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1 A STUDY ON IMPACT OF MOBILE WALLETS AMONG UNIVERSITY STUDENTS IN CHENNAI CITY Ezhil Maran K P Assistant Professor, Department Of Commerce Faculty Of Science And Humanities Srm Institute Of Science And Technology Kattantkulathur Mail Id: ABSTRACT: India is a developing economy which is focussing on growth at a faster rate. As a part of development strategy, the government of India came up with the idea of demonetization of 500 and 1000 denomination rupees to root out the black money. This has envisaged the economy to move towards digitalized environment wherein the transactions are being carried out electronically. This study focuses on the impact of demonetization which has driven the economy to carry out the transactions digitally. The study has accomplished in studying the impact as well as preference of the university students towards the mobile wallets. It can be clearly concluded that the majority of the students tend to show their interest in mobile wallets not just for the purpose of usage but also for the purpose of extending their support to digitalization. There is also much preference towards Paytm by the student community based on various services offered by them like recharge, travel, tickets for various purposes etc. Paytm is also being preferred mostly because of its unlimited cashbacks that are being offered to its users. Though it has been found out that there are few difficulties that are faced by the users of mobile wallets, they also support mobile wallets for the ease of transaction as well for less risk of carrying physical cash. In fact, mobile wallet has come into the lime light after the demonetization in the country which brought in a huge need for such payment methods. Also, by everyday passing more and more preference towards mobile wallet is increasing and definitely it is going to play a major role in the modern-day commerce. Keywords: Mobile Wallets, Digital Payments INTRODUCTION The term payment is as old as human civilization, since then the payment industry has undergone a drastic transition from barter system to virtual payments (mobile wallets). Barter system an age-old method of exchange which has been used for centuries long before money was invented, people exchanged goods and services for other goods and services in return. After the success of banking system, our cash-based society evolved through internet, this led to building 1824

2 up of various electronic payment systems like Debit card, Credit card, E-cheques and is now pushing into the digital frontier of virtual wallet (mobile platform). With this advancement in technology, things around us have drastically changed. As smart phones have become more affordable & prevalent, it caters to man s comfort & conveniences i.e. ordering food, online shopping, booking movie tickets etc. DIGITAL PAYMENTS IN INDIA The Digital India is the Indian Governments flagship programme with a vision to convert India into a digitally empowered country. Faceless, Paperless, Cashless is one of supposed function of Digital India. As part of government reforms Prime Minister Mr. Narender Modi demonetized the high value currency of Rs. 500 and 1000 in November 2016 and also launched the digital India initiative in 2015.These initiatives have provided extensive boost up to the digital payment system in the country. Governments other initiatives like BHIM and UPI are supporting in transition and faster adoption of digital payments. Electronics Consumer transaction made at point of sale (POS) for services and products either through internet banking or mobile banking using smart phone or card payment are called as digital payment. The digital payment system has the following phases: 1. Registration 2. Invoicing 3. Payment selection 4. Payment confirmation. This payment system generally includes 3 electronic payment instruments namely, cash, cheque and card. Post demonetization is affecting the e-commerce sector that Cash on Delivery is gradually getting stopped and other modes of payment is replaced like Card on Delivery, Net Banking, Debit Card, Credit Card etc. Demonetization will positively help out e- commerce industry in India enhances the chance for people to go cashless. As part of encouraging cashless transactions and transforming India into less-cash society, various modes of following digital payments are available and also be adopted by many citizens. i. DEBIT / CREDIT CARD: Suitable for: Online/offline merchant sale. Transaction limit: Set by card issuer Details required: Card number CVV Expiry date Cost: Debit cards: Up to 0.75% for transactions up to Rs 2,000; up to 1% for transactions above Rs 2,000. Credit cards: around 2.5% per transaction ii. RTGS / NEFT: Suitable for: High value online transactions. Transaction limit: International Journal of Pure and Applied Mathematics Special Issue No upper limit, minimum Rs 2 lakh. Up to Rs 10 lakh, minimum Rs 1 Details required: Account number Password Beneficiary registration IFSC code Cost: RTGS: Up to Rs 55 per transaction. NEFT: Up to Rs 25 per transaction. iii. IMPS: Suitable for: Instant transfer Transaction limit: Rs 2 lakh per day Details required: Account number Password Beneficiary registration IFSC code Cost: Rs 5-15, depending on transaction amount. 1825

3 iv. UPI: Suitable for: Instant transfer Transaction limit: Rs 1 lakh Details required: VPA (virtual payment ID) of recipient, m-pin Cost: Less than 50 paisa per transaction. v. USSD: Suitable for: Feature phones without Internet connectivity Transaction limit: Rs 5,000 Details required: Only Aadhaar number, IFSC or code allotted by banks on registration Cost: As levied by the telecom operator. vi. M-WALLET: Suitable for: Small-ticket transactions. Transaction limit: Rs 20,000 per month (Rs 1 lakh for KYC compliant wallet holders) Details required: Login ID Cost: Only if you transfer money from your wallet into your bank account. (RTGS: Real-time gross settlement systems. NEFT: National Electronic Funds Transfer. IMPS: Immediate Payment Service. UPI: Unified Payment Interface. USSD: Unstructured Supplementary Service Data). MOBILE WALLETS vs DIGITAL WALLETS Digital wallets are often used interchangeably with mobile wallets. However, while they both store payment information, they are implemented differently. Digital wallets are mostly used for online transactions and may not necessarily be used on mobile devices. Mobile wallets are used by people who would rather not carry a physical wallet when making in-store purchases. For this reason, these wallets have to be used on mobile and easy to carry platforms. Apple Pay, Samsung Pay and Android Pay are examples of mobile wallets that can be installed on a handheld or wearable device. A regular PayPal account is a form of a digital wallet, but when it is used in conjunction with mobile payment services and mobile devices, it functions as a mobile wallet. RBI S INITIATIVES TOWARDS M-WALLETS RBI has been playing a pivotal role in the promotion of electronification of payments in the country. It has classified M-wallets into four types namely, i. Open wallets- Open wallets are part of Open System Payment Instruments and can be used for purchasing goods and services including financial services and also allow customers to withdraw cash at ATMs/BCs. Such type of wallets can only or jointly be launched with a bank. Example: M-pesa by Vodafone, ICICI bank etc offer these types of wallets. ii. Semi-Open System Payment- Airtel Money is a semi-open wallet, which will allow the customer to transact with merchants at PoS that have a tie-up with Airtel. You can't withdraw cash or get it back. Another example for semi open is Gift Cards issued by banks. iii. Closed wallets- Closed wallets are the part of Closed System Payment Instruments which can be used for buying goods and services issued by business houses or e-commerce companies, where some amount of money is locked with the merchant in case of a cancellation or return of the order. No third-party payments and settlement are allowed in such instruments. Example: Amazon pay, Flipkart, MakeMyTrip offer closed wallet. iv. Semi Closed wallets- Such type of wallets is part of payment instruments which can be used for purchasing goods and services only from selected merchants. Cash withdrawal or redemption cannot be performed using semi closed wallets. 1826

4 Examples: Paytm wallet, SBI Buddy, Citrus wallet etc. According to Reserve Bank of India s guidelines, a maximum of Rs 10,000 can be deposited in an M-wallet. After a customer deposits Rs 10,000 in their a/c, the company pays 1-2% transaction charge to the bank and earns a commission of 1.5-2% for every transaction made by the customer through the wallet from the merchant. REVIEW OF LITERATURE Singh (2017) concluded that there was significant difference between education of consumers and adoption of digital payment. The perception of consumers for digital payment had positive and significant effect on adoption of digital payment among consumers. Sardar, R. (2016) Studied Preference towards Mobile Wallets among Urban Population Of Jalgaon City. The objective of the study was to find awareness and preference towards the usage of Mobile wallets in Jalgaon. Study also focused on impact of various demographic factors on the usage of mobile wallets. Further researcher has also found out reasons for refraining the usage of mobile wallet. For the study purpose, the researcher has used both primary and secondary data. For collecting primary data, the researcher has conducted survey of 60 respondents of urban area of Jalgaon. The researcher found that majority respondents preferred to use Mobile wallet payment to transfer money followed by recharging mobile or DTH payment. The hypothesis testing revealed that there is no significant difference between age, gender of the respondents and their opinion about overall usage of Mobile payments. The major reason for refraining the usage of mobile wallet was security of transaction while purchasing online. Though there were limitations related to time of study as sample size was limited. Sanaz Zarrin Kafsh (2015), made a study on Developing consumer Adoption Model on mobile wallet in Canada, by taking a sample of 530 respondents through convenience sampling. Partial Least Square model was used to analyse the data. The focus of the study was to identify the factors that influence the consumer s adoption of mobile wallets. This study was based on technology acceptance model (TAM) & innovation diffusion theory (IDT). As per the analysis made by them, there is relationship among perceived usage, perceived ease of use & perceived security in predicting the adoption of mobile wallets. RESEARCH METHODOLOGY STATEMENT OF THE PROBLEM India is a developing economy which is focussing on growth at a faster rate. As a part of development strategy, the government of India came up with the idea of demonetization of 500 and 1000 denomination rupees to root out the black money. This has envisaged the economy to move towards digitalized environment wherein the transactions are being carried out electronically. This study focuses on the impact of demonetization which has driven the economy to carry out the transactions digitally. 1827

5 OBJECTIVES OF THE STUDY 1. To examine the preference of University students in m-wallets usage. 2. To analyse the impact of student s education on usage of m-wallets. 3. To examine the student s preference of m-wallets over other digital payments. AREA OF STUDY The area chosen for the purpose of this study is selected university students of Chennai city SAMPLING METHOD For the present study, the techniques of convenience sampling (i.e. non-probability sampling) is to be used. A due consideration should be given to the data collection so that the conclusion comes out to be accurate. SAMPLE SIZE Sample size refers to number of elements to be included in this study i.e. 100 respondents. SOURCES OF DATA Primary data: Data will be collected using survey method by structured questionnaire in this study. Secondary data: Secondary data will be collected through various sources like Company Website, Magazines, Internet source, etc. TOOL USED FOR THE STUDY The tool used for the purpose of this study is percentage analysis done using the help of MS- EXCEL. LIMITATIONS OF THE STUDY The following are the limitations that has been faced during this study The age group of respondents has been particularly restricted because the respondents were mostly university students. The study is done specifically on university students and not on general customers Despite the simple structured questionnaire, the respondents faced difficulty in understanding the questions. 1828

6 ANALYSIS 1. AWARENESS OF M-WALLETS BEFORE DEMONETIZATION TABLE-1 Awareness Respondents (%) Yes No Maybe The majority of the respondents are aware about mobile wallets before demonetization in India. In the above table 58% are aware of it whereas 25% do not about it which can also be concluded that they came to know about only after demonetization in India. Also 17% of the respondents are not sure about their awareness about mobile wallets. 2. PREFERENCE TOWARDS M-WALLETS TABLE- 2 Preference Respondents (%) Yes No Maybe Out of 100 respondents 73 are willing to use mobile wallets which is the majority of them.15% of them does not show interest in preferring to it. And 12% of the respondents are not sure about it. 3. PREFERENCE TOWARDS ITS USAGE TABLE-3 Preference Respondents (%) Very High High Moderate Less Very Less

7 With regards to the usage of the mobile wallets it seems that 37% of the respondents prefer to use it only on an average basis. In which Very high, high and less constitute of equal share which is 14%. Almost 21% of the respondents are not likely to use it much. 4. MOBILE WALLET s PREFERENCE OF STUDENTS TABLE- 4 Mobile wallets Respondents (%) Paytm Freecharge Citrus Oxigen 7 7 Total From the above table and the chart, it is evident that 64% of the respondents prefer to use Paytm while others prefer to use Freecharge, Citrus and Oxigen at 19%, 10%, and 7% respectively. 5. MOBILE WALLET s PREFERENCE OF STUDENTS TABLE-5 Mobile wallets respondents (%) Paytm Freecharge Citrus Oxigen 7 7 Total From the above table and the chart, it is evident that 64% of the respondents prefer to use Paytm while others prefer to use Freecharge, Citrus and Oxigen at 19%, 10%, and 7% respectively. 1830

8 6. REASONS FOR PREFERENCE OF M-WALLETS TABLE-6 Reasons for preference respondents (%) Cashback 9 9 Easy to transact No risk of carrying physical Security From the above table and chart, it can be concluded that 41% show preference towards mobile wallets because of Cashback, Easy to Transact and No risk of carrying physical cash. Each one of them also have individual share of 9%, 36% and 14%. Respectively. 7. IMPACT OF M-WALLETS ON TRADITIONAL PAYMENT TABLE-7 Impact respondents (%) Yes No Not sure From the above table it can be understood that 45% of the respondents feel that the traditional method of payment has not been affected by the mobile wallet s introduction in the modern-day commerce. 35% of them feel that it has been affected by mobile wallets. The rest of the respondents are not sure to exactly arrive at a decision. 1831

9 8. CONVENIENCE OF THE SERVICES PROVIDED TABLE-8 Convenience respondents (%) Extremely useful Very useful Somewhat useful Not so useful 2 2 Not at all useful 0 0 From the above table and the chart, it is evident that the majority of the respondents (45%) find the services very useful. These services are also found useful by the other respondents as extremely useful of around 29% which is followed by 24% where the respondents feel it is only useful to some extent. There is 2% respondent who find these services as not so useful. No respondent felt that it is not at all useful. 9. SATISFACTION OF MOBILE WALLET USAGE TABLE-9 Satisfaction respondents (%) Very satisfied Satisfied Neutral Unsatisfied 1 1 Very unsatisfied 1 1 With reference to the above table and the chart, it can be concluded that majority of the respondents (46%) are satisfied by using these mobile wallets.30% of the respondents are very satisfied by using mobile wallets.22% of the respondents feel it is neutral. Satisfied and unsatisfied respondents of 1% each. 1832

10 10. FUTURE PREFERENCE OF M-WALLETS TABLE-10 Future preference respondents (%) Very likely Likely Neither likely nor unlikely Unlikely 5 5 Very unlikely 1 1 With reference to the above table and the chart, 40% of the respondents are likely to prefer mobile wallets for their future purposes followed 38% of the respondents who are very likely to use mobile wallets for their future purposes. The least chosen options are neither likely nor unlikely, Unlikely and Very unlikely with respective percentage of 16%, 5%, 1%. FINDINGS OF THE STUDY FINDINGS, SUGGESTIONS AND CONCLUSION Majority of the respondents belong to the age group of Majority of the respondents are from SRM Institute of Science and Technology. Majority of the respondents are male respondents. Majority of the respondents belong to the student community who are undergraduates. Majority of the respondents prefer the Debit card/net banking as their preferred mode of payment. Majority of the respondents are highly aware about mobile wallets before demonetization in India. Majority of the respondents show their concern towards preference for using mobile wallets. Majority of the respondents tend show preference towards usage of mobile wallets only at a moderate level in a day. Paytm is the most preferred wallet by majority of the respondents. The ease of transacting is major reason why majority of the respondents prefer to use mobile wallets. Majority of the respondents feel that the traditional method of payment has not been affected because of the mobile wallets in India. 1833

11 SUGGESTIONS The future of mobile payments in INDIA depends largely on the payment bank license which is to be provided by RBI so that the consumers will get confidence in using the wallet services. All the Mobile wallet providers need to meet the guidelines stipulated by RBI, so as to acquire payment bank license. The awareness of the M-wallet providers is rising when compared to the preference of usage of services, therefore the reasons for not using M-wallet can be found. However, security concerns appear to be an important factor depressing the adoption of mobile wallets for payments. Therefore, the mobile wallet providers need to address the security and privacy concerns of the users. Mobile wallet providers can collaborate with the Telcos for better and fast network connectivity. CONCLUSION The study has accomplished in studying the impact as well as preference of the university students towards the mobile wallets. It can be clearly concluded that the majority of the students tend to show their interest in mobile wallets not just for the purpose of usage but also for the purpose of extending their support to digitalization. There is also much preference towards Paytm by the student community based on various services offered by them like recharge, travel, tickets for various purposes etc. Paytm is also being preferred mostly because of its unlimited cashbacks that are being offered to its users. Though it has been found out that there are few difficulties that are faced by the users of mobile wallets, they also support mobile wallets for the ease of transaction as well for less risk of carrying physical cash. In fact, mobile wallet has come into the lime light after the demonetization in the country which brought in a huge need for such payment methods. Also, by everyday passing more and more preference towards mobile wallet is increasing and definitely it is going to play a major role in the modern-day commerce. BIBLIOGRAPHY 1. Sanaz Zarrin Kafsh (2015), Developing Consumer Adoption Model on Mobile Wallet in Canada, Ottawa, Canada. 2. Neeharika P et al, (2014), A Novel Interoperable Mobile Wallet Model with Capability Based Access Control Framework, International Journal of Computer Science and Mobile Computing, Vol.3 Issue 7, pg Shwetu Kumar, Vijay Yadav, Atiqu-Ur-Rahman, Aditi Bansal (2014), A study on Paytm Guru Gobind Singh Indraprastha University, Delhi. 4. Ngoc Doan (2014) CONSUMER ADOPTION IN MOBILE WALLET A Study of Consumers in Finland, TURKU UNIVERSITY OF APPLIED SCIENCES 5. Nikita Rai, Anurag Ashok, Janhvi Chakraborty, Prajakta Arolker, Saumeel Gajera (2012), M-wallet: An SMS based payment system, International Journal of Engineering Research and Applications, ISSN: