A PROJECT REPORT ON
ISSUES AND CHALLENGES OF E WALLETS SUBMITTED IN FULFILMENT OF THE REQUIREMENTS OF BUSINESS RESEARCH METHODS TO UNIVERSITY OF JAMMU BY
ABHINAV SHARMA (04-MBA-16) DIKSHA GUPTA (20-MBA-16) (20-MBA-16) KOMAL RAINA (31-MBA-16) KOHIT TARGOTRA (29-MBA-16) Batch: 2016-2018 UNDER THE GUIDANCE OF PROF.VINAY CHAUHAN THE BUSINESS SCHOOL UNIVERSITY Page 1 of 42
DECLARATION
We hereby declare that this Project Report titled “ To study the issues and challenges in using electronic/digital payment in Jammu region ” for Research
methodology submitted to THE BUSINESS SCHOOL is a record of of original work done by us under the guidance of Prof. Vinay Chouhan.
The information and data given in the report is authentic to the best of our knowledge. This Project Report is not submitted to any other university or institution for the award of any degree, diploma or fellowship or published before.
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ACKNOWLEDGEMENT We would like to express our deepest appreciation to all those who provided us the necessary support and guidance to complete this project. Whatever we have done is only due to such guidance and assistance and we would not forget to thank them.
A special thanks to our Project Guide, Prof. Vinay Chauhan , for the magnanimous guidance and valuable suggestions, which helped us to work on our project, improve it and finally to write this report.
We extend a very special thanks to the internet and the online users for giving us the data. The suggestions for improvement and the tips given have surely played a crucial role in the effective completion of the project.
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ABSTRACT
The report titled “To study the issues and challenges in using electronic/digital payments in Jammu region” is based on the study conducted on customers of the
two branches.
The research mainly focuses on various electronic payment modes i.e. net banking, electronic cheques, e-cash, e-wallet; plastic cards (debit cards, credit card, and smart card).
The research was based on various dimensions such as usefulness, credibility, responsiveness, compliance, assurance, intention to use and future scope which were studied with questioner as the research tool using purposive sampling.
Our report includes true data and analysis is done without any manipulation, hence, can help to determine the issues being faced in electronic payment.
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CONTENTS
Chapter No. Chapter 1
Topic Introduction
9
Technology
9
Payments’ for goods and services Chapter 2
PageNo.
Review of Literature & Research Methodology
10-11 12
Review of Literature
13
Objectives
14
Hypothesis and assumptions
15
Data sources
15
Sample design
16
Statistical techniques
16
Scope of study
16
Limitations
16
Chapter 3
Organisation Under Study
17-23
Chapter 4
Data Analysis and Interpretation
24-35
Chapter 5
Findings, Conclusion,
36-37
Chapter 6
References and Bibliography
38
Annexures
1)Questionnaire
39
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CHAPTER 1 1.1 Introduction Electronic payment system is a mode of payments over an electronic network such as the internet. In other words we can say that e-payment is a method in which a person can make online payments for his purchase of goods and services without physical transfer of cash and cheques, irrespective of time and location. Electronic Payment Systems are becoming central to online business process innovations as companies look for ways to serve customers faster and at lower cost. Emerging innovations in the payment for goods and services in electronic commerce promise to offer a wide range of new business opportunities. Electronic payment systems and e-commerce are intricately given that online consumers must pay for products and services. Clearly, payment is an integral part of the mercantile process and prompt payment or account settlement is crucial. If the claims and debits of the various participants-individuals, companies, banks and non banks are not balanced because of payment delay or even worse default then the entire business chain is disrupted. Electronic payment systems are proliferating in banking, retail, health care, online markets and even government. Organizations are motivated by the need to deliver products and services more cost effectively and to provide a higher quality of service to customers. Electronic payments first emerged with the development of wire transfers. Electronic funds transfer is an electronic transfer of information that equates to moving funds from one financial institution to another. Electronic payment systems are alternative cash or credit payment methods using various electronic technologies to pay for products and services in electronic commerce. It involves many security issues. A digital wallet refers to an electronic device that allows an individual to make electronic transactions. This can include purchasing items on-line with a computer or using a smart phone to purchase something at a store. An individual's bank account can also be linked to the digital wallet. They might also have their driver’s license, health card, loyalty card(s) and other ID documents stored on the phone. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC). Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder's credentials. For example, a digital-wallet could potentially verify the age of the buyer to the store while purchasing alcohol. The system has already gained popularity in Japan, where digital wallets are known as "wallet mobiles"
1.2 Technology A digital wallet has both a software and information component. The software provides security and encryption for the personal information and for the actual transaction. Typically, digital wallets are stored on the client side and are easily self-maintained and fully compatible with most ecommerce Web sites. A server-side digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its servers. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end-user, which increases their satisfaction of their overall purchase.
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The information component is basically a database of user-input information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information. The key point to take from digital wallets is that they're composed of both digital wallet devices and digital wallet systems. There are dedicated digital wallet devices such as the biometric wallet by Dunhill .where it's a physical device holding someone's cash and cards along with a Bluetooth mobile connection. Presently there are further explorations for smart phones with NFC digital wallet capabilities, such as the Samsung Galaxy series and the Google Nexus smart phones utilizing Google's Android operating system and the Apple Inc. phone 6 and i phone utilizing Apple Pay. Digital wallet systems enable the widespread use of digital wallet transactions among various retail vendors in the form of mobile payments systems and digital wallet applications. The MPESA mobile payments system and micro financing service has widespread use in Kenya and Tanzania. While the MasterCard PayPass application has been adopted by a number of vendors in the U.S. and worldwide. Digital wallet is being used more and more in Asian countries as well. One in five consumers in Asia are now using digital wallet representing twofold increase from two years ago. A recent survey by MasterCard’s mobile shopping survey shows on 8500 adults aged 18– 64 across 14 markets showed, 45% users in China, 36.7% users in India and 23.3% users in Singapore are the biggest adopters of digital wallet. The survey was conducted on between October and December 2015. Also analysis showed (48.5%) consumers in these regions made purchase using smart phones. Indian consumers are leading the way with 76.4% using a smart phone to make purchase which is a drastic increase of 29.3% from previous year. This has made companies like Reliance and Amazon India to come out with its own digital wallet. Flipkart has already introduced its own digital wallet.
1.3 Payments for goods and services purchased online A client-side digital wallet requires minimal setup and is relatively easy to use. Once the software is installed, the user begins by entering all the pertinent information. The digital wallet is now set up. At the purchase or check-out page of an e-commerce site, the digital wallet software has the ability to automatically enter the user information in the online form. By default, most digital wallets prompt when the software recognizes a form in which it can fill out; if one chooses to fill out the form automatically, the user will be prompted for a password. This keeps unauthorized users away from viewing personal information stored on a particular computer.
ECML Digital wallets are designed to be accurate when transferring data to retail checkout forms; however, if a particular e-commerce site has a peculiar checkout system, the digital wallet may fail to properly recognize the form's fields. This problem has been eliminated by sites and wallet software that use Electronic Commerce Modeling Language (ECML) technology. Electronic Commerce Modelling Language is a protocol that dictates how online retailers structure and set up their checkout forms. Participating e-commerce vendors who incorporate both digital wallet technology and ECML include: Microsoft, Discover , IBM, Omaha Steaks and Dell Computers. ( 10 )
1.4 Descriptions: E-wallet is a type of pre-paid account in which a user can store his/her money for any future online transaction. An E-wallet is protected with a password. With the help of an E-wallet, one can make payments for groceries, online purchases, and flight tickets, among others. E-wallet has mainly two components, software and information. The software component stores personal information and provides security and encryption of the data. The information component is a database of details provided by the user which includes their name, shipping address, payment method, amount to be paid, credit or debit card details, etc. For setting up an E-wallet account, the user needs to install the software on his/her device, and enter the relevant information required. After shopping online, the E-wallet automatically fill s in the user's information on the payment form. To activate the E-wallet, the user needs to enter his password. Once the online payment is made, the consumer is not required to fill the order form on any other website as the information gets stored in the database and is updated automatically.
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CHAPTER 2 REVIEW OF LITERATURE AND RESERCH METHODOLGY 2.1 REVIEW OF LITERATURE [1] ARE DIGITALWALLETS THE NEWCURRENCY? Roopali Batra*Apeejay Journal of Management and Technology January 2016, Vol.11, No: 1 ABSTRACT: - India is heading on the path of a major digital revolution. Digitalization of the payment mechanism will be considered as landmark in the era of cashless future economy. The present research aims to empirically examine the adoption patterns of digital wallets by of the respondents. An exploration of customer perception, usage pattern preferences and satisfaction level regarding digital wallets is made based on a study of 52 respondents. It further identifies the barriers and challenges to the adoption of digital wallets. To attain the aforesaid purpose a well structured questionnaire was administered to respondents wherein they were asked various with regards to adoption of digital wallets. The results indicate that there exists a huge untapped market for digital wallets both in terms of increasing awareness as well as its usage. Time saving and ease of usage were found to be the main reasons for using wallets .However, safety of money transacted remained their major concern. Security issues in terms of fear of cash loss and lack of usability for international transactions are the prime barriers to its adoption. The study makes a valuable contribution to research in the area of finance, by exploring digital payment systems in India, an emerging concept.
Lately, India has been experiencing exponential growth in the area of digital payment. 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, flagship government initiative such as Digital India will act as key catalysts and enabler of this transformation. Mobile payments have been in use for many years and have gained ground (Dahlberg, 2008). The mobile wallet is a new application of mobile payment that has functionality to supplant a conventional wallet and more. Mobile payments are a top investment priority for banks. In fact, the world’s biggest banks continue to focus most of their announced IT initiatives on mobile financial Services (including payments) and online banking. Out of a world population of 7 billion, over 5 billion or70% have a mobile phone, whereas only 2 billion or 30% have a bank account. In India: on a populationof1.2 billion over 800 million have a mobile phone and only 250 million have a bank account. Consumers are increasingly using their mobile phones to make payments. The four metros — Delhi, Mumbai, Kolkata and Chennai — contributed about 60% of the total digital Payment gateway market size, followed by Bangalore, Hyderabad, Ahmadabad, Pune which together
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Contributed 25% in 2013. At present, mobile payments form a minuscule part of the overall digital payments industry in India. However, the contribution from phones and tablets is expected to increase to 30 per cent by 2020. Mobile payments in India are estimated to grow from $86 million in 2011 to $1.15 billion in 2016, with a compounded annual growth rate (CAGR) of 68 per cent, according to estimates. The CEO of Apple, Tim Cook, summarized the potential of digital wallets as: “The vision is to replace the wallet. And the starting point is payments.” Besides payment, people can also store receipts, coupons, business cards, bills…in their Smartphone. When Smartphone can function as leather wallets, it is called “Digital Wallet” or widely known as “Mobile Wallet” (Doan, 2014). The m -wallet segment includes transfer of money, services related to banking transactions, value-added services such as shopping, ticketing, recharging, and bill payments. In this segment, the highest, 38 per cent market share is captured by money transfer businesses, followed by recharge and bill payments, and utility areas by 30 per cent and 12 per cent, respectively relative advantage which digital wallets offers are convenience, security and affordability over other payment methods specially while transferring money (Wamuyu, 2014). A digital wallet is a virtual storage system that can contain money and a digital certificate of your identity. It is a software application, usually for a smartphone that serves as an electronic version of a physical wallet or refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using smartphone to purchase something at a store. Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder's credentials. For example, a digital wallet could potentially verify the age of the buyer to the store while purchasing items. It is useful to approach the term "digital wallet" not as a singular technology but as three major parts: the system (the electronic infrastructure) and the application (the software that operates on top) and the device (the individual portion). An individual’s bank account can also be linked to the digital wallet. It is a system that securely stores user’s Payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology. They can also create stronger passwords without worrying about whether they will be able to remember them later. Digital wallets can be used in conjunction with mobile payments systems that allow customers to pay for purchases with their smartphones. Certain sources are speculating that these smar tphone “digital wallets” will eventually replace physical wallets. The system has already gained popularity in Japan, where digital wallets are known as OSAIFU-KETAI or “wallet mobiles. As mobile commerce grew in the first half of this decade, several payment gateways started operations in India, which could sign up with specific merchants to reduce the pain associated with individual two factor transactions. There was a movement from Closed Wallets (establishment specific) to Semi Closed Wallets (Group of contracted establishments using the wallet) in the last few years given the mushrooming of digital commerce and the blanket implementation of two factor authentication requirements.
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Now, the Reserve Bank of India is mulling retiring the requirement for two factor authentication on cards transactions in India. This potential change will apply to both debit and credit cards, used on point of sale (POS), card not present transactions (CNP) as well as Internet based transactions. This change will potentially have a payment value threshold of 3000-5000 as per various media reports. Given that the low value transactions still make a bulk of this market, this move by RBI may seemingly be a death knell for Wallets - given the ease of single click commerce going forward.
[2] ADOPTION OF DIGITAL WALLET BY CONSUMERS Dr Hem Shweta Rathore (
[email protected]), Assistant Professor Bharati Vidyapeeth's Institute of management Studies & Research, Navi Mumbai ABSTRACT :- In today-world, smartphone has become essential part of daily life.Due to technology, mobile users can nowadays use their smartphones to make money transaction or payment by using applications installed in the phone. When smartphones can function as leather wallets, it is called “Digital Wallet” or widely known as “Mobile Wallet”. The present study tries to study the various factors that can affect a consumer’s decision to adopt digital wallet as a mode of online payment. Apart from this, the study also attempt to find out the various risks and challenges faced by users of digital wallet. In today-world, smartphone has become essential part of daily life. As it has become more rational, the number of smartphone users has increased radicall y. “India will exceed 200 million smartphone users, topping the US as the world’s second largest smartphone market by the end of 2016 due to increasing penetration of affordable smart mobile devices in the country,” the US-based research firm said in a report .According to TechSci Research’s latest report, India’s mobile wallet market could reach $6.6 billion by 2020. Along with smartphone production, a number of services have been generated to utilize the possible functions of Smartphone. Smartphones are used as communication devices, as socialized tool, entertainment tool, internet access tool, and even payment tool. Due to technology, mobile users can nowadays use their smartphones to make money transaction or payment by using Applications installed in the phone. Besides payment, people can also store receipts, coupons, business cards, bills…in their Smartphone. When Smartphone can Function as leather wallets, it is called “Digital Wallet” or widely known as “Mobile Wallet”. Consider the following scenario: “A person is at the supermarket checkout line. He fumbles through his wallet to find credit card X; rejecting many other cards in the process, to pay for the transaction. Later in the day, he falls victim to a pickpocket who steals his wallet.
Conclusion Digital wallets are quickly becoming mainstream mode of online payment. Shoppers are adopting digital wallets at an incredibly rapid pace, largely due to convenience and ease of use. Tech-savvy shoppers are increasingly demanding seamless, Omni-channel retail experiences and looking for solutions that deliver this.
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2.2 OBJECTIVES AND HYPOTHESIS Considering the emerging scope of digital revolution in India, the need for current study was felt to evaluate the adoption and performance of digital wallets in the country. On the basis of the need of the study, following objectives had been derived to set the focus of the study: 1. To study the usefulness of Mobile wallet services are a useful mode of payment. 2. To measure the consumer’s credibility for using E Wallets in India. 3. To suggest response mechanism for strengthening E wallets usage in cashless transaction. 4. To find the impact of usefulness, credibility, compliance, assurance for the intention to use E wallets in Jammu.
Hypothesis designed are as follows:-
Ha0: There is relationship between usefulness, credibility, compliance, and assurance. Ha1: There is no relationship between usefulness, credibility, compliance, and assurance. H b0: There is no effect of assurance, usefulness, and credibility on intentions of usage of e wallets. H b1: There is effect of assurance, usefulness, and credibility on intentions of usage of e wallets.
2.3 RESEARCH METHODOLGY
The research methodology comprises of the sources of data, sampling techniques, sample size, survey instrument, data analysis tools etc 2.3.1 SOURCES OF DATA
The data have been collected from primary sources . Primary data have been collected through direct personal interview method where interview took place with the owners of different retail stores and questionnaire was made to filled by the consumers. 2.3.2 SAMPLING TECHNIQUES
For the study convenient sampling technique method has been applied on the basis of suitability for the availability of information. 2.3.3 SURVEY INSTRUMENT
A Survey instrument being used to collect the required data was personal interviews and questionnaires.
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2.3.4 SAMPLE SIZE
A sample size of 30 respondents was taken Based on convenience sampling and the responses were recorded. 2.3.5 DATA ANALYSIS TOOL
Various statistical tools have been used to arrive to the conclusion and test the hypothesis. Two tools mainly used for the study were: correlation and regression 2.4 LIMITATIONS OF PROJECT
The study is limited to Jammu city only. The study revolves only around the e wallets Data pertaining to study has been collected only for few months. Time is limiting factor as the study is conducted in a very short span of time.
2.5 SCOPE OF PROJECT
This study is very much relevant to present times as this will provide awareness about the issues and challenges of digitalization of payments. The sudden surge in digital payments arose due to demonetization and cash crunch. Customers have adjusted to it to a great extent which is a good step. This study wants to unravel the real scenario and also look into the threat that looms over due to the security reasons. Dynamism stands the base of the current scenario and as a result of that anything that remains stagnant will be surpassed by others. It’s time the people start taking their
financial decisions by evaluating all the options.
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CHAPTER 3 ORGANISATIONS UNDER STUDY 3.1 INTRODUCTION Electronic payment system is a mode of payments over an electronic network such as the internet. In other words we can say that e-payment is a method in which a person can make Online Payments for his purchase of goods and services without physical transfer of cash and cheques, irrespective of time and location. Electronic payment system is the basis of on-line payments and on-line payment system development is a higher form of electronic payments. It makes electronic payments at any time through the internet directly to manage the e-business environment. In real world we have two distinct types of payment systems: (1) Internet – Based payment system There are four models of Internet-Based payment system: 1. e-Cash 2. Credit Card 3. Debit Card 4. Smart Card (2) Electronic Transaction-Based payment system 1. Secure Electronic Transaction 2. Cyber Cash 3. Net Bill 4. First Virtual Holdings
1 .E-CASH E-Cash is purely software based; anonymous, untraceable, online token payment system, available on UNIX, Windows as well as Macintosh platform. When the tokens purchased by customers, the e-Cash software stores the digital money on t he customer’s personal computer which is under signed by the bank. The users can easily spend digital money at any shop accepting e-Cash without giving credit card details to the shopkeeper
2. CREDIT CARD A credit card is a plastic card issued to the users to lent money for purchase of goods and services. The customer type the card number, expiry date and billing address on the order form and the vendor can verify the details and be confident of payment. The credit card payment on the online network can be categorized into three types: (a) Payment using plain credit card details (b) Payment using encrypted credit card details ( 17 )
(c) Payment using third party verification.
3. Debit Card A Debit card is a banking card enhanced with Automated Teller Machine and point of sale features so that it can be used at merchant locations. A Debit card is linked to an individual’s bank account, allowing funds to be withdrawn at ATM and point of sale without writing a cheque. A Debit card holder pay directly through bank for his purchases. It replaces physical cash and cheque. In debit card system customers deposit in advance into the bank and withdraw at the time of purchase. There are two types of debit card which are used in real world: (a) Online debit card (b) Offline debit card
4. Smart Card A smart card was first produced in 1977 by Motorola. It is a thin, credit card sized piece of plastic which contains a half-inch-square area that serves as the card’s input-output system. A smart card contains a programmable chip, a combination of RAM and ROM storage and can be refilled by connecting to the bank. It is known as smart card because the ability of chip to store the information in its memory makes the card smart.
5. Secure Electronic Transaction (SET) Secure electronic transaction is a system of online payments for ensuring the security of financial transactions on the internet. The SET specification is an open, technical standard for commerce, developed by VISA and master card. It facilitates secure payment card transactions over the internet. Digital certificate create a trust change throughout the transactions, verifying cardholders and merchant validity.
6. Cyber Cash Cyber cash is a web based service that automatically processes and verifies customer’s credit card information then debiting the customer’s account and crediting the merchant’s account electronically. Cyber cash servers act as a gateway between the merchant on the internet and bank’s secure financial network. For the purpose of security in electronic payments system this system use the digital signatures.
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The Top 20 Digital Wallets in India
1) Airtel Money: With the Airtel Money app, users can easily recharge prepaid accounts or pay postpaid bills. You can also shop online if your digital wallet has c ash loaded in it. It’s also extremely safe as every transaction or payment you make requires a secret 4-digit mPin.
2) Citi MasterPass: Citi MasterPass, a free digital wallet, helps make checking out while online shopping a speedier process. Once you’ve stored all your payment and sh ipping details in your Citi Wallet, simply click on the MasterPass button and it will take care of the rest.
3) Citrus Pay : Citrus Pay, one of the top e-wallets in India, it offers a Citrus wallet for customers as well as payment solutions to businesses. With a strong base of 800 million customers, it has definitely earned its spot as one of the best mobile wallets in India.
4) Ezetap: Ezetap, a Bangalore based digital payment solution founded in 2011, offers business owners solutions to accept card payments via electronic devices. It also sends customers e-receipts through an SMS or email.
5) Freecharge: Freecharge, one of the most famous names right now when it comes to digital payment in India, has been known to target the youth in all their promotions. With equivalent amount of coupons given for every recharge you make, it’s a great option to s ave while paying your bills online.
6) HDFC PayZapp: HDFC PayZapp, making digital payment in India simplified with one click payments, is one of the top online wallets in India. Users can easily compare flight and hotel tickets and even buy music or pay bills with the app. Simple connect your debit/credit card once and forget to worry about making payments.
7) ICICI Pockets: While you might find a Pocket card redundant, considering you’re opting for an e -wallet app to avoid using a card, they do have a pretty neat wallet app. It’s VISA powered and can be used on any Indian website, or to transfer money to email ids, WhatsApp contacts, and also just tap and pay your friends easily.
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8) JioMoney: JioMoney, launched recently in 2016 by Jio, is a digital payment app. With JioMoney, one can receive great discounts and offers. Users can also bookmark their frequently visited retailers so shopping can be made quicker than usual.
9) Juspay: JusPay Safe is a payment browser with over 650+ transactions in a day. They offer a browser with which users can make payments quickly via cards with 2 clicks.
10) LIME: LIME, launched by AXIS in 2015, was the first mobile app in India to integrate wallets, shopping, payments, and banking. Apart from the usual features like making payments, they also let you analyze what you spend. With a cool feature that rounds up all your change and invest in a deposit and a shared wallet tool, they’ve definitely earned their spot in the top list of mobile wallets in India.
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11) Mobikwik : Mobikwik is a Gurgaon based e-wallet payment system in India that helps its users store their money. Founded in 2009 by Bipin Singh and Upasana Taku, this digital wallet enables users to recharge, pay bills, and make third-party purchases with one tap.
12) MomoeXpress: MomoeXpress, a Bangalore based digital wallet in India, claims to have the fastest checkout system. Though they’re only available in Bangalore, they have a wide range of solutions they offer to residents on the city. From paying for your rickshaw ride to salons & spas, there are over 3000 outlets available at your disposal.
13) MoneyonMobile: MoneyOnMobile, authorized by the Reserve Bank of India, enables users to buy goods, products, and services from r egistered merchants. It’s a multilingual app that reaches remote areas of the country to millions of users making online payments available to a wide population.
14) Mswipe: Mswipe, the first mobile point-of-sales solution in India was founded in 2012. They don’t exactly offer an app, but they do provide a machine that can be attached to your mobile device to accept card payments. This may not be a digital wallet app but it does support going cashless.
15) Ola Money: Ola Money, launched in 2015, is a digital wallet in India offered b y Ola. While it’s majorly being used to make payments for Ola cab rides, making cashless travelling a dream come true, it can also be used to buy groceries or flight tickets and much more.
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16) Oxigen: Oxigen, a FinTech company founded in July 2004, is one of the major providers of digital payment in India. Along with making online purchases and paying bills, you can also send gift cards to your dear ones.
17) PayMate: PayMate, founded in 2006 by Ajay Adiseshann, launched Pay POS in 2012, an app for small business owners to receive payments conveniently via debit cards and credit cards and also process electronic transactions.
18) Paytm: Paytm, launched in 2010, is currently the largest mobile wallet app in India. With payments via Paytm being accepted almost everywhere, it’s hard not to s imply switch to it completely. From paying mobile bills to buying movie tickets, there’s almost nothing you can’t do with Paytm.
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19) PayUmoney: PayUmoney, a part of PayU India, is a free payment gateway solution for merchants to collect payments from customers via debit/credit cards or net banking, and more. They also offer SMS and email invoicing for merchants that do not have a website.
20) State Bank Buddy: State Bank Buddy, a product of State Bank of India, is an online wallet in India that’s available in 13 languages. Users (non SBI account holders too) can send money via Facebook, or to other bank accounts, book hotels or movie tickets and much more! If you’re looking to get on board the cashless India movement, these are s ome of the best digital wallets in India you must opt for.
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CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 4.1 INTRODUCTION Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the goal of discovering useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different businesses, science, and social science domains.
4.2 ANALYSIS OF DATA COLLECTED
1. GENDER
MALE 45% FEMALE 55%
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2. AGE
ABOVE 45 YEARS 20%
BELOW 35 YEARS 50% 35-45 YEARS 30%
3. MARTIAL STATUS
OTHERS 7%
UNMARRIED 23%
MARRIED 70%
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4. EDUCATIONAL STATUS
OTHERS 7%
ILLITERATE 13%
SECONDARY 27% GRADUATE 53%
5. TRANSACTION PER MONTH
above 50,000 23%
10,000-50,000 17%
less than10,000 60%
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E WALLET USEFUL MODE OF PAYEMENT
Series 1 18 16 16 14 14 12 10 8
Series 1
6 4 2 0
0
NEUTRAL
DISAGREE
0 STRONGLY AGREE
AGREE
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STRONGLY DISAGREE
E WALLET MAKES PAYEMENT EASIER
Series 1 16 14 14 12
13
10 8 Series 1
6 4 2 0
2
1
NEUTRAL
DISAGREE
STRONGLY DISAGREE
0 STRONGLY AGREE
AGREE
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E WALLET MAKES INFORMATION CONFIDENTIAL
Series 1 16 14
15
12 10 8 8
Series 1
6 4
5
2 2
0
DISAGREE
STRONGLY DISAGREE
0 STRONGLY AGREE
AGREE
NEUTRAL
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USAGE OF E WALLET IS WISE
Series 1 14 12 12
12
10 8 6
Series 1
4 4 2 2
0
DISAGREE
STRONGLY DISAGREE
0 STRONGLY AGREE
AGREE
NEUTRAL
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RESPONSE TO CUSTOMER QUARIES
Series 1 14 12 12
12
10 8 6
Series 1
4 4 2 2
0
DISAGREE
STRONGLY DISAGREE
0 STRONGLY AGREE
AGREE
NEUTRAL
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E WALLET FOLLOWS SOCIAL RESPONSIBILITY
Series 1 18 16 16
14 12 10 8
9
Series 1
6 4 4
2
1 0 STRONGLY DISAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
TABLE
DESCRIPTION
AVERAGE STANDARD DEVIATION
USEFULLNESS CREDIBILITY
4.32 3.02
0.35 0.30
RESPONSIVENESS
4.09
0.36
COMPLIANCE
4.25
0.366
ASSURANCE
4.31
0.4
INTENSION TO USE
4.13
0.65
INFERNCE DRAWN
AS THE ABOVE TABLE SHOWS US THE MEAN AND THE STANDARD DEVIATION OF THE RESPONSES AS A SMALL S.D MEANS A HIGH DEGREE OF UNIFORMITY OF THE OBSERVATION AS WELL AS HOMOGENETY OF THE SERIES. ( 32 )
TABLE 2: On the basis of demographic groups DESCRIPTION GENDER Male Female
MARIATIAL STATUS SINGLE MARRIED OTHERS AGE Below 35 35-45 Above45 EDUCATION Illiterate Secondary Graduation Others TRANSCATIONS Below10,000 10,000-50,000 Above 50,000
NUMBER
PERCENTAGE%
13 17
45 55
7 21 2
23 70 7
15 9 6
50 30 20
4 8 16 2
11 27 55 7
18 5 7
60 17 23
INFERENCE DRAWN
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Ha0: There is relationship between usefulness, credibility, compliance, and assurance. Ha1: There is no relationship between usefulness, credibility, compliance, and assurance
TABLE 3: Correlation Matrix USEFULNESS
CREDIBILITY
RESPONSIVNESS
Compliance
1 -0.049629831 0.245772723 0.052166184
1 -0.070920148 0.042934313
1 0.155157767
1
Assurance
-0.173618045
-0.254605601
-0.09399833
0.290261681
Usefulness Credibility Responsiveness
COMPLIANCE
ASSURANCE
Exactly – 1. A perfect downhill (negative) linear relationship
– 0.70. A strong downhill (negative) linear relationship – 0.50. A moderate downhill (negative) relationship – 0.30. A weak downhill (negative) linear relationship 0. No linear relationship +0.30. A weak uphill (positive) linear relationship +0.50. A moderate uphill (positive) relationship +0.70. A strong uphill (positive) linear relationship Exactly +1. A perfect uphill (positive) linear relationship
THERE IS NO SIGNIFICANT RELATIONSHIP BETWEEN THESE FACTORS
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1
H b0: There is no effect of assurance, usefulness, and credibility on intentions of usage of e wallets. H b1: There is effect of assurance, usefulness, and credibility on intentions of usage of e wallets.
TABLE 4 : Regression of usefulness , credibility , responsiveness , compliance ,& assurance on intension of usage of E-WALLETS SUMMARY OUTPUT Regression Statistics 0.046603 Multiple R 495 0.002171 R Square 886 Adjusted R 0.033464 Square 833 Standard 0.166314 Error 147 Observation s 30
ANOVA df
Residual
28
Total
29
SS 0.001685 767 0.774491 073 0.776176 841
Intercept
Coefficie nts 3.952814 697
Standard Error 0.201027 149
t Stat 19.6630 8883
P-value 6.33115 E-18
X Variable 1
0.011868 948
0.048077 58
0.24687 075
0.80680 9344
Regression
1
MS 0.00168 5767 0.02766 0395
F 0.06094 5167
INFERNCE DRAWN
< F table
AS Fcal
Hypothesis is accepted.
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Significa nce F 0.806809 344
Lower 95% 3.541029 254 0.086613 508
Upper 95% 4.36460 014
0.11035 1404
Lower 95.0% 3.541029 254 0.086613 508
Upper 95.0% 4.36460 014
0.11035 1404
CHAPTER 5
FINDINGS AND CONCLUSION
Findings
From the study it was found that 45% of the respondents were male and other 55% were females. From the study it was found that there were 50% respondents below the age of 35 yrs. There were 30% respondents between the age of 35-45yrs. And only 20% respondents were above 45yrs. From the study it was founded that 70% of respondents were married and 23% respondents were unmarried and 7% were others. Security and safety of funds is the most changeling issues for the users. It was found the digital wallet can be an alternative choice for online payments.
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Conclusions
Digital wallets are quickly becoming mainstream mode of online payment. Shoppers are adopting digital wallets at an incredibly rapid pace, largely due to convenience and ease of use. Tech-savvy shoppers are increasingly demanding seamless, Omni-channel retail experiences and looking for solution that deliver this. There’s no question 2017 will be a pivotal year as digital wallets gain more widespread acceptance.
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ANNEXURES REFERENCES
http://www.gallup.com/businessjournal/183920/customers-aren-adoptingdigital-wallets.aspx http://www.gallup.com/businessjournal/183920/customer s-arenadopting-digital-wallets.aspx http://www.mobilecommercedaily.com/2016-is-mobile- wallets-year-with20pc-usage-increase-since-2014-citi http://www.researchandmarkets.com/reports/3022303/ http://allusefulinfo.com/pros-cons-of-digital-wallets/ http://gadgets.ndtv.com/apps/features/seven-mobile- wallets-every-indianshould-know-about-754812 http://www.adweek.com/socialtimes/report-digitalwallet-usageincreased-20-from-2014-to-2015/633290
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SURVEY QUESTIONNAIRE
Survey on E- Wallet Payments Dear Respondent, As part of my project, I am conducting a study that will shape the payment system offered by mobile wallet sites. Like a typical physical wallets, in a mobile wallet we can keep our money, store our net banking / debit / credit card details. PART 1 GENERAL INFORMATION:
1. Name of the customer................................................................................... 2. Age:
below 35 years
35-45 years
3. Gender:
male
female
4. Marital status:
married
5. Educational status: illiterate 6. Transition per month:
above 45 years.
unmarried
separated
secondary
up to 10,000
graduate
10 – 50 thous
others above 50,000
PART 2: SPECIFIC INFORMATION:
This part attempt to seek information on the degree of your satisfaction level with 5 options 1, 2,3,4,5. Where, 1-strongly disagree 2-disagree 3-indifferent 4-agree 5-strongly agree
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SNO. Statement a. USEFULNESS A1 Mobile wallet services are a useful mode of payment A2 It is easy to become skilful at using mobile wallet services A3 By using mobile wallet services my choices as a consumer is improved A4 Mobile wallet services allow for a faster usage of mobile application A5 Using mobile wallets services makes the handling of payments easier A6 It is easy to interact with mobile wallet services app A7 The interaction with mobile wallet services is clear and understandable b. Credibility B1 When using mobile wallet, I believe my information is kept confidential B2 Using online payment/banking/wallet services is cost burden to me B3 The online wallet set up charges me lot of cost to use mobile payment/banking B4 I believe my transactions are secured B5 The cost of using online wallet is higher than using other payment /banking channel B6 The internet charges are high when using online wallet c. RESPONSIVENESS C1 I believe the transactional banking environment is safe C2 Using mobile wallet services is wise C3 Employees of bank are always willing to help customers in understanding e-wallets C4 customer queries are responded quickly
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1
2 3 4 5
1 1
2 3 4 5 2 3 4 5
1
2 3 4 5
1
2 3 4 5
1
2 3 4 5
1 1
2 3 4 5 2 3 4 5
1
2 3 4 5
1
2 3 4 5
1
2 3 4 5
1 1
2 3 4 5 2 3 4 5
1
2 3 4 5
1 1 1
2 3 4 5 2 3 4 5 2 3 4 5
1
2 3 4 5
C5 C6
provides efficient counter services You are satisfied with the responsiveness of the service d. COMPLIANCE D1 E wallets follow its policies D2 One app is competent than any other e wallet app D3 e-wallets follows social responsibility D4 Sequence of instructions are used D5 You follow the rules of mobile transaction D6 E wallets is fully compliance e. ASSURANCE E1 Would you want to continue using e-wallet E2 Do you think e-wallet will be widely available in India E3 Does e-wallet promotes cashless payment to the next level E4 Banks provide special advice on e wallets E5 E-wallet services are fully assured
1 1
2 3 4 5 2 3 4 5
1 1 1 1 1 1
2 2 2 2 2 2
1 1 1
2 3 4 5 2 3 4 5 2 3 4 5
1 1
2 3 4 5 2 3 4 5
1
2 3 4 5
1
2 3 4 5
1 1
2 3 4 5 2 3 4 5
1 1
2 3 4 5 2 3 4 5
1
2 3 4 5
1
2 3 4 5
3 3 3 3 3 3
4 4 4 4 4 4
5 5 5 5 5 5
f. Intention to use E1 E2
I am willing to use mobile wallet services in the near future I intend to use mobile wallet services when the opportunity arises
g. Future scope G1 G2
G3 G4 G5 G6
Using mobile wallet services is interesting I think that using online wallets can save the transaction handling fees in performing banking transaction Using mobile wallet services is beneficial I think that using online wallets can save my time in performing banking transactions I think that using online wallets can offer me a wide range of banking services and payment option Using mobile wallet service is a good idea
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