1. Table of Contents
S.I. No. Title Page no.
Chapter 1: Introduction 1-4
1.1 Research Background 1
1.2 Rationale for the Study 2,3
1.3 Statement of Problem 4
1.4 Objectives 4
Chapter 2: Literature Review 5
Chapter 3: Consumer Behaviour and Satisfaction 6-8
3.1 Consumer Behaviour 6
3.2 Customer Satisfaction 6
3.3 Change in Consumer Behaviour after Digital 7,8
Chapter 4: Digital Wallet 9-24
4.1 Introduction 9,10
4.2 Types of mobile wallets in India 11
4.3 Top ten digital wallets in India 12-16
4.4 New Mobile Wallet Payment Trends in 2018 17,18

2. S.I. No. Title Page no.
4.5 Advantages of Digital Wallet 19
4.6 Drawbacks of Digital Wallet 20
4.7 Future outlook and key challenges 21-23
4.8 Other digital payment modes in India 24
Chapter 5: Methodology 25-26
5.1 Research Design 25
5.2 Sampling Plan 25
5.3 Hypothesis 25
5.4 Limitation of the Study 25
5.5 Tools for Analysis 26
Chapter 6: Data Analysis 27-36
Chapter 7: Results and Discussions 37-38
7.1 Findings 37
7.2 Suggestions 38
Chapter 8: Conclusion 39
References 40
Annexure 41-44

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Chapter 1: Introduction
1.1Research Background
It has been said that every disruption creates opportunities and one such disruption was the
announcement of demonetization by Prime Minister Mr. Narendra Modi on 08 November 2016.
Demonetization created huge growth opportunity for digital payment in India and the digital wallet
companies garbed the opportunities with both the hands to expand their market share.
Demonetization has presented a unique platform for adoption of digital payment, as an alternative
to cash for Indian consumers.
Adoption of cashless transaction has been significantly pushed by Prime Minister Mr. Narendra
Modi as part of government reforms after demonetization of high value currency of Rs. 500 and
1000 (86% of cash circulation). The demonetization resulted in unprecedented growth in digital
payment. By February this year, digital wallet companies had shown a growth of 271 percent for
a total value of US$15.13 billion (Rs. 980 crores), Indian government and private sector companies
such as Paytm, Freecharge and Mobikwik had been aggressively pushing several digital payment
applications, including the Aadhaar Payment app, the UPI app, and the National Payments
Corporation of India (NPCI) developed the Bharat Interface for Money (BHIM) app. Digital
transfers using apps has brought behavioural change and helped in the adoption of digital payment.
This has resulted in ease of transfer of money in rural areas which was not touched earlier by the
digital payment method. Now many foreign investors want to invest in digital payment industry
which is new attractive destinations because of scope of tremendous expansion in India.
There are number of facilitators which are leading to the growth of digital wallet payment and
transition from cash economy to less cash economy. These facilitators include penetration of
internet connectivity on smart phones, non-banking financial institution facilitating digital
payment, one touch payment, rise of financial technology sector and push by government either
by giving incentives or tax breaks. These all factors are creating positive atmosphere for growth
of digital wallet in India.

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1.2 Rationale for the Study
Doing payments via mobile phones has been in use for many years and is now set to explode. Also
mobiles are increasingly being used by consumers for making payments. “Digital Wallet “has
become a part of consumers which are nothing but smart phones which can function as leather
wallets. Digital wallet offered many benefits while transferring money such as convenience,
security and affordability. Growth in technology has opened many modes of payments through
which consumers can do transactions which are more convenient, accessible and acceptable,
consumers have an inclination towards mobile payment apps usage. Offering various benefits such
as flexi payment digital wallet brands are providing extra convenience to consumers. Major factor
in adoption of digital wallet is convenience in buying products online without physically going
from one location to another location. There has been many studies conducted in past on mobile
payment application to find consumer interest and they found consumer has positive inclination
for the same.
The factors such as perceived ease of use, expressiveness and trust affect adoption of digital wallet
as payment method. These factors are termed as facilitators and plays crucial role in adoption of
digital payment solution. Usage of digital wallet among youth was found to be associated with
societal influence and usefulness, controllability and security, and need for performance
enhancement. Premium pricing, complexity, a lack of critical mass, and perceived risks are the
barriers to adoption of digital payment systems.
Digital wallet payments bring extra convenience to shoppers by offering flexible payment
additions and accelerating exchanges. Digital wallets offer the consumers the convenience of
payments without swiping their debit or credit cards. Instant Cash availability and renders seamless
mobility is also a unique feature of these digital apps, for instance the balance in your Paytm wallet
can be very easily transferred to your bank account as and when you want.
The percentage of cash for transactions has seen a rapid decline in the past few years in India. In
2010, the percentage of cash in all payments was 89% compared with 65% in 2017. This rapid
decline is a result of an increased adoption of non-cash instruments such as cards and digital
payments such as mobile wallets, electronic transfers, etc. Stored value instruments like mobile
wallets (Paytm, Mobikwik, Citrus, etc.) and prepaid and gift cards have made payments though

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internet devices convenient and easy. India represents one of the largest market opportunities for
digital payments. With a population of 1.25 billion, India accounts for roughly 18% of the global
population. The two key drivers of digital payments-mobile phones and internet users are already
well established in India. To date, India has about 1.0 billion mobile phone subscribers and 300
million internet users, ranking 2nd on both metrics globally.

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1.3 Statement of Problem
As continuation of demonetization process, the digital wallet transaction activities are
implemented impact the significant changes in the behavior of consumer. In India most of the
consumers are heavily dependent only on the cash economy, now the consumers have to switch
from cash to cashless electronic transactions. There has been a growth in consumers using more
on digital wallet for purchase of products and service except few. Currently the government
announced that all restrictions for the traditional cash transaction and offers for electronic transfer
push the consumers to adopt and implement cashless transaction for their needs. In the context of
the above, this study makes an attempt to analyze and find out how the digital wallet transaction
has caused to changes in the behavior of consumers and level of awareness about the cashless
transaction, faith of the electronic transmission and problems of consumers while using digital
wallet payment. Solutions will then be proposed on how to enhance its services in order better to
encourage repeat patronage and loyalty, and attract new customers.
1.4 Objectives
➢ To analysis the satisfaction level of consumer on digital wallet.
➢ To analysis the factors influencing the use of digital wallet.
➢ To identify the problem in the digital wallet.
➢ To analysis features that consumers expect in digital wallet.
➢ To analysis the socio economic background of consumer.
➢ To propose solutions to maintain and improve digital wallet in order to encourage loyalty
and attract new customers.

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Chapter 2: Literature Review
SINGAL, NIDH (2016) the article discusses the mobile wallet that loads money for payment of
bills which is hassle free and saves time. topics mentioned include the high success rate on making
payments with transactions in less than 10 seconds, the loading of money which does not risk the
credit card and bank account limit, and the offered services by electronic commerce company
Paytm including buying tickets, institutions fees payment, and money transfers.
KORZENIOWSKI, PAUL (2014) the article discusses the emergence of mobile wallets and how
it changed customer experience in payment process. Topics include the appeal of mobile
commerce functions in smartphones to consumers, the use of more personalized shopping
experiences, and the near field communication (NFC) system. Also mentioned is information on
the role of PayPal, the formation of payment infrastructure company Merchant Customer
Exchange (MCX), and the selection of an open or close loop design in transactions.
Holmes, Tamara E. (2012) the article offers advice on how to protect one's financial information
in digital wallets from getting into the wrong hands. It warns of spoofed invoices which look
legitimate and request payments through wire transfer or direct bank transfer. It also advises
against clicking on links in e-mails and to avoid providing personal information such as Social
Security number. It suggests setting a passcode on smartphones to avoid becoming a victim of
identity fraud.
Adams, John (2012) the article discusses the outlook for electronic wallet payment systems from
the perspective that the U.S. banking industry has to attract users in the mobile wallet market and
understand the mobile wallet market's ecosystem.
Bell, Stephanie (2011) the article presents information about a deal between Littlewoods Europe
company and Optimal Payments PLC for Optimal's Neteller electronic wallet and discusses how
the virtual payment method works for online shopping.
Quittner, Jeremy (2012) the article focuses on a security problem in Google Inc.'s digital wallet,
which is linked to prepaid accounts where users store funds. The research firm Zvelo Inc. found
the PIN (personal identification number) code used for authentication and other user information
in Google's Wallet application can be extracted by a computer hacker.

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Chapter 3: Consumer Behaviour and Satisfaction
3.1 Consumer Behaviour
Consumer behaviour is the study of how individual customers, groups or organizations select, buy,
use, and dispose ideas, goods and services to satisfy their needs and wants. It refers to the actions
of the consumers in the marketplace and the underlying motives for those actions. It is critical to
understand consumer behaviour to know how potential customers will respond to a new product
or service.
3.2 Customer Satisfaction
Customer satisfaction is the outcome felt by buyers who have expectation. Customers are satisfied
when their expectation are met and delighted when their expectations are exceeded. Satisfied
customers remain loyal longer, buy more, and are less sensitive and talk favorable about the
company. From this it is clear that the satisfied customer will be less sensitive towards the
fluctuating price and offensive marketing typically cost more than defensive marketing, because
it requires much effort and cost to induce satisfied customers to switch away from their current
suppliers. We should also consider the fact that "the cost of attracting a new customer may be five
times the cost of keeping the current customer happy." Therefore the companies are intending in
developing stronger bones and loyalty with their customers.

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3.3 Change in Consumer Behaviour after Digital
The digital era has and will continue to change social trends, which in turn directly affects
consumer behaviour and demands. The change in consumer behaviour can be hard to understand
or even recognize, but brands today need to realize that it is happening and they need to change
and adapt their customer service accordingly. The digital consumer has the potential to unsettle
current competition as well as new players in any industry.
Changing consumer behaviour can be daunting for brands and can present certain challenges such
as an increase in negative publicity. This said, there are also certain constructive opportunities that
come with the risks, like the chance to engage with customers who are looking at the overall brand
value of the product or service as opposed to just the price tag.
SETTING STANDARDS
Customers are no longer comparing brands with their direct competitors, but rather all brands they
consume, no matter the industry or product. They are comparing not only the product but a myriad
of brand elements such as service, quality, and overall customer satisfaction to name a few. Brands
should no longer be focusing on their direct competitors, but instead focusing on how they can be
better than the best brands their consumers are using. Modern day consumers are comparing apples
with oranges.
CUSTOMER TOLERANCE
It’s now so much easier for customers to complain about bad service, meaning it’s much harder
for brands to satisfy customers’ wants and needs. Customers place a large emphasis on the ease of
service, and if this isn’t met they will take to digital media to complain and let others know of their
misfortunes.
CUSTOMER DIALOGUE
Between social media and customer forums, consumers have the ability to both build and destroy
brands. Word of mouth was, and still is, king. Customers have always been led by the opinions of
friends and family, but nowadays this is corroborated by social media likes and testimonials. Brand
reputations can stand or fall over night, all based on the communication between consumers.

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LOYALTY
Customers want value for money and will no longer just accept cheap products and services.
Likewise, customers won’t accept overpricing or poor standards of customer service. Brands need
to understand that today’s customers are open to brand switching and do not have the same level
of loyalty as they once did. Customers demand superiority and are happy to pay for it.
PROMOTION
Consumers no longer trust traditional information channels as they once did, and so consumer
opinion and relationships are formed on other, digital based, channels. This has meant a complete
shift for brands to jump into digital and embrace conversation with consumers, which was
previously reserved for personal comment and opinions. It’s difficult for some brands to keep up
with both traditional and digital development, but it’s vital that they do in order to continue
successful conversation and promotion with their customer base.
INFORMATION
The digital revolution has provided customers with a far greater knowledge of products and
services, meaning that brands no longer decide what information is handed to consumers regarding
product knowledge. Consumers are able to access information and opinions within seconds,
providing them with enough facts to make informed purchase decisions.

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Chapter 4: Digital Wallet
4.1 Introduction
A digital wallet is a type of virtual wallet service that can be used by downloading an app. The
digital or mobile wallet stores bank account or debit/credit card information or bank account
information in an encoded format to allow secure payments. One can also add money to a mobile
wallet and use the same to make payments and purchase goods and services. This eliminated the
need to use credit/debit cards or remember the CVV or 4-digit pin. Many banks in the country
have launched e-wallet services and apart from banks, there are also many private players. Some
of the mobile wallet apps in the market are Paytm, Mobikwik, Freecharge, etc. The various services
offered by mobile wallets include sending and receiving money, making payments to merchants,
online purchases, etc. Some mobile wallets may charge a certain transaction fee for the services
offered.
How digital wallets work:
1. Download the mobile wallet app (or it may be already built into your mobile device).
2. Add your credit card or debit card information to the mobile wallet.
3. When you check out at participating merchants, access the mobile wallet and choose your
card. If you’re making an in-store purchase, just hold your mobile device at the terminal.

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4.2 Types of mobile wallets in India
PPI Type Key features Examples
Open Operated only by banks.
Allows cash withdrawals and funds transfers in addition
to POS usage.
Max amount that can be stores is INR 100,000.
Vodafone m-pesa
Semi-Open Operated only by banks.
Allows usage with merchants who have a contract with
the bank.
Max amount that can be stores is INR 100,000.
Axis Bank gift card
Closed Operated only by banks, NBFCs and other entities
Does not allow cash withdrawal; certain amount is locked
with the merchant
Max amount that can be stores is INR 10,000.
Flipkart Wallet,
Metro Card
Semi-Closed Operated by Banks, NBFCs and other entities
Does not allow cash withdrawal; allows usage at selected
merchants; some allow direct transfer to another wallet
for usage
Max amount that can be stores is INR 10,000 (without
KYC) and INR 50,000 (with KYC)
Paytm, Freecharge,
MobiKwik

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4.3 Top ten digital wallets in India
1. Paytm is easily the top Digital Wallet in India today. Both by brand familiarity and user
adoption. They had crossed 200mn installs in early 2017 and marching towards their target
of growing to 500mn users. They have the largest network of offline merchants. One can
easily call them the “Whatsapp” of the digital wallet space. Anyone using digital wallets
will be using them.
Largest user and merchant’s base. Offers a lot of services like Buses, Flights, Recharge,
Bills and even gold shopping.
2. MobiKwik slowly but steadily grew to become the 2nd largest digital wallet by its shear
strength of user-experience and online merchant integrations. They keep growing and give
a strong competition to Paytm. Their UI is exceptionally clean and very interactive. Faster
checkout process for better user experience. Their cashback in the form of Supercash which
usually has a lot of restrictions. Fewer rewards/offers than Paytm.PhonePe

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3. PhonePe started as UPI payment app and later was acquired by Flipkart to be launched as
a digital wallet for the e-commerce giant. It definitely has a lot of smart people behind the
app as a first time user will find the app really easy to use. Do use them if you shop often
on Flipkart and pay bills online.
Great cashback offers on online Bill payments (electricity, DTH, water, mobile). Fast and
good user-experience of the app even though they highlight a lot of services. Online and
offline merchant integration is lower than others.
4. FreeCharge
Freecharge is a great story in the Digital Wallet world due to the transformation journey it
has travelled. What started as a service to provide physical coupons for online mobile
recharges over years got bought over by Snapdeal and also pivoted to a complete digital
payments platform. However, even with a young and fresh branding, they never could
capture a user’s imagination like others. This wallet always feels like an afterthought when
making online transactions. But it’s still a great app to have for transactions and offers.
Quick and simple payment process. Immediate cashback on transactions. Fewer merchant
integrations though present with major online players. Low adoption for peer-to-peer.

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5. Airtel Money
Airtel Money easily has one of the largest user bases. However, most of the transactions
on the platform is limited to Airtel bill payments for mobile, broadband and other services.
You can absolutely use it for online transactions like others but most users do not.
A must-have if you are an Airtel user for their range of exclusive offers. Integrated as an
Airtel service and more focused on Airtel specific benefits.
6. JioMoney
JioMoney like Airtel happens to be available for a large user base due to sheer VOIP
revolution Jio is driving in the country. They still have a long way to go in terms of
integrations and offers.
No registration required for Jio users. Not a great UI. Miles behind in online and offline
merchant integrations.

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7. Amazon Pay
Amazon Pay is one of the newest entrants in this space and grown quickly piggy-backing
on the popularity of the Amazon e-commerce platform. Like PhonePe this wallet is a must-
try if you use Amazon for shopping.
8. Ola Money
Ola Money which is the payment wallet offered along with the OLA cab booking app has
a large user adoption due it being one of the market leaders in the mobility space. However,
most people use it for paying Ola bills or keeping money for cab rides.
Makes it easy and quick to pay for OLA cab rides, share passes, clearing ola credit.
Not used much outside of the OLA app. There is a separate OLA Money app but not really
needed.

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9. Buddy by SBI
Digital wallet by SBI Bank which happens to be the largest bank in the country in user
count. They are great for payments and transfers. This wallet is also available to users
without an SBI account which makes it easy to register. Great for SBI Bank users. Supports
13 languages. Zero offline presence and slightly dated app UI.
10. PayZapp by HDFC
This digital wallet is by HDFC bank which like SBI is a major player. They focus on
simplified one-click payments which makes using it extremely simple. Great for repeated
transactions like bill payments. Add your card once and it will take care of the transactions.
Better for HDFC customers.

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4.4 New Mobile Wallet Payment Trends in 2018
➢ Mobile wallet firms get users to comply with KYC norms
According to RBI guidelines, meeting the KYC requirement is a necessary step to pave the
way for interoperability between PPIs, bank accounts and cards in a phased manner. KYC
is a process through which financial institutions verify information about customers to
ensure services are not misused.
➢ Rewards Programs Encourage In-Store Mobile Purchases
Some retailers have integrated in-store mobile payments with loyalty programs,
incentivizing customers to earn points every time they make a purchase. Reward comes
from the convenience of contactless payments, and part from discounts or coupons earned
by visiting the store initially.
➢ Contactless Payment Terminals Are Now Widespread
Fueling the rise of mobile payments is Near Field Communication, or NFC. Ultimately,
NFC allows two electronic devices to exchange small pieces of data. When a customer
holds a smartphone near a checkout terminal, the NFC chip in the terminal subtracts the
amount of the purchase from the card tied to the smartphone.
➢ Biometrics Offer Added Security
Biometric security technology has been around for decades, but it has only become
common in consumer products in the past few years. Biometric technology adds another
level of security to mobile payment systems and can speed their adoption. Once installed,
these systems eliminate the need for a password; credit card payment processing can be
authorized with a fingerprint or, in some cases, just a glance.
➢ AI Can Now Handle Routine Transactions
Artificial Intelligence software has rapidly improved over the past several years and can
now handle routine customer interactions. One of the most common applications of this
technology is “chatbots” that have been developed to address customer needs normally met

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by a call center. Financial chatbots can provide basic financial snapshots and transfer funds
to other customers based on simple voice commands. AI can also handle verbal
instructions, allowing consumers to provide routing number verification or complete ACH
payment processing without ever having to speak to an agent.

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4.5 Advantages of Digital Wallet
Saves time: digital wallets hold the amount in the electronic form so as to ease the payment process
where users can make online payments without entering any card details.
➢ Ease of use: As digital wallet is like one click pay without filling details about card viz.
card number and passwords every time, It allows user to link digital wallet to accounts and
pay right away so that the consumers face no issues to enter the details every time a
transaction happen.
➢ Security: There is a good amount of security when payments are made through e wallets
since the wallet does not pass the payment card details to the website. These virtual wallets
allow users to lock their wallet.
➢ Convenient and information stored under one roof: As digital wallets helps to eliminate
need to carry the physical wallet they are highly convenient. Also a better management is
possible as there is synchronization of data from multiple platforms like bank accounts,
credit and debit cards, mobile accounts and billing portals.
➢ Attractive discount: Cash back and discounts are being offered by most of the players along
with providing offline wallet balance top up known as 'Cash Pickup' service. This service
is being offered by Mobikwik that will facilitate cash to be directly added to MobiKwik
wallet where consumers of even smaller towns can be benefited.
➢ Economical and less transaction fee: There are many payment apps and mobile wallets that
do not charge any kind of service fee or processing fee for the service provided.
➢ Written record: You often forget to note down your cash spending’s. Or even if you note,
it takes a lot of time. But you do not need to note your spending’s every time with digital
payments. These are automatically recorded in your passbook or inside your E-Wallet app.
This helps to maintain your record, track your spending’s and budget planning.

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4.6 Drawbacks of Digital Wallet
Every coin has two sides so as the digital wallet payments. Despite many advantages, digital wallet
payments have a few drawbacks also.
➢ Difficult for a non-technical person: As most of the digital payment modes are based on
mobile phone, the internet and cards. These modes are somewhat difficult for non-technical
persons such as farmers, workers etc.
➢ The risk of data theft: There is a big risk of data theft associated with the digital payment.
Hackers can hack the servers of the bank or the E-Wallet you are using and easily get your
personal information. They can use this information to steal money from your account.
➢ Overspending: You keep limited cash in your physical wallet. Hence, you think twice
before buying anything. But if you use digital payment modes, you have all your money
with you always. This can result in overspending.

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4.7 Future outlook and key challenges
The mobile wallet industry is expected to maintain the pace of its current expansion. Transaction
volumes are expected to grow at a CAGR of 94% between FY17 and FY21 to reach 32 billion
transactions. Value of the transactions is also expected to rise at a rate of 126% to reach INR 32
trillion by the fiscal year 2021. As the penetration of mobile internet and smartphones aggregate,
mobile wallets with their ease of use & convenience are expected to continue growing in
popularity.

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Along the road however, there are a number of challenges that the industry faces and needs to
over-come. These include the following:
➢ Inertia in adoption: Cash transactions have been the dominant payment mode for Indians
for a very long time. Even though the penetration of digital payments has been rapidly
increasing, concerns regarding security, privacy and transparency of charges are still
prevalent among consumers. Industry players will need to invest significant effort to
overcome this barrier, not only through marketing campaigns, but also through actual
continuous product improvement.
➢ Risk of security breaches and fraud: The risks of a breach leading to financial loss is a very
important decision factor for adoption of digital payment technologies. Ensuring the
security of the technological system is key, since singular events of breaches can lead to
large reputational and financial losses for companies. Maintaining privacy of the
consumers is also an important challenge, as an increased amount of data is collected and
stored.
➢ Competition from Credit & Debit Cards: Cards form one of the biggest challenges to
further adoption of mobile wallets. Given the current limits on transactions through this
channel, limits which are wider in the case of cards does provide a significant roadblock to
adoption.
➢ Issues with compatibility: Not all applications are made for all operating systems on
mobiles. Many products currently on the market are only compatible with one or two
operating systems (most commonly iOS and Android). Consumers are looking for options
that make transactions the most convenient, and issues with compatibility can hamper that
experience. Ensuring compatibility across all the major operating systems will play a key
role for these companies.
➢ Consolidation in the industry: Despite the surge in the user base and popularity, mobile
payment companies are increasingly moving towards consolidation in the e-wallet space.
As mentioned earlier, PayU acquired Citrus Payments, Flipkart took over the payments
app, PhonePe, while Shopclues acquired Momoe, the mobile wallet for offline stores. Lack
of funding and growth in transactions between merchants and existing customers of wallet

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companies has forced consolidation in this space. Investors are looking at minimizing costs
and changing the business model, issues the firms will need to address in the future.
➢ Impact of UPI: Introduction of UPI has created greater competition for mobile wallets but
in the short-term, mobile wallets are not expected to face a great impact. UPI powered apps
will need to deliver on a number of fronts including transaction costs and ease of use that
rivals that of mobile wallets. However, there is scope for some future cannibalization, and
is a challenge the industry must face in the long-run.
➢ Moving beyond core services: Players in the mobile wallet space have begun moving
beyond their core service and delivering collateral services. For example, Paytm provides
a broad range of m-commerce services. Offline connect has become one of the significant
domains adopted by mobile wallet players to democratize their platform. In addition to m-
commerce, other e-wallet players like MobiKwik have ventured into hyper local
transactions, cash pick-up and microcredit facilities. Adapting business models to meet
consumer needs, and to differentiate products from other alternatives, including the UPI,
will be a continual challenge for the companies.

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4.8 Other digital payment modes in India
➢ Prepaid credit cards: Pre-loaded to individual’s bank account. It is similar to a gift card;
customers can make purchases using funds available on the card -and not on borrowed
credit from the bank. Can be recharged like a mobile phone recharge, up to a prescribed
limit.
➢ Debit/RuPay cards: These are linked to an individual’s bank account. Can be used at shops,
ATMs, online wallets, micro-ATMs, and for e-commerce purchases. Debit cards have
overtaken credit cards in India.
➢ Prepaid cards are another type of cards which you use to pay digitally. You must have to
recharge these cards before using just like prepaid SIM cards.
➢ AEPS: The Aadhaar Enabled Payment System uses the 12-digit unique Aadhaar
identification number to allow bank-to-bank transactions at PoS. AEPS services include
balance enquiry, cash withdrawal, cash deposit, and Aadhaar to Aadhaar fund transfers.
➢ USSD: Stands for Unstructured Supplementary Service Data based mobile banking. It is
linked to merchant’s bank account and used via mobile phone on GSM network for
payments up to Rs. 5,000 per day per customer.
➢ UPI: The United Payments Interface (UPI) envisages being a system that powers multiple
bank accounts onto a single mobile application platform (of any participating bank).
Merges multiple banking features, ensures seamless fund routing, and merchant payments.
➢ Internet Banking: Internet banking refers to the process of carrying out banking
transactions online. These may include many services such as transferring funds, opening
a new fixed or recurring deposit, closing an account, etc. Internet banking is usually used
to make online fund transfers via NEFT, RTGS or IMPS.
➢ Mobile Banking: Mobile banking is referred to the process of carrying out financial
transactions/banking transactions through a smartphone. The scope of mobile banking is
only expanding with the introduction of many mobile wallets, digital payment apps and
other services like the UPI.

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Chapter 5: Methodology
5.1 Research Design
➢ The study is based on descriptive nature, primary source of data were used. The primary
source of data collected through self-constructed questionnaire. A sample of 150
respondents from different socio-economic characteristics was selected from Mumbai city
was taken for the study. The study based on Simple random sampling method. The study
was conducted from 18th
March, 2018 to 01st
April, 2018.
5.2 Sampling Plan
➢ Sampling unit: This call is for defining the target population to be surveyed. In this research
the sampling unit was the customers who have been using the digital wallet payment
modes.
➢ Sample size: In this survey the sample size decided was 150.
➢ Sampling procedure: I adopted personal interview, telephonic interview, SurveyMonkey:
online survey tool and social media websites like Facebook, Twitter, Whatsapp, etc. for
collection of primary data. Purpose of this research was told to respondents and questions
were explained to them in case there was any need for understanding any particular
question. There had been no personal bias or distortions were allowed while recording the
responses.
5.3 Hypothesis
➢ There is no significant relationship between socio-economic characteristics and cashless
transactions.
5.4 Limitation of the Study
➢ The study was confined only in Mumbai city only and the results of the study cannot be
generalized.

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➢ Time limitation that is the study results are applicable to the study period only (18/03/2018-
01/04/2018).
5.5 Tools for Analysis
➢ Percentage analysis
➢ Pie-graph

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Chapter 6: Data Analysis
Age:
Sex:
73%
23%
4%
18-30
31-40
41-50
51 & Above
72%
28%
Male
Female

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Occupation:
Awareness regarding the functionality of e-wallets:
60%
30%
10%
Student
Housewife
Self employed
Others
40%
53%
7%
Fully aware
Partially aware
Not aware

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Source of information about e-wallets:
Preference of e-wallet over other modes of payment:
36%
9%
55%
Social Media
Friends
Magazine/Television
49%
36%
15%
Time saving
Ease of use
Security
Other

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Device used for making the payment via e-wallet:
Preferred e-wallet:
87%
0% 13%
Smartphone
Computer
Both
50%
5%
9%
24%
12%
Paytm
Freecharge
Mobikwik
Phonepe
Other (HDFC, SBI,
ICICI)

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Purpose of using e-wallet:
Things kept in mind while using e-wallet:
15%
39%
15%
8%
23%
Money Transfer
Recharge
Utility & Bill
payment
Entertainment
All of the above
26%
16%
58%
Available
Discount
Premium Offers
Cashback

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No. of times e-wallet used in a week:
Money loaded in e-wallet on a monthly basis:
0%
43%
57%
Only once
5 to 10 times
more than 10
73%
10%
17%
Less than 5,000
5,000 to 10,000
More than
10,000

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Rate the e-wallet service:
Continue use of e-wallet:
27%
40%
23%
10%
0%
Highly Satisfied
Satisfied
Neutral
Unsatisfied
Highly
Unsatisfied
25%
54%
21%
0% 0%
Very Likely
Likely
Neutral
Unlikely
Very Unlikely

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Any obstacles while using e-wallet:
Kind of obstacles faced while using e-wallet:
39%
61%
Yes No
4%
64%0%
32%
Too much time
consumption
Involves danger of
losing money
Cannot be used for
International
transaction
Non availability at
merchants

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Link e-wallet with Aadhar:
E-wallet services useful mode of payment:
31%
69%
Yes No
73%
27%
Agree
Disagree

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E-wallet promote cashless payment to the next level:
Refer your friend to use e-wallet:
77%
23%
Agree
Disagree
7%
53%
40%
0% 0%
Very Likely
Likely
Neutral
Unlikely
Very Unlikely

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Chapter 7: Results and Discussions
7.1 Findings
The total samples of 150 who you mobile wallet were collected from Mumbai city. The socio
economic profile of the respondents was obtained by using three parameters namely gender, age
group and occupation. It has been identified that most of the respondents are male (72%) when
compared to females (28%). Most of the respondents belong to the age group between 18-30 years
(73%) while respondents above 50 years of age were none. It is also observed that most of the
respondents were students (60%) and housewife (30%).
The level of awareness among majority of the respondents is partial (53%). Nearly 55% percent
source of information on e-wallets come through television and magazine/newspapers. The young
generation visit social media websites to gain more information on e-wallets (36%). Majority of
e-wallets are been used from smartphones (87%) and few respondents use on both devices
smartphones and computers (13%).
Paytm has high market share (50%) compared to other competitors. Many respondents use
multiple e-wallets on same device. E-wallets are majorly used for 39% but many respondents
utilize all the features of the e-wallet, i.e., money transfer, utility and bill payment and booking
tickets. Utilization of e-wallets in daily life have grown to a great extent (58%). 73% of the
respondents do not load huge amount of money in their e-wallet. They are satisfied with less than
Rs. 5,000.
Consumers of e-wallet service shows major signs of satisfaction more than 70% which will push
them to continue use of e-wallet in their daily routine (80%). But 39% consumers still face
obstacles while using e-wallet. Major obstacle involves danger of losing money and non-
availability at merchants. Only 65% customers have linked their e-wallet with Aadhar (KYC)
which is mandatory as per RBI guidelines. Majority respondents have a positive view towards e-
wallets and consider e-wallet as the future step towards Digital India (80%). 60% are likely to refer
e-wallet to their friends and family. This shows the high satisfaction and positive growth of e-
wallet in the minds of the consumer.

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7.2 Suggestions
The digital wallet transaction activity had a great step to enhance the transparent economic
development, empower the financial inclusion and integrates the parallel economy with main
stream. In present scenario the country needs to move away from traditional cash based transaction
towards a cashless or digital payment system. Therefore the following suggestions will help to
improve cashless transaction among the consumers.
➢ The Government of Mumbai along with banks and companies should organize intensive
awareness program about the benefits and need of digital wallet payments to students of
colleges, higher educational intuitions, and housewife, self-employed and even find a way
to reach to the retired senior citizens.
➢ Consumers are behind in being fully aware of all the features of digital wallet. Hence,
interactive in-app guide should be introduced to make consumers completely aware of
features like barcode scan, different payment modes to load money, convenience to transfer
money to third party or within bank, etc.
➢ As most of respondents are concerned about the security of digital wallet, the security
system should be strengthening so that people won’t scare about their money and
transactions.
➢ In Mumbai, the Point of Sale (POS) terminals is low, so the consumer could not able to use
digital wallet in all places. Hence the firms should provide POS machine to all possible
shops at concession rate.
➢ The too many proceeding should be avoided during online payment to avoid more time
consumption.
➢ Make people aware of the need to link KYC with e-wallet and point out the benefits in the
long run.
➢ The firms should organize volunteers at less developed areas to educate the people about
digital wallet.
➢ The Government of India and Telecom ministry should make necessary step to enhance
broadband speed and wide coverage of internet to all areas.
➢ The firms should continue and give some incentive benefits to those are using regular
digital wallet payments because it will motivate not only the regular user but also new user.

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Chapter 8: Conclusion
Present study has made an attempt to understand consumer behaviour and satisfaction level on use
of digital wallet. This study makes an attempt to analyze and find out how the digital wallet
transaction has caused to changes in the behavior of consumers and level of awareness about the
cashless transaction, faith of the electronic transmission and problems of consumers while using
digital wallet payment. It was found that digital wallet platforms have grown tremendously despite
hurdles. Customers are readily accepting digital wallet as their payment modes for various
occasion changing their attitude towards traditional cash system. Due to offers introduced by such
platforms such as cashback and discounts, customers are more interested in making payment
through this mode. Newspaper and Television advertising are main the source of communication
between customers and such platforms. Digital wallet saves time and provides convenience to the
customer.
The growth of users of Smartphone and internet penetration in such area also facilitated the
adoption of digital wallet payment. People are satisfied with digital wallet platform and demands
more features to be added in these platforms. Despite having such strong database, threats and
challenges still exist for such platforms. Building a strong secure platform should be their top
priority as consumers in today’s world depend on word of mouth. The solutions given should be
considered and worked upon to have a smooth functioning of business.
The Government has implemented various reforms for sustainable and transparent economic
development. The demonetization and digital payments are most important among the reforms.
The digital wallet transaction is not only requirements but also emerging need of today for
transparent economic development.

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References
1. Sharma, Mittal. Prospects of e-commerce in India, Asian Journal of management and
research. 2009; 3(2):396-408.
2. Chinting S. The Effect of Internet Marketing on Organizational Commitment: Job. 2010.
3. Kanwal Gurleen. Customers Perception Towards online payment-The case of Punjab,
International journal of management & information Technology. 2012; 1(1):6
4. http://www.ewebbuddy.com/2018/02/best-digital-wallet-india-2018/
5. https://www.paymentvision.com/blog/2017/12/26/7-trends-that-prove-mobile-payments-
are-here-to-stay-in-2018/
6. https://www.mediavisioninteractive.com/social-media/how-digital-is-changing-
consumer-behaviour/
7. https://www.pymnts.com/news/payment-methods/2016/how-payments-change-yet-stay-
the-same/
8. https://www.livemint.com/Industry/wE6Majg6HgaQKsZTauWmfP/Mobile-wallet-firms-
grapple-to-get-users-to-comply-with-KYC.html/
9. https://www.businesstoday.in/moneytoday/banking/tips-to-use-mobile-wallet-safely-
things-you-must-know/story/217676.html

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Annexure
Survey on: Customer behaviour and satisfaction level towards E-wallets
1. Please mention your age
o 18-30 yrs.
o 31-40 yrs.
o 41-50 yrs.
o 51 yrs.& above
2. Please mention your sex
o Male
o Female
3. Please mention your occupation
o Student
o Housewife
o Self Employed
o Others (please specify)
4. Are you aware regarding the functionality of e-wallets?
o Fully aware
o Partially aware
o Not aware
5. Where did you get information about e-wallets?
o Social media
o Friends
o Magazine/Television

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6. Why do you prefer e-wallet over other modes of payment?
o Time saving
o Ease of use
o Security
o Other
7. Which device do you use for making the payment via e-wallet?
o Smartphone
o Computer
o Both
8. Which e-wallet you prefer most of the time?
o Paytm
o Freecharge
o Mobikwik
o Phonepe
o Other (specify)
9. What is your purpose of using e-wallet?
o Money Transfer
o Recharge
o Utility & Bill payment
o Entertainment (movies etc.)
o All of the above
10. What do you keep in mind when you use e-wallet?
o Available discount
o Premium offers
o Cashback

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11. How many times you use e-wallet in a week?
o Only once
o 5 to 10 times
o More than 10 times
12. How much money do you load in e-wallet on a monthly basis?
o Less than 5000
o 5001-10,000
o More than 10,001
13. How do you rate the e-wallet service that you used?
o Highly satisfied
o Satisfied
o Neutral
o Unsatisfied
o Highly unsatisfied
14. Would you want to continue using e-wallet?
o Very likely
o Likely
o Neutral
o Unlikely
o Very unlikely
15. Are there any obstacles you face while using e-wallet?
o Yes
o No

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16. What are the obstacles when you use e-wallet?
o Non-availability at merchants
o Too much time consumption to set up
o Involves danger of losing money
o Cannot be used for international transaction
o Other (please specify)
17. Have you linked your e-wallet with Aadhar?
o Yes
o No
18. Is e-wallet services useful mode of payment?
o Agree
o Disagree
19. Does using e-wallet promote cashless payment to the next level?
o Agree
o Disagree
20. Would you like to refer your friend to use e-wallet?
o Very likely
o Likely
o Neutral
o Unlikely
o Very unlikely