See discussions, stats, and author profiles for this publication at: [Link]

net/publication/376139690

THE STUDY ON THE EFFECT OF CASH BACK OFFERS ON USAGE OF MOBILE

WALLETS IN MUMBAI

Article · March 2019

CITATIONS READS

0 48

2 authors, including:

Milind Bhuva
University of Mumbai
13 PUBLICATIONS 1 CITATION

SEE PROFILE

All content following this page was uploaded by Milind Bhuva on 02 December 2023.

The user has requested enhancement of the downloaded file.

International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

THE STUDY ON THE EFFECT OF CASH BACK OFFERS ON USAGE OF MOBILE WALLETS IN
MUMBAI

Dr. Shaji Joseph1 and Milind A. Bhuva2

Associate Professor1, D. T. S. S. College of Commerce, Malad (E), Mumbai
Assistant Professor2, K. P. B. Hinduja College of Commerce, Charni Road, Mumbai

ABSTRACT
Mobile Wallet has been the most significant contributor in encouraging cashless and electronic payments. The
increase in use of smart phones and also improvement in services provided by mobile service providers have
also led to growth in use of M-Wallets. The various benefits of using M-Wallets like convenience, ease, cost
savings, etc. also has lead to robust growth in its usage. The present study focuses on the effect of cash back
offers towards the use of Mobile Wallets and also to effectively analyse the impact of demographic factors on
the usage of M-Wallets. Primary data was collected through well-structured questionnaire from a total of 171
respondents from the city of Mumbai and were analysed using cross tabulation, percentages and statistical
tools like Chi-square. An academic research study aims to help in suggesting appropriate strategies for M-
Wallet companies to target potential customers.
Keywords: M-Wallets, Cash back offers, Demographic factors.

INTRODUCTION
India is mainly a cash-intensive economy. A major portion of transactions carried out in the country are in cash.
This is mainly because of low financial literacy among people. In the recent years, the government is striving
hard to bring more and more people under the banking system. Even demonetization has led to an increase in
the number of digital transactions as people have started using more of plastic money, mobile banking and m-
wallets for making payments. Now people have turned quite smart and have stopped carrying cash while
shopping. Instead they have started using mobile wallets, with which the payments can just be done using
smartphone.
One of the best innovations in the field of information and communication technology is the advent of mobile
wallets. A mobile wallet is actually a virtual wallet that stores payment card information in the app on a mobile
device. Mobile wallets can be used to make payments to the merchants listed with the mobile wallet service
providers. It has become a highly convenient way for a user to make in-store payments for the shopping.
The mobile wallet is an app that is to be installed on a smartphone. In some cases it is an existing built-in
feature of a smartphone or even the mobile service provider. A mobile wallet stores information of the credit
card, debit card, coupons, or reward cards of the user. Once the user installs the app and the user feeds in the
payment information, the wallet stores this information by linking a personal identification format such as a
number or key, QR code or an image of the owner to each card that is stored.
Since demonetisation the use of mobile wallets have drastically increased. There have been many providers who
have been come up with various mobile wallet applications and have brought ample of choice among the users
to select from. Even the users have complete freedom to use more than one such wallet. to attract more and
more users even the providers come up with various cashback, referrals and reward programmes.
The following are the top trending mobile wallets:
Paytm – Amongthe various mobile wallets, Paytm is one of the most popular mobile wallets in India. It offers
users an online payment platform for secure transactions and very user-friendly application. Paytm is now a
payments bank too and provides e-commerce, ticketing, distribution of financial products and PaytmPostpaid
facility.
Mobikwik – Mobikwikwallet is an online payment wallet system where a person after logging in, can add
money via his debit or credit card. After adding the money he or she can make transactions on mobile, DTH,
pay electricity bills and much more similar to Paytm.
JioMoney – JioMoneywallet has a simple interface and all the elements that matter are visible at once to users.
For instance, your wallet balance, the option to recharge, send/request money, and pay at a shop are present on
the main page itself.
Oxigen – Oxigenhas a lively looking interface with a banner on special schemes running on top, followed by
the options that are available. Users feel secure with Oxigen while doing transaction because every time a six-
41
International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

digit one-time password (OTP) is sent to the registered mobile number. The Oxigen wallet app is available only
to Android users.
State Bank Buddy – Themobile wallet app can be used to send money to new and registered customers, book
movies, flights and hotels, as well as for shopping. It also has features like reminders to settle dues, recharge
and pay bills instantly. This wallet app is available in 13 languages and allows users to set reminders for money
transfers and clearing dues.
The number of mobile wallet users in India is expected to grow from the current 200-250 million to around 500
million in the next couple of years. Cab rental services like Uber and Ola allow their customers to pay online
using mobile wallets. Most digital wallets offer some discount or cash back for online payment. There are many
more such digital wallet providers like Citrus Wallet, ItzCash, FreeCharge, Axis Bank Lime, Airtel Money,
ICICI Pockets, mRupee, Vodafone m-PesaPhonePe, HDFC PayZapp, MomoeXpress,Trupay, QuikWallet, Ola
Money Mobile eWallet, UBI United Wallet, etc.
BENEFITS OF USING MOBILE WALLETS
Ease of use – It’s like a one click pay with no need to fill in card numbers and passwords every time. One can
link their credit cards, debit cards and bank accounts and pay immediately with no hassle to enter the details
each time.
Ease of access – There will be no need of physical wallet like we do in the case of cash or cards. Also
mobile wallets are upgrading to allow you to store your documents digitally like your Driving License,
Aadhar Card, Pan Card, etc.
Issue of change – Therewill no issue of asking or searching for change which we have while handling
cash.
Anytime transaction – Itwill be possible to make instant payments. Just like we can exchange cash at any
moment, we can exchange and transfer money anytime.
Record at one place – Therewould synchronization of data from multiple platforms. Bank accounts, credit
and debit cards, mobile accounts and bills - all will be interconnected and help in better management. It’s
like everything is under one roof.
Available for all – Itis extremely useful for huge unorganized sector where cash is considered as the most
suitable medium. Exchange of money through mobile wallet at chaat stalls, street vendors, small shops, etc.
would remove the need to carry cash/cards at such places.
REVIEW OF LITERATURE
SINGAL, NIDHI (2016) - The article analysedthe use of mobile wallet usage by loading money for bill
payments which is timing saving and convenient. It also signifies thehigh success rate on making payments for
transactions in less than 10 seconds, prevention from risk to the credit card and bank account limit as money is
loaded and the services offered by electronic commerce company Paytmlike buying movie tickets, utility bill
payments, money transfers, etc.
Shin and Ziderman (2017) - Digital wallet payments bring extra convenience to shoppers by offering flexible
payment additions and accelerating exchanges. It tests a model of consumer acceptance in the context of mobile
payment. It used the unified theory of acceptance and use of technology (UTAUT) model which constructs of
security, trust, social influence, and self-efficacy. Digital wallets offer the consumers the convenience of
payments without swiping their debit or credit cards. Instant Cash availability and renders seamless mobility is
also a unique feature of these digital apps.
Varsha R and M Thulsiram (2016) – The study is conducted to ascertain the acceptance of E-Wallets among
potential users. It isanalysed that the price related factor ie. cost saving and discount benefits seemed to be less
significant in the use of E-Wallets.
OBJECTIVES OF THE STUDY
1. To examine the association of demographic variables on the use of Mobile Wallets.
2. To study the factors diving the use of Mobile Wallets.
3. To examine the association of cash back offers on the use of Mobile Wallets.
HYPOTHESIS
H0: There is no significant relationship between use of Mobile Wallets and cashback offers

42
International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

H0: There is no significant relationship in Mobile Wallet usage among gender.

H0: There is no significant relationship in Mobile Wallet usage among different age groups.
RESEARCH METHODOLOGY
The current study is conducted in the city of Mumbai which is the financial capital of the country. The study is
based on the primary data collected from 171 respondents through a well-structured questionnaire. Of the total
respondents, 58 respondents were such who have never used mobile wallets due to various reasons. Data
collected was analysed using cross tabulation, percentages and statistical tools like Chi-square.
DATA ANALYSIS AND INTERPRETATION
The below table describes the frequency of the respondents among male and female using M-Wallet services.
Table-1: Frequency of M-Wallet users on the basis of Gender
Gender
Use of Mobile Wallets Female Male Grand Total
No 40 18 58
Yes 53 60 113
Grand Total 93 78 171
Source: Compiled from primary data collected
Result of Table 1 reveals that out of the total respondents almost 54% respondents were females of which only
56% of them use M-Wallets, whereas among 46% male respondents, almost 77% of them use M-Wallets.
Among the total, 66% percent of the respondents have adopted M-Wallets which is a significant percentage.
Table 2 is the result of the data analysed using Chi-square test the significance of Gender on M-Wallet usage
Table-2: Chi-Square Test – Adoption of M-Wallet and Gender
Chi-Square Test

SUMMARY Alpha 0.05

Count Rows Cols df
171 2 2 1

CHI-SQUARE
chi-sq p-value x-crit sig
Pearson's 7.520535 0.0061 3.841459 yes
Source: Compiled from primary data collected
Table 2 depicts result of the Chi-Square test conducted to examine the relationship between M-Wallet user and
gender. The result shows that at 5% significance level there is a significant relationship between mobile wallet
user and Gender.
The below table describes the frequency of the respondents age group towards use of M-Wallet services.
Table-3: Frequency of M-Wallet users on the basis of Age Group
Age Groups
Use of Mobile 15 - 30 years 30 - 45 45 - 60 Grand
Wallets years years Total
No 15 26 14 55
Yes 47 57 9 113
Grand Total 62 83 23 168
Source: Compiled from primary data collected
Table 4 is the result of the data analysed using Chi-square test the significance of age group on M-Wallet usage
Table-4: Chi-Square Test – Adoption of M-Wallet and Age Group
Chi-Square Test

SUMMARY Alpha 0.05

Count Rows Cols Df
336 2 4 3

43
International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

CHI-SQUARE
chi-sq p-value x-crit sig Cramer V
Pearson's 10.39677 0.015478 7.814728 yes 0.175906
Source: Compiled from primary data collected
Table 4 reveals the result of the Chi-Square test used to examine the significance of the age group on M-Wallet
adoption. The result shows that at 5% significance level there is a significant relationship between mobile wallet
user and age group. The test was done only on three age group ranges that is 15-30 years, 30-45 years and 45-60
years. The above 60 years range is not considered due to lack of sufficient response.
Table-5: Chi-Square Test – M-Wallet Usage and Cashback Offers
The Chi^2 value is: 1.991
Observed Expected Difference Difference Sq. Diff. Sq. / Exp Fr.
No 49 56.5 -7.50 56.25 1.00
Yes 64 56.5 7.50 56.25 1.00
Source: Compiled from primary data collected
Result of Table 5 depicts that at 5% significance level there is a no significant relationship between mobile
wallet user and cash back offers. Only those respondents who use mobile wallets were tested for the effect of
cask back offer on their usage which is 113 responses.
Figure-1: Frequency and Percentage for not Adopting M-Wallet

Source: Compiled from primary data collected

Figure 1 reveals the reasons for not using Mobile Wallets. It is determined that the respondents wish to enjoy
the comfort of using their traditional payment methods and then the second major reason is the security threat.
Figure-2: Factors Diving the Use of M-Wallets

Source: Compiled from primary data collected

44
International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

Figure 2 depicts that the ease in use and the flexibility are the two major reasons which encourage the Mobile
Wallets use. Even cashback and discount offers attract the use of Mobile Wallets. Very few respondents get
attracted to Mobile Wallets as it is secured.
Figure 3: Referring M-Wallets to Friends for Referral Benefits

Source: Compiled from primary data collected

Figure 3 indicates that respondents wish to take advantage of the referral benefits that the providers offer by
referring the use of such Mobile Wallets to friends, family members, etc. It is an encouraging factor for to use of
M-Wallets.
MAJOR FINDINGS
1. Significant reason for not using M-Wallets is the tendency of people to not move out of the comfort from
using traditional payment modes. Security threat is other reason for not adopting M-Wallet usage.
2. A good number of respondents (66.08%) have adopted Mobile Wallets.
3. Paytm has a highest user (84.8%) among the various M-Wallets.
4. Ease to use and convenience are major reason which inspire M-Wallet usage.
5. The referral offers do attract user to refer M-Wallet among their contacts to take benefits.
CONCLUSIONS
Mobile wallets are rapidly gaining acceptance to be used as a mode of payments and in the near future shall
have a major share for online payments. The list of merchants on the M-Wallets is also growing huge. Scanning
of the QR codes has become a very convenient, quick and easy way for payment helping avoid use of physical
wallets. It has now been accepted even by autorickshaw and cab drivers reducing the pain of change. The
authentication of the transaction is also possible by the use of One Time Password which reduces security
threat. It may be a security threat in case of loss or theft of the mobile phones but which is still minimised by
various unlocking passwords and fingerprint authentication which is now a common feature in most of the
mobile phones. The loss can still be restricted due to the limit of the maximum daily usage. The services of the
Mobile Wallets are yet free.
BIBLIOGRAPHY
[Link]
[Link]
[Link]
[Link]
NidhiSingal, ‘Dig into e-Wallets’, February 14, 2016 [Link] mobile-
wallet-digital-account- equivalent-to-physical-wallet/story/[Link]
DezanShira and Associates (2017) Growth of Digital Payments Systems in India [Link]
[Link]/news/growth-of-digital-payments-systems-inindia- [Link]/

45
International Journal of Advance and Innovative Research
ISSN 2394 - 7780
Volume 6, Issue 1 (XXXVIII): January - March, 2019 Part - 7

Watal R (2017) Digital payments surge 55% in 2016-17. [Link]

hF8D3D6bWBie6IoJzWtdZO/[Link]
IMAP report (2016) Payments Industry in India Q4 2016. [Link]
20Payments%20Industry%20in%[Link]
Thulsiram, R.V. (2016),‘Acceptance of E-Wallet Services: A Study of Consumer Behavior’, International
Journal of Innovative Research in Management Studies (IJIRMS), I(4), 133-141.

46

View publication stats