Digital Wallets User Survey

Akshansh Sharma
Jigneshkumar Agrawal Vikrant Sarnopant
Electronics Engineering
Electronics Engineering Electronics Engineering
Vishwakarma Institute of Technology
Vishwakarma Institute of Technology Vishwakarma Institute of Technology
Pune, India
Pune, India Pune, India
 Abstract— Government of India’s Initiative such as Digital I. CONCEPT OF DIGITAL WALLETS
India has increased use of mobile and internet users main
reasons for the exponential growth in use of digital payment.
Even though the thought of digitalization raised long years ago, A digital wallet is a software based system that allows an
it took growth pace recently. This is because of lack of awareness individual to make e-commerce transactions. By using a
and knowledge among people, fear to make online payment, digital wallet, e-transactions can be done easily through
security issues etc. The E-Payment system will be boosted only computers, tablets or smartphones. The bank accounts of
when the awareness is created in the minds of the people. But in individual users are linked with their digital wallet. Digital
the current scenario, India has seen a substantial increase in the wallets are not used only for online purchases but also for
number of digital wallets available and is slowly moving towards authentication of user. Digital wallet can store complete user
a cashless economy. Digital Wallets have eased our buying information including credentials, transaction history and
experience by providing another convenient money transfer personal details. They can be used in combination with other
platform. The consumer perception towards e-payment has a mobile payment systems.
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. The II. CLASSIFICATION OF DIGITAL WALLETS
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 analyzed to reach the
According to the Reserve Bank of India, there are three
research objectives. kinds of digital wallets currently used in India. These
are:
Keywords— Digital India, E- Payment System, Digital  Open wallet: Open digital wallet is used to
Wallets purchase goods and services, including financial
products like insurance and mutual funds. It can
Introduction
also be used to withdraw cash at ATMs or
India is fast becoming country of mobiles and internet transfer funds at merchant locations and point-
(with around 200 million internet users). With the trend of E- of-sale terminals where such cards are accepted.
payment shopping fast catching up in cities, Indian e-tailers  Semi-closed: Through semi-closed wallets, an
(popular e-commerce portals) have grown up to provide the individual can shop online, recharge phone and
option of ‘Cash on Delivery’ to lure more customers as till pay bills. However, through these wallets, one
date majority of Indians still don’t own a credit or debit card. cannot withdraw cash from an ATM. Through
However, with time, there has been an increase in people semi-closed wallets, one can purchase goods
taking up to different digital payment platforms or mobile and services with listed merchants partnered
wallets that have made it easy to carry out E-payment with the wallets’ company. Paytm, PayUMoney,
shopping payments, E-payment utility bill payments, mobile MobiKwik, Oxigen are few examples of semi-
recharge E-payment, DTH recharge E-payment, E-payment closed digital wallets.
bus / movie ticket booking, etc.
 Closed wallets: Wallets issued to consumers for
The government is working hard to make India a cashless exclusive use are known as closed wallets. These
economy. It has put limits on withdrawing cash from the can be used when transacting with these
bank or ATMs. And also, there are too many E-payment respective companies. A certain amount is
payment apps available in the play store. And they can easily locked with the company, in case you cancel or
replace the physical wallet and make cashless. One can use return the order. When a customer return or
these E-payment payment apps to send money or pay at cancel an order, the merchant company credits
shops.
your wallet account with the refund amount
The rate at which different mobile wallets (or m-wallets) directly. Examples of closed digital wallets
are being introduced and embraced in India is stunning. include BigBasket wallet, MakeMyTrip wallet,
Mobile payment is a great idea for start-ups and young etc
entrepreneurs, be it Indian mobile wallet companies or
mobile wallet apps. It has been realized that the payment
trend for E-payment services and products needs to shift III. PURPOSE OF USING DIGITAL WALLETS
slowly from COD (Cash on Delivery) to ‘Payment On
Delivery’ or ‘Payment On Order’; and this payment has to
occur using a mobile phone. Hence, the huge paradigms shift  Recharge and Broadband top-ups
towards mobile wallet space in recent times.  Instant money transfer to any bank
 Online shopping and merchant payments
With advancement in technology, things around us have
changed drastically. Technology caters to man’s comfort and  Payment for booking transport facilities
convenience. With the help of smartphone, one can do  Utility bill payments like electricity bill, water
everything, be it ordering food or groceries, booking a cab or bill, gas charges, telephone bill etc on a single
movie tickets, etc. With the introduction of Mobile Wallet, it
has become convenient for a person to make cashless
transactions any time anywhere. Although several companies IV. ADVANTAGES OG DIGITAL WALLETS
have cropped up in India, offering product called ‘mobile  One’s wallet can be snatched, misplaced or pick
wallet’, there is still a lack of awareness among people about pocketed, but mobile wallet cannot be, though
the concept and its utility.
 there is a chance of someone stealing one’s a VIII. LIMITATIONS OF THIS STUDY
mobile.  Sample size used for the study is small. Hence,
 If the bill is of Rs 199/- or Rs 235/-, one will not the results cannot be taken as universal
have to run around asking for change. It allows  The limitations of the non-random sampling
paying on a single tap. technique are applicable to this study.
 One need not fill in card numbers and
 Consumer’s perceptions changes from time to
passwords every time, they can link their credit
time with the advancement in the technology.
cards, debit cards and bank accounts and pay
 Most of the respondents will not answer for the
immediately without any hassle to enter the
open ended questions like suggestions and
details each time.
opinions about it.
 When one makes a payment through a debit
card or credit card, one is disclosing their
confidential bank data on the merchant’s site or
establishment, it can lead to unwanted security IX. TOP 5 DIGITAL WALLETS SERVICE PROVIDERS IN
issues but by using M-wallet, one can restrict INDIA
the exposure of confidential data.
1. Google Pay
 Massive rewards in the forms of discounts & 2.
cash backs.

V. DISADVANTAGES OF USING DIGITAL WALLETS

 Digital Wallets can be used only with a smart X. DATA INTERPRETATION AND ANALYSIS
phone & speedy internet connection.
 More than the internet connectivity, security is a
major issue. Table 1: Profile of respondents

 Dismal battery back-up of smart phones one

Gender No of Respondents Precentage
can never be sure whether the phone will be
alive even for that one tap payment. Male 84 70
 Digital Wallet users will not receive any interest Female 36 30
for amount available in digital wallets.
 There is always a risk if you lose your mobile
since many wallet don’t require an extra level of Interpretation: Out of 120 Respondents 70% are male and
authentication for making transaction. 30% are female

VI. OBJECTIVES OF THIS STUDY Table 2: Age of Respondents

 To identify the top 5 digital wallet service
providers in India.
 To find out the awareness and perception of the
users towards digital wallets.
 To evaluate the merits and demerits of E-
payment system.

VII. RESEARCH METHODOLOGY Interpretation- The people who have taken the survey range
from 20-52, maximum of them are of the age 21 followed by
In this study we created a Google form and circulated in 53. Some users have decided to keep their age secret
out network, Facebook groups and Reddit groups
 Sample Size: The sample size is 120. The
sample of the study consists of both users (90 Table 3: Awareness about mobile payment gateways:
respondents) and non-users(30 respondents) of
digital wallets. Particulars Responses Percentage
 Data Analysis and Interpretation: The data is Hearing about it 3 2.5
analyzed and interpreted using Google Drive for the first time
and Microsoft Excel. Heard about it 100 83.3
and used
Heard about it 17 14.16
 but never used friends, Family or
others using the
Interpretation-The above table reveals that from the sample payment apps?
collected, the respondents awareness about mobile wallet
Yes 98 81.6
payment service is high i.e.83.3% of respondents heard
about mobile wallet services and used it while 14.1% of the No 22 18.3
respondents have heard about and never used it and only Interpretation:81.6% of the people send money to their
2.5% of the respondents heard about mobile wallet service friends and family
for the 1st time. Total 20 resposes have never used the app Table 8: Why people send money to Friends and family

General intention Responses Percentage

Table 4: Preferred App For Bills and Utilities of money
transfer
Preferred app Responses Percentage
for Bills and Rent transfer 45 37.5
Utilities Expense sharing 66 55
Google pay 73 60.8 As formal Credit 23 19.16
Phone Pe 33 27.5 Sharing Home 29 24.16
BHIM 12 10 Money
Interpretation: 55% of people send money for sharing
Paytm 46 38.33 expenses and 37.5% for rent transfer
Amazon Pay 17 14.16
Table 9: Satisfaction of the Users
Interpretation- The above table reveals that from the sample
collected, Google pay is the most popular among the users Particulars Responses Percentage
with 73% users, followed by paytm 46%. Other responses
included iDeal(1%), Cred(1%), SamsungPay(1%), Apple Highly Satisfied 32 26.66
Pay(1%)
Satisfied 38 31.66
Table 5: Services that people use
Neutral 19 15.8
Services Responses Percentage
Mobile Recharge 79 65.8 Dissatisfied 11 9.16
Electricity Bill 78 65 Do no use the 20 16.66
Mutual Fund 18 15 apps
Insurance 23 19.16 Interpretation- The study shows that 58.3% of the people
Apartment 22 18.33 (26.6% highly satisfied and 31.6% satisfied) are satisfied
Maintenance with using Online payment apps while only 9.1% of the
Interpretation- The above table reveals that most people use people have faced the issues of online payments.
online payment for Mobile Recharge(79%) followed closely Table 10: Obstacle faced while using Online payments
by Electricity bill payments(78%), Other responses included
Food ordering (1%), OTT (1%), Grocery shopping (1%). Particulars Responses Percentage
Table 6: Why people use online payment Yes 18 15
Reason For using Responses Percentage No 82 68.33
Cashback and 51 42.5
offers Do no use the 20 16.66
Apps
Convenience 77 64.1
Multiple Payment 54 45 Interpretation- Online payment apps do come with obstacles,
15% of the users have faced problems with online payments
Method
while 68.3% have not faced a problem
Better user 51 42.5
experience
Interpretation: most of the people use online payment for Table 11: Preference to continue using Digital-Wallet:
convenience (77%) as it is available 24/7 and in our hands
followed by multiple payment methods option like credit Particulars Responses Percentage
card debit card options(54%), Cashback and offers(51%), Very Likely 53 44.16
Better user experience (51%)
Table 7: Do people send money to friends and family Likely 36 30

Do you Transfer Responses Percentage Neutral 5 4.16

money among Unlikely 2 1.16
 I Stopped using 4 3.33 XII. CONCLUSIONS
the apps
The study was accomplished to explore consumer
Never used the 20 16.66
awareness, perceptions and willingness to use digital
apps
wallets. Specifically, the study explored awareness,
Interpretation- 74.1% of the people will definitely continue usage, likelihood of using smart phones for completing
using the app while 5% people have stopped using the app the monetary transactions. With the increased
penetration of internet connectivity and smart phones
XI. FINDINGS OF THE STUDY has led to an increase in the number of digital wallet
users. Digital-wallet is getting more and more trendier
1. The respondent’s awareness about mobile wallet
among the consumers.
payment services is high.
As per the findings of the study, digital-wallet is getting
2. Majority of the respondents are aware and prefer
popularity among the young lots such as students and
using Google pay followed by Paytm.
employees. The study witnessed that GooglePay is
3. The respondents prefer using digital-wallets for leading among the other wallet providers. When a user is
Mobile recharge purpose followed by Electricity bill
making an online payment via digital-wallets, the
payments. respondents are affected by various assorted factors.
4. The Availability, Convenience, Service acceptance, One of the main obstacles is security issues, due to which
Security and Reward points are the major factors which the users get anxious about his or her confidential
influences most of the respondents to use digital information which may get disclosed. Therefore, the
-wallets. digital-wallet providers need to understand and meet
5. Majority of the respondents use digital -wallet the users trust and expectations.
frequently. Digital-wallets are growing in INDIA as the consumers
6. A large number of the respondents are satisfied with are relying upon the digital lifestyle to make things
the service provided by them whereas a few numbers of convenient and faster and the consumers are embracing
the respondents are highly satisfied with the service digital-wallet with open arms.
used.
7. Majority of the respondents have not come across any
obstacle while using digital -wallet and major problem REFERENCES
faced by some of the users is network server issue.
8. As most of the respondents are satisfied with the
1. Sanaz Zarrin Kafsh (2015), “Developing Consumer Adoption
service provided, majority of the respondents prefer to
Model on Mobile Wallet in Canada”, Ottawa, Canada.
continue using digital -wallet. 2. Neeharika P et al, (2014), “A Novel Interoperable Mobile
9. As security is a major issue, most of the respondents Wallet Model with Capability Based Access Control
fear of digital -wallet provider sharing the confidential Framework”, International Journal of Computer Science and
information with other companies, misuse of Mobile Computing, Vol.3 Issue 7, pg. 888.904
information if phone stolen, rise in the number of cyber 3. Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal
crimes and virus being installed on the phone. (2014), “A study on Paytm” Guru Gobind Singh Indraprastha
10. The willingness to use the services is very high if the University, Delhi.
4. Ngoc Doan (2014) “CONSUMER ADOPTION IN MOBILE
problems are addressed.
WALLET – A Study of Consumers in Finland”, TURKU
11. Most of the respondents prefer using Google Pay for UNIVERSITY OF APPLIED SCIENCES
other services followed by other wallets. 5. Nikita Rai, Anurag Ashok, Janhvi Chakraborty, Prajakta
12. Security, necessity, time and services used are the Arolker, Saumeel Gajera (2012), “M-wallet: An SMS based
factors which influence the preferences of the payment system”, International Journal of Engineering
respondents. Research and Applications, ISSN: 2248-9622