International Journal of Pure and Applied Mathematics

Volume 119 No. 12 2018, 2583-2594

ISSN: 1314-3395 (on-line version)
url: http://www.ijpam.eu
Special Issue
ijpam.eu

Transformation towards E-Wallet Payment Systems

Pertaining to Indian Youth
1
R. Adharsh, 2J. Harikrishnan, 3Adarsh Prasad and 4J.S. Venugopal
1
Department of Commerce and Management,
Amrita School of Arts and Sciences,
Amrita Vishwa Vidyapeetham, Amritapuri, India.
adhusmithraj@gmail.com.
2
Department of Electronics and Communication Engineering,
Amrita School of Engineering,
Amrita Vishwa Vidyapeetham, Amritapuri, India.
jharikrishnan18@gmail.com
3
Department of Commerce and Management,
Amrita School of Arts and Sciences,
Amrita Vishwa Vidyapeetham, Amritapuri, India.
adarshprasad1997@gmail.com
4
Department of Commerce and Management,
Amrita School of Arts and Sciences,
Amrita Vishwa Vidyapeetham, Amritapuri, India.
venugopaljs@am.amrita.edu

Abstract
E-wallet payments are becoming more compatible for the Indian
economy guided by Smart phone pivotal internet utilization. India
presently has around 8.5 crores unique active mobile wallet users. Out of
all the transactions through mobile wallets the higher percentage is done by
Indian youth. Our research was an analytical study of the active number of
E-wallet users concentrating to college students and how the new system
after demonetization has molded the payment system around students
predominantly in areas of day to day purchases in digital payment
facilitated vendors and for commuting. We did a campus wide survey
relating to this and an analytical business perspective was build upon the
data. We also had an in person questionnaire within certain groups to

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analyze the extensive usage of mobile wallets primarily among students.

This research predominantly converge relating to the preeminence of E-
wallet usage among students and the various business techniques deployed
by E-wallet firms to stabilize the overall user count.
Key words: E-wallet, Digital payment, Demonetization, Business
analysis.

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1. Introduction
In this new era of mobile phone and smart phone technology when the dally
user count is increasing at the rate of thousands per day newer technologies are
coming to aid the customers. one of the most useful and innovation technologies
of all was the introduction of E wallets or digital payment systems. In India the
first e wallet was launched in 2006 by Time of money named Walllet365.com,it
enables secured electronic payments between people and business easily and
instantly. This e wallet eased payments for online shopping and payment of
utility bills. The real change happened after India went through demonetization
when the user count rapidly increased and many e wallet companies grabbed
this opportunity, when the monthly transaction jumped from 3000 crore to 6800
after demonetization. In 2013 the industry was having annual turnover of IND
24 billion and in 2017 it has grown to IND 955 billion. The industry is expected
to grow up to $4.4 billion by the year 2022.Though many look into
Governments United Payment Interface (UPI) over other modes , E wallet
Industry is having immense opportunity in our country. A stiff competition
stays in the field and the market is filled with more firms coming into race and
are trying to grab in the opportunity.

2. Literature Review
According to Dr Hem Shwetha Rathore(2017) the study on “Adoption of
Digital Wallet By Consumers” gives a analysis about the various factors that
could impact a consumer’s decision in adoption of digital wallet as an mode of
payment. It also attempts to study the various risk and challenges that are faced
in using of digital wallet by users.

A detailed analysis is carried to check in the comparison on mode of online

payment and various age groups, also the way online payment are carried out
with respect to occupation, factors that can create a influence on selection of
digital wallet with reference to age groups, also the factors that affect a users
willingness to adopt digital wallet as a mode of payment with reference to
income level as well as the kind of satisfaction users receive on using use of
Digital Wallet Services. The Study also predicts that main factors that play an
important role in consumer adoption are divided into three - ease of online
purchase, level of loyalty provided also the viability of digital wallet. The
findings by the study include security and safe are the most challenging issues
as well as the most accepted feature of digital wallet is the hassle free mode of
making a payment.[1]

“Study Consumer Perception of Digital Payment Mode” Shamsher Singh,

Ravish Ran(2017) , finds out the customer perception and impact of
demographic factors on adoption of digital mode of payment .ANOVA
Computation is carried in testing the hypothesis set. The study finds that
demographic factors except education does not have a impact on the adoption of

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the digital payment. Analysis through ANOVA computation shows that

education level of the customer plays a important role in customer adoption in
digital payment mode[2].

J.Sivasubramanian,M.velavan,S.Arunkumar,P.Abirami,C.theresa,G.Abirami(201
7) study on, ”Preference Towards Digital Payment System”, is an analysis of
the consumer perception towards digital payment in Thiruchirapalli , focusing
on the perception factors which determine the preferences towards Digital
Payment. The aspects they looked into were the duration of time the consumers
spend using digital gadgets ,service network and payment gateway used as well
as the consumers view about digital payment. Factor analysis, correlation,
Multiple regression analysis are the statistical tools used to find out the
challenges faced by the X generation consumers. The successful
implementation of digital payment system among Generation depends on
trustworthiness ,convenience &benefits security and privacy constraints. of
consumers belonging to Generation X as well as their demographic profile
which have a impact on the consumer adoption.[3]

“E-payment System on E-Commerce in India “,Study by Karamjeet Kaur and

Dr Ashutosh Pathak(2015) gives a detailed study about the role E payment
system and its impact on E commerce in India.

It gives a theoretical aspects about the types of E payment system, the limitation
of age old payment system with in the concept of electronic payments which
includes lack of usability, lack of security, lack of efficiency and consistency as
well as the various requirements in digital payment ,Components of effective
electronic payment system. The study gives a emphasize on scope of E payment
system in the future which could be possible by the impact of technology which
would be reachable to all common people in the country[4]

A study conducted by Jiang ping Wan, Ming Zeng, Lianyu Liang ,“Empirical
study on usability impact factors of electronic wallet one card solution within
college students”(2013),gives a analysis of various usability factors in E wallet
which includes cognition ,Functionality, Usability, satisfaction .They have set
up a preliminary solution for college students through a one card access for all
purposes and analyze the usability evaluation system using a factor analysis
system works and done their evaluation on singleton studies about the factors
that affect usability information system and its various process and meaning.[5]

3. Objective of the Study

1) To analyze the perspective of youth towards a switch to E wallet.

2) To study the factors influencing youth towards E wallets.

3) To study the strategies adopted by E wallet firms in keeping their user

base consistent.

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4. Main E wallet Services in India

4.1 Paytm

Paytm is one of the biggest E wallet services in India with the maximum
number of stable users. Paytm offers various payment options including bill
payments , mobile recharge flight and railway booking and it has become a
standard mode of payment now.

Its roots lie in One97 Communications one of Indians internet payment

companies. One97's main investors are Mediatek, Ant Financial (Alipay),
Alibaba Group, Soft Bank, SAIF Partners.
4.2 ICICI pocket

ICICI pocket is a VISA based E wallet service in with users can make
transactions with anybody. This wallet services provides facilities for faster
third party merchant purchases payment of bills and other financial services.
ICICI pocket also comes equipped with a card for transaction in shops and E
commerce websites.
4.3 Jio money

Jio Money comes under the brand of Reliance Jio Infocomm Ltd,it offer fast
and Convenient bill payments. It helps in instant paying of your electricity, gas,
landline, prepaid and postpaid bills from anywhere. Jio prime users can access
this facility.

It also provides its customers with various attractive offers and schemes.
4.4 Airtel Money

Airtel Money was at first only used by a small amount of urban population,
after the effects of demonetization this E wallet came into extensive use in
paying bills and other payment services. This E wallet is also used to transfer
money within people for various purposes. No bank account is required for
transactions, also it works without an internet connection.
4.5 Citrus

Citrus is a UPI based E wallet service wherein only a virtual address is used to
make payments so the money and identity is secure. Payments are much more
faster and convenient.
4.6 Citi Master Pass

Citi MasterPass stores all the customer data in a secured server so that all CITI
bank consumer card details and shipping details need not be entered every time
they make a purchase. This eliminates the risk of customers abandoning
shopping cart because of the tedious payment process and also creates a secure
way of transferring.

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5. Analysis and Interpretation

5.1 Analysis of the Factors influencing Extensive use of E Wallets
after demonetization
Table 1: Factors influencing Extensive use of Mobile wallets after
demonetization
Mode Strongly Agree Neutral Disagree Strongly
Agree Disagree
Handling Transaction Easier 51 85 20 3 2
Monitory Benefits 18 90 45 3 2
Helps in doing Multipurpose 37 93 27 2 1
financial Activities
Acceptance from small scale to 24 76 44 14 2
large scale vendors
Transactions are secured 24 85 46 3 2
Interpretation

Respondents in order to check in there response towards how they see a

particular aspect regarding the use of E wallets were given five choices from
strongly agree to strongly disagree to choose from the perspective opinions
provided i)Handling transaction easier, compared to liquid cash transaction E
wallet transaction are more easier, 51 respondents strongly agree ,85 agree , 20
respondents have neutral choice while 3 disagree with it while rest 2 of the
respondents strongly disagree with it.2)Monitory benefits 18 of the respondents
strongly agree ,90 respondents agree ,45 respondents have neutral opinion while
3 disagree with it while rest 2 of the respondents strongly disagree with
it.3)Helps in doing multi-purpose financial activities ,from the overall
respondents, 37 of the respondents do strongly agree ,93 agree ,27 of them are
having neutral opinion while 2 of them disagree with it while rest 1 of the
respondents strongly disagree with it. 4) Acceptance from small scale to large
scale vendors 24 respondents strongly agree ,76 respondents agree ,44
respondents have neutral opinion , 14 disagree while rest 2 of the respondents
strongly disagree with it 5)Acceptance from small scale to large scale vendors
24 respondents do strongly agree, 76 agree ,44 respondents are having neutral
opinion while 14 disagree, rest 2 of the respondents strongly disagree with it.
vendors.6)Transactions are secured with the absence of cash in hand ,the money
can be kept in electronic wallets which is more safer and convenient compared
to cash in hand 24 respondents are strongly agreeing ,85 respondents are
agreeing ,46 respondents take neutral opinion, 3 of them disagree with it while
the rest of the 2 respondents strongly disagree.
5.2 Analysis of the use of E-Wallets over other modes of payment
Table 2: Using E-Wallets over other modes of payment
Factors Respondents
Time Saving 43
Easy Accessible 44
Quick transaction 61
Security 6
Safety 5

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Interpretation

On analyzing the influential factor that differentiate E wallets from other modes
of payment, respondents were provided with certain factors,61 respondents
choose Quick transactions as a influential factor along with time saving at 43
respondents and Easy accessibility by 44 respondents while safety and security
is chosen by others.
5.3 Analysis of payment mode used by most in E-commerce.
Table 3: Payment mode used by most in E-commerce
Debit Card 90
Credit Card 23
Digital Wallets 14
Net Banking 22
Others 11
Interpretation

Analysis was carried out to check in mode of payment respondents commonly

use, of the total respondents 90 Opted for Debit card and 23 for Credit card
while 14 for Digital wallets ,22 for Net banking while rest opted for other
modes. Though the number of users using E wallet directly are minimal
compared to others , respondents agree that most of their debit / card
transactions are carried with the Digital wallets.
5.4 Data Analysis Based on User Response.

Figure 1: Usage of Digital Payments Systems

Interpretation

The analysis is to figure out the number of times E wallets are used by a
youngster during a month, choices from once to more than 6 times a month
were provided and from the total no respondents 56 respondents use it once in
every month ,while 25 respondents are using twice in a month,20 respondents
are using thrice a month,33 respondents use between 4 to 5 times while 26
respondents use it more than 6 times in a month. The study shows that E wallet
are used for at least once in a month by the respondents. The analyses shows

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that E wallets are a common trend among the youth today and they are used in
for one purpose or other depending on the facilities available.

Figure 2: Factors accepted by youth regarding digital payment

Interpretation

The study was to analyze the concept of E wallet among youngster, the
respondents were provided with various aspects related to E wallets and were
asked to choose from it, 60 of 160 respondents choose E wallet can be
alternative mode of payment, while 46 respondents choose. E wallet can
replace the existing cash based payment, 41 respondents believe that it can
support the existing payment systems while 13 respondents chooses other
reasons as there opinion. It was evident from the response that in youth's
perspective E wallet as a mode of payment can replace the existing cash
payment system as well as it can formulate a alternate mode of payment in our
country.

Figure 3: Purpose of use of digital payments.

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Interpretation

E wallet as a mode of payment can be used for various services, the analysis is
to focus which Payment system respondents choose from the available which
are equally perceived by the youth, out of the 160 respondents , 47 chooses
recharge as the main purpose of using E wallets for doing various mobile and
DTH recharges, 53 respondents use E wallet for booking tickets
(Entertainment, Bus, Train, Flight) 26 respondents use it for money transactions
while 20 respondents uses it as a tool for E commerce bill payment and rest 14
respondents use it for paying electricity, water and insurance bills.
5.5 Age Wise Classification of Respondents

Figure 4: Age Wise Representation

Interpretation

The bar graph represents the age wise classification of the respondents, the
highest number of participation were 20 years old with 54 respondents, 21
years with 30 respondents,19 years with 29 respondents as well as 18 years with
27 respondents out of the 160 respondents ,we have 1 respondent each from
17,24,25,30 years age group also 3 each from 23 and 26 years old. The analysis
shows that the data was collected between the age group of 17 to 30 college
going students who are the users of Ewallet for various online payment
purposes.
5.5 Business analysis Pertaining to E-wallet Firms.

E-Wallet or Electronic Wallet has seen an significant raise in user base post
demonetization with the governments initiative towards transforming India in to
a digital nation, also the need for an alternative payments mode has positively
impacted the E-Wallet sector ,the last few years can be seen as the golden era of
E-Wallet in our country . But with the coming up of new E-Wallet firms and
the rise in market potentiality ,the competition with in and outside the market
has grown up

immensely .To stay in this competition and keep their user base secure E-Wallet
firms come up with various strategies which include both monetary as well as
technical benefits . Some of the strategies implemented by the firms include :

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Strategies Description
Monetary
Cash Backs Cash backs are return on the payment made .
Referral codes These are the codes that can be referred to users friends and
acquaintance providing reward for the user.
Redeem Points Points which are offered by firms which can be redeemed at the
time of purchase .
Discount Vouchers During purchase firms offer discount vouchers

Non Monetary Description

Ease of transaction The firms made maximum advantage of the technology
and made transaction more easier.
Multi Purposes Services E wallet firms provide users with wide range of
services from online ticket booking to paying street
vendors .
Timely Updates Providing updates by using commercial medias
as well as using social media. confidentiality of the
users.
Safety and Confidential The information provided by the users will be kept
secure and the
various transaction are kept within the
confidentiality of the server and user.

6. Findings
• Two third of the youth today use E wallets mainly for online
transactions, recharges, booking tickets .
• Most of the respondents choose E wallets because of their ease and
quick nature of transaction, as well as time saving.
• Respondents agree that E wallets can replace the existing payment
systems and bring in a alternate mode of payment.
• E wallets are now more accessible with the availability of smart
phones with high speed internet.
• Effects of Demonetization has led the towards a alternate Payment
mode, E wallets utilized this opportunity.
• Most of the youth in their response agree that E wallet are now
accepted in small vendors to large scale retailers.
• Respondents agree that the availability of cash backs ,redeem points
and loyalty services provided by E wallet firms, gives them the
opportunity to select the best of the available ones.

7. Conclusion
E wallets Payment systems have grown-up to a larger market during the years,
being a part of techno economic development youth has accepted this concept.
One third of the youth today use E wallets at least once in a month, perceiving E
wallets mainly due to their easily accessible nature, Ease of transaction as well

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as the confidentiality and security during the Payments.

The major factors influencing youth towards E wallets include availability of

wide range of services, monitors benefits as well as it's acceptance from small
vendors to large scale retailers. In order to maintain and strengthen the user
base, E wallets firms compete themselves with other firms on providing
quality service and providing it's customers with wide range of monitory
benefits with technical advantages.

References
[1] Dr Hem Shewtha Rathore. (2017) ,”Adoption of E-Wallet
Payment System”,BVIMSR’s Journal of Management
Research,Vol 8Issue-1..
[2] Shamsher Singh ,Ravish Rana (2017) , ”Study of Consumer
Perception Of Digital Payment Mode”, Journal of Internet
Banking and Commerce,Vol.22,no.3
[3] J.Sivasubramanian, M. Velavan, S.Arunkumar, P.Abirami,
C.Therasa and G.Abirami(2017) ,”Preference Towards Digital
Payment Among Gen X-ERS”, International Journal Of Economic
Research, Vol 14,No 3.
[4] Karamjeet Kaur,Dr. Ashutosh Pathak,(february2015) ”E-Payment
System on E-Commerce in India”, Karamjeet kaur Int.Journal Of
Engineering , Research and Applications,ISSN-2248-
9622,Vol.5,Issue 2 (Part-1)pp.79-87.
[5] Jiangping Wan, Ming Zeng,Lianyu Liang(2013) ,”Empirical Study
on Usability Impact of Electronic Wallet One Card Solution
Within College Students”, Scientific Research,ibusiness, pp 77-
85
[6] Mobile Wallets Adoption in India, Retrieved from
https://medium.com/@bharat.tomar/mobile-wallets-adoption-in-
india-149e0df4ebaf
[7] 20 Best Digital Wallets in India,Retrieved from
https://www.sumhr.com/digital-wallets-india-list-online-payment-
gateway/
[8] Digital/Electronic Wallet(E Wallet) Retreived from
http://www.arthapedia.in/index.php?title=Digital_/_Electronic_Wal
let_(e-wallet)
[9] Questionnaire for e wallet, Retreived from
https://www.scribd.com/document/340196798/Questionnaire-f
[10] What are people’s concerns and preferences in cashless
payment?,

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