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.