A STUDY ON CONSUMER PERCEPTION TOWARDS M-WALLET

IN CHENNAI CITY
By

RAGHAVAN S
REGISTER NO. 412520631072
Of

SRI SAI RAM ENGINEERING COLLEGE

AN AUTONOMOUS INSTITUTION
IMMERSION PROJECT REPORT
Submitted to the

FACULTY OF MANAGEMENT STUDIES

In Partial fulfillment of the

requirementsFor the award of the
Degree
Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI-600 025

SEPTEMBER 2021
 BONAFIDE
CERTIFICATE

This is to certify that this project report titled “A STUDY ON CONSUMERS PERCEPTION
TOWARDS M-WALLET IN CHENNAI CITY” is the bonafide work of
RAGHAVAN S (REGISTERNO.412520631072), who carried out the work under my supervision.
Certified further, that to the best of my knowledge the work reported herein does not form part of
any other project report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate.

DR.K. SOUNDARAPANDIAN Dr. K. MARAN

Signature of the guide Signature of the Director

 DECLARATION

I, RAGHAVAN S hereby declare that the project report, entitled " A STUDY ON
CONSUMERS PERCEPTION TOWARDS M-WALLET IN CHENNAI CITY"
submitted to the Anna University Chennai in partial fulfillment of the requirement for the award
of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and
independent research work done by me during SEPTEMBER 2021 under the supervision of
DR.K.SOUNDARAPANDIAN, Department of Management studies, and it has not formed
the basis or other similar title to any candidate of any university.

Place: Chennai

Date: RAGHAVAN S
 ACKNOWLEDGEMENT

I am thankful to the management of Sri Sairam Institute of Management studies

which has imparted me sufficient knowledge and confidence to complete this project in
the field training.

I wish to express my deep sense of gratitude and indebtedness to our founder Chairman
MJF.Ln. Leo Muthu and CEO - Mr. Sai Prakash Leo Muthu, Sri Sairam Groups of
Institutions, Chennai

I would like to thanks the Principal, Dr A Rajendra Prasad, Sri Sai Ram Engineering
College for providing me an opportunity to enroll in this esteemed institution.

I’m highly obliged to the Director of Sri Sairam Institute of Management Studies
Dr.K.MARAN for providing me the opportunity to embark on this project report

I wish to express my sincere gratitude to my Guide

DR.K.SOUNDARAPANDIAN for his commendable inspiring guidance, valuable
advice, encouragement, and motivation given to succeed.

I’m very grateful to all the faculty members of the department of management studies
for their encouragement and kind-hearted advice.

Finally, I thank my family members and friends who helped me in all possible ways to
make this project a success.
 ABSTRACT

The advanced mobile devices have become popular in recent years. These devices with the developments
in mobile network connectivity enable the users to explore a variety of mobile applications. One of the
most popular mobile applications is the mobile wallet or m-wallet. The m-wallets are the mobile
applications that provide a variety of features to the consumers. These include bill payments, online
transactions, and even online shopping facilities. The mwallet providers have introduced various
promotional schemes to attract the consumers such as discounts and cashbacks. This paper investigates the
consumer perception towards the usage of mobile wallets in Chennai city. This paper investigates the
consumer perception towards the mobile wallets in Chennai city.

i
 TABLE OF CONTENTS

CHAPTER TITTLE PAGE NO

NO
I INTRODUCTION

1
1.1 Introduction
5
1.2 Theoretical background
7
1.3 Review of literature
10
1.4 Need for Study
11
1.5 Objective of Study
12
1.6 Research Methodology
18
1.7 Limitation of Study

II OBSERVATION

2.1 Findings 40
III
CONCLUSION

3.1 Conclusion 43

REFERENCES 45

ANNEXURE 48

ii
 LIST OF TABLES
TABLE TITLE PAGE NO
NO
4.1 Gender of the respondents 20
4.2 Age of the respondents 21
4.3 Occupation of the respondents 22
4.4 Income of the respondents 23
4.5 Smartphone Usage of the respondents 24
4.6 Methods to purchase online products 25
4.7 Awareness of mobile wallet 26
4.8 Preference of mobile wallet 27
4.9 Usage of m-wallet in a week 28
4.10 Money loaded in m-wallet monthly 29
4.11 Transaction you prefer using m-wallet 30
4.12 Preference of m-wallet over other modes of payment 31
4.13 Device used to make payment via m-wallet 32
4.14 Type of mobile device used 33
4.15 Purchase through m-wallet when they forget their wallet 34
4.16 Usage of m-wallet against other sort of payment methods 35
4.17 Recommendation of Mobile Wallet 36
4.18 Obstacle in using m-wallet 37
4.19 The table showing correlation between obstacle using m-wallet 38
and factors using m-wallet
4.20 The table showing chi square that overall experience of using m- 39
wallet(calculation)

iii
 LIST OF CHARTS
CHART TITLE PAGE NO
NO
4.1 Gender of the respondents 20
4.2 Age of the respondents 21
4.3 Occupation of the respondents 22
4.4 Income of the respondents 23
4.5 Smartphone Usage of the respondents 24
4.6 Methods to purchase online products 25
4.7 Awareness of mobile wallet 26
4.8 Preference of mobile wallet 27
4.9 Usage of m-wallet in a week 28
4.10 Money loaded in m-wallet monthly 29
4.11 Transaction you prefer using m-wallet 30
4.12 Preference of m-wallet over other modes of payment 31
4.13 Device used to make payment via m-wallet 32
4.14 Type of mobile device used 33
4.15 Purchase through m-wallet when they forget their wallet 34
4.16 Usage of m-wallet against other sort of payment methods 35
4.17 Recommendation of Mobile Wallet 36
4.18 Obstacle in using m-wallet 37
4.19 The table showing correlation between obstacle using m-wallet 38
and factors using m-wallet
4.20 The table showing chi square that overall experience of using m- 39
wallet(calculation)

iv
 CHAPTER-I
INTRODUCTION
 1

1.1 INTRODUCTION

MOBILE WALLET:

“The ultimate promise of technology is to make us master of a world that we command by

the push of a button” -Volker Grassmuck.

Mobile devices have become an integral part of our everyday lives as the primary
source of our entertainment, news, social lives, and voice communication. Mobile phones are
increasingly becoming a center piece of online transactions and innovations.

As shopping patterns continue to evolve, so does the payment platform and

payment gateway industry that propels the former. First, we saw people moving out of traditional
norms of paying in cash into paying through internet banking and credit as well as debit cards.
Then, again, due to the constant revolution in technology, we saw the emergence of a new player:
mobile wallet apps.

Mobile wallet is a digital form of your physical wallet through which you can send
and receive money. It stores your credit and debit card information in a secure digital form on your
mobile device. Instead of using your physical plastic card to make purchases, a mobile wallet
allows you to pay with your Smartphone, tablet, or smart watch in stores, in apps, or on the web.
Once the app is installed and the user inputs payment information, the wallet stores this information
by linking a personal identification format such as a number or key, QR code or an image of the
owner to each card that is stored.

The major companies providing mobile wallet services in India are Paytm, Amazon
pay, Airtel Money, Google pay. They have been successfully able to create such wallets and
provide services that link technology, merchants and consumers.
 2

Companies in the financial sector are emerging that offer digital platforms and solutions and

ecognized as members of the Fintech sector. Using mobile technology such as Smartphone’s,

tablets or smart watches, companies and users are adapting to online and offline transactions

using devices such as a mobile wallet.

The mobile wallet is an app that can be installed on a Smartphone or it is an existing

built-in feature of a Smartphone. A mobile wallet stores credit card, debit card, coupons, or reward
cards information. Once the app is installed and the user inputs payment information, the wallet
stores this information by linking a personal identification format such as a number or key, QR
code or an image of the owner to each card that is stored.

When a user makes a payment to a merchant, the mobile app uses a technology
called near-field communication (NFC), which uses radio frequencies to communicate between
devices. NFC uses the personal identification format created for the user to communicate the
payment information to the merchant’s POS (point-of-service) terminal. The information transfer is
usually triggered when the user waves or holds an NFC-enabled mobile device over the store’s NFC
reader.

Fraudulent activities, such as identity theft, are harder to initiate with mobile
wallets. While a user’s credit card can easily be stolen or duplicated, Smartphone’s are not that easy
to steal. A Smartphone that is stolen may be hard to access if there is an access password or
fingerprint check installed. Mobile wallets may also have encrypted keys. This is a win-win for
both the customers and the business.
 3

National Cyber Security Coordinator Gulshan Rai said on Feb 11,2019,

"Mobile wallet transactions have increased 40 times in the last five years. Every
technology provider in the world is looking for the Indian market for the mobile wallet payment.
We are one of those countries who are much advanced in terms of including mobile wallet payment
on a larger scale,"

He also added "Today the digital economy is around 15 per cent of the global GDP.
In India, it is about 8 per cent of the GDP and is likely to increase up to 30 per cent of the GDP in
2025.

The Government of India has also encouraged the shift towards a cashless society
with its push for digital payments. The Digital India program is a flagship program of the
Government of India with a vision to transform India into a digitally empowered society and
knowledge economy. “Faceless, Paperless, Cashless” is one of professed role of Digital India.

Digital wallets are the best bet to usher in digital payments. There are three keys drivers:

1. Strong growth in Smartphone’s: The digital payments landscape in India

has witnessed unprecedented growth largely driven by increased Smartphone penetration.

2. Adoption of Aadhaar & UPI: Data availability along with Aadhaar

based authentication will allow for seamless adoption of the digital wallet. Initiatives such

as Aadhaar, UPI will have a catalytic effect on the industry.

3. Improved 3G & 4G services: 3G and 4G services are being offered at

extremely affordable prices, giving a huge boost to mobile commerce. With 4G becoming

more and more affordable, we expect Smartphone users from tier 2 and 3 regions to adopt

digital wallets.
 4

Mobile wallet is the digital equivalent to the physical wallet in which we carry
money. It is an online platform which allows a user to keep money in it, just like a bank account.
A user needs to make an account with a mobile service provider. After which money is added to
the “mobile wallet “account using a debit, credit, online transactions from account or via cash (a
rechargeable kiosk). The main difference between a mobile wallet and online transactions via bank
account is that, unlike banks mobile wallet does not charge any amount of money on every
transaction and saves the customer from the hassle of entering card details and pin number for each
and every transaction. Mobile wallet is often confused with mobile banking, but is a much broader
concept that includes using the mobile phone as a mode of payment. It is the digital equivalent to
the physical wallet we already have in our pockets/bags today. Our mobile phones are with us at
all times, and as we use them for payments to retailers, travelling on public transport and a myriad
other thing, the need for physical cash diminishes.
 5

1.2 THEORITICAL BACKGROUND

HOW DOES MOBILE WALLET WORK?

A customer can utilize all of their stored information simply by opening an app on
their phone, entering in a PIN, password or fingerprint and then selecting the information they
need to access. The app then utilizes information transfer technology such as Near-Field
Communications (NFC) to interact with a mobile wallet ready payment terminal.

TYPES OF MOBILE WALLETS

As per the Reserve Bank of India, there are two kinds of e-wallets in India: closed,
semi-closed.

Closed e-wallets:

These are wallets issued by an entity for facilitating the purchase of goods and
services from it. These instruments do not permit cash withdrawal or redemption. As these
instruments do not facilitate payments and settlement for third party services, issue and operation
of such wallets are not classified as payment systems.

Semi-Closed e-wallets:

These are wallets which can be used for purchase of goods and services, including financial
services at a group of clearly identified merchant locations or establishments which have a specific
contract with the issuer to accept them. These wallets do not permit cash withdrawal or redemption
by the holder. Wallets for amounts up-to Rs10,000 can be created under this category by accepting
minimum details of the customer. E.g., Airtel Money, which is used for making payments for a
range of services like money transfer from Airtel Money to another bank account or any other
Airtel Money Wallet or paying select utility bills.
 6

HOW TO USE MOBILE WALLET

• The Digital Wallets are one of the best innovations in the field of technology. Millions
of people making payment from these virtual wallets. These e-wallets are easy to use,
and readers who are not familiar with this wallet can follow these quick steps:
• Download the respective mobile wallet app from the app store on the mobile device.

• Register for free using an email id & password.

• After logging to your account, choose the payment method from various

options credit/debit card, net banking transfer, ATM transfer, etc.

• Now add money simply to your e-wallet for making online mobile recharge,

DTH recharge, send/receive money,etc

 7

1.3 REVIEW OF LITERATURE

• Sanaz Zarrin Kafsh (2015), Today’s world is engrossed with digital technology and trends,
from daily bread to business, home to office implementation of electronic gadgets have
become the part and parcel of the life. Dealing of financial issues with liquid cash is
conquered with virtual cash. All the basic payment transactions of daily life can be completed
on a single click in other words mobile payment system (i.e.) “MOBILE WALLET”, has
changed the worlds payments system by providing multiple digital services right from utility
payment to e-tailing. In India, the growing adoption of Smartphone’s and mobile internet has
given a boost to the mobile wallet industry in India.
• Neeharika P & V N Sastry (2014), conducted a study on “A Novel Interoperable Mobile
Wallet Model with Capability based access control framework”, this study makes an
important contribution towards the development of a mobile wallet that can work across
various platforms. As security is the major concern when it comes to finance related
information, the study addresses the security issues by giving access control model that works
towards interoperable mobile wallet.
• Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014), made a study on
“Paytm”, it studied about its achievements, technical architecture of Paytm, working and
technologies of Paytm which include a study on supply chain management, web technologies
of Paytm ,web based tool of Paytm and also described about electronic payment system.

• Ngoc Doan (2014), conducted a study on “Consumer adoption in Mobile wallet (A study of
consumers in Finland)”, this study was undertaken to understand about the consumer
adoption status of mobile wallet with research area limited in Finland. It also examines the
market situation of mobile consumers toward mobile wallet. The study states that the
adoption of Mwallet among consumers in Finland is only at the beginning stage & the success
of M-wallets depends on the marketing strategies of M-wallet companies as well as the
financial policy.
 8

• Trilok Nath Shukla in his paper “Mobile Wallet: Present and the Future” (June 2016) has
discussed about mobile wallet, working, types and its advantages and disadvantages. His
analysis included perception of consumers and retailers about mobile wallets. He concluded
that mobile wallets will be used to engage with the customer by the marketers and digital
businesses. Irrespective of the market status of these mobile wallets, marketers should take
advantage of the emerging opportunities.
• Key Pousttchi and Dietmar G. Weidman in their paper, “What Influences Consumers‟
Intention to Use Mobile Payments?” (2008) studied the adoption of mobile payments and
IJRDO-Journal of Business Management evaluated what key influences affected consumers
to use mobile payments and found that subjective security was not a primary driver of mobile
payment acceptance. They found that perceived confidentiality of payment details and
perceived trustworthiness were strongly correlated.
• ThaeMin Lee in his paper “The impact of perceptions of interactivity on customer trust
and transaction intentions in mobile commerce” (2005) investigated the impact of
perceptions of interactivity on consumer trust and transactions in mobile commerce and
concluded that trust does in fact play a significant role in determining consumer transaction
intentions. Hsin-Hui Lin and Yi-Shun Wang in their paper “An examination of the
determinants of customer loyalty in mobile commerce contexts” (2005) examined the factors
that contributed to customer loyalty in mobile commerce; perceived value and trust were
found to be directly related to customer satisfaction and customer loyalty; customer
satisfaction was also suggested to positively affect customer loyalty; and habit was proposed
to determine customer loyalty.
• Hem Shweta Rathore (2016) in her research paper “Adoption of digital wallet by
consumers” found that customers use mobile wallet because of convenience, one touch
method, and because of its time saving © 2018 IJRAR September 2018, Volume 5, Issue 3
www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138) IJRAR190D031 International
Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 187 technology.
• Padashetty, D. S. & Kishore, K. S. (2013) widely discussed in their research paper “An
empirical study on Consumer Adoption of mobile payments” that trust, expressiveness and
perceived ease of use, playing a crucial role in facilitating adoption of digital payment
solutions are the factors motivating to adopt of mobile wallet.
 9

• Rai, N., Ashok, A., Chakraborty, J., Arolker, P., &Gajera, S. (2012), found safety and
security of payment in mobile wallet attracts customers to switch over from the traditional
methods.
• S Manikandan and J Mary Jayakodi (2017), in their study, “An empirical study on
consumers adoption of mobile wallet with special reference to Chennai city” aims to explain
the application and usage of wallet money endorsed by different companies and various
factors that affect the consumer’s decision to adopt mobile wallet and the various risks and
challenges faced by the users of mobile wallet. The study concludes that mobile wallet usage
awareness as spread among the people in India due to government policy of demonetization
and this as forcefully induced the usage of mobile wallet.
• RameshSardar (2016) in his study, “Preference towards mobile wallets among the urban
population of Jalgaon City” makes an attempt to examine the preference towards mobile
wallets among the urban population of Jalgaon city and effectively analyzed a the impact of
demographic variables on the usage of Mobile wallets. The study reveals that an instant payment is
an important factor to opt for Mobile payments.
• Poonam Painuly and Shalu Rathi (2016), in their research paper “Mobile wallet: An
upcoming mode of business transaction” have analyzed that ease of transaction, secured
profile and convenience in handling application put forth the benefits of wallet money and
also concluded that business sectors like banking, retail, hospitality etc., are making use of
wallet money and mobile payment instruments including contactless and remote payment in
the customers – business and customers to customers areas.
• Karminder Ghuman and CS Shruti Srivastava in their paper “A case study on e-
payment giants: Free charge & Paytm “has asked readers a strategic question that in the
emerging internet-based service provision industry, whether it is a better strategy to develop
a unique positioning on the basis of single key service or it’s better for an organization to offer
multiple services, thereby reducing risk, increasing traction and thus increasing its valuation?
And thus, they have compared Paytm and Free charge who are employing opposite strategies
to find out which one is better.
• Thakur, R. (2013), Mobile wallet provides them various facilities like loyalty benefits,
minimum interest rates, review sale and purchase options, receipts management, cashbenefits,
with greater convenience and ease. This inspires consumers to prefer mobile
wallets for all of their banking transactions.
 10

1.4 NEED FOR THE STUDY

India is witnessing an exponential growth in the area of digital payment in recent times. With
ever-increasing internet and mobile penetration, the country is all set to witness a massive
surge in the adoption of digital payments in the coming years. Furthermore, government
initiatives such as Digital India/cashless economy will act as key catalysts and enablers of this
transformation. Thus, this study helps us in giving an insight about M-wallet services and its
usage. This study has been conducted to find out the awareness and perception of consumers
on Mobile wallets in the city of Chennai.
 11

1.5 OBJECTIVES OF THE STUDY

• To study the awareness and preferences of the users towards M-wallet service providers.

• To study the customer satisfaction in using the mobile wallets.

• To find out the impact of various demographic variables on the usage of mobile wallets.

• To examine the factors influencing adoption of M-wallets.

• To examine the factors refraining the usage of M-wallets.

 12

1.6 RESEARCH METHODOLODY

INTRODUCTION

This chapter of the work presents the methods that will be employed in gathering
necessary data so that clear and new ideas can be obtained through analysis. In this study
systematic investigative process is used to revise current knowledge by uncovering new facts.
Research is a systematic process that enables the gathering, registering, analyzing and drawing
meanings of information. It is theoretical analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with branch of
knowledge.

RESEARCH DESIGN
The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement and analysis of data. Note that your research problem determines the type of design
you should use not the other way around.

The function of research design is to ensure that the evidence obtained enables you
to effectively address the research problem logically and as unambiguously as possible. In social
sciences research, obtaining information relevant to the research problem generally entails
specifying the type of evidence needed to test a theory, to evaluate a program, or to effectively
address the research problem logically and as unambiguously as possible. In social sciences
research, obtaining information relevant to the research problem generally entails specifying the
type of evidence needed to test a theory, to evaluate a program, or to accurately describe and access
meaning related to an observable phenomenon.

1. Identify the research problem clearly and justify its selection, particularly in relation to
any valid alternative designs that could have been used,
2. Review and synthesize previously published literature associated with the problem,

3. Clearly and explicitly specify hypothesis (i.e., research questions) central to the
research problem,
 13

Effectively describe the data which will be necessary for an adequate testing of the hypothesis and

explain how such data will be obtained, and describe the methods of analysis to be applied to

the data in determining whether or not the hypothesis is true or false.

The research designs used in this study are follows:

Descriptive research is a study designed to depict the participants in an accurate

way. The three main ways to collect this information are: Observational, defined as a method of
viewing and recording the participants. The description is used for frequencies, averages and other
statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct
a survey investigation. Qualitative research often has the aim of description and researchers may
follow up with examinations of why the observations exist and what the implications of the
findings are.

Analytical research is a specific type of research that involves critical thinking skills
and the evaluation of facts and information relative to the research being conducted.

A Cross sectional study (also known as a cross sectional analysis, transversal study,
prevalence study) is a type of observational study that analyzes data collected from a population
or a representative subset, at a specific point in time- that is cross sectional data.

SAMPLE SIZE.

Sample size determination is the act of choosing the number of observations or

replicates to include in a statistical sample. The sample size is an important feature of any empirical
study in which the goal is to make inferences about a population from a sample. The sample size
used in the study was 50.
 14

SAMPLING TECHNIQUE

The sampling technique used in this study is convenience sampling. Convenience

sampling is a non-probability sampling technique where subjects are selected because of their
convenient accessibility and proximity to the researcher. Convenience sampling is a type of
sampling where the first available primary data source will be used for the research without
additional requirements. In other words, this sampling method involves getting participants
wherever you can find them and typically wherever is convenient. In convenience sampling no
inclusion criteria identified prior to the selection of subjects. All subjects are invited to participate.

Advantages of convenience sampling

• Simplicity of sampling and the ease of research.

• Helpful for pilot studies and for hypothesis generation.

• Data collection can facilitate in short duration of time.

Disadvantages of convenience sampling

• Highly vulnerable to selection bias and influences beyond the control of the researcher.

• High level of sampling error.

• Studies that use convenience sampling have a little credibility.

METHOD OF DATA COLLECTION

Data collection is the process of gathering information from different sources.

Data collection is of two methods- primary data and secondary data.

 15

PRIMARY DATA:

Primary data is original research that is obtained through first-hand investigation

while secondary data is research that is widely available and obtained from another party. Primary
data includes information collected from interviews, experiments, surveys, questionnaires, focus
groups and measurements. Primary sources are the raw materials of history original documents
and objects which were created at the time under study. They are the different from secondary
sources, accounts or interpretations of event created by someone without first-hand experience.
The most common methods of collecting primary data are conducting questionnaires, surveys,
interviews, observations, case studies, focus groups and examining documents and records.

PRIMARY DATA COLLECTION:

The primary data was collected from respondents of Chennai through questionnaire
designed for sample 50 respondents by using convenience sampling method. Convenience
sampling is a non-probability sampling technique where subjects are selected because of their
convenient accessibility and proximity to the researcher.

SECONDARY DATA:

Secondary data refers to data that was collected by someone other than the user.
Common sources of secondary data for social sciences include censuses, information collected by
government departments, organizational records and data that was originally collected for other
research purposes. You can break the source of secondary data into internal sources and external
sources. Internal sources include data that exists and is stored inside your organization. An external
source is data that is collected by the other people or organization from your organization’s
external environment.
 16

SECONDARY DATA COLLECTION:

That is required for this study was collected from literatures, journals and web
search articles based on the research topic.

TOOLS AND TECHNIQUES USED FOR ANALYSIS:

The statistical tools used in this study are

• Percentage Analysis

• Chi square test

• Correlation of Co-efficient
 17

PERCENTAGE ANALYSIS

Percentage analysis is applied to create a contingency table from frequency

distribution and represent the collected data for better understanding.
CHI SQUARE ANALYSIS

A chi-square (statistic is a test that measures how expectations compare to

actual observed data. The data used in calculating a chi-square must be random, raw,
mutually exclusive, drawn from independent variables, and drawn from a large enough
sample. For example, the results of tossing a coin 100 times meet these criteria. Chi-square
tests are often used in hypothesis testing.

Formula for Chi-Square is

Formula for Chi-Square is χc2=∑(Oi−Ei)2Eiwhere:c=degrees of freedomO=observed

value(s)E=expected value(s)

\Begin{aligned} &\chi^2_c = \sum \frac {(O_i - E_i) ^2} {E_i} \\

&\textbf{where:} \\ &c=\text {degrees of freedom} \\ &O=\text {observed
value(s)} \\ &E=\text {expectedvalue(s)} \\ \end{aligned}χc2=∑Ei (Oi−Ei)2
where:c=degrees of freedomO=observed value(s)E=expected value(s)

CORRELATION OF CO-EFFICIENT

A correlation is a numerical measure of some type of correlation, meaning a

statistical relationship between two variables. The variables may be two columns of a given
data set of observations, often called Sample. Karl Person’s Coefficient is widely used
mathematical method where in the numerical expression is used to calculate the degree and
the directions of the relationship between linear related variables. It is the relationship
between two variables X and Y is to ascertain, then the following formula is used as:
=∑XY∕∑X2*∑Y2
 18

1.7 LIMITATIONS OF THE STUDY

• This study is limited to 50 respondents and so conclusions of the study may therefore
not have universal applicability.
• Since convenient sampling technique was adopted, the findings cannot be
generalized

• Consumer’s perception changes from time to time with advancement of technology.

 19

CHAPTER II
OBSERVATION AND FINDINGS
 20

TABLE 4.1

CLASSIFICATION BASED ON GENDER.

NO OF
S.NO GENDER PERCENTAGE
REPONDENTS

1. MALE 29 58%

2. FEMALE 21 42%

TOTAL 50 100%

NO. OF RESPONDENT

42%

58%

MALE FEMALE

INTERPRETATION:

It is inferred from the above table that 58% of the respondents are male and the
21% of the respondents are female.
 21

TABLE 4.2
CLASSIFICATION BASED ON AGE.
NO OF
S.NO AGE PERCENTAGE
REPONDENTS

1. 20-30 47 94%

2. 30-40 0 0%

3. 40-50 3 6%

4. ABOVE 50 0 0%

TOTAL 50 100%

NO.OF.RESPONDENT
50
47
45

40

35

30

25

20

15

10
3
5 0 0

0
20-30 30-40 40-50 ABOVE 50

INTERPRETATION:
It is inferred from the above table that 94% of respondents are of 20-30 age and 3% of respondent
are of 40-50 age.
 22

TABLE 4.3
CLASSIFICATION BASED ON OCCUPATION.
NO OF
S.NO OCCUPATION PERCENTAGE
REPONDENTS

1. GOVT. EMPLOYEE 1 2%

2. PROFESSIONAL 1 2%

3. PVT. FIRM EMPLOYEE 14 28%

4. STUDENT 34 68%

TOTAL 50 100%

NO.OF.RESPONDENT
2%2%

28%

68%

GOVT.EMPLOYEE PROFESSIONAL PVT.FIRM EMPLOYEE STUDENT

INTERPRETATION:

It is inferred from the above table that majority of 68% of respondents are Students,
28% of respondents are Pvt. Firm Employee, 2% of respondents are Professional, 2% of
respondents are Govt.Employee..
 23

TABLE 4.4
CLASSIFICATION BASED ON INCOME.
NO OF
S.NO INCOME PERCENTAGE
REPONDENTS

1. BELOW 30000 36 72%

2. 30000 - 50000 7 14%

3. 50000 - 70000 7 14%

TOTAL 50 100%

NO.OF.RESPONDENT

14%

BELOW 30000
14%
30000-50000
50000-70000
72%

INTERPRETATION:
It is inferred from the above table that majority of 72% of respondents earn below 30000,
14% of respondents earn around 30000-50000 and 14% of respondents earn upto 50000-
70000.
 24

TABLE 4.5
CLASSIFICATION BASED ON USAGE OF SMARTPHONE.

NO OF
S.NO USAGE OF SMARTPHONE PERCENTAGE
REPONDENTS

1. YES 49 98%

2. NO 1 2%

TOTAL 50 100%

NO.OF.RESPONDENT

49

INTERPRETATION:

It is inferred from the above table that 98% of the respondents are using

Smartphone’s and 2% of the respondents are not using smartphones.

 25

TABLE 4.6
CLASSIFICATION BASED ON METHODS USED TO PURCHASE
ONLINE PRODUCTS.

METHODS USED TO
NO OF
PURCHASE ONLINE
S.NO REPONDENTS PERCENTAGE
PRODUCTS.

1. CREDIT CARD 4 8%

2. ONLINE BANKING 26 52%

3. MOBILE WALLET 20 40%

TOTAL 50 100%

NO.OF.RESPONDENT

4, 8%

20, 40%

26, 52%

CREDIT CARD ONLINE BANKING MOBILE WALLET

INTERPRETATION:
It is inferred from the above table that majority of 52% of the respondents are using
Online banking, 40% of the respondent are using Mobile wallet and the 8% of the respondents are
using Credit Card for the payment of online purchased products.
 26

TABLE 4.7

CLASSIFICATION BASED ON AWARNESS OF MOBILE WALLET.

AWARNESS ON MOBILE NO OF
S.NO PERCENTAGE
WALLET REPONDENTS

1. YES 47 94%

2. NO 3 6%

TOTAL 50 100%

NO.OF.RESPONDENT

6%

YES
NO

94%

INTERPRETATION:
From the above table it is known that majority of 94% of the respondents are
aware of mobile wallets and 6% of the respondents are not aware of mobile wallets.
 27

TABLE 4.8
CLASSIFICATION BASED ON PREFERENCE OF MOBILE WALLETS.
PREFERENCES OF MOBILE NO OF
S.NO PERCENTAGE
WALLET REPONDENTS

1. PAYTM 7 14%

2. AIRTEL MOBILE 0 0%

3. AMAZON PAY 3 6%

4. GOOGLE PAY 40 80%

TOTAL 50 100%

NO.OF.RESPONDENT

14%
0%
6%

80%

PAYTM AIRTEL MOBILE AMAZON PAY GOOGLE PAY

INTERPRETATION:
From the above table Google Pay is highly preferred with 80% of respondents
followed by Paytm with 14%, and Amazon Pay with 6% of respondents.
 28

TABLE 4.9

CLASSIFICATION BASED ON FREQUENCY OF USAGE OF MOBILE

WALLET IN A WEEK.

FREQUENCY OF USAGE OF NO OF
S.NO PERCENTAGE
MOBILE WALLET REPONDENTS

1. ONCE 25 50%

2. 5 TO 10 TIMES 15 30%

3. MORE THAN 10 TIMES 10 20%

TOTAL 50 100%

NO.OF.RESPONDENT

25

20

15

10

0
ONCE 5 TO 10 TIMES MORE THAN 10
TIMES

INTERPRETATION:
From the above table, it is observed that 50% of the respondents use M-Wallet once
in a week, 30% of respondents use it 5 to 10 times and 20% of the respondents use it more than 10
times in a week.
 29

TABLE 4.10
CLASSIFICATION BASED ON MONEY LOADED IN MOBILE WALLET
ON A MONTLY BASIS.

MONEY LOADED IN MOBILE NO OF

S.NO WALLET REPONDENTS PERCENTAGE

1. LESS THAN 5000 41 82%

2. 5001 TO 10000 7 14%

3. MORE THAN 10000 2 4%

TOTAL 50 100%

NO.OF.RESPONDENT

50
40
30
20
10
0
LESS THAN 5000 5001 TO 10000 MORE THAN 10000

INTERPRETATION:
From the above table, it is inferred that 82% of respondents load less than ₹5000,
14% of the respondents load ₹5001 to ₹10000 and 4% of the respondents load more than ₹10000 in
mobile wallet monthly
 30

TABLE:4.11
CLASSIFICATION BASED ON TRANSACTION YOU PREFER USING
M-WALLET
NO OF
TRANSACTION YOU PREFER

S.NO USING M-WALLET REPONDENTS PERCENTAGE

1. SHOPPING 17 34%

2. RECHARGE 18 36%

3. BUS/TRAIN 1 2%

4. FOOD DELIVERY 6 12%

5. MONEY TRANSFER 8 16%

TOTAL 50 100%

NO.OF.RESPONDENT

16%
SHOPPING
34%
RECHARGE
12%
BUS/TRAIN
2% FOOD DELIVERY
MONEY TRANSFER
36%

INTERPRETATION:
From the above table, it is inferred that 34% of respondents use m-wallet for Shopping 36% of the
respondents use m-wallet for Recharge and 2% of the respondents use m-wallet for Bus/Train and
12% of the respondents use m-wallet for Food Delivery and 16% of the respondent use m-wallet for
Money Transfer.
 31

TABLE 4.12
CLASIFICATION BASED ON PREFERENCE OF MOBILE WALLET
OVER OTHER MODES OF PAYMENT

PREFERENCE OF M-
WALLET OVER OTHER NO OF
S.NO PERCENTAGE
MODES OF PAYMENT REPONDENTS

1. TIME SAVING 25 50%

2. EASE OF TIME 24 48%

3. SECURITY 1 2%

TOTAL 50 100%

NO.OF.RESPONDENT
2%

48% 50%

TIME SAVING EASE OF TIME SECURITY

INTERPRETATION:
From the above table, it is observed that majority of 50% of the respondents prefer
mobile wallet over other modes of payments due to time saving, 48% of the respondents prefer for
ease of time and 2% of the respondent prefer it for security purpose.
 32

TABLE 4.13

CLASIFICATION BASED ON DEVICE USED TO MAKE PAYMENT VIA

M-WALLET

DEVICE USED TO MAKE NO OF

S.NO PAYMENT VIA M-WALLET REPONDENTS PERCENTAGE

1. SMARTPHONE 45 90%

2. COMPUTER 0 0%

3. BOTH 5 10%

TOTAL 50 100%

NO.OF.RESPONDENT
BOTH
10%
COMPUTER
0%

SMARTPHONE
90%

INTERPRETATION:
From the above table, it is known that 90% of the respondents use Smartphone, and
10% of the respondents use Both (Smartphone and Computer) for making payments via M-Wallet.
 33

TABLE 4.14
CLASIFICATION BASED ON TYPE OF MOBILE DEVICE USED
TYPE OF MOBILE DEVICE NO OF
S.NO USED REPONDENTS PERCENTAGE

1. TABLET 4 8%

2. IOS/ANDROID/WINDOWS 45 90%

3. OTHERS 1 2%

TOTAL 50 100%

NO.OF.RESPONDENT
45

40

35

30

25

20

15

10

0
TABLET IOS/ANROID/WINDOWS SMARTPHONE OTHERS

INTERPRETATION:
From the above table, it is referred that 90% of the respondents are using
IOS/ANROID/WINDOWS Smartphone, 8% of the respondents are using Tablet and 2% of the
respondents are using Others.
 34

TABLE 4.15
CLASIFICATION BASED ON RESPONDENTS DESIRE TO PURCHASE
THROUGH M-WALLET WHEN THEY FORGET THEIR WALLET

RESPONDENTS DESIRE TO
PURCHASE THROUGH M-
NO OF
WALLET WHEN THEY
S.NO REPONDENTS PERCENTAGE
FORGET THEIR WALLET

1. YES! I HAVE BEEN THROUGH 40 80%

2. NO, NOT REALLY 10 20%

TOTAL 50 100%

NO.OF.RESPONDENT

20%

YES!I HAVE BEEN THROUGH

NO!NOT REALLY
80%

INTERPRETATION:
From the above table, it is referred that 80% of the respondents are have been
through urgent situation when they have forgotten to take their wallet but wished to purchase
goods/services with their mobile and 20% of the respondents have not been through such
situations.
 35

TABLE 4.16
CLASIFICATION BASED ON USAGE OF MOBILE WALLET AGAINST
OTHER SORT OF PAYMENT METHOD

USAGE OF MOBILE WALLET

AGAINST OTHER SORT OF NO OF
S.NO PERCENTAGE
PAYMENT METHOD REPONDENTS

1. ALTERNATIVE CHOICE 25 50%

2. SUBSTITUE 13 26%

3. SUPPORTIVE INSTRUMENT 12 24%

TOTAL 50 100%

NO.OF.RESPONDENT

SUPPORTIVE INSTRUMENT

SUBSTITUE

ALTERNATIVE CHOICE

0 5 10 15 20 25

INTERPRETATION:
From the above table, it is clearly known that 50% of the respondent use mobile
wallet as an Alternative Choice, 26% of the respondents use it as a Substitute and 24% 0f the
respondents use it as Supportive Instrument against other sort of payment method
 36

TABLE 4.17
CLASIFICATION BASED ON RECOMMENDATION OF MOBILE
WALLET

RECOMMENDATION OF NO OF
S.NO MOBILE WALLET REPONDENTS PERCENTAGE

1. EXTREMELY LIKELY 13 26%

2. VERY LIKELY 24 48%

3. MODERATELY LIKELY 12 24%

4. NOT AT ALL LIKELY 1 2%

TOTAL 50 100%

NO.OF.RESPONDENT
24

13
12

VERY LIKELY EXTERMELY LIKELY MODERATELY LIKELY NO AT ALL LIKELY

INTERPRETATION:
From the above table, it is known that 48% of the respondents Very Likely recommend someone to
use M-wallet, 26% of the respondents Extremely Likely recommend someone to use M-Wallet, 24%
of the respondents moderately recommend using M-Wallet and 2% of the respondents do not
recommend to use M-Wallet.
 37

TABLE 4.18
CLASIFICATION BASED ON OBSTACLES WITH USING MOBILE
WALLET

OBSTACLES WITH USING NO OF

S.NO MOBILE WALLET REPONDENTS PERCENTAGE

1. YES 15 30%

2. NO 35 70%

TOTAL 50 100%

NO.OF.RESPONDENT

30%

YES
70% NO

INTERPRETATION:
From the above table, it is known that 30% of the respondents have come through
obstacles with using Mobile Wallet and 70% of the respondents have not come through obstacles
with using Mobile Wallet.
 38

TABLE 4.19

CORRELATION
TABLE SHOWING THE CORRELATION METHOD BETWEEN OBSTACLE USING M-
WALLET AND FACTORS USING M-WALLET

X Y X Y XY X2 Y2

23 26 13 16 208 169 256

12 9 2 -1 2 4 1

6 9 -4 -1 4 16 1

9 4 -1 -6 6 1 36

0 2 0 -8 0 0 64

50 50 220 190 358

X =∑x /no of respondents

= 50 / 5 = 10
Y =∑y / no of respondents
= 50 /5 = 10
PEARSON’S CORRELATION:
= xy/√∑x2*∑y2
=220/√190*358
=220/√68020
=220/260.81
=0.84
RESULT:

There is a positive correlation between obstacles using M-Wallet and factors using M-
Wallet.
 39

TABLE 4.20

TABLE SHOWING THE CHI-SQUARE METHOD

Oi Ei (Oi-Ei) (Oi-Ei)2 (Oi-Ei)2/E

10 10 0 0 0

32 10 12 144 14.4

7 10 -3 9 0.9

1 10 -9 81 8.1

0 10 -10 100 10

50 33.4

E=50/5

Degree of freedom = n-1

= 5-1 =4

Table Value = 9.488

Calculated value is lesser than table value so, H0 is accepted. There is significant level purpose of
using mobile wallet.
 40

FINDINGS OF THE STUDY

➢ 58% of the respondents are Male.

➢ 94% of respondents are of 20-30 Age.

➢ 68% of respondents are Students.

➢ 72% of respondents earn below 30000.

➢ 98% of the respondents are using Smartphone’s.

➢ 52% of the respondents are using Online Banking.

➢ 94% of the respondents are aware of Mobile Wallets.

➢ 80% of respondents prefer Google pay.

➢ 50% of the respondents use M-Wallet once in a week.

➢ 82% of respondents load less than ₹5000 in Mobile Wallet on a monthly basis.
➢ 36% of respondent are using M-Wallet for Recharge
➢ 50% of the respondents prefer mobile wallet over other modes of payments due to time
saving.
➢ 90% of the respondents use Smartphone to make payments via M-Wallet.

➢ 90% of the respondents are using IOS/ANROID/WINDOWS Smartphone.

➢ 80% of the respondents have been through urgent situation when they have forgotten to
take their wallet but wished to purchase goods/services with their mobile.
➢ 50% of the respondent use mobile wallet as an Alternative Choice.

➢ 48% of the respondents extremely recommend someone to use M-wallet.

➢ 70% of the respondents have not come through obstacles with using Mobile Wallet.

➢ There is a positive correlation between obstacles using M-Wallet and factors using
M- Wallet.

➢ Calculated value is lesser than table value so, H0 is accepted. There is significant level purpose
of using mobile wallet.
 41

SUGGESTIONS

1. The suggestions would be first to expand their consumer base to increase the use of Mobile
wallets which can only be increased by making customers aware of the advantages and
value they would get from using mobile wallets.
2. Also, people should be made aware of what actually is mobile wallet and how could it be
used; therefore, the companies should promote the same through their marketing and
advertising campaign.
3. Majority of the respondents agree that they are not satisfied with security of digital wallets
thus more efforts would be needed by digital wallets to ensure about the authenticity and
security level.
4. The mean score revealed that factors play a dominant role in influencing the usage of
mobile wallets. Thus, factors like discounts, convenience and ease of use has gained a
credit to mobile wallet. Therefore, the M-wallet service providers should continue in giving
its best in it.
 42

CHAPTER-III
CONCLUSION
 43

3.1 CONCLUSION:
“A cashless economy is secure, it is clean. You have a leadership role to play in taking INDIA
towards an increasingly digital economy.”

-NARENDRA MODI

In India, the growing adoption of Smartphone and mobile phone has given a boost to the
mobile wallet industry. Since we are moving towards Digital India/cashless economy, there
will be a tremendous growth in adoption of M-wallets in the forthcoming years. People
should start using digital payment methods instead of cash, as it would help in reducing
black money and would increase the t7ax money. Transparency and accountability are
harder to achieve with cash payments because they are anonymous and difficult to trace.
Digital payments increase accountability and tracking, lessening the risk of corruption and
theft.

Finally, this should be noted that consumers are not the only array of the adoption of Mobile
Wallet systems. There are other parties that are highly influencing the acceptance of these
systems. For example, providers and government could establish useful policies and
motivations for people for using such systems. Moreover, designers and developers could
accelerate the adoption by implementing useful features and functions and increase the
perceived usefulness of Mobile Wallet systems for individuals.

The present study was made to understand customer perception, preference, and
satisfaction in using m-wallets. We have explored that security has been a major
impediment and convenience speed discounts have been the major factors in influencing
its usage.

We have also found that Google pay has been the most preferred M-wallet, it has a chance
of being category-defining for M-wallets (like Xerox in copiers), as more than 80% people
prefer it.
 44

BIBLIOGRAPHY
 45

REFERENCE: -

1. Sanaz Zarrin Kafsh (2015), “Developing Consumer Adoption Model on Mobile Wallet
in Canada”, Ottawa, Canada.
2. Neeharika Patel, (2014), “A Novel Interoperable Mobile Wallet Model with Capability
Based Access Control Framework”, International Journal of Computer Science and Mobile
Computing, Vol.3 Issue 7, pg. 888.904.
3. Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014), “A study on
Paytm” Guru Gobind Singh Indraprastha University, Delhi.
4. Ngoc Doan (2014) “CONSUMER ADOPTION IN MOBILE WALLET – A Study of
Consumers in Finland”, TURKU UNIVERSITY OF APPLIED SCIENCES.
5. Shukla, T. N., Mobile wallet: present and the future, Vol. 5, No. 3, June 2016
(ISSN 2278 – 5973).
6. Pousttchi k., Weidman, D., (2008, October) what influences consumer‟s intention to use
mobile payments.
7. Lee, T., The Impact of perceptions of interactivity on customer trust and transaction
intentions in mobile commerce, Journal of Electronic Commerce Research, vol. 6, no. 3,
pp. 165-180, 2005.
8. Hem Shweta Rathore (2016) “Adoption of digital wallet by consumers” BVIMSR‟s
Journal of management research. Volume 8 issue 1, pp 69-75.
9. Padashetty, D.S, Kishore KS (2013) “An empirical study on consumer adoption of mobile
payments in Bangalore city-a case study” Researchers World. Volume 4 issue 1,
pp 83 - 94.
10. Rai N., Ashok A., Chakraborty J., Arolker P., & Gajera S., (2012). M-wallet: An SMS
based payment system. International Journal of Engineering Research and Applications,
258-263.
11. S.Manikandan and J.MaryJayakodi. (2017). “An Empirical Study on Consumers
Adoption of Mobile Wallet with Special Reference to Chennai City.” International Journal
of Research – Granthaalayah2, 5(5), 107-115.
12. Ramesh Sardar (2016). “Preference towards Mobile Wallets among Urban Population of
Jalgaon City.” Journal of Management (JOM) Volume 3, Issue 2, July–Dec (2016),
ISSN Print: 2347-3940, pp. 01–11.
 46

13. Poonam Painuly and Shalu Rathi (2016), “Mobile wallet: An upcoming mode of business
transactions” International journal in management and social science. Volume 4 pp356- 363.
14. Karminder Ghuman and CS Shruti Srivastava “A case study on e-payment giants: Free
charge & PayTM,” IOSR Journal of Business and Management, pp. 87-92.
15. Thakur R., (2013), “Customer adoption of mobile payment services by professionals
across two cities in India: an empirical study using modified technology acceptance
model”, Business Perspectives and Research, Vol. 1 No. 2, pp. 17-29.
 47

ANNEXURE
 48

QUESTIONNAIRE
1. Name:

2. Gender:

a. Male

b. Female

3. Age:

a. 20-30

b. 30-40

c. 40-50

d. Above 50

4. You belong to which of the following category:

a. Govt. Employee

b. Professional

c. Pvt. Firm Employee

d. Students

5. Income Group:

a. Below 30000

b. 30000-50000

c. Above 50000

6. Do you use Smartphone:

a. Yes

b. No
 49

7. Which payment method do you use to pay for the product you purchase online?

a. Credit Card

b. Online Banking

c. Mobile Wallet

8. Are you aware of Mobile Wallet?

a. Yes

b. No

9. Which of the Mobile Wallet payment gateway are you aware of?

a. Paytm

b. Amazon Pay

c. Airtel mobile

d. Google pay

10. How many times you use Mobile Wallet in a week?

a. Once

b. 5 to 10 times

c. More than 10 times

11. How much money do you load in M-Wallet on a monthly basis?

a. Less than 5000

b. 5001 to 10000

c. More than 10000

 50

12. For which of the following transactions you prefer using M-Wallet:

a. Shopping

b. Recharge

c. Bus / Train

d. Food Delivery

e. Money Transfer

13. Why do you prefer M-Wallet over other modes of Payments?

a. Time Saving

b. Ease of Time

c. Security

14. Which device do you use for making the payment via M-Wallet?

a. Smartphone

b. Computer

c. Both

15. Which type of Mobile Device you are using?

a. Tablet

b. IOS / Androids / Windows Smartphone

c. Others

16. Have you ever been through urgent situations when you have forgotten to take your wallet
but you wished you could purchase goods / services with your mobile?
a. Yes! I have been through.

b. No! Not Really.

 51

17. How do you consider M-Wallet against other sort of Payment method?

a. Alternative

b. Substitute

c. Supportive Instrument

18. How likely are you to recommend Mobile Wallet to someone you known?

a. Extremely likely

b. Very likely

c. Moderately likely

d. Not at all likely

19. Rate the following factor for using M-wallet

STRONGLY STRONGLY
PARTICULARS AGREE AGREE NEUTRAL DISAGREE DISAGREE

wallet saves time

Online transactions are

secured

Convenience in usage

Acceptance of wallet

Discounts and Offers

 52

20. Rate the following statement which acts as an obstacle in using M-wallets

STRONGLY STRONGLY
PARTICULARS AGREE AGREE NEUTRAL DISAGREE DISAGREE

Security Issues

Non availability of
services at different
stores
Needs are met without

M-Wallet
Inconvenience in
completing the
transaction

21. Did you cross any obstacles with using Mobile Wallet?

a. Yes

b. No
 53

22. If security is an issue rate the following statement

STRONGLY STRONGLY
PARTICULARS AGREE AGREE NEUTRAL DISAGREE DISAGREE

Fear of M-Wallet
provider sharing the
confidential
information

Access to all
information if phone is
stolen
Rise in number of

cyber crimes
Malware / Virus being

installed in phone

23. Rate the overall experience in using Mobile Wallet

a. Highly satisfied

b. Satisfied

c. Neutral

d. Dissatisfied