Mobile Wallet Usage, User Satisfaction and Continuous Usage

ADALYA JOURNALVolome ISSN NO: 1301-2746

MOBILE WALLET USAGE, USER SATISFACTION AND CONTINUOUS USAGE.

S.TAMIZHVANI RESEARCH SCHOLAR Department of Commerce ETHIRAJ COLLEGE FOR WOMEN [email protected]

Dr. A.S. SARANYA ASSOCIATE PROFESSOR Department of Commerce ETHIRAJ COLLEGE FOR WOMEN [email protected]

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MOBILE WALLET USAGE, USER SATISFACTION AND CONTINUOUS USAGE.

S.TAMIZHVANI#1, Dr. A.S. SARANYA*2 RESEARCH SCHOLAR#1, ASSOCIATE PROFESSOR*2 DEPARTMENT OF COMMERCE ETHIRAJ COLLEGE FOR WOMEN [email protected] [email protected] ABSTRACT Introduction - In India, Mobile payment is witnessing a soaring growth with increased Smartphone and internet usage. Currently mobile wallet payment forms a modest part of the overall digital payment industry in India.

Purpose – The main aim of this study is to examine the factors of Mobile wallet usage and to analyse the nature and impact of relationship among the constructs of the model.

Design/methodology/approach– The sample size comprised of 251 respondents selected using Purposive Sampling technique. A standardized questionnaire was used to collect primary data which was analysed using percentages, weighted mean, correlation, multiple regressions and Sobel test.

Research findings – The factor which has got the highest mean score is Performance Expectancy, followed by Effort Expectancy, Information Quality and Hedonic Motivation. There is significant positive relationship between Information Quality and Price Value with User satisfaction and significant positive relationship also exists between User Satisfaction and Continuous Usage. The factor ‘Hedonic motivation’ has got the highest impact on User Satisfaction. User Satisfaction mediates the relationship between factors of mobile wallet usage and Continuous Usage

Keywords– Mobile wallet, Mobile payment, Mediator, User Satisfaction and Continuous Usage, and factors of mobile wallet usage.

Paper type– Research work.

I.INTRODUCTION

In the past few thousand years, the way of paying has changed – from Barter system to coins, to paper money to plastic cards, to online payments. Currently, the Indian economy is on the transition stage with widespread use of mobile wallets for payment purposes which can be done using a mobile phone or scanning of QR code using Near Field Communication technology which helps to complete payment transactions quickly and easily. The mobile wallet is an online and offline payment system, where the user will be able to transfer funds, save and use their stored money for a wide range of payments for cinema tickets, air tickets, recharging, utility bills

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and so on without the use of credit or debit card. Mobile wallet allows its users to also store loyalty card information, premium points, digital coupons etc. In the year 2016, Demonetization was the stepping stone for success for mobile wallet usage in India. As per the Boston Consulting Group report in July2016, only 22 percentage of cashless transaction were recorded in India before demonetization. However, Boston Consulting Group predicted increase of cashless transaction upto 59 percentages by 2025, in India. Currently, India is witnessing an exponential growth in the field of mobile wallet with increasing number of Smartphones and availability of internet connection at economical prices. In the overall digital payment industry, mobile wallet sytem has recorded the largest contribution, in India. One of the leading mobile wallet companies in India is Paytm which got a big boost after demonetization. According to expandedrambling.com, Paytm has over 450 million users as on July, 2019. Advantages of Mobile Wallets: a) Convenience: Mobile wallet users avail the facility of one time storage of debit or credit card, CVV number, loyalty card information etc which helps them in payment process, irrespective of the number of transactions. b) Security: As the feeling of security leads to greater satisfaction, mobile wallet users feel secured. All the transactions performed in mobile wallet are encrypted. It provides strong and secured feeling to its users. c) Easy & Quick Payment: Mobile wallet users pay for their online and in store purchase so easily by just scanning the QR code through their mobile phone camera or through Near Field Communication (NFC) terminal & within a few minutes the transaction is complete.

II. REVIEW OF LITERATURE

Rajesh Krishna Balan et al (2006) conducted research on the topic “Digital Wallet: Requirements and Challenges”. They described the challenges in deploying a comprehensive nation-wide digital wallet solution in Singapore as Mass Market Appeal, Stake Holder Dynamics and Compelling user experience. They proposed a cell phone-based solution by leveraging two key emerging technologies, namely, NFC chips and Secure programmable chips that will allow the cell phone to securely store both “virtual cash” and the phone owner‟s monetary and identification implements.

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M. Manikandan and Dr. S. Chandramohan (2015) researched on the topic “Mobile Wallet- A Virtual Physical Wallet to the Users”. The authors identified major companies providing mobile wallet services in India as telecom service providers such as Vodafone Plc‟s m-pesa, Bharti Airtel Ltd‟s Airtel Money, and Tata Teleservices Ltd‟s mRupee and payment services companies like Oxigen Services, Paytm and MobiKwik. They concluded that the adoption of this product was still in the initial stage and customer education was important for its further development in order to be a great success in the global market.

III. NEED FOR THE STUDY After reviewing a number of research works regarding mobile wallets, the researcher identified a gap in the literature regarding Mobile Wallet usage, User Satisfaction and Continuous Usage. Therefore this study aimed to examine the influencing factors of Mobile Wallet Usage, User Satisfaction and Continuous Usage. 1) OBJECTIVES OF THE STUDY a) To examine the factors of Mobile wallet usage b) To analyse the relationship between a) The factors of mobile wallet usage and User satisfaction. b) User satisfaction and Continuous Usage. c) To examine the impact of a) The factors of mobile wallet usage on User satisfaction. b) User satisfaction on Continuous Usage. d) To test the mediating effect of User Satisfaction between factors of mobile wallet usage and Continuous usage. IV. HYPOTHESES

Hypothesis H1: There exists a significant and positive relationship between the factors of mobile wallet usage and user satisfaction.

Hypothesis H2: There exists a significant and positive relationship between User Satisfaction and Continuous Usage.

Hypothesis H3: The factors of Mobile wallet usage have a significant and positive impact on User Satisfaction.

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Hypothesis H4: User Satisfaction has a significant and positive impact on Continuous Usage.

Mediating Hypothesis H5: User Satisfaction significantly mediates the relationship between factors of mobile wallet usage and Continuous Usage.

IV. RESEARCH METHODOLOGY Purposive sampling technique was adopted in this study for selecting 251 mobile wallet users. The primary data was gathered through a well-structured questionnaire designed on a 5 points Likert scale. The statistical tools used in this study are Percentage, Weighted Mean, Multiple correlations, Multiple regression and Sobel test.

V. THE CONCEPTUAL MODEL OF THIS STUDY CONCEPT The conceptual model of this paper comprises of eleven dependent variables, which include Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Condition, Hedonic Motivation, Price Value, Habit, Information Quality, Security, Privacy and Trust. The mediating variable is User Satisfaction and the dependent variable is Continuous Usage.

USER SATISFACTION

FACTORS OF CONTINUOUS MOBILE WALLET USAGE USAGE

Fig 1 Conceptual Model of this study

VII. RESULTS AND DISCUSSION Demographic Profile

Majority of the respondents belonged to the age group of „25-30 years‟ (60%), were Single (59%) male (61%), Under Graduate‟s (53%) , with monthly family income of „below Rs.30,000‟ (59%) and employed in the Private sector (49%).

There are 11 factors of Mobile wallet Usage, measured using 50 statements, in a Five point Likert‟s Scale ranging from „Strongly Agree‟ (5) to „Strongly Disagree‟ (1), the weighted means of which are depicted below in Table 1.

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Table 1: Factors of Mobile wallet Usage, User Satisfaction & Continuous Usage

FACTORS OF MOBILE WALLET USAGE, USER OVERALL S.No. SATISFACTION & CONTINUOUS USAGE WEIGHTED MEAN 1. EFFORT EXPECTANCY 4.27 2. PERFORMANCE EXPECTANCY 4.21 3. HEDONIC MOTIVATION 3.95 4. INFORMATION QUALITY 3.82 5. TRUST 3.78 6. SOCIAL INFLUENCE 3.74 7. HABIT 3.69 8. FACILITATING CONDITIONS 3.54 9. SECURITY 3.53 10. PRIVACY 3.36 11. PRICE VALUE 3.16 12. USER SATISFACTION 3.89 13. CONTINUOUS USAGE 3.83

The above Table depicts that, all the 11 influencing factors of mobile wallet usage have overall weighted mean scores of greater than 3.73, indicating that the respondents have strongly agreed to all the statements measuring the influencing factors of Mobile wallet usage. The factor which has got the highest mean score is „Effort Expectancy‟ (4.27), followed by „Performance Expectancy‟ (4.21), Hedonic Motivation (3.95), Information Quality (3.82), Trust (3.78), Social Influence (3.74), Habit (3.69), Facilitating Condition (3.54), Security (3.53), Privacy (3.36), Price Value (3.16). Effort Expectancy is measured using three statements like Mobile wallet is easy to use, easy to learn and has an easy transaction method. The factor „Security‟ has got the weighted mean score of 3.53, measured using three statements relating to safety and security from internet frauds. The factor Social Influence and Habit have got weighted mean scores of 3.74 and 3.69 respectively. Indicating that the respondents strongly agree to the three statements measuring Habit and five statements measuring Social Influence

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toward mobile wallet. The mediating variable is „User Satisfaction‟ with weighted mean scores of 3.83 measured using seven statements. The dependent variable measured using seven statements is Continuous Usage which has a weighted mean score of 3.89.

Correlation

Hypothesis H1: There exists a significant and positive relationship between the factors of mobile wallet usage and user satisfaction.

TABLE 2: FACTORS OF MOBILE WALLET USAGE AND USER SATISFACTION – CORRELATION

S.No Relationships r Value S.No Relationships r Value 1. Security 0.524** 7. Performance Expectancy 0.398** 2. Hedonic Motivation 0.522** 8. Social Influence 0.379** 3. Price Value 0.499** 9. Privacy 0.372** 4. Information Quality 0.491** 10. Habit 0.368** 5. Trust 0.467** 11. Facilitating Condition 0.354** 6. Effort Expectancy 0.431** **. Correlation is significant at the 0.01 level (2-tailed). The above Table shows that the r value‟s for all the factors of mobile wallet usage and user satisfaction are significant at 1% level. The highest correlation coefficient is for Security (r = 0.524), closely followed by Hedonic Motivation (r = 0.522) Price Value (r = 0.499), Information Quality (r = 0.491), Trust (r =0.467), Effort expectancy (0.431), Performance Expectancy (r = 0.398), Social Influence (r = 0.379), Privacy (r = 0.372), Habit (r = 0.368) and Facilitating Condition (r = 0.354). This indicates that the mobile wallet users feel satisfied with the performance of the mobile wallet application particularly with features such as security, easy usage, up to date information, privacy, easy accessibility. The research hypothesis has been accepted

Hypothesis H2: There exists a significant and positive relationship between User Satisfaction and Continuous Usage.

TABLE 3: USER SATISFACTION AND CONTINUOUS USAGE – CORRELATION S.No Relationship R Value

1. User Satisfaction & Continuous usage 0.697**

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The above Table shows that the correlation between User satisfaction and Continuous usage is 0.697, indicating positive and significant relationship at 1% level. This indicates that the continuous usage is highly influence by User Satisfaction. When the mobile wallet users are satisfied with the usage of mobile wallet it will definitely result in the continuous usage, signaling to the mobile wallet companies that they should concentrate on satisfying their customers in order to retain them forever. As the relationship between the factors of the mobile wallet usage, User Satisfaction and Continuous usage were found to be positively significant, now the impact of the independent variable on the moderating variable and dependent variable is examined by adopting regression analysis.

FACTORS OF MOBILE WALLET USAGE AND CONTINUOUS USAGE - MULTIPLE REGRESSION

Hypothesis H3: The factors of Mobile wallet usage have a significant and positive impact on User Satisfaction. The below Table 4 provides the Beta value which indicates the relative influence of the factors of Mobile wallet usage (0.798) on Continuous Usage.

TABLE: 4 REGRESSION COEFFICIENTS

MULTIPLE R 0.864

R Square 0.675

Sig 0.000

Variables B Std. Error Beta T Sig

(Constant) .798 .172 4.254 .000

Per Exp .078 .029 .098 2.769 .006 Eft Exp .065 .027 .070 2.041 .042 So Inf .029 .032 .036 1.074 .283 Fac Ctn .037 .040 .030 .825 .410 Hed Mot .192 .033 .154 3.897 .000

Pr Val .072 .038 .075 1.772 .077 Habit .064 .025 .083 2.334 .020 Inf Qly .162 .037 .177 4.575 .000 Sec .186 .033 .191 5.383 .000 Pri .069 .022 -.158 -5.109 .000 Tst .159 .015 .299 9.559 .000

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The R value is 0.864, indicating that there exists significant and positive impact of the factors of mobile wallet usage on User Satisfaction at 1% level of significance. The R2 value is 0.675, which indicates that 67.5 per cent of the User Satisfaction (US) has been explained by the influencing factors of mobile wallet usage at 1% level of significance. Thus the Regression hypothesis is accepted. The regression equation is US = 0.798+ 0.192 HM + 0.186 SY + +0.162 IQ + 0.159 TT + 0.078 PE + 0.072 PV + 0.069 PY + 0.065 EE + 0.064 HT + 0.037 FC + 0.029 SI.

It is depicted from the above equation that as there is 1 unit changes in Hedonic Motivation it impacts User satisfaction by 0.192, 0.186 of Security, 0.162 of Information Quality, 0.159 of Trust, 0.078 of Performance Expectancy, 0.072 of Price Value, 0.069 of Privacy, 0.065 of Effort Expectancy, 0.064 of Habit, 0.037 of Facilitating Condition and 0.029 of Social Influence respectively. CONTINUOUS USAGE ON USER SATISFACTION - REGRESSION

Hypothesis H4: User Satisfaction has a significant and positive impact on Continuous Usage. The Regression results depicted in coefficient table is given below:

TABLE: 5 REGRESSION COEFFICIENTS

MULTIPLE R 0.694

R Square 0.468

Sig 0.000

Unstandardized Coefficients Standardized t Sig. Coefficients VARIABLE B Std. Error Beta

(Constant) 1.053 .161 6.473 .000 1 US .584 .041 .596 17.074 .000

The R value is 0.694, indicating that there exists significant and positive impact of User Satisfaction on Continuous Usage of Mobile wallet at 1% level of significance. The R2 value of 0.468, indicates that 46.8% of the Continuous Usage is explained by User Satisfaction. The Research hypothesis is therefore accepted. The regression equation is

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CU = 1.053 + 0.584 US Continuous Usage value would increase by 0.584 for every one unit of change in User Satisfaction.

SOBEL TEST

Sobel test is performed to examine whether a variable works as a mediator between an Independent Variable and Dependent Variable. The Mediator can either be partial mediator or complete mediator.

Mediating Hypothesis H5: User Satisfaction significantly mediates the relationship between factors of mobile wallet usage (independent variable) and Continuous Usage (dependent variable).

In this study Sobel test is performed to examine whether User Satisfaction works as a mediation between Factors of Mobile wallet usage and Continuous Usage. The below table show the results of Sobel test calculator.

TABLE 6 SOBEL TEST

INPUT Reg. Coef & S.E Test Statistic Std. Err p-value A 0.494 Sobel Test: 12.196 0.00 0.00 B 0.215 Aroian Test: 12.190 0.00 0.00 C 0.017 Goodman test: 12.202 0.00 0.00 D 0.016 a = Regression Coefficient between Independent variable and Mediating variable b = Standard Error of “a” c = Regression Coefficient between Independent variable, Mediating variable on Dependent variable d = Standard Error of “b” From the above table it is noted that the p-value =„0‟, which is less than 0.005 indicated that the mediating effect. Thus the mediating hypothesis is accepted. It is concluded that User Satisfaction significantly mediates the relationship between factors of mobile wallet usage and Continuous Usage.

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VII. SCOPE FOR FUTURE RESEARCH

As this paper focused on certain factors of mobile wallet usage, future research may add other influencing factors like Risks and Challenges also with respect to mobile wallet usage. Studies with respect to any particular mobile wallet company or two or more mobile wallet companies can also be done on a comparative basis.

VIII. SUGGESTIONS AND CONCLUSION

This research aimed to examine the factors of mobile wallet usage and analyse user satisfaction and continuous usage. „Effort expectancy‟ was the major factor influencing Mobile wallet usage. The factor „security‟ has got the highest relationship with User satisfaction. There is significant positive relationship between Information Quality and Price Value with User satisfaction and significant positive relationship also exists between User Satisfaction and Continuous Usage. The factor „Hedonic motivation‟ has got the highest impact on User Satisfaction. It is concluded that User Satisfaction mediates the relationship between factors of mobile wallet usage and Continuous Usage. Based on this study finding it is suggested to the mobile wallet companies to concentrate on the performance and ease of use mobile wallet applications. The mobile wallet companies should concentrate on satisfying their users that indirectly leads to retention of their users for a long period.

BIBLIOGRAPHY

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