CHAPTER 1

INDRODUCTION

1
 1.1 INTRODUCTION

E-Wallet is the most widely used tool for payment. This method is
very helpful for paying for traders and consumers too. At that time, traders
causes negatively. It affects their trade. Then they were interested to forward E-
Wallet payment system.
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.

There are various E-Wallets such as SBI Buddy, Tez, Paytm. This can
be simply used in computers, smart phones. Majority of Indian especially the
youth prefer E- Wallet Payment System for faster transactions. This will reduce
the carrying of cash and the traders too. They can easily make their deal. And
also increase the education level of traders, technically.

The study reveals the adaptation of E-Wallet among traders.

This project work entitled “EFFECTIVENESS OF E-WALLET AMONG
CONSUMERS WITH
SPECIAL REFERENCE TO NILAMBUR TALUK” has been conducted to
know the advantages and drawbacks by adopting E-Wallet Payment System.

2
1.2 OBJECTIVES OF THE STUDY

• To understand how consumers perceive technological service namely

Digital Wallet

• To study the factors that influence consumers in adoption of Digital

Wallet

• To study the risk and challenges faced by consumers in use of Digital

Wallet

1.3 STATEMENT OF THE PROBLEM

The project mainly focused on the awareness level and satisfaction

level of E-Wallet payment system in consumers. Normally, the traders in rural
areas has no knowledge on IT/ other technical methods. But, now a days they
are interested in adopting modern methods of payment such as E-Wallet. They
had learned this system is very beneficial. This system is widely used during the
period of demonizing. At that time, consumers has reduced their purchase level
because of availability of change for money. It affects traders too. Then they
interested to adopt these kind of modern techniques.

There have the problem of acquiring knowledge on using

E-Wallets. But, now a days this is not an issue. Because, today's most of people
are using smart phones .so, they are interested in adaptation of Digitalization
strategies. Here has the problem that some traders and consumers has no more
technical knowledge. They are following the traditional methods. For adopting
Digitalization, all the traders and consumers should understand the beneficiaries
by adopting modern technology.

3
1.4 SIGNIFICANCE OF THE STUDY
In this Modern world, each and every activities IT
play dominant role, especially in education field .The Traders also changes their
payment too electronically. Payment through electronic means that is E-
Payment system. The E-Payment system should adopt both traders and
consumers too. Thus only the benefits should appears. This system have been
set up in remote areas for fulfilling the various needs of rural people. Therefore,
there is an urgent need for its study. The study may help to identify the
Adaption of E-Wallet Payment System among traders and their influence
among the rural people with special reference to Nilambur.

1.5 SCOPE OF THE STUDY

This study analyzes the Adoption of E-Wallet payment

system among traders. It help full to understand the various problems by
adopting Digitalization in rural traders and rural consumers. In Modern days,
the knowledge on IT in rural people is increasing day- by-day. The study about
E-Wallet Payment System is necessary to understand people awareness and
usage, and also its benefits.

1.6 RESEARCH METHODOLGY

The methodology used in this study is through two ways

such as secondary data and primary data collection. By the primary data
collection, the data collected from the response of internal and external
customer through a structured questionnaire by using 60 samples.
Secondary data collection obtained indirectly from various books,
publications and websites.

4
SECONDARY DATA

The secondary data collected from the different journals, different web
sites, and publications. The different sources

• POPULATION

The study conducted among the people of NILAMBUR

TALUK who are using e-wallet for payment.

• SAMPLE SIZE

The sample size was fixed to number of 60.

• SAMPLING METHOD

Convenient sampling was used for collecting data.

• SOURCE OF DATA

For the present study primary and secondary data are

used. Primary data are collected from 60 members. Secondary
data are collected from journals, magazines and websites.

5
• TOOLS FOR DATA COLLECTION

A well-structured questionnaire is used for this study for which

details are collected from 60 members.

• TOOLSFANALYSIS

Percentage analysis

• TOOLS FOR PRESENTATION

Table

Chart

• PERIOD OF STUDY

3 week

6
1.7 LIMITATIONS

• The study was restricted to resident living in PERINTHALMANNA

TALUK alone.
• The result may not be accurate as its respondents are restricted to only 60

• Time is also a constraint factor for the study.

• The convenient sampling method for collecting data in the study has its
own.

• The reliability of secondary data also affects the study.

CHAPTERISATION

Chapter 1

INDRODUCTION

Chapter 2

REVIEW OF LITERATURE

Chapter 3

THEORETICAL FRAMEWORK

Chapter 4

DATA ANALYSIS AND INTERPRETATION

Chapter 5

FINDINGS, SUGGESTIONS AND CONCLUSION

7
 CHAPTER 2

REVIEW OF LITERATURE

8
1. POONAM PAINULY and SHALU RATHI (2016)

In their research paper mobile wallets an upcoming mode of business transaction have
analyzed that ease of transaction secured profile and convenience in handling
application put forth the benefits of wallets money and also concluded that business
sectors like banking, retail, hospitality etc… are making use of wallets money and
mobile payment instruments including contactless and remote payment in the
customers-business and customers to customers areas.

2. RAJESH KRISHNA BALAN, NARAYAN RAMASUBHU, GIRI

KUMAR TAYI (2006)

In their research paper digital wallet requirement and challenges have identified about
Singapore's use of digital wallet and analyzed the key challenge in building and
deploying a digital wallet.

3. Dr. HEM SHWETA RATHORE

In her research paper adoption of digital wallets by consumers have analyzed about
the factor that influence consumers in adoption of digital wallets and also analyzed
the risk and challenges faced by consumers in usage of digital wallets and concluded
that shoppers are adopting digital wallets largely due to convenience and ease to use
and in the future years digital wallets will gain more widespread acceptance.

4. SANAZ ZARRIN KAFSH (2015)

Made a study on developing consumer's adoption model on mobile wallets in Canada,

by taking a sample of 530 respondents through convenience sampling. Partial least
square model was used to analyze the data. The focus of the study was to identity the
factors that influence the consumer's adoption of mobile wallets. This study was based
on technology acceptance model (TAM) and innovative diffusion theory (IDT).As per
the analysis made by them, there is relationship among perceived usage, perceived
case of use and perceive security in predicting the adoption of mobile wallets.

9
5. NEEHARIKA P & VN SASTRY (2014)

Conducted a study on a novel interoperable mobile wallets model with capability

based access control frame work, this study makes an important contribution towards
the development of a mobile wallets that can work across various platforms. As
security is the major concern when it comes to finance related information, this study
addresses the security issues by giving access control model that works towards
interoperable mobile wallet.

6. SHWETU KUMAR, VIJAY YADAV, ATIQU-U R- RAHMAN,

ADITI BANSAL (2014)

Made a study on Paytm. It studied about its achievement's, technical architecture of

Paytm working and technologies of Paytm which include a study on supply chain
management web technologies of Paytm web based tool of Paytm and also describe
about electronic payment system.

7. NGỌC DOAN (2014)

Conducted a study on consumer's adoption in mobile wallets this study was

undertaken to understand about the consumer’s adoption status of mobile wallets with
research area limited in Finland. It also examine the marker situation of mobile
consumers toward mobile wallets. The study status that the adoption of mobile wallets
among consumers in Finland is only at the beginning stage and the success of mobile
wallets depends on the marketing strategies of mobile wallets companies as well as
the financial policymakers in Finland

8. NITIKA RAI, ANURAGASHOK, JANHVI CHAKRABORTY,

PRAJAKTA AROLKER, SAUMEEI, GAJERA (2012)

Made a study on" Mobile wallets; an SMS based payment system". This paper
describe about replacing the current payment solution like credit card, debit cards and
cash with a simple short messaging services(SMS) based on solutions that would
work on all mobile phones irrespective of the network carrier and the manufacture
.Transactions can also take place between consumers that have subscribed to the

10
service and merchants irrespective of their subscription. The study concludes that it is
safer, faster and network independent mode of payment.

11
 CHAPTER 3
THEORETICAL FRAMEWORK

12
3.1 WHAT IS E-WALLET?

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.

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 fills 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.

3.2 DEFINITION FOR E-WALLET

E-wallet is a type of electronic card which is used for transactions made

online through a computer or a smart phone. Its utility is same as a credit or
debit card. An E- wallet needs to be linked with the individual's bank account
to make payments.

3.3 IS E-WALLET IS APPLICABLE?

Digital wallet integrated into an existing mobile
device like a cell phone. This digital wallet would allow the own Carry multiple
monetary and identification implements. These implements could be quickly
searched by name, type or other keywords. In addition with the right software.
These implements could be managed far more effectively. Finally, Security

13
would be enhanced as all data on the digital wallet would be encrypted and
back up options would make recovering from loss easier. However, the idea of
the digital wallet is not new. Indeed, Japan, America, Sweden and South Korea
have already rolled out cell phone-base digital based digital wallet solutions.
Consumers in those countries can use their cell phones to pay for groceries,
order drinks from a vending machine, even identify themselves at airline
ticketing counters.

3.4 APPLICATION OF E-WALLET

Consumers are not required to fill out order forms on each site when
they purchase an item because the information has already been stored and is
automatically updated and entered into the order fields across merchant sites
when using a digital wallet. Consumers also benefit when using digital wallets
because their information is encrypted or protected by a private software code;
merchants benefit by receiving protection against fraud.

Digital wallets are available to consumers free of charge, and they're

fairly easy to obtain. For example, when a consumer makes a purchase at a
merchant site that's set up to handle server- side digital wallets, he types his
name and payment and shipping information into the merchant's own form. At
the end of the purchase, the consumer is asked to sign up for a wallet of his
choice by entering a user name and password for future purchases. Users can
also acquire wallets at a wallet vendor's site.

Although a wallet is free for consumers, vendors charge merchants for

wallets. Some wallet vendors make arrangements for merchants to pay them a
percentage of every successful purchase directed through their wallets. In
other cases, digital wallet vendors process the transactions between
cardholders and participating merchants and charge merchants a flat fee.

14
 3.5 ADVANTAGES OF E-WALLET ADOPTION AMONG
CUSTOMERS

• EASY TO USE
It only takes a few minutes to set up an e-wallet. Simply download the
app and follow onscreen instructions to set up your account and add your
payment details. More and more retailers are using a mobile payment solution
that allows them to accept e- wallets. When you’re ready to make your first
payment at one of these retailers, you just have to hold your phone near the
payment reader or scan the QR code, and the payment will be made. Simple as
that!
 SAFE AND SECURE
Your money and personal details are safe when you use an e-wallet. All
of your account information is encrypted – this means that actual account
numbers aren’t stored on your phone. You will need to enter a password, or
other verification details, any time you wish to view or change account
information. This is far safer than walking around with cash and credit cards in
your pocket.

When you make a payment, the retailer doesn’t receive your credit card
details. Instead, a random transaction number is used. This means your data is
safe from fraud. In addition, if you ever lose your phone, you don’t need to
worry about a thing, since e- wallets are password locked.
 FAST
Like other mobile payment methods, an e-wallet payment is almost
instantaneous, requiring just a simple wave of your phone. Once a payment has
been made, the transaction is automatically recorded for later viewing.

You can also make online payments in just a few clicks with an e-
wallet. As all of your cards are already stored in the e-wallet, you won’t have to
fill in lengthy payment detail forms every time you want to make a payment on

15
an e-commerce website.

 EASY TO CONNECT TO OTHER ACCOUNTS

Using an e-wallet is ideal for someone who wants the flexibility to
make payments from different accounts. You can add all of your existing credit
cards or mobile money accounts to an e-wallet. Then, when you come to make
a payment, you can simply choose which card or mobile money account you
want to use. This will save space in your actual wallet, as you won’t need to
carry all of your cards around with you!

 MODERN

Traditional cash-only businesses, such as craft fairs and flea markets,

can now accept debit and credit cards. This opens up an entirely new aspect to
payment methods in large markets, introducing many business opportunities
and greater potential revenue.

 COMPETITIVE ADVANTAGES

Digital wallet applications provide a more convenient transaction

processing method for customers, giving businesses that employ this
technology a competitive edge in the market. It redefines the user experience of
paying and incorporates a novelty aspect to each purchase.

 CONVENIENCE

Users are able to get through a purchase in mere seconds with a simple
tap or scan of their mobile device. The experience of purchasing items becomes
quicker and easier – leading to a greater sense of satisfaction. Furthermore,
with faster transactions, checkout lines within stores become much shorter.

16
  DISCOUNTS FROM TAXES

Government has announced many discounts to encourage digital

payments. If you use digital modes to make a payment up to Rs. 2000, you get
full exemption from service tax. You also get 0.75% discounts on fuels and
10% discount on insurance premiums of government insurers.

 WRITTEN RECORD

You often forget to note down your cash spending. Or even if you note,
it takes a lot of time. But you do not need to note your spending every time
with digital payments. These are automatically recorded in your passbook or
inside your E-Wallet app. This helps to maintain your record, track your
spending and budget planning.

 LESS RISK

Digital payments have less risk if you use them wisely. If you lose
your mobile phone or debit/credit card or Aadhar card you don’t have to
worry a lot. No one can use your money without MPIN, PIN or your
fingerprint in the case of Aadhar. But it is advised that you should get
your card blocked if you lost it. Also call the helpline of your E-wallet to
suspend the wallet account to prevent anyone from using your wallet
money.

 PAY OR SEND MONEY FROM ANYWHERE

With digital payment modes, you can pay from anywhere anytime.
Suppose your close friend’s mother fell ill at night. He called you at midnight
and asked some money. Don’t worry, you can send money to your friend using
digital payment modes such as UPI apps, USSD or E-Wallets.

17
3.6 DISADVANTAGES OF E-WALLET ADOPTION AMONG
CUSTOMERS

 INVESTMENT

The initial monetary investment for building a functional digital wallet

application is quite large. It requires the initial development of the software as
well as the continual maintenance, updates and fixes associated with it. Upon
acquiring software, the business would also need to install the corresponding
hardware in their stores, which leads to a further increase in costs.

 SUPPORT TECHNOLOGY

There are few supporting technologies to choose from at the moment,

with NFC terminals and phone readers being the most prevalent. In the case of
digital wallets, they can only function with a corresponding hardware device
for each application. NFC terminals and specialize scanners are the only
devices created at the moment that will support the processing of digital wallet
payments; thus, it is very limited because the technology is still new.

 SYSTEM OUTAGES

Information for digital wallets are stored on the cloud of business

servers; therefore, the risk of a system malfunction or shut down is always
present. As a result, businesses will not be able to process payments or they
will become increasingly slow due to high traffic in the servers.

 SECURITY

Companies must ensure that their customers’ information is encrypted

and well protected. One of the biggest concerns of adopting a digital wallet
application is “will my information be safe”? This is the hurdle that companies

18
must face and as a result, must develop security systems that are as safe and full
proof as possible to avoid potential security issues.

 CAN’T PURCHASE FROM COMPATIBLE RETAILERS

If your idea of a digital wallet is using your mobile device’s near field
communication (NFC), then you can only make purchases from a retailer with
a POS terminal. Since these aren’t widely used yet, you might still have to
carry around your traditional wallet for a few years before you can completely
toss it out. Not only that, but your phone has to have NFC capabilities, and not
all smart phones have that yet.

 OVER SPENDING
You keep limited cash in your physical wallet. Hence, you think twice
before buying anything. But if you use digital payment modes, you have all
your money with you always. This can result in overspending.

3.7 BENEFITS OF E-WALLET BY CONSUMERS TO

VARIOUS PARTIES

Digital wallet appears to be beneficial in generating real revenue stream

to all the stakeholders of mobile ecosystem like- customers, banks, mobile-
operators, financial institutions.

1. BENEFITS TO CUSTOMERS

• Everywhere, anytime payment experience which is the essence of

immediacy & ubiquity.
• No dial-up, no configuration or booting requirement to ensure
instant connectivity through wireless route.

19
 • Substituting voice communication through texts & images
for deaf or mute users.
• State of the art security platform.
2. BENEFITS TO BANK

• Enhanced brand image through alternate sales channel in

mobile payment space and thus leading to loyalty development.
• Extending value-added services through 24x7
branchless banking experience.

3. BENEFITS TO FINANCIAL INSTITUTION

• Ensuring enhanced customer’s satisfaction & their retention

together with direct marketing promos for tailored offerings to
specific clients.
• Generating new business leads by one to one bank- client
relationship.

• Enables FIs to keep constant connection with clients through

24x7 formats to serve their diverse needs everywhere, all the
time.

• Increased reach to more customers, specifically the unbanked

segment due to increasing mobile usage rate and thereby
reduced operating costs out of fewer direct teller interactions
happened physical branches.

4. BENEFICIAL GAINS TO MOBILE OPERATORS

• Expanded service portfolio brand promotion to create a

differentiating factor to generate more new leads.
• FIs gain increased revenue by high mobile traffic build up.

20
 • It enable users to check bank account status & recharge
prepaid mobile account instantly using mobile payment
gateway (IMPS).

3.8 MOST COMMONLY USED DIGITAL WALLETS IN INDIA

1. Paytm
Paytm started out with mobile recharges, DTH plans, and bill payments,
and then launched an e-commerce market place in February 2014. Its wallet
my-trip, along with others in categories such as shopping, travel, entertainment,
and food. It has a license from RBI to set up a payments bank, enabling it to
offer current and savings account deposits, issuing debit cards and offering
Internet banking services.

2. Tez

Internet giant Google forayed into the crowded but promising space of
payment solutions in the country with the launch of its Tez application. Google
Tez is a mobile wallet based on the Unified Payments Interface (UPI) platform
built by the National Payments Corporation of India (NPCI). UPI-enabled
wallets permit users to transfer money without requiring the bank account
details of the recipient. The UPI ID of the recipient is used as a proxy for the
account number and IFSC code, thereby simplifying the process of money
transfer.

It comes with features that Google said makes it easy and safe to use.
To tap into the large merchant base with whom people may not be comfortable
sharing their details, Tez offers a feature called Cash Mode where one can pay
without sharing bank details or phone number. This is done through
technology called audio QR that works like near field communication (NFC)
and uses ultrasound waves to connect two phones through microphone and
speaker.

21
 After installing the app, users have to sync their wallets with their
Google account, and the mobile number linked to it. Access to the wallet from
the app drawer is protected by two-level security: a 4-digit Google PIN, and the
security settings on the device, such as pass codes, fingerprints, or pattern
locks.

3. PhonPe

For a rather late entrant into the digital payments segment, Flipkart-
owned PhonePe has claimed high growth figures in a short time. Recently, it
claimed to have overtaken Bharat Interface for Mobile (BHIM) app in terms
of total transactions with a 45% share in August 2017. It has also launched
pilot solutions for offline commerce and has on boarded at least 25,000 offline
merchants. It promises to make payments a more seamless experience with
the launch of UPI 2.0. In an interaction with VC Circle, the company’s co-
founder and chief technological officer, Rahul Chari, discusses at
length the company’s expansion plans and the broad roadmap ahead for PhonePe.

4. SBI BUDDY

State Bank Buddy is State Bank of India's mobile wallet on your smart
phone. It is a semi-closed prepaid wallet which can be used to transfer money
to other wallet users and bank accounts, anytime, anywhere.

The following services will be available on State Bank Buddy mobile app.
· Send Money
· View your Statements
· Personalize your Buddy
· Prepaid Mobile Recharge & DTH
· Pay Your Bills
· Book Movie Tickets
· Online Merchant Payments

22
23
 5. 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.

6. Pay U money

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.

7. Citrus

Citrus Pay is a popular e-wallet app for cash storage, payments and
money transfers. Besides tying up with online service providers from varied
sectors, they are now collaborating with Woohoo, a gifting and shopping
portal to let its customers shop at more than 6000 offline stores listed with
them.

3.9 CUSTOMER

A customer (sometimes known as a client, buyer, or purchaser) is the

recipient of a good or a service, or a product, or an idea, obtained from a seller,
vendor, or supplier via a financial transaction or exchange for money or some
other valuable consideration. Etymologically, a client is someone merely
inclined to do business, whereas a purchaser procures goods or services on
occasion but a customer customarily or habitually engages in transactions. This
distinction is merely historic. Today customers are generally categorized into

24
 two types:

A customer may or may not also be a consumer, but the two notions are
distinct, even though the terms are commonly confused. A customer purchases
goods; a consumer uses them. An ultimate customer may be a consumer as
well, but just as equally may have purchased items for someone else to
consume. An intermediate customer is not a consumer at all. The situation is
somewhat complicated in that ultimate customers of so- called industrial goods
and services (who are entities such as government bodies, manufacturers, and
educational and medical institutions) either themselves use up the goods and
services that they buy, or incorporate them into other finished products, and so
are technically consumers too.

3.10 USING AN E-WALLET

 Install software on your mobile

 Feed in basic information such as name and bank details.

 The e-Wallet will automatically fill in user information on the payment

form, when shopping online
 Activate the e-Wallet with your password.

25
  Once the online payment is complete, your information is saved for
further use and updated automatically.

Although a wallet is free for consumers, merchants pay a commission for

every successful purchase directed through an e-Wallet.

3.11 CONSUMER PROTECTION ISSUES

TYPES OF MOBILE PAYMENT

Mobile payments can be used for the following three types of transactions:

• Mobile payment –(Paying for goods and services: shopping, paying bills,
etc.)

• Mobile remittance (Sending money to or receiving from an individual,

(person - to-person) especially from abroad; very popular in East Africa)
They can be intra- or inter-national.

• Mobile banking (Withdrawals, transfers and other transactions on

actual bank accounts)

Here are consumer protection issues which have been brought to CI‟s
attention by members and by industry colleagues:
1. Lack of tangible proof of payments(e.g. receipts), with the
consequence that in the case of a dispute the consumer will have no
evidence to support a claim that a specific payment has been made.
This evidently exposes consumers to
abusive billing or “double-charging”. CI advocates billing standards
to enable tracking of transactions.
2. Unreliable mobile account crediting systems. In India for instance,
many mobile accounts are credited by cheques which are dropped in

26
 the drop boxes (like public letter boxes), processed by subcontractors.
Many cheques are reported lost, with no clarity as to who should be
bear liability for this loss. Lost cheque need service standards to
trigger ICT-style security investigations in order to validate claims
and deal with compensation.

3. Lack of technology standard.. Mobile payment technical

platforms are not properly standardized or regulated. This can
mean that there is no universal and cohesive mode of payment. The
danger is that there is a lack of traceability and the possibility that
consumers‟ money is “lost in translation” when it transits from one
mobile payment system to another. This lack of interoperability
between various mobile payment interfaces has also raised
concerns over privacy and security when confidential details are
shared through fragmented versions of mobile payment platforms.
4. In many cases, as noted, there is no specific regulatory
framework concurrently engaging the main partakers in the
provision of mobile payment services, i.e. the bank, the network
provider and the mobile device manufacturer. Kenya, where M-
commerce is booming as we have seen, boasts of very light
regulation on this. But the consequence is that the contract between
the consumer and the mobile network provider is in practice, a
normal phone contract, offering no legal basis for the right to
redress or compensation should money be lost during transactions
or due to technical faults. Worse, pay as you go customers, who are
the great majority in many low income countries, will not even
have a personalized contract. In rich countries too, it is reported
that agencies are failing to coordinate their activities in rapidly
moving areas such as identity theft, leading to financial theft. A
further ambiguity resides in the status of „shadow banking‟
activities, under neither telephone nor banking regulation.
5. No independent ombudsman. In many countries, due to the
novelty of the phenomenon and especially the easy assimilation or
confusion with e-commerce, mobile payments seem to be a “no

27
 man’s land” where the service provider would be both the judge and
party, in any case of dispute with individual consumers or consumer
rights groups.

6. Lack of currency. . Although Mobile payments may allow

parties to make economic exchanges, they do not take the form
of legal tender in the sense that they lack the status of other
payment instruments such as cash, which is a medium of
exchange that is authorized, adopted and guaranteed by the
government. At best mobile payments have to be backed by the
issuer’s promise to pay.
7. Dormant assets. What happens to consumers‟ money when they
lose touch with it is an important issue in mobile payments, just as it
is in financial services such as bank accounts, pensions and insurance
policies. The exact definition of when money/assets become dormant
needs to be determined. In mobile payments the treatment of dormant
assets in the case of number termination, loss of phone and death is
not adequately addressed. Although the amounts that can be stored in
e-wallets, e-purses, credit on phones and potentially in other areas
such as apps, are relatively small on an individual basis, the
aggregate amounts could total hundreds of millions of dollars, maybe
billions in due course as mobile payments increase their share of
payment transactions.

28
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

29
 TABLE 4.1

TABLE SHOWING AGE WISE CLASSIFICATION OF

RESPONDENTS
PARTICULARS NO. OF PERCENTAGE
RESPONDENT
BELOW 30 30 60 %
30-40 8 16%
40-60 6 12%
ABOVE 60 6 12%
TOTAL 60 100%

FIGURE 4.1

COLUMN DIAGRAM SHOWING AGE WISE

CLASSIFICATION OF RESPONDENTS

PERCENTAGE
70%

60%

50%

40%

30% 60%

20%

10%
16%
12% 12%
0%
BELOW 30 30-40 40-50 ABOVE 50

PERCENTAGE

INTERPRETATION
Out of 60 respondents 60% are belongs to the age group of below 30.
16% are belonging to the age group of 30-40. 12% are belonging to the age
group of 40-60. And remaining 12% are belonging to above 60.

30
 TABLE 4.2

TABLE SHOWING OCCUPATIONOF RESPONDENTS

PARTICULARS NO. OF RESPONDENT PERCENTAGE
PROFESSIONAL 8 16%
SELF EMPLOYED 13 26%
SALARIED 23 46%
OTHERS 6 12%
TOTAL 60 100%

FIGURE 4.2

COLUMN DAIGRAM SHOWING OCCUPATION OF

RESPONDENTS

NO.OF RESPONDENT
50%
45%
40%
35%
30%
25%
46%
20%
15%
26%
10%
16%
5% 12%

0%
SALARIED SELF EMPLOYED PROFESSIONAL OTHERS

NO.OF RESPONDENT

INTERPRETATION
Out of the 60 respondents 16% are professionals. 26% are self
employed and 46% among them are salaried. 12% are engaged others.

31
 TABLE 4.3

TABLE SHOWING EDUCATIONAL QUALIFICATION OF

RESPONDENTS
PARTICULARS NO. OF PERCENTAGE
RESPONDENTS
GRATUATE 15 30%
PLUSTWO OR 14 28%
BELOW
DIPLOMATE 13 26%
PG 8 16%
TOTAL 60 100%

FIGURE 4.3

BAR DIAGRAM SHOWING EDUCATIONAL

QUALIFICATION OF RESPONDENTS

PERCENTAGE

PG 16%

DIPLOMATE 26%

PLUSTWO OR BELOW 28%

GRADUATE 30%

0% 5% 10% 15% 20% 25% 30% 35%

PERCENTAGE

INTERPRETATION
Out of 60 respondents 28% are below plus two. 30% are graduate. 16% are
post graduate and remaining 26% are diplomats.

32
 TABLE 4.4

TABLE SHOWING ANNUAL INCOME OF RESPONDENTS

PARTICULARS NO. OF PERCENT
RESPONDENT AGE
BELOW 10,000 4 8%
10,000-20,000 12 24%
20,000-60,000 23 46%
ABOVE 60,000 11 22%
TOTAL 60 100%

FIGURE 4.4

COLUMN DIAGRAM SHOWING ANNUAL INCOME OF

RESPONDENTS

PERCENTAGE
40%

35%

30%

25%

20% 38%
15%
26%
10% 22%
14%
5%

0%
BELOW 10000 10000-20000 20000-50000 ABOVE 50000

PERCENTAGE

INTERPRETATION
Out of 60 respondents only 8% are earned below 10,000 rupees
per annum. 24% are earned 10,000-20,000 per annum. 46% are earned
20,000-60,000 rupees per annum and remaining 22% are earned more
than 60,000 rupees per annual.

33
 TABLE 4.5

TABLE SHOWING TIME SPEND OVER THE INTERNET

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1-3 HOURS/ DAY 18 36%
3-6 HOURS/ DAY 25 60%
6-9 HOURS/ DAY 5 10%
MORE THAN 9 HOURS 2 4%
TOTAL 60 100%

FIGURE 4.5

PIE DIAGRAM SHOWING TIME SPEND OVER THE

INTERNET

PERCENTAGE
4%
10%

50%

36%

1-3 HOURS/DAY 3-6 HOURS/DAY 6-9 HOURS/DAY MORE THAN 9 HOURS

INTERTRETATION
Out of 60 respondents, 36% are spends1-3 hours/ day over internet. 60%
of them spend 3-6 hours/ day. 10% of respondents use internet 6-9 hours/ day
and remaining 4% are using internet more than more than 9 hours.

34
 TABLE 4.6

TABLE SHOWING AWARENESS REGARDING THE

FUNCTIONALITY OF E-WALLET

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

FULLY AWARE 18 36%
PARTIALLY AWARE 22 44%
NOT AWARE 10 20%
TOTAL 60 100%

FIGURE 4.6

COLUMN DIAGRAM SHOWING AWARENESS

REGARDING THE FUNCTIONALITY OF E-WALLET

PERCENTAGE
50%
45%
40%
35%
30%
25%
44%
20%
36%
15%
10% 20%
5%
0%
FULLY AWARE PARTIALLY AWARE NOT AWARE

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 36% are aware on functioning of E-wallet.
44% of them are partially aware and remaining 20% are not aware on
functionality of E-wallet.

35
 TABLE 4.7

TABLE SHOWING ORIGIN INFORMATION ABOUT E-

WALLETS

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

SOCIAL MEDIA 21 42%
FRIENDS 17 34%
MAGAZINE/ 12 24%
TELEVISION
TOTAL 60 100%

FIGURE 4.7

COLUMN DIAGRAM SHOWING ORIGIN OF

INFORMATION ABOUT E- WALLETS

PERCENTAGE
45%

40%

35%

30%

25%

20% 42%
34%
15%
24%
10%

5%

0%
SOCIAL MEDIA FRIENDS MAGAZINES/TELEVISION

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 42% are got information about E-wallet through
social media. 34% of them got information from friends and remaining 24%
got information on E-Wallet from magazines / televisions.

36
 TABLE 4.8

TABLE SHOWING PREVIOUS PURCHASE OF ANY

GOODS / SERVICES OVER INTERNET
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
YES 21 42%
NO 20 40%
SOMETIMES 9 18%
TOTAL 60 100%

FIGURE 4.8

COLUMN DIAGRAM SHOWING PREVIOUS PURCHASE OF

ANY GOODS
/SERVICES OVER INTERNET

PERCENTAGE
45%

40%

35%

30%

25%

20% 42% 40%

15%

10% 18%
5%

0%
YES NO SOMETIMES

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 42% of them are purchase any product/
services online. 40% of them are not ever purchase through online and
remaining 18% of respondents has purchase through internet sometimes, not
regularly.

37
 TABLE 4.9

TABLE SHOWING REASON FOR USING E-WALLET THAN

OTHER MODE OF PAYMENT
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
TIME SAVING 18 36%
EASY TO USE 19 38%
SECURITY 13 26%
TOTAL 60 100%

FIGURE 4.9

PIE DIAGRAM SHOWING REASON FOR USING E-

WALLET THAN OTHER MODE OF PAYMENT

PERCENTAGE

26%
38%

36%

TIME SAVING EASY TO USE SECURITY

INTERPRETATION
Out of 60 respondents, 36% of respondents are using e-wallets for time-
saving.38% of them are choose e-wallets by the reason of easy to use and the
remaining of them select the e-wallet service by the reason of security of transact.

38
 TABLE 4.10

TABLE SHOWING MEDIUM USED FOR PAYMENT VIA

E-WALLET
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
SMART PHONE 28 56%
COMPUTER 10 20%
BOTH 12 24%
TOTAL 60 100%

FIGURE 4.10

COLUMN DIAGRAM SHOWING MEDIUM USED FOR

PAYMENT VIA E- WALLET

PERCENTAGE
60%

50%

40%

30%
56%

20%

24%
10% 20%

0%
SMARTPHORE COMPUTER BOTH

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 56% of them are using smart phone for e-
payment. 20% of the respondents are using computer for e-payment and
remaining 24% are using both medium for online payment.

39
 TABLE 4.11

TABLE SHOWING CONSIDERATION OF E-WALLET

AGAINST OTHER SORT OF PAYMENT METHODS
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
ALTERNATE CHOICE 22 44%
SUBSTITUTE 8 16%
SUPPORTIVE 20 40%
I NSTRUMENT
TOTAL 60 100%

FIGURE 4.11

PIE DIAGRAM SHOWING CONSIDERATION OF E-

WALLET AGAINST OTHER SORT OF PAYMENT
METHODS

PERCENTAGE

16%

44%

40%

ALTERNATIVE CHOICE SUBSTITUTE SUPPORTIVE INSTRUMENT

INTERPRETATION
Out of 60 respondents, 44% of them choose e-wallet as alternate
choice against other methods. 16% of them choose substitute for the
other methods as e-wallet. And remaining 40% select e-wallet by its
supportive instruments.

40
 TABLE 4.12

TABLE SHOWING THE PURPOSE OF USING E-WALLET

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

MONEY TRANSFER 12 24%
RECHARGE 5 10%
UTILITY &BILL 8 16%
PAYMENT
ALL OF THE ABOVE 25 60%
TOTAL 60 100%

FIGURE 3.12

COLUMN SHOWING THE PURPOSE OF USING E-

WALLET
PERCENTAGE
60%

50%

40%

30%
50%
20%

24%
10%
16%
10%
0%
MONEY TRANSFER RECHARGE UTILITY&BILL PAYMENT ALL OF THE ABOVE

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 24% of them are using e-wallet for money
transfer and 10%/ are using e-wallet for recharge purpose and 16% of the
are used for utility &bill payment of several services and 60% of the
respondents are used e-wallet for all these purpose.

41
 TABLE 4.13

TABLE SHOWING NUMBER OF USAGE OF E-WALLET

PARTICULARS NO. OF RESPONDENTS PERCENTAGE
ONLY ONE 12 24%
5-10 TIMES 16 32%
MORE THAN 10 TIMES 22 44%
TOTAL 60 100%

FIGURE 4.13

COLUMN SHOWING NUMBER OF USAGE OF E-

WALLET
PERCENTAGE
50%
45%
40%
35%
30%
25%
44%
20%
15% 32%
24%
10%
5%
0%
ONLY ONE 5-10 TIMES MORETHAN 10 TIMES

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 24% of them are only used once for e-
wallet. 32% of them used 5-10 times for e-wallet and remaining 44%
used more than 10 times.

42
 TABLE 4.14

TABLE SHOWING SATISFACTION LEVEL OF E-

WALLET
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
VERY SATISFIED 16 32%
SATISFIED 17 34%
NEUTRAL 10 20%
UNSATISFIED 7 14%
TOTAL 60 100%

FIGURE 4.14

PIE DIAGRAM SHOWING SATISFACTION LEVEL OF E-

WALLET
PERCENTAGE

14%

34%

20%

32%

VERY SATISFIED SATISFIED NEUTRAL UNSATISFIED

INTERPRETATION
Out of 60 respondents, the satisfaction level of 32% are highly satisfied
with e- wallet and 34% of them are satisfied. 20% of the respondent’s
satisfaction level is neutral and 14% of them are not satisfied with e-wall.

43
 TABLE 4.15

TABLE SHOWING INTEREST IN CONTINUATION OF E-

WALLET USAGE
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
VERY LIKELY 11 22%
LIKELY 14 28%
NEUTRAL 17 34%
UNLIKELY 8 16%
TOTAL 60 60%

FIGURE 4.15

COLUMN DIAGRAM SHOWING INTEREST IN

CONTINUATION OF E- WALLET USAGE

PERCENTAGE
40%

35%

30%

25%

20%
34%
15% 28%
10% 22%
16%
5%

0%
VERY LIKELY LIKELY NEUTRAL UNLIKELY

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 22% of them are very likely to continue the e-
wallet usage. 28% of the respondents are likely to use e-wallet service and
34% of them are neutrally interested in e-wallet usage. Remaining 16% of
them are not satisfied in e- wallet service.

44
 TABLE 4.16

TABLE SHOWING OBSTACLES BY USING E-WALLET

SERVICES
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
YES 18 36%
NO 32 64%
TOTAL 60 100%

FIGURE 4.16

PIE DIAGRAM SHOWING OBSTACLES BY USING E-

WALLET SERVICES

PERCENTAGE

48%
52%

YES NO

INTERPRETATION

Out of 60 respondents, 64% of them have no obstacles by using e-wallet

services and 36% of them has some obstacles by using e-wallet.

45
 TABLE 4.17

TABLE SHOWING E-WALLET AS USEFUL MODE OF

PAYMENT
PARTICULARS NO. OF RESPONDENTS PERCENTAGE
STRONGLY AGREE 38 76%
STRONGLY DISAGREE 12 24%
TOTAL 60 100%

FIGURE 4.17

BAR DIAGRAM SHOWING E-WALLET AS USEFUL

MODE OF PAYMENT

Series 1

STRONGLY DISAGREE 24%

STRONGLY AGREE 76%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Series 1

INTERPRETATION
Out of 60 respondents, 76% of them has the opinion that e-wallet is
very useful and remaining 24% of them are strongly disagree with e-wallet.

46
 TABLE 4.18

TABLE SHOWING ALTERNATIVE PAYMENT TO

PHYSICAL TRANSACTION

PARTICULARS NO. OF RESPONDENTS PERCENTAGE

AGREE 31 62%
DISAGREE 19 38%
TOTAL 60 100%

FIGURE 4.18

COLUMN DIAGRAM SHOWING ALTERNATIVE

PAYMENT TO PHYSICAL TRANSACTION

PERCENTAGE
70%

60%

50%

40%

30% 62%

20% 38%

10%

0%
AGREE DISAGREE

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 62% of them are alternative payment to physical
transactions . They agree that e-wallets are safe and secured. Remaining 38%
of them are not belive in that.

47
 TABLE 4.19

TABLE SHOWING E-WALLET ASSISTINGTRANSACTIONS

IN THE CURRENT PANDEMIC SITUATION

NO.OF
PARTICULARS RESPONDENTS PERCENTAGE

AGREE 36 60%

DISAGREE 24 40%

TOTAL 60 100%

FIGURE 4.19

COLUMN DIAGRAM SHOWING E-WALLET ASSISTING

TRANSACTIONS IN THE CURRENT PANDEMIC
SITUATION

PERCENTAGE
70%

60%

50%

40%

30% 60%

20% 40%

10%

0%
AGREE DISAGREE

PERCENTAGE

INTERPRETATION
Out of 60 respondents,60% of them agree that E-wallet assisting transaction in the
current pandemic situation and 40% of them disagree that.

48
 TABLE 4.20

TABLE SHOWING PROMOTION OF CASHLESS

PAYMENT

NO.OF
PARTICULARS RESPONDENTS PERCENTAGE

YES 36 60%

NO 24 40%

TOTAL 60 100%

FIGURE 4.20

BAR DIAGRAM SHOWING PROMOTION OF CASHLESS

PAYMENT

PERCENTAGE

N0 40%

YES 60%

0% 10% 20% 30% 40% 50% 60% 70%

PERCENTAGE

INTERPRETATION
Out of 60 respondents, 60% of them agree that E-wallet promotes
cashless payment to the next level and 40% of them disagree.

49
 TABLE 4.21

TABLE SHOWING REFERING E-WALLET TO THE FRIENDS

NO.OF
PARTICULARS RESPONDENTS PERCENTAGE

YES 36 60%

NO 24 40%

TOTAL 60 100%

FIGURE 4.21

PIE DIAGRAM SHOWING REFERING E-WALLET TO THE

FRIENDS

PERCENTAGE

40%

60%

YES NO

INTERPRETATION
Out of 60 respondents, 60% of them like to refer E-wallet to their friends and 40% of them did not like
to refer to their friends.

50
 TABLE 4.22

TABLE SHOWING OBSTACLES WHILE USING E-WALLET

NO.OF
PARTICULARS RESPONDENTS PERCENTAGE
SECURITY OF MOBILE 18 30%
PAYMENT
TIME CONSUMOTION 12 20%
TO SET UP
DANGER OF LOSING 30 50%
MONEY
TOTAL 60 100%

FIGURE 4.22

PIE DIAGRAM SHOWING OBSTACLES WHILE USING E-

WALLET

PERCENTAGE

30%

50%

20%

SECURITY OF MOBILE PAYMENT TIME CONSUMPTION TO SET UP DANGER OF LOSING MONEY

INTERPRETATION
Out of 60 respondents, 30% of them facing security of mobile payment and 20% of
them facing time consumption to set up and 50% of them facing danger of losing
money.

51
 TABLE 4.23

TABLE SHOWING MOST USED E-WALLET

NO.OF RESPONDENTS
PARTICULARS PERCENTAGE
PAYTM 36 60%
FREECHARGE 12 20%
MOBIKWIK 6 10%
GOOGLE WALLET 6 10%
TOTAL 60 100%

FIGURE 4.23

PIE DIAGRAM SHOWING MOST USED E-WALLET

PERCENTAGE

GOOGLE WALLET
10%

MOBIKWIK
10%

FREECHARGE PAYTM
20% 60%

PAYTM FREECHARGE MOBIKWIK GOOGLE WALLET

INTERPRETATION

Out of 60 respondents, 60% of them using Patm 20% of them using Freecharge 105 of
them using Mobikwik and another 10% of them using Google wallet.

52
 CHAPTER 5

FINDINGS, SUGGESTIONG AND CONCLUSIONS

53
 FINDINGS

1. Majority of the respondents are belongs to the age of below 30 and their
educational qualification is Graduate.
2. Most of the respondents have an income 20,000- 60,000 per annum.

3. Majority of the customers are really believe in e-wallet system. They are sure
that it is safe and secure.
4. Most of the respondents had got information relating e-wallet services
from social media. Most of respondents using internet .thus, they can use
easily.
5. Most of the respondents had purchased something through internet at least once.

6. Most of the respondents choose e-wallet by the advantage of easy to make

payment .

7. Half of the respondents are using Smart-phone and they are mostly made
payment by using mobile-phones.
8. Most of the respondents are using e-wallet for the purpose of recharge, bill
payment, utility services and recharge.
9. Majority of them has used e-wallet more than times for payment.

10. Most of the customers are satisfied with e-wallet services.

11. 64% of customers has no obstacles over e-wallet payment.

12. Majority of respondents are strongly agreed that e-wallet is very useful.

13. The cost and benefits of e-wallet is high.

54
 SUGGESTIONS

 The trade union should conduct class to aware advantages of e-wallet

services.

 Marketing and promotion should be conducted to create awareness

among non- users.

 Discount offers and reward points on making payment through digital

wallet can increase its popularity and adoption as well.

 To increase the use of digital wallet, it is required to educate

consumers about the benefits of a digital wallet in simplifying
streamlining their purchasing experience.

55
 CONCLUSIONS

The study was conducted to measure the effectiveness of e-wallet

among customers in NILAMBUR TALUK. The e-wallet services would make
more effective by conducing classes on advantages of e-wallet services.
Majority of the
customers are interested in e-payment system and happy to continue the
payment always through online. Some of them fear in the security of e-
wallet services. The customers should adopt safe and secure application
for safer transactions such as applications forwarded by google, several
banks, etc..

The study reveals that most of the customers are satisfied with e-wallet
payment system and some are not satisfied in certain areas and based on finding
suitable suggestions were given.

56
APPENDIX

57
 QUESTIONNAIRE
Sir/ Madam,

I am a sixth semester B.Com Student and I would like to conduct a study

on “A STUDY ON EFFECTIVENESS OF E-WALLET AMONG
CUSTOMERS WITH SPECIAL REFERENCE TO NILAMBUR
THALUK”. I shall be obliged to you could fill up this Questionnaire
which is required for collecting data for B.Com dissertation. I assure you
that I will keep the date the confidential and use only for academic
purpose.
Thanking you
MUHAMMED FAZIL C

1. Name

2. Age

3. Occupation

o Professional,
o self-employed,
o Salaried
o Others

4. Educational qualification

o Graduate
o +2 or below
57
o Diplomate
o PG

5. Annual income

o Below 10000
o 10000- 20000
o 20000-60000
o Above 60000

6. Time spend over internet

o 1/3 hours/day
o 3/6 hours/day
o 6/9 hours/day
o More than 9 hours

7. Awareness regarding functionality of E-wallet

o Fully aware
o Partially aware
o Note aware

8. Origin information about E-wallet

o Social media
o Friends
o Tv/magazine

9. Do you purchase goods or services over internet

o Yes
58
o No
o Sometimes

10. Reason for using E- wallet

o Time saving
o Easy to use
o Security

11. Medium used for payment of E-wallet

o Smart phone
o Computer
o Both

12. Consideration of E-wallet against other sort of payment method

o Alternative choice
o Substitute
o Supportive instrument

13. Purpose of using E- wallet

o Money transfer
o Reacharge
o Utility and bill payment
o All of the above

14. Number of usage of E-wallet

o Only one time

o 5-10 times
59
o More than 10 times

15. Satisfaction level of E-wallet

o Very satisfied
o Satisfied
o Neutral
o Un satisfied.

16. Intrest in continuation of E-wallet

o Very likely
o Likely
o Neutral
o Un likely

17. Did you faced Any obstacles while using E-wallet

o Yes
o No

18. Is E-wallet a useful mode of payment?

o Agree
o Disagree

19. Is E-wallet alternative payment to the physical transaction?

o Agree
o Disagree

20. Is E-wallet used widely in the current pandemic situation to assist transactions

60
 o Agree
o Disagree

21. Does E-wallet promote cashless payment to the next level

o Yes
o No

22. Would you like to refer your friends to use E-wallet

o Yes
o No

23. What are the obstacles faced while using E-wallet

o Security of mobile payment

o Time consumption to set-up
o Danger of losing money

24. Which E-wallet do you prefer most of the time

o Paytm
o Free charge
o Mobikwik
o Google wallet

If any

61
62
BIBLIOGRAPHY

63
 BIBLIOGRAPHY

WEBSITES

 www.wikipedia.
 www.google.com
 www.sumhr.com
 www.socialbeat.in

BOOKS
 J. M. Spool, “Web Site Usability: A Designer‟s
Guide,” Morgan Kaufmann Pub, 1999.
 Ettlie, J. (1980). Adequacy of stages model for decisions on adoption
of innovation. Psychological Reports, 991-9

64
65
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