INFOKARA RESEARCH ISSN NO: 1021-9056
A CRITICAL EVALUATION OF MOBILE WALLET IN CHENNAI CITY
Sharmila K Research scholar University of Madras Assistant Professor, Department of Corporate Secretaryship Anna Adarsh College for Women, Chennai Email ID:[email protected]
Volume 8 Issue 11 2019 1065 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
A CRITICAL EVALUATION OF MOBILE WALLET IN CHENNAI CITY
Sharmila K* Research scholar University of Madras Assistant Professor, Department of Corporate Secretaryship Anna Adarsh College for Women, Chennai
Abstract
In this fast pace of life, people want everything to be done quickly and efficiently. This attitude of people sets a wave around technological fintech companies which roots to the development of an innovative product ‘mobile wallet’ in the payment space around the world. This has also reflected in the Indian retail payment industry. The emergence of smartphone, internet connectivity, technological advancement and governments’ mission to become cashless economy sets the wheel for the growth of mobile wallets. Mobile wallet was well received by tech savvy people and accepted by the merchants and ecommerce payment platforms especially in urban areas. Even though it provides variety of benefit to the users, it also suffers from some practical issues. In this present study, the researcher aims to evaluate the selected problems faced by the mobile wallet users. The data was collected from 60 mobile wallet users residing in Chennai city through questionnaire survey. The data was analysed using t-test, ANOVA and correlation.
Keyword: mobile wallet, practical issues, mobile technology
INTRODUCTION
Mobile wallet/m-wallet is a medium through which money is stored and transferred electronically. It is the first of its kind in India, where payments can be easily done by scanning the quick response (QR) code or by tapping the smartphone in the PoS (Point of sale) machine or through mobile phone number. It has made the payment easier with its one tap and quick processing feature all at one go. The money can be loaded to the m-wallet by directly linking bank account or through credit/debit card and net banking or through service providers cash centres.
In India, mobile wallet service is offered only after getting the license from the RBI. It is provided by fintech companies, banks, telecom companies, ecommerce companies, mobile
Volume 8 Issue 11 2019 1066 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
handset manufacturers and cab companies. At present, there are 15 licensed mobile wallet service providers under PPI instruments. Some of the m-wallet have their own UPI to transfer fund from one person to another person having their bank A/c linked with their mobile phone number whereas other use their banks UPI which they entered into the contract.
KEY PLAYERS
Key players in Indian mobile wallet market are Paytm payment bank Ltd, One Mobikwik systems Pvt Ltd; Oxigen services (India) Pvt Ltd, Freecharge Payment Technologies, Phonepe Pvt Ltd, Vodafone m-pesa Ltd, Airtel Payments Bank Ltd, Amazon Pay (India) Pvt Ltd, Pay U Payment Pvt Ltd and My Mobile Payment Ltd.
TYPES OF MOBILE WALLET
In India, there are three types of wallets offered by the service provider as per the directives of RBI in master circular policy guidelines of Issuance and operation of prepaid payment instruments. They are
Open wallet
It is used to purchase goods and services including financial services and also allowed to withdraw cash from ATM and business correspondent. It can be launched only by the bank. For e.g. ICICI pockets, SBI buddy.
Closed wallet
It is used to purchase goods and services only from the issuing entity. e.g. Ola money
Semi closed wallet
It is used to purchase goods and services from the merchants listed with the issuing entity. e.g. Paytm, Google pay etc.
SERVICES OFFERED BY THE MOBILE WALLET
Volume 8 Issue 11 2019 1067 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
Most of the mobile wallets that offer services in India are semi-closed wallets. They offer services ranging from online recharge to wealth management. They are mobile/DTH recharge, paying utility bill, fund transfer, pay bills, pay insurance premium, pay school and college fees, book train, bus and flight tickets, book hotel rooms, purchase movie/theme park/ concert park tickets and purchase from online and offline merchants.
MOBILE WALLET LANDSCAPE IN INDIA
Mobile wallet has transformed the functions of physical wallet into digital form by making payments on digital platforms. The origin of mobile wallet can be traced in India during 2004, when Oxigen wallet launched its presence on July. Initially it was offered in website form and provides online recharge services.But today, they have become extremely advanced and offer a range of services which covers almost everything that involves financial transaction. At first, it was used only by the techies, later the Government initiative of demonetisation and cashless economy, Aadhaar unique identification, JAM trinity accelerated the growth of m-wallet. In 2016, mobile wallet gained momentum with Demonetisation and is now surging ahead by leap and bounds over the years. At the end of 2017, RBI has mandated all the mobile wallets operating in India to adhere to KYC norms. It is a well-receivable policy but the time limit set by the RBI has created a tremor in the Industry. At present (2019), mobile wallet has grown by 36% in volume and 33% in value compared to 2018. Within the short span, it has reached a commendable height, both proximity and non-proximity payments have witnessed soaring growth, making it one of the fastest growth marketin the world. The market experts are anticipating that m-wallet will reach tier II and Tier III cities within 2023.
REVIEW OF LITERATURE
Ngoc Doan (2014) carried out a research tounderstandtheconsumeradoptionstatusof mobilewalletwithinFinland and also tomeasuresthemarketsituation ofmobileconsumerstoward mobilewallet.Researcher viaonlinesurveycollected data from 91 respondents residinginFinland through Facebook messages.The research was based on Mallat’s research; it is evident from the findings thattheadoptionofmobilewalletamongconsumers inFinlandisonlyatthe beginningstagesoftheInnovation-Decision Processand consumer express positive attitudes towards mobile wallet. Thus there is a market for mobile wallet in Finland.
Volume 8 Issue 11 2019 1068 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
Sanaz Zarrin Kafsh (2015)made an attempt to examine the factors that influence consumers’ decision to adopt mobile wallets and developed a new technology acceptance model by combining TAM (Technology Acceptance Model) with IDT (Diffusion of Innovations Model). The researcher collected data from 530 respondents in Canada. The study revealed that extended model of TAM helps the industry players to build public demand and increase usage of mobile wallet. Higher level of mobile wallet usefulness will increase individual’s intention to use the system. Perceived security and Compatibility of mobile wallet system is one of the most concerned factors of mobile wallet adoption among consumers in Canada. Ramesh Sardar (2016)has investigated the mobile wallet preference in Jalgaon City and analysed the impact of demographic variables on the usage of mobile wallets. Primary data was collected through structured questionnaire from 60 respondents. The data collected were further analysed by using chi-square and t-test. The study also attempts to examine the factors influencing and refraining the user from using the mobile wallet.The outcome of the study is that the respondents use mobile wallet to transfer money. It was also observed that instant payment is an influencing factor for opting mobile wallet.Further the study revealed that there is no significant difference between age and genderof the respondents with the overall usage of mobile wallet.
Mansi Bosamia (2019)in his study developed a mobile wallet threat model. He identified nine threats to m-wallet application namely user, mobile device, mobile wallet application, merchant, payment service provider, acquirer, payment network provider, card issuer and payment service provider threats.
RESEARCH GAP
It is observed from literature review, several studies was undertaken on the customer perception, user pattern and business model of mobile wallet. But few researches were done to study the problem faced by the actual users. So the researcher felt the need to address this issue in the present study.
OBJECTIVES OF THE STUDY
To understand the concept of mobile wallet system in India.
Volume 8 Issue 11 2019 1069 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
To identify the problems faced by mobile wallet users. To evaluate the relationship between the demographic variables and factors of problem faced by mobile wallet users.
HYPOTHESES
1. There is no significant difference between gender with respect to factors of problem faced by mobile wallet users. 2. There is no significant difference between marital status with respect to factors of problem faced by mobile wallet users. 3. There is no significant difference among age group with respect to factors of problem faced by mobile wallet users. 4. There is no significant difference among family size with respect to factors of problem faced by mobile wallet users. 5. There is no significant difference among educational qualification with respect to factors of problem faced by mobile wallet users.
RESEARCH METHODOLOGY
Data collection and sample
In this study, both primary and secondary data was used to collect data regarding problems faced by the mobile wallet users. Secondary data was collected from websites and various journals. Primary data was collected from mobile wallet users residing in Chennai city. The researcher identified these problems from the reviews given by the mobile wallet users in play store. Out of 75 questionnaires distributed, researcher was able to collect only 60 completed questionnaires.
Data analysis
Collected data were analysed with the help of software package IBM SPSS statistics 25. Statistical techniques like descriptive analysis, t-test, ANOVA and correlation was used.
Volume 8 Issue 11 2019 1070 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
ANALYSIS AND INTREPRETATION
Table 1 Frequency Distribution of demographic variables of mobile wallet users
Demographic profile Age group Frequency Percent Below 30 30 50.0 30-40 17 28.3 Age group Above 40 13 21.7 Total 60 100.0 Male 21 35.0 Gender Female 39 65.0 Total 60 100.0 Single 42 70.0 Marital Status Married 18 30.0 Total 60 100.0 3 26 43.3 4 21 35.0 Family size 5 9 15.0 6 4 6.7 Total 60 100.0 Upto high school 10 16.7 Educational Under graduate 35 58.3 Qualification Post Graduate 15 25.0 Total 60 100.0
From the above table, it is observed that 50% of the respondents are below 30 years of age, followed by 28.3 percent in 30-40 age group and remaining 21.7 percentare more than 40 years of age. It is understood that 65 percent of the respondents are female whereas 35 percent of the respondents are male. It is observed that majority of the respondents (70%) are single and 30 percent of the respondents are married.The table reveals that 43.3 % of the mobile wallet users belong to family having 3 members, 35% of the respondents belong to the family having 4 members, 15% of the respondents belong to the family having 5 members and 6.7% of the respondents belong to the family having more than 6 members.Majority of the respondents (58.3) are undergraduate, followed by 25percent are post graduate and remaining 16.7 percent are completed high school.
To evaluate the relationship between the demographic variables and factors of problem faced by mobile wallet users.
An effort has been made by the researcher using t-test and ANOVA to evaluate the influence of demographic variables with factors of problem faced by the m-wallet users.
Volume 8 Issue 11 2019 1071 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
H0: There is no significant difference between male and female with respect to factors of problems faced by mobile wallet users.
Table 2 t test for significant difference between male and female with respect to factors of problems faced by mobile wallet users
Gender Factors of problem Male Female t value P value Mean SD Mean SD Network 17.57 1.78 16.74 2.01 1.534 0.130 NFC/QR code 13.09 1.70 12.02 1.65 2.373 0.021* Customer care support 26.04 3.92 24.05 3.04 2.188 0.033* Offer/ discount/ scratch card 24.66 2.61 24.08 2.82 0.792 0.432 Refund 21.38 1.91 20.26 2.51 1.790 0.079
Since P value is less than 0.05, null hypothesis is rejected at 5% level of significance. Hence there is significant difference between male and female mobile wallet users with regard to NFC/QR code and customer care support. Since P value is greater than 0.05, the null hypothesis is accepted at 5% level of significance. This is an indication that irrespective of gender the respondentsface problems with regard to network, Offer/discount/scratch card and refund.Thus it can be understood that men are having more problems with the NFC/QR code and dissatisfied customer care support than women.
H0: There is no significant difference between single and married with respect to factors of problem faced by mobile wallet users.
Table 3 t test for significant difference between single and married with respect to factors of problem faced by mobile wallet user
Marital Status Factors of problem t Single Married P value value Mean SD Mean SD Network 17.38 2.06 16.22 1.70 2.098 0.040* NFC/QR code 12.24 1.69 12.78 1.80 1.110 0.272 Customer care support 24.57 3.46 25. 17 3.57 .604 0.548 Offer/ discount/ scratch guard 24.93 2.63 22.78 2.44 2.960 0.004** Reward 20.64 2.23 20.67 2.72 .035 0.972
Since P value is less than 0.01, null hypothesis is rejected at 1% level of significance. Hence there is significant difference between single and married mobile wallet users with regard to Offer/discount/scratch card. Since P value is less than 0.05, the null hypothesis is
Volume 8 Issue 11 2019 1072 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
rejected at 5% level;there is significant difference between single and married with regard to network problem. Since P value is greater than 0.05, the null hypothesis is accepted at 5% level of significance. It is an indication that marital status has no impact on NFC/QR code, customer care support and reward problem. Thus it is concluded that unmarried are having more problems with regard to network problem and dissatisfied with the offer/discount/scratch guard provided by the m-wallet service providers.
H0: There is no significant difference between age group with respect to factors of problem faced by mobile wallet users.
Table 6 ANOVA test for significant difference among age group with respect to factors of problem faced by mobile wallet user
Age Group Factors of problem F value P value Below 30 30-40 Above 40 17.03 16.18 18.15 Network 3.888 .026* (1.96) (1.81) (1.99) 12.43 12.41 12.31 NFC/QR code .024 .977 (1.83) (1.87) (1.37) 24.70 25.00 24.54 Customer care support .069 .934 (3.97) (3.24) (2.70) 24.90 24.00 23.23 Offer/ discount/scratch guard 1.857 .165 (2.75) (3.20) (1.69) 20.63 20.12 20.65 Reward 1.062 .353 (2.37) (2.78) (1.61)
Since P value is less than 0.05, null hypothesis is rejected at 5% level with regard to the factor of network. Hence there is significant difference among age group with regard to network problem. Since p value is greater than 0.05, null hypothesis is accepted at 5% level of significance. It indicates that age is not an important variable in evaluating the problem faced by the m-wallet users with regard to factors of NFC/QR code, Customer care support, Offer/ discount/scratch guard and Reward problem faced by mobile wallet user. It is evident from the study, respondents above 40 years of age having problem with connecting mobile wallet while making payment.
Volume 8 Issue 11 2019 1073 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
H0: There is no significant difference between family sizewith respectto factors of problem faced by mobile wallet users.
Table 6 ANOVA test for significant difference among family size with respect to factors of problem faced by mobile wallet user
Size of the family Factors of problem F value P value 3 4 5 6 16.23 17.95 17.33 16.75 Network 3.254 .028* (2.03) (1.83) (1.66) (2.06) 12.04 12.57 12.89 12.75 NFC/ QR code .732 .537 (1.61) (1.78) (1.45) (2.87) Customer care support 24.04 24.81 25.56 27.25 1.230 .308 (3.55) (3.26) (3.94) (2.36) Offer/ discount/scratch 23.85 25.62 23.78 21.25 4.197 .009** guard (2.46) (2.69) (2.33) (2.88) 19.50 21.90 20.56 21.75 Refund 5.251 .003** (2.47) (2.05) (1.42) (1.26)
Since P value is less than 0.01, null hypothesis is rejected at 1% level of significance.There is significant difference among family size with regard factors of offer/discount/scratch guard and refund. Since P value is less than 0.05, null hypothesis is rejected at 5% level. There is significant difference among family size with regard factors of network. Since p value is greater than 0.05, null hypothesis is accepted at 5% level of significance. It indicates that irrespective of number of members in a family, faces problems with regard to factors of NFC/QR code and customer care support. It is observed that family with 4 members are having difficulty in connecting mobile wallet, dissatisfied with the offers and refund provided by the m-wallet service provider.
H0: There is no significant difference between educational qualificationwith respect to factors of problem faced by mobile wallet users.
Table 6 ANOVA test for significant difference among educational qualification with respect to factors of problem faced by mobile wallet user
Educational Qualification F P Factors of problem Upto high Under Post graduate school graduate value value 16.46 15.91 16.31 Network 0.894 0.444 (2.90) (3.00) (3.32) 10.70 9.76 9.48 NFC/QR code 3.776 0.011* (2.95) (2.55) (3.03) 22.94 21.49 21.63 Customer care support 1.794 0.148 (5.23) (4.75) (5.70) 23.03 21.74 20.90 Offer/discount/scratch card 3.082 0.027* (5.40) (4.74) (5.93) 16.80 16.64 16.70 Refund 0.025 0.995 (5.88) (4.81) (5.17)
Volume 8 Issue 11 2019 1074 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
Since P value is less than 0.05, null hypothesis is rejected at 5% level of significance. There is significant difference among educational qualification with regard to factors of NFC/QR code and offer provided by the service providers. Since P value is greater than 0.05, null hypothesis is accepted at 5% level of significance. This is an indication that irrespective of educational qualification, the users face problem with regard to factors of network, customer care support and refund. Hence it is concluded that respondents with high school education having difficulty in operating NFC/QR code technology and unable to avail the offer provided by the service provider.
Correlation analysis on factors of problems faced by mobile wallet users
Network NFC Custom Offer Reward er Network Pearson Correlation 1 .366** .410** .498** .643** Sig. (2-tailed) .000 .000 .000 .000 Pearson Correlation 1 .688** .179 .445** NFC/ QR code Sig. (2-tailed) .000 .000 .000 Customer care Pearson Correlation 1 .217 .416** support Sig. (2-tailed) .000 .000 Offer/discount/ Pearson Correlation 1 .368** scratch card Sig. (2-tailed) .000 Reward Pearson Correlation 1
The above table indicates that there is a positive correlationwithin problems faced by the mobile wallet users and they are interrelated with each other.
Findings of the study
Descriptive analysis reveals that 50 percent respondents are below 30 years of age since they want to make payment on the go. Majority are of women in using m-wallet due to ease and safety it provides in making payment. It is used highly by unmarried respondents who spend frequently for ordering food, booking travel and movie tickets. M-wallets are highly preferred by small nuclear family with 3 members since they have more financial freedom to spend lavishly. It is used well by undergraduate respondents.
It is observed from the t-test that men are dissatisfied with the NFC/QR recognition technology and customer care support than women.Similarly unmarried respondents are having difficulty in network connectivity and availing offer/discount offered by the service providers.
Volume 8 Issue 11 2019 1075 http://infokara.com/ INFOKARA RESEARCH ISSN NO: 1021-9056
From the ANOVA analysis it is observed that respondents above 40 years of age having difficulty in network connectivity. Similarly family with 4 members are having difficulty in connecting, getting offers and refund while using mobile wallet. Further respondents having high school educate had difficulty in operating NFC/QR code technology and unable to avail the offer provided by the service provider.
Correlation analysis indicates that problems faced by the mobile wallet user are interconnected with each other.
Conclusion
Smartphone has changed the way people make payment, now everything is available with a single click. The emergence of mobile technology, affordable smartphone and internet connectivity and favourable political climate provides a growth opportunity to the m-wallet service provider. But it suffers from lack of good infrastructure which has to be taken into consideration in order to develop a fool proof m-wallet. The service provider should focus on providing frictionless and secured payment solution instead of luring the users with promotion offers, which may not hold true in the long run.
Reference
1. Mansi Prakashbhai Bosamia, Mobile Wallet Payments Recent Potential Threats and Vulnerabilities with its possible security measure, International journal of computer sciences and engineering,2019, 7(1), pp 810-817 2. Ngoc Doan, Consumer adoption in mobile wallet: a study of consumers in Finland, A Bachelor thesis, 2014, TurkuUniversity of Applied Sciences, Finland. 3. Ramesh Sardar,Preference towards mobile wallets among urban population of Jalgaon city,JOM, 2016, 3(2), pp 1-11 4. Zarrinsanazkafsh, Developing consumer adoption model on mobile wallet in Canada, A Master of science thesis,2015,University of Uottawa, Canada 5. www.indialends.com 6. www.pmjandhanyojana.co.in 7. www.businesswire.com 8. www.economictimes.com 9. www.techsciresearch.com 10. www.rbi.org 11. www.prnewswire.com
Volume 8 Issue 11 2019 1076 http://infokara.com/