240.738

157

1.533

 

 

Total

246.444

161

 

 

 

E-Commerce

Between Groups

5.451

4

1.363

2.522

.043

No

Within Groups

84.827

157

.540

 

 

Total

90.278

161

 

 

 

Record Keeping of transactions

Between Groups

218.579

4

54.645

6.505

.000

No

Within Groups

1293.761

154

8.401

 

 

Total

1512.340

158

 

 

 

Refund of failed transaction

Between Groups

20.230

4

5.057

.681

.606

Yes

Within Groups

1165.770

157

7.425

 

 

Total

1186.000

161

 

 

 

Ability to pay from Anywhere

Between Groups

3.509

4

.877

1.764

.139

Yes

Within Groups

78.102

157

.497

 

 

Total

81.611

161

 

 

 

Cashback benefits

Between Groups

6.076

4

1.519

3.523

.009

No

Within Groups

67.702

157

.431

 

 

(Source: Compiled from primary data collected through structured Questionnaire)

Data in table 14 depicts result of NAOVA test conducted to study the relationship between importance of Attributes inducing use of E-wallet and Occupation. Result indicates that at 5% significance level occupation is significantly associated with security, usage by peers, refund of failed transactions, ability to pay from anywhere and its trendy to use E-wallet.

  1. Major Findings
  2. There is decent adoption( 50.94%) of E-wallets among the respondents.
  3. Significant reasons for low preference of E-wallet as amode of payment includes tendency of people to do not move out of comfort of using traditional mode of payments, privacy concerns and  
  4. Still there is no broad based usage of E-wallets on routine bases as majority users are using E-wallets once in a month.
  5. E-wallet is preferred mode of payment for mobile recharge and payment of bills.
  6. The three important attributes that play major role in consumer’s adoption of E-wallet are security, privacy concerns and pricing (fees)
  7. Paytm is endorsed with highest brand recall among the respondents
  8. The major problems frequently encountered by the respondents while using E-wallet are long transaction time taken by E-wallet for processing the transaction, security breach and delayed payment.
  9. Demonetization drive has contributed immensely towards awareness, usage and acceptance of online payment.
  10. Conclusion

E-wallets are rapidly gainingacceptance as a mainstream mode of payment and in near future it will garner significant share as a mode of payment for sure going online as well as offline business. Days are not far where we will see most of the payment happening through f our mobile cameras scanning against the teller to pay the bills for purchases via virtual wallets.This Study indicated that main reasons for low preference of E-wallet as mode of payment are tendency of people to do not move out of comfort of using traditional mode of payments, privacy concerns and threat to security. E-wallet users give very high level of importance to attributes like security, privacy concerns and pricing (Fees). The major problems frequently encountered by the respondents while using E-wallet are long transaction time taken by E-wallet for processing the transaction, security breach and delayed payment. Demonetization drive of government of India has contributed immensely towards awareness, usage and acceptance of online payment. Future of E-wallets seems promising.

  1. References

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Kunal Taheam, R. S. (2016, January). Drivers of Digital Wallet Usage: Implications for Leveraging Digital Marketing. IJER Serial Publications, 13(1), 175-187.

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Sardar, R. (2016, December). Preferences Towards Mobile Wallets Among Urban Population of Jalgaon City. Journal of Management (JOM), III(2), 01-11.

Shin, D.-H. (2009, July). Towards an understanding of the consumer acceptance of mobile wallet. Elsevier, 1343-1354.

Shin, D.-H. (2016). Towards an understanding of the consumer acceptance of mobile wallet. Elsevier, 1343-1354.

Shukla, T. N. (2016, June). Mobile Wallets Present and Future. International Journal in Multidisciplinary and Academic Research (SSIJMAR), VI(3).

Sinha, I. (2016, April). Mobile Wallet service Utilisation in India : emperical analysis of user trust and acceptance factors. International Journal of Scientific & Engineering Research, VII(4), 1762-1772.

Thulsiram, R. V. (2016). Acceptance of E-Wallet Services: A Study of Consumer Behavior. International Journal of Innovative Research in Management Studies (IJIRMS), I(4), 133-141.

Upadhayaya, A. (2012). Electronic Commerce and E-wallet. International Journal of Recent Research and Review, I(I), 2277-8322.

Upadhyay, A. (2012, March). Electronic Commerce and E-wallet. International Journal of Recent Research and Review, I(1).

 
 

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