Perception of Consumers in Using Digital Wallets

Symbiosis Centre for Information Technology
“A constituent of Symbiosis International University”

Accredited by NAAC with ‘A’ Grade
Consumer Behavior Research Methods
A Consumer Behavior Research Report on
Perceptions of Consumers in Using

Digital Wallets.
By:
Div-D
Arsh Koul 14030241182( Team Leader)
Harshita Lal 14030241150
Manonkit Jal 14030241156
Ketan Koul 14030241154
Table of Contents
Table of Contents .......................................................................................................................................... 2
1 Introduction ........................................................................................................................................... 3
2 Abstract ................................................................................................................................................. 4
3 Objectives ............................................................................................................................................. 4
4 Scope ..................................................................................................................................................... 6
5 Methodology ......................................................................................................................................... 7
5.1 Questionnaire Survey .................................................................................................................... 7
6 Literature Review ................................................................................................................................ 12
7 Analysis of work done ........................................................................................................................ 16
8 Analysis of Problem under Research .................................................................................................. 28
8.1 Perception in ease of use of mobile wallet: ................................................................................ 28
8.2 Attitude towards using mobile wallet: ........................................................................................ 28
8.3 Facilitating conditions of mobile wallet : ................................................................................... 28
8.4 Value of mobile wallets: ............................................................................................................. 29
8.5 Perceived Security and Privacy of mobile wallet ....................................................................... 29
8.6 Perceived Social Influence in using digital wallets ..................................................................... 29
8.7 Perceived risk in use of digital wallets ........................................................................................ 29
8.8 Mobile payment Alternative: ...................................................................................................... 30
9 Proposed Solution ............................................................................................................................... 30
10 Findings of Survey ............................................................................................................................. 31
11 Recommendations ............................................................................................................................... 32
12 Conclusion .......................................................................................................................................... 33
13 References ........................................................................................................................................... 34
Table 1: Emerging Payment Systems and their Properties ......................................................................... 13
Figure 1 :An integrated model of Digital wallet adoption. ........................................................................... 5

Figure 2: The digital wallet presents diverse commerce related applications extending well beyond
payments ..................................................................................................................................................... 14
Figure 3 : Research Model for mobile payment acceptance ....................................................................... 15
1 Introduction
The way people transact online is changing. As more people are getting access to mobile and huge
online transaction that are done on daily basis for certain products like books , electronic products
and domestic products. Even a huge number of transactions for online recharges , buying products of
daily usage etc., makes these online transaction providers to face huge operating costs. A great
number of users are doing online transaction but for small amounts and that also a lot on frequently
basis which is greater than costs of providing online transaction with authentication mechanism.
There are very less margins available to online transaction providing companies and as we all see
even e-commerce industries are able to generate revenue which is minimal. Thus to reduce the cost
of using the whole infrastructure for online financial transactions which are done on frequently basis
and charging just 3-5 Rs. per transaction which hardly leaves any margins for online transaction and
authentication providing companies who handle data for all banks and all kinds of data for different
kinds of credit/debit cards and its users , increases the processing costs of providing online
transactions for payments to users.
For all the valid reason given above the concept of digital wallet occurred whose basic concern is to
simplify this infrastructure. And ease the use of online payments both for users and online payment
providing companies. The banks are also encouraging this to get to know their customers better and
a medium of mobile for promotion of their plans. More emphasis is also being given to not disclose
customers identity as their details will get encrypted and only what commodity they purchase and its
price could be seen by the companies. That is the privacy and security concerns of users are being
taken utmost care of.
So the whole concept made us curious to know the perception of consumers to usage of digital wallets.
In this document we will be able to observe various attributes and variables and the relationship
among them for a certain consumer behaviour towards digital wallet characteristics being positive
or negative on what aspects and its implications.
2 Abstract
The problem with digital wallet is not awareness but its value in terms of utility. Though there has
been many articles in news and magazines about a few people going for digital wallets still there is
news occurring for funds and investments being done to implement digital wallets. For the
execution of digital wallets partnership with banks on debit cards like Rupay etc .,has been done.
So for knowing exactly what factors are enforcing the investments in digital wallet we designed a
survey to understand the perception of consumers in using digital wallets. What are the utility factor
in terms of ease of use, perceived usefulness , attitudes towards usage, facilitating conditions,
perceived value, perceived security and privacy , social influence , trust, behavioural intention to
use , perceived risk and attractiveness of alternatives . In all do these factors change the consumers
shopping experience and help brands know their customer preferences more without compromising
the privacy of consumers.
3 Objectives
Perceived ease of use mobile wallet. Perceived ease of using mobile wallet comes from perceived
usefulness of mobile wallet , attitude towards using mobile wallet , behavioural intention of using
mobile wallet and social influence.
Construct Definition
Mobile Consumer Adoption The propensity of a user accepting the digital wallet for their use.
Perceived ease of use The degree to which a user believes engaging in digital wallet
without much effort.
Perceived Usefulness The degree to which an individual believes that using digital
would enable him to increase his performance
Attitude toward using The user's feeling either positive or negative towards using a
digital wallet
Facilitating conditions The belief about accessibility of resources necessary to avail the
service of digital wallet
Perceived value Trade off between what consumers receive in terms of value
,benefits and utility after spending their effort, time and money.
Perceived security and The degree to which a user believes using digital wallet would be
privacy secure
Social Influence The degree to which a user gets influence from others to use digital
wallet
Trust The degree to which a user believes the value given to him will be
complete without any discrepancies.
Behavioral intention to use The measure of strength of one's intention in performing a

particular behavior towards a service
Perceived Risk The subjective belief of getting a loss from the outcome of a service
Attractiveness of The extent to which user perceives other viable options to digital
Alternatives wallet
Figure 1 :An integrated model of Digital wallet adoption.
4 Scope
The scope of the work is limited to the user experience and what they think is terms of real utility
of digital wallets. We are also trying to observe the relationship between the individual consumers
using the digital wallet and intensity of their brand relationship with the things they buy online.
We also tried to cover what type of transactions in terms of size consumers want to do . Are
consumers really ready for everything to go cash less and for what all facilities they want to go for
digital wallet. We are trying to infer the relationship between the positive and negative responses
of the users to the questions asked to draw a certain consumer behaviour pattern observation. To
the platform used by users to shop online or do recharge to the characteristics of the digital wallet
they like ,to the acceptance and security related issues and their perceptions in the mind of
consumers has been tried to be infered. What factors are making or will change most of the
consumers to shift digital wallet after realizing that mobile is now within reach of many individuals
in the country. With many big initiatives taken by digital wallet companies to be partners with
banks will surely try to change the way the people transact for varies commodities these days.
The initiative of Internet of things being used in different stores these days is helping people to
shop and even track what they want to buy what kind offers are available in the shops best prices
and best locations for the stuff they want to buy through the application in their handset and using
digital wallets to pay for it provided by certain companies on their own or the stores having their
digital wallet provided to its customers.
The security concerns related to digital wallet are also being taken care of by the company
providing digital wallets. Mindset of people is changing in terms of security related perceived risks
of usage of digital wallet. The main concern is also to see the awareness and willingness to use
digital wallet in present and future. How strong is the utility measure of digital wallet in consumers
who are using it and will want to use it in future.
5 Methodology
5.1 Questionnaire Survey
The methodology being used is Questionnaire approach of about 25 questions. With 28 responses.
The following questions were being asked.
1. How much time do you spend over the internet o 1-3
hrs/day o 3-6 hrs/day o 6-9 hrs/day o More than 9 hrs
2. Do you purchase any products or services over the

internet? o Yes
o No o Some times
3. How frequently do you shop over the internet o Always
o Never o Sometimes
4. How familiar are you with Digital wallet concept?
o Know extremely well
o Know Fairly well o
Know a little o Know
just name o Never
heard it
5. Which Digital Wallet do you use the Most o Paytm o
Mobikwk o MoboMoney
o Others
6. What type of transaction do you shop over the internet
o Recharge Mobile o Buy Books o Buy Home products
o Buy Entertainment products o Other
………………………………………………..
7. From which location(s) do you access the internet?

Select all that apply. o Home
o Work
o other location
8. Your yearly income lies in which range?
o Rs 1 lakhs – Rs 3 lakhs o Rs 3 lakhs – Rs 6 lakhs o
Rs 6 lakhs – Rs 9 lakhs
o More Than Rs 9 lakhs
9. From which device(s) you access internet mostly?

o Smart phones
o Laptop o
Desktop o
Tablet
10. Would you like most of the transactions to be digitized and cash-less. o Yes o No
11. For which purposes would you like to have digitized transactions? Select all that apply.
o access to a basic store-of-value account; o payment connections to peers;
o payment connections to institutions, like utility companies, enterprises, and
governments;
o access to enhanced financial services
12. Do you feel rural people are being left over from digital transactions advantages?
o Strongly agree o Somewhat agree o Agree o
Somewhat disagree o Disagree
o Strongly Disagree
13. What can be the causes for above question? Select all that apply.(urban ppl cannot
answer this question..we need to think on this..)
o No internet access in rural areas o Language problem
o ILITERACY
o No bank accounts with rural people
o Others……………………………………………
14. Do you agree with a concept of branchless banking in rural areas that is though mobile
banking?
o Strongly agree o
Somewhat agree o
Agree o Somewhat
disagree o Disagree o
Strongly Disagree
15. Are you satisfied with privacy provided by online digital wallet?
o Completely satisfied o
Very satisfied o Fairly
well satisfied o
Somewhat dissatisfied o
Very Dissatisfied
15. How do you go about buying products online?
o Research online and buy products online o
Visit a store first and then purchase online
o Research online and visit store to
purchase
o research online visit store to view the

product , then return online to purchase
16. which characteristic do you like the most about online delivery?
o On-time o complete o damage free
o Complete and accurate documentation o
Product Information o Social validation o
Inventory information o Competitive
pricing o Convenient pricing o convenient
fulfillment o Convenient returns
17. Which channel of shopping do you like the most o mobile devices
o computers o brick and mortar o television
o catalog
18. Does the online shopping experience help you understand your brand better?
o Yes
o No
19. While selecting the brand while you shop online which feeling you experience for
yourself the most?
o Your brand of choice makes you look and feel good. o
Let the brand you love tell the world who you are o Be
empowered by the brands that lead the way.
o Let a brand with a difference make a difference to you
o Fun brands that are just to enjoy
20. Do you agree with the statement that Internet of things applied in stores can enhance
your buying experience? o Strongly agree o Somewhat agree o Agree o Somewhat
disagree o Disagree
o Strongly Disagree
21. which mobile feature will benefit you the most?

o Digitizing paper items o organizing on your smart
phone o managing point balances o time sensitive
offers o automatically updated items o Location
aware results
o No benefit
22. Have you used mobile wallets for small transactions? o yes o no
If yes than for which of the below items
o books o games o songs o tickets
o mobile recharge o domestic
based products
23. The priority reason of using the mobile wallet for you is.?
o The utility it provides o The value it
provides you o the tech savvy status it adds
to you o The knowledge it provide you
about information you require location,
prices etc.
24. Would you like to use digital wallets in future for large transaction as big banks are
tying up with e-wallet technology providing companies?
o Strongly agree o Somewhat agree o Agree
o Somewhat disagree o Disagree o
Strongly Disagree
25. The priority risk factor related to digital wallet usage according to you is?
o The security and privacy concerns o The
trust factor o The less usefulness
o ease of use with other useful credit-debit
payment alternatives
6
Literature Review
"A digital service — accessed via the web or a mobile application — that authorizes payment
transactions from one or more payment sources and facilitates other commerce-related features,
such as offers, coupons, loyalty rewards, electronic receipts, and product information."
Connectivity is most important to make payments but today we are charged for making
transactions. If we need a platform to access a large number of people we have to use mobile as
that medium. A person with digital account having a mobile interface can make payments with
cash in and cash out network . This cash-in and cash out network consists of Digital financial
platform comprised of connected payment platforms common business rules with data sharing
and mining concepts to be connected to their friends, family and community savings groups
,providers of credit savings and insurance, Government and social services , Utility companies ,
enterprises, retail merchants.
Customers and merchants come close through digital wallet. The most difficult task is to have the
electronic sources to make electronic payments feasible. Though transactions through mobile
payments provide trust, it can only be used for small cash payments transfer in which still people
have to write cheques and can hence save a significant costs of transactions by reducing online
transactions by using digital wallets.
There are security concerns also related to it , that is, security breaches if the transaction details of
data of customers is misused. M -payments through digital wallet gives merchants more ability to
interact with customers. Existing credit card rules disinter mediate the consumer and merchant,
causing merchants to have to engage in awkward contrivances in order to identify their own
consumers. In developing countries, the explosive growth of mobile payment systems
demonstrates the potential for such systems to transition unbanked and poor communities into
mainstream financial services.
Sms are used to show description about transaction or mobile broadband capability to pay for
good/services they have purchased and reduce amount from their accounts. Other mediums being
innovative for doing payments are searched one is "contactless technology" that enable proximity
payments without contact between payment device and interfacing reader allowing customers to
swipe and pay ,an extension of radio-frequency identification (RFID) that uses short-range, high
frequency communication between a chip embedded in a mobile phone and terminals at the point
of sale, is the leading technology in this area.
Second being , mobile payment systems that could integrate existing payment models with other
incentive systems such as merchant advertising or rewards programs. Finally, mobile payment
systems could function as completely independent payment platforms. This third possibility is the
‘‘game-changer,’’ in which transactions are processed through a channel separate from existing
payment systems.
Digital wallet when used with NFC technology can act as pint of sale payments through contact
less devices included in handsets and mobile operating systems, and rolled out in merchant
terminals. Through digital wallet many transactions can turn cashless. Mobile phones are
nowadays being developed to become an all-in-one device that has all features and can be used by
consumers to pay merchants, receive discounts, and track expenditures. M-payments promise a
more affordable means of completing sales.
In developed countries digital wallets have been accepted but in rural areas there is still not much
infrastructure for internet , most of rural people have started using mobile phones with internet
access there the digital wallet can be a critical financial tool . Digital wallet can act as branchless
financial service tool at a large scale where people do not even have bank accounts in their banks.
The rural people get advantage in digital wallet such as less transportation cost of money transfer,
storage, cannot be stolen, they can get rewards and coupons, discounts also for availing digital
wallet and mobile payment platforms also. But they need to be trained how to use it according to
interface of the web-application or website to be used.
Table 1: Emerging Payment Systems and their Properties

Figure 2: The digital wallet presents diverse commerce related applications extending well beyond payments
How to design a compelling value proposition:

Deliver significantly more customer value than rivals . Create broader merchant value
propositions. Penetrate niche markets first. Leveraging existing ecosystem and infrastructure.
Adapt offerings to other markets. Tap adjacent profit pools to differentiate offerings and add value.
There were various models discussed previously for examining the users behavior towards digital
wallet unified theory of acceptance and use of technology (UTAUT) to examine mobile payment
user behavior. Their results show that trust has effects on perceived risk and performance
expectancy, further determining behavioral intention reported that structural assurance, relative
benefits and personal propensity to trust affect initial trust in mobile payment. The integrated
innovation diffusion theory (IDT) and trust theory to examine mobile payment adoption. In
addition, mobile payment needs strong structural assurance as it involves great uncertainty and
risk due to possible information interception and hacker attack associated with mobile networks.
Thus it is necessary to take these unique characteristics such as ubiquity and structural assurance
into consideration when examining mobile payment user adoption.
These phases includes (1) need identification, (2) information search, (3) alternatives evaluation,
(4) purchase, (5) after purchase evaluation. The first approach mainly focuses on identifying the
determinants that predicts the behavioral intention of adopting new products or services.
The second approach focuses on identifying the causality between the constructs such as service
quality, switching barrier, satisfaction, loyalty, and repurchase in retention. The general agreement
of the studies has been “service quality lead to satisfaction” and “satisfaction lead to loyal behavior
such as word-of-mouth, repurchase, and retention”. The switching barrier has been often used as
control variable in order to investigate the inter-relationship between satisfaction and retention .
That is, the level of customer retention can vary depending on the magnitude of switching barrier
when the level of customer satisfaction is identical.
TAM (technology acceptance model) . This model adopts well established causal chain of
“beliefs ,attitude ,intention actual behavior”. TAM introduces two important constructs, perceived
usefulness
and perceived ease of use. The perceived usefulness (PU) is defined as “the degree to which an
individual believes that using a particular system would enhance his/her job performance”. The
perceived ease of use (PEU) is defined as “the degree to which an individual believes that using a
particular system would be free of physical and mental efforts”.
These perceptions predict attitudes toward the system. In M-payment context, several standards
have been competing to be a market de-facto and no interoperability has been achieved between
the different standards. This caused an extra burden to retail stores because they are to prepare
several devices for the different standards. This extra burden also made the retail stores reluctant
to join the service network and, in turn, caused the lack of retail stores where M-payment service
is available. Obviously, the lack of service network is likely to develop negative perception on
usefulness, attitude toward the system and even intention to use.
We can expect that the attractiveness of alternative to M-payment, the credit card in this study,
may have negative impact on the attitude toward M-payment as well as the intention to accept M-
payment service because individuals who are attracted to the credit card may have negative attitude
toward M-payment, and thus, result in negative willingness to adopt M-payment.
Figure 3 : Research Model for mobile payment acceptance

7 Analysis of work done
The responses to questionnaire were as follows:
Q2 How much time do you spend over the internet?
13.64%
22.73%
1-3 hrs/day
3-6 hrs/day
22.73% 6-9 hrs/day
More than 9 hrs
40.91%
3.70% Q4 Which Digital Wallet do you

3.70% use the Most
7.41%
7.41% paypal
paytm
Mobikwk
icici pocket
None
77.78%
3.70% 3.70% Q5 What type of transaction do you shop over the internet
3.70%
3.70%
Recharge Mobile
3.70%
Bills
3.70% Order food
Pay Bills
DTH Payment
77.78% Buy Home products

international trasactions
Q6 From which location(s) do you access the internet? Select all that apply
25.93%
Home
Home, College
Home, College, Mobile
7.41% 55.56%
Home, Ofiice
11.11%
Q7 Your yearly income lies in which range?
3.70% 11.11%
Below 1 Lakh
11.11% Rs 1 lakhs – Rs 3 lakhs

Rs 3 lakhs – Rs 6 lakhs
59.26% Rs 6 lakhs – Rs 9 lakhs

14.81%
More Than Rs 9 lakhs
Q8 From which device(s) you access internet mostly?
7.41%
22.22% Smart phones

Laptop
Desktop
70.37%
Q9 Would you like most of the transactions to be digitized and cash-less?
18.52%
yes
no
81.48%
Why do you think digital transactions and

wallets are not so used ?
4% 4% 4%
4% Lack of knowledge about digital
8% wallets
Language problem
20%
Security issues
56% No internet access in rural areas
Does the online shopping experience

help you understand your brand
better?
35%
Yes
No
65%
Are you satisfied with privacy

provided by online digital wallet?
4% 4%
Very satisfied
36%
Fairly well satisfied
Very Dissatisfied
56% Completely satisfied
How do you go about buying

products online?
23%
1
42% 2
3
19%
4
16%
Which channel of shopping do you

like the most
35% Mobile devices

Physical Stores
52%
Computers
13%
While selecting the brand while you shop online which feeling you experience for yourself the most?
9%
22% Be empowered by the brands that
lead the way
17% Let a brand with a difference make
a difference to you
Your brand of choice makes you
look and feel good
Let the brand you love tell the
22% world who you are
Fun brands that are just to enjoy
30%
Which mobile feature will benefit you the most?
5%
Organizing on your smart phone
21% 32% Time sensitive offers
Location aware results
Automatically updated items
11%
Managing point balances
No Benefit
10% 21%
Have you used mobile wallets for small

transactions?
13%
Yes
No
87%
If yes than for which of the below items
5%
5%
5% Mobile recharge
9% Tickets
Domestic based products
Books
76% Songs
The priority reason of using the mobile wallet for you is.?
The utility it provides
4%
18%
The value it provides you
The knowledge it provide you

55%
about information you require
23% location, prices etc.
The tech savvy status it adds to
you
The priority risk factor related to digital wallet usage according to you is?
4%
13% The security and privacy concerns
The less usefulness

8%
The trust factor
Ease of use with other useful

75%
credit-debit payment alternatives
8 Analysis of Problem under Research

An integrated framework for mobile payment adoption 11 variables have been observed as given
in Table 1.The relationships between these variables are then summarized as the form of
hypothesis and after considering lot of research papers in literature review.
8.1 Perception in ease of use of mobile wallet:

It depends on the attitude towards usage of internet and significant determination of many
people in using smartphones and computers. The questionnaire showed 80% among aware
people are using paytm shows the propensity of people intending to use digital wallets.
Perception of ease of use depends on usefulness, attitude, Behavioral intention, social influence
and actual usage. Perceived usefulness and actual usage are important factors for ease of use of
mobile wallets. Perceived usefulness also depends on desirability to be useful and choice of
behavior that is behavioral intention to use in using digital wallets.
There is a direct relationship between perceived ease of use and behavioral intention to use
towards overall satisfaction in using digital wallets. A less people are aware of how to use digital
wallets the uncertainty factor experienced by people make them less comfortable in using digital
wallets.
8.2 Attitude towards using mobile wallet:

It refers to positive or negatively feeling toward target behavior by consumers. The usefulness,
ease of use , attitude towards technologies makes positive attitudes towards using digital wallets.
The attitude is built from usefulness, ease of use and trust. The perceived risks brings the negative
attitude towards using digital wallets. The privacy and security concerns of users and also cultural
factors like most elder population of country is not pushing towards technology are the restrictions
intending users to use digital wallet.
8.3 Facilitating conditions of mobile wallet :

Belief about accessibility to resources and behavioral intention to use digital wallets are important
factors for facilitating conditions of mobile wallets. Behavioral intention to use depends on external
and internal resources. The external is embedded in service Network provided by service operator.
The internal factors include mobile device connected to service accessed by individuals.
The facilitating conditions of mobile wallet impact usefulness and attitude towards using digital
wallets. Most of the people are not aware how to use digital wallets even after being aware of
digital wallets presence. There consumers need to be approached on how about of using digital
wallets.
8.4 Value of mobile wallets:

The value of mobile wallets depends on attitude towards using digital wallets and behavioral
intention towards them. There has to be tradeoff between what consumers received in terms of
quality, benefits, utilities and what they sacrificed in terms of cost, time and effort etc.
As people tend to have most transactions cash less but less are moving towards digital wallets. The
behavior intention of people towards using digital wallet has to be motivated making them realize
of its real value though value based promotions. Consumer surplus in economies of scale needs to
be handled adequately to not lose customers. Value addition like anytime and anywhere
transactions, timely delivery more for product information search and comparing price purpose is
liked by consumers.The utility factor has been given more weight-age than value factor.
8.5 Perceived Security and Privacy of mobile wallet

The security of mobile payments is important factor having trust in using digital wallets which in
turn creates behaviour and perceived attitude towards using the digital wallets. Authentication(data
exchange during transactions should be restricted to legitimate users only. Confidentiality , Non-
repudiation (unable to deny participation of users in transactions), dataintegrity, unauthorized
access
errors and security use and information privacy.
Positive attitude intends individuals to have a positive behavioral intention in using digital wallets.
Risk entails a negative intention of trust in individuals towards usage of digital wallets.
8.6 Perceived Social Influence in using digital wallets

Behavioral intentions and attractiveness to alternatives are the critical factors for perceived social
influence. But social influence is not just a limitation .Again the uncertainty factor in using digital
wallets makes consumers uncomfortable..Behavioral intention and actual usage of mobile wallets
are critical factors for social influence on digital wallets. Lack of unambiguous evidence, relationship
between facilitating conditions and behavioral intentions to use digital wallet put to test the social
influence in using digital wallets.
8.7 Perceived risk in use of digital wallets

Trust helps in dealing with perceived risk .Perceived Security and privacy risks create a negative
feeling of trust. Trust again is required for attitude and behavior towards use of digital wallet. Most
people are not using digital wallets for security reasons.
8.8 Mobile payment Alternative:

The perceptions and regulatory reputation, image, service quality determine the attractiveness of
alternatives . Mobile wallets should be used for access key purposes.
A high mobile penetration rate and association of electronic payment with mobile do not equal a
positive attitude toward using mobile services.
9 Proposed Solution
The value factor for customers should be increased. The myths about security concerns should be
reduced and mitigated. More efforts should be put to gain trust of customers. More motivation should
be done for people to use digital wallets for other purchases also apart from only for recharges. A
limitation on amount that can be kept in digital wallet should be be set for new users to gain their trust
. A Standardized way of using digital wallet at global level should be defined and the needed
infrastructure to reach whole nation is also required if internet access is required by everyone. As we
know most of people in rural India do not have access to internet. To gain more market share and more
indulgence of customers digital wallet companies should:
• Qualitative research on e-commerce groups
• Understanding the positioning of different e-commerce players in India
• Understanding the e-shopping industry trends and potential
• Qualitative research on different verticals (categories), their market sizing , comparison, and
expected growth extrapolated in future.
• Study leading m-commerce companies , customer acquisition and retention strategies
• Study different international e-commerce and m-commerce players in markets similar to India
and analyze product, marketing, diversification and customers service strategies, drive
consumer acquisition and retention.
• Trying to get a standardization for digital wallets across all platforms.
The companies who are deep rooted and established e-commerce players in the market. They have
existing transaction , branding as well as funding . Digital wallet providers has to establish itself in
this space -with a highly efficient and cost effective manner. They have to leverage the partnerships
they have not just from business perspective but also being visible to customers in terms of its
awareness and usage.
They can use secure socket layer (SSL) encryption and digital certificates to ensure payment
security. They can also display trust -seals such as VeriSign to demonstrate that they have been
verified by the authoritative organizations. Besides structural assurance, ubiquity , perceived ease
of use and perceived usefulness have significant effects on trust. Thus whether mobile service
providers can provide ubiquitous and usefulness services will affect users’ evaluations on their
ability and benevolence.
10 Findings of Survey
Majority of respondents were male. Most of the time span on the internet found was 40.99%. About
41% people said they were familiar with digital wallet Fairly well. Mostly used digital wallet is
Paytm with the largest share of 77.78%.Most of the transactions used in digital wallet is 77.78% for
mobile recharge for other commodities it was very low 3.3% approx. Below 1 lakh users are
59.26%.Device used mostly were Smartphone about 70.32%, second being laptop at about 22.22%
and desktop to about 7.41%. Most people about 81% want many transactions to be digitized. Most
of the people said they "Somewhat agree " for Internet of things(Iot) applied in stores for enhancing
consumers buying experience and second largest said they strongly agreed to this point. While 56.55
% people say that they lack the knowledge of using digital wallet shows people are being made
educated about how and why to use digital wallets. Also 65% say people say that online shopping
helps them to know their brand better. About 56% people are fairly well satisfied and about 36%
people say that they are very satisfied with the digital wallet services. About 42% people say they
research also online and buy products also online. Around 23% say they research online and then
would view store to purchase the products. The mostly used medium for buying online products is
through Mobile devices 52% and then followed by computers to about 35% and only 13% through
physical stores. About 30% say that doing online shopping for their brand makes them feel and look
good. Around 22% people say that leading brands empower them and helps make them different
amongst others. Around 17 % people said the brand helped them tell who they are. Only 9% said
they do shopping for brands just for fun. Most of the people said that they would like to use digital
wallet because it helps them organizing their wish lists on smartphones. And the second most craze
was shown for timely offers and managing point balances which were about 21% both. Only 87 %
people said that they have used mobile wallets for small transactions.
About 55% people agree to the utility provided by digital wallet. About 22% say they got value from
digital wallets and 18% people use it for the knowledge it provides while only 4% say that it adds a
tech savvy status to them. The security and privacy concerns in using digital wallet is still the highest
to about 75
% which is restricting people to use digital wallets despite its utility. About 13% people say they do
not trust digital wallet . About 8% people find it less useful while 4% people find other payment
alternatives as a good option rather than using digital wallet. Most of the people want to use digital
wallets for every kind of payment activities performed by them be it access to a basic store-ofvalue
account, payment connections to peers, payment connections to institutions like utility companies,
enterprises, and governments, and access to enhanced financial services.
Ease of use, value are pushing customers to use digital wallets. Whereas lack of knowledge and
perceived risks are rebelling them backwards. Cultural factors and social influence of alternative is
making people of middle age group to look for alternatives . Today more of youth is intending to
use digital wallet or will get intended to use them For them the value perceived is high for digital
wallets .Standardization of digital wallets is another issue.
Penetration of mobile usage and internet usage in country does not motivates users enough to
use digital wallets even if its there.
11 Recommendations
The recommendations include first to increase the customer base to increase use of digital wallets
which can only be increased by making customers aware of the advantages and value they would
get from using digital wallets. Also people should be made awared of what actually is digital wallet
and how could it be used. Consumers should also be made awared of what are the other requirements
of using the digital wallets and whether if any other resources they would require or not.
People who are using digital wallets for transactions feel it enhances their shopping experience and
helps to know about the updates about their brands online so it is the best platform for retailers also
to encourage users to use digital wallets and give them extra benefits in terms of reward points or
discounts. People who use digital wallets find its utility and value more while others feel it helps
them increase their knowledge on products they want to search. Thus digital wallets should not only
keep partnering with companies from various domains not just retail like medical, airline, public
transport systems, entertainment (cinemas) etc but also them to promote and creates its awareness
among their consumers data like email, etc., to people of all age-group but mostly people in the age-
group of 21-30 who want their payments to be digitized.
About 50% of audience feels it's fairly well satisfied with security of digital wallets thus more efforts
would be needed by digital wallets to ensure about the authenticity and security level provided in its
transactions through promotions or ad-campaigns.
As most of the people have smartphones who are rich but rural people have mobile phones which
are not smart mobile phones ,digital wallet companies should try to come with an offline process
for them to use digital wallet. If not at-least some centers in rural areas with digital wallet facilities
can be opened for rural people to avail the usage and advantages of digital wallets so that reach of
digital wallet also gets maximum share.
And as most of the people in country do not have access to smart phones and internet digital wallets
have a lot of market to tap in future hence it has a lot of potential to grow. But for making millions
of people use internet requires a lot of good IT and telecommunications infrastructure which is yet
to come in country. Hence it is recommended to search even for some offline solutions for making
transactions through digital wallets.
Using the upcoming technology Internet of Things can even open new avenues for digital wallets as
retailers would use different app's and even in restaurant and beverage industry to make the users
aware of products and schemes in their stores and use them as kiosks.
Digital wallet companies should join hands with kiranas also to increase their revenue. As kirana
shops are the mini marts of shopping of consumers it will increase it reach to customers. Digital
wallets should also combine the payments of products which have barcodes or are nfc based when
a user goes to a store and bill is made for that store he can use his digital wallet to make the payments.
Cultural factors are also there restricting the use of digital wallets. People mindsets should be
changed by having ad campaigns and promotions showing the value given by digital wallets.
Also Digital wallets companies have two options either use company based digital wallets or go by
store based digital wallets. Both these schemes can be given a separate centralized based access.
One application for all the stores for which they can have digital wallets. Other could be company
based for companies who sell their products differently eg., Apple.
12 Conclusion
The transition from electronic wallet to mobile wallet on a larger scales requires the cooperation
of all stakeholders involved in the mobile service and if digital wallets are to be made avail in
kirana shops the shopkeepers opinion , suggestions should be taken seriously considering him to
be an important stakeholder. The extension and expansion of mobile payments and mobile
wallets largely depends on viewing the mobile industry from ecosystem perspective where in
apart from customers mobile payment providers , technology providers, financial institutions and
the role of government must be taken into account.
The adoption of mobile wallets will only spread when one or several stakeholders create
favourable conditions, often in congruence with one other. The mobile payment system can only
become standardized consumers needs either perceived or real are addressed. It is vital to
understand the relationship between variables which impact a consumers propensity of using
mobile wallet. Studying variable will help us understand the variance in them.
To understand the adoption of digital wallet we also need to understand the key players of it, the
business model and the interactions in it ,also the infrastructure . Key players include handset
manufacturers, e-wallet payment systems, carriers, infrastructure providers, application
developers and content developers. Industry ecosystems are differ by country and by technology.
In India the technology push culture is seen more in the youth than in older people but it is slowly
changing at a decent rate.
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Perception of Consumers in Using Digital Wallets

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Consumer Behavior Research Methods

A Consumer Behavior Research Report on

Perceptions of Consumers in Using

Table 1: Emerging Payment Systems and their Properties ......................................................................... 13

Figure 1 :An integrated model of Digital wallet adoption. ........................................................................... 5

Behavioral intention to use The measure of strength of one's intention in performing a

Figure 1 :An integrated model of Digital wallet adoption.

2. Do you purchase any products or services over the

7. From which location(s) do you access the internet?

9. From which device(s) you access internet mostly?

o research online visit store to view the

21. which mobile feature will benefit you the most?

Table 1: Emerging Payment Systems and their Properties

How to design a compelling value proposition:

Figure 3 : Research Model for mobile payment acceptance

The responses to questionnaire were as follows:

Q2 How much time do you spend over the internet?

3.70% Q4 Which Digital Wallet do you

77.78% Buy Home products

Q7 Your yearly income lies in which range?

11.11% Rs 1 lakhs – Rs 3 lakhs

59.26% Rs 6 lakhs – Rs 9 lakhs

Q8 From which device(s) you access internet mostly?

22.22% Smart phones

Q9 Would you like most of the transactions to be digitized and cash-less?

Why do you think digital transactions and

56% No internet access in rural areas

Does the online shopping experience

Are you satisfied with privacy

56% Completely satisfied

How do you go about buying

Which channel of shopping do you

35% Mobile devices

Which mobile feature will benefit you the most?

Have you used mobile wallets for small

If yes than for which of the below items

The knowledge it provide you

The less usefulness

The trust factor

Ease of use with other useful

8 Analysis of Problem under Research

8.1 Perception in ease of use of mobile wallet:

8.2 Attitude towards using mobile wallet:

8.3 Facilitating conditions of mobile wallet :

8.4 Value of mobile wallets:

8.5 Perceived Security and Privacy of mobile wallet

8.6 Perceived Social Influence in using digital wallets

8.7 Perceived risk in use of digital wallets

8.8 Mobile payment Alternative:

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