F/SOP/FYDP 02/06/00

UNDERGRADUATE FINAL YEAR PROJECT REPORT

Department of Economics and Management
Sciences
NED University of Engineering and Technology

Exploring Ways to Enhance the

Growth on Usage of E-Wallets

Group Number: Batch: 2019 – 2023

Group Member Names:

[Saad Siddiqui] [EC-19019]

[Areeba Noor] [EC-19035]
[Fatima Salman] [EC-19036]
[M. Taha Ali Khan] [EC-19018]

Approved by
……………………………………………………………………………………………...
[Dr. Mirza Faizan Ahmed]
[Designation of
Advisor]
Project Advisor

© NED University of Engineering & Technology. All Rights Reserved – [Month Year]
 F/SOP/FYDP 02/06/00

Author’s Declaration

We declare that we are the sole authors of this project. It is the actual copy of the
project that was accepted by our advisor(s) including any necessary revisions. We
also grant NED University of Engineering and Technology permission to reproduce
and distribute electronic or paper copies of this project.

Signature and Date Signature and Date Signature and Date Signature and Date

................................. ................................. ................................. .................................

. . . .

[Saad Siddiqui] [Areeba Noor] [Fatima Salman] [M.Taha ali khan]

[EC-19019] [EC-19035] [EC-19036] [EC-19018]

[siddiqui4200055 [noor4207641@clo [salman4203094 [khan4240003@cl

@cloud.neduet.edu ud.neduet.edu.pk] @cloud.neduet.ed oud.neduet.edu.pk]

.pk] u.pk]

i
 F/SOP/FYDP 02/06/00

Statement of Contributions

Areeba Noor (EC-19035)

Introduction
Saad Siddiqui (EC-19019)
Objectives and Literature Review
M. Taha Ali Khan (EC-19018)
Literature Review
Fatima Salman (EC-19036)
Methodology

ii
 F/SOP/FYDP 02/06/00

Executive Summary

This study focuses on exploring ways to enhance the growth on usage of E-wallets.
Ewallets are one of the most vital innovation in the finance sector. Ewallets are primarily
used to store consumer’s data and information and therefore over the time they have proven
to be an effective tool. Despite having several benefits yet in a third world economy such that
of Pakistan has experienced a slow and low growth in the industry. The study would eye
towards the factors affecting the low usage of Ewallets (of non-banking sector) and suggest
possible improvements to increase the consumption of this innovation. To identify the factors
a demographic questionnaire would be carried out aiming towards the users of Ewallets.

iii
 F/SOP/FYDP 02/06/00

Acknowledgments

To gain more knowledge about the study, we had to conduct an interview with one of the
IT specialist of our targeted industry. He aided towards the problem identification in the
industry and provided an insight of his experience regarding the topic. Howsoever, he
requested not to reveal his identity, henceforth we cannot provide the name of that
particular individual.

iv
 F/SOP/FYDP 02/06/00

Table of Contents
Author’s Declaration i
Statement of Contributions ii
Executive Summary iii
Acknowledgement iv
Table of Contents vi
List of Abbreviations vi
United Nation Sustainability Development Goals vii
Similarity Index Report viii
Chapter 1 Introduction 1
Chapter 2 Literature Review 5
Chapter 3 Methodology 6
Reference 7

v
 F/SOP/FYDP 02/06/00

List of Abbreviations
EPS Electronic Payment Systems
E-Payments Electronic Payments
E-Wallets Electronic Wallets
E-Banking Electronic Banking
SMEs Small Medium Enterprises

vi
 F/SOP/FYDP 02/06/00

United Nations Sustainable Development Goals

The Sustainable Development Goals (SDGs) are the blueprint to achieve a better and
more sustainable future for all. They address the global challenges we face, including
poverty, inequality, climate change, environmental degradation, peace and justice.
There is a total of 17 SDGs as mentioned below. Check the appropriate SDGs related
to the project.

□ No
Poverty

□ Zero
Hunger

□ Good Health and Well

being

□ Quality
Education

□ Gender
Equality

□ Clean Water and

Sanitation

□ Affordable and Clean

Energy

□ Decent Work and Economic

Growth

□ Industry, Innovation and

Infrastructure

□ Reduced
Inequalities

□ Sustainable Cities and Communities

□ Responsible Consumption and

Production

□ Climate
Action

vii
 F/SOP/FYDP 02/06/00

□ Life Below
Water

□ Life on
Land

□ Peace and Justice and Strong

Institutions

□ Partnerships to Achieve the

Goals

viii
 F/SOP/FYDP 02/06/00

Similarity Index Report

Following students have compiled the final year report on the topic given below
for partial fulfillment of the requirement for Bachelor’s degree in Economics and
Finance.

Project Title Exploring Ways to Enhance the Growth on Usage of E-wallets

S. No. Student Name Seat Number

1. Saad Siddiqui EC-19019

2. Areeba Noor EC-19035

3. Fatima Salman EC-19036

4. M. Taha Ali Khan EC-19018

This is to certify that Plagiarism test was conducted on complete report, and
overall similarity index was found to be less than 20%, with maximum 5% from single
source, as required.

Signature and Date

..................................

[Dr. Mirza Faizan Ahmed]

[Plagiarism Test must be conducted on the project report by the project advisor

using
Turnitin Software, or any other software approved by the university. Project Advisor
is required to sign the Plagiarism Certificate if the similarity is found as per rules defined
ix
 F/SOP/FYDP 02/06/00

in the guidelines. Plagiarism report must be included (only the first and last page)
generated by Turnitin. A sample of the plagiarism test report is provided with the
FYDP template package.]

x
 F/SOP/FYDP 02/06/00

[Attach here the first and last page of the plagiarism report generated by Turnitin.]

xi
 F/SOP/FYDP 02/06/00

Chapter 1
Introduction

People usually use traditional methods for transaction of money but e-payment system allows people to
make transactions electronically when purchasing something. E-payment system has provided many
choices and convenience to the customers. Pakistan is witnessing a rapid increase in e-commerce in the
last few years ( Rana Muhammad et al., 2022). Electronic payment system (eps) and E-commerce is
providing an opportunity for companies to increase their buying and selling on a larger scale.
Electronic payments allow customers to pay for goods and services electronically. This is without the use
of checks or cash. Normally e-payment is done via debit cards, credit cards or direct bank deposits. But
there are also other alternative payment methods such as e-wallets and crypto currencies payment
gateways and more than this. There are multiple ways of electronic payment like through debit/credit card,
bank transfer (internet banking) these ways are through banking channel but when we talk about non-
banking channels there is a broad category of thing which helps in electronic payment systems these
systems include E-wallet (fintech), payment gateways (Raast etc), online transfer through non-banking
website provided by those platform from which customer is buying anything. Similarly, the markets like
Amazon, Warby Parker, Zalando, daraz and many more are delivering quality products to buyers. On
their clicks, and these business organizations are also providing an opportunity to the customers to get
interested in the online business model by providing them unique experience (Nguyen & Huynh,
2018). However, e-commerce adoption is a challenge for many developing countries (Pakistan) due to
the barriers including cognitive aspects and economic and sociopolitical factors. This paper aims to
digitalize it could be used by every single body. A digital wallet, also known as an e-wallet, is
an electronic device, online service or software program that allows one party to make electronic
transactions with another party bartering digital currency units for goods and services. Multiple
companies provide all the financial services but due to some limitations, many people are not able to
use and some of them are out of reach. We need to organize a new payment system (digital wallet) so
it will we very helpful in every aspect but at the start we need to know multiple thing. From which one
thing is very essential that how many 3G and 4G users in Pakistan and how many non-banked
population still existing and then how much of them are preffering eps. Small and medium enterprises
of electronic payment are particularly important for the economy i.e. the economic growth because of
the numerous benefits they provide. First and foremost, SMEs are creating new jobs within the
economy, and second, they have significant contribution toward social development (Argon & R.,
2011).The financial services that an ideal company have to provide are on-time payments, Credit Cards
facility, On time sms alert, Privacy, Availability of atm (Automated teller machine), biometric entry,
QR scans, Easy login system, Bill payment availability, and many more things. Most companies have

1
 F/SOP/FYDP 02/06/00

all the facilities and customer satisfaction is the top priority in all business sectors, some are struggling
for better services. Digital wallet services are playing an important role in providing a range of
affordable, secure, and convenient non-banking services all over the country we need to include only
C2C, B2C and C2B only.

Digital wallets are a relatively young technology, with 27.3 million users and an annual growth rate of
87 percent. Easypaisa, UPaisa, Jazz Cash, Omni, and SimSim are some of the biggest digital wallet
players, with the bulk of them belonging to the telecom business. In light of the current circumstances,
how far away is Pakistan from becoming cashless? By moving to digital transaction systems,
Pakistan's people could save $1.5 million just from Karachi (Saeedi, 2018). It has been claimed by the
State Bank of Pakistan that users have shifted from cash payments to electronic payments over the past
few years. OLX, Daraz, Zameen.com, and Pakwheels all offer goods and services online that people
buy and sell. This proves that people feel internet services are convenient and are attracted to them.
These websites also offer e-cash options like Jazz Cash, which are popular with many people. Along
with various benefits there are multiple gaps also present in e wallets which needs to be covered. The
adoption of financial technology in a country is interfered with emerging risks including: cyber
security and intellectual power, fear of seeking talented and strong customer base and regulatory
uncertainty (Shahid et al., 2016). But if we see growing industries and consumers interest towards
cashless payment so all those branchless banks goes high in coming years. The user base of three
different mobile wallets (Easypaisa, Jazz cash and sada pay) found in Pakistan are forecast to more
than triple between 2020 and 2025 (Raynor, 2023). The two largest of these, JazzCash and Easypaisa,
share a similar history to each other. Within Pakistan, activities associated with branchless banking -
banking or payments activities performed on a mobile phone instead of in a physical bank branch - can
only be performed by entities with a banking license. Within these rules, telecom providers were
therefore not allowed to start their own mobile payment activities and led two of the largest mobile
network operators, Mobilelink and Telenor, to find a bank partner. JazzCash and Easypaisa both stem
from this development: Officially speaking they are banks, following the banking rules laid out within
the country, but one could argue they share their DNA with telecom components found elsewhere
within the country.

This research is an attempt to answer the research question; of why the e-payment is not being adopted
by customers in Pakistan in large numbers, as compared to the rest of the world.

2
 F/SOP/FYDP 02/06/00

Chapter 2
Literature Review

Customer satisfaction making equivalent to make sure that product and services meets the customer
expectations. It can also be defined as Customer satisfaction is the perception of the customer that
outcome of the business. Transaction is equal to or greater than his/her expectation.(Dr.Nitin Gupta &
Aditi Yadav,2017). There are multiple theories related to customers satisfaction or basically related to
eps so according to Homan and Novak that download speed is one among the determinant of user

satisfaction. Relatively Timothy proposed that the potential of a user-oriented organization can be

raised only through the user can be retained and furthermore A.Jafari, F. Bagheri, and N. Hosseinzadeh
suggested that the strategies to retain the customer’s and their sustainability, ensuring novel services,
has paved the way for the organizations to come out with the strategies not only to retain the existing
consumers but also to enthral novel consumers. But according to some analysis of other researchers
credit card payment System, e-check system, digital cash system and found that cryptography was
employed to provide security for the consumer’s information but still consumers are reluctant to use
the systems as they are scared of the hackers. So here multiple companies losses their customers. When
we relate banking industry with non-banking electronic payment systems so there is wide distance
between these two and their level of having satisfying customers are differ in numbers.Since E-
banking is defined as the automated delivery of new and traditional banking products and services
directly to customers through electronic, interactive communication channels.” ( Shahriari, 2014).
Satisfaction has an intimate link with service quality. It is essential for the online banks to become
more concern about customer’s perception of the online banking services’ quality as it is fairly easier
for the customers to assess the advantages of competing services (Ploypailin, 2021). but unfortunenatly
this e banking become very costly for all the customers.

At the starting E-Banking wins the hearts of the customers but now it is very costly as compared to
other electronic payment systems. State bank of Pakistan made the regulation for banks to start their
branch less banking instantaneously in 2009, easy paisa of Telenor firstly launch mobile money
transfer service in Pakistan (Rana et.al, 2022). Cost of providing mobile money services to huge
population telecom industry solve this problem by providing service to its massive customer base of
140 million of SIM users, if it compares to banking customers of 25 million. Telecom industry
starts providing financial service of fund transfer through their existing retailers even in rural
areas. Mobile payment service is used for making financial transactions by using mobile

3
 F/SOP/FYDP 02/06/00

technology, it is a non-banking channels for offering financial services to those who are not able to
access banking services.

One of the most vital innovation has been E-wallets. E-wallets are primarily used for storing
consumer’s data and information which could be accessed on a single go. E-wallets are termed to be as
an effective tool as it has helped the consumers to attain benefits like transferring funds to other parties
without wastage of any extra time and much more effortlessly. Moreover, the users does not have to
carry hard money which has also significantly reduced the chance of thefts, in addition to enhance the
usage of e-wallets in any country schemes like cashback, discounts or good deals are introduced that
too of collaboration other leading companies. Furthermore, these e-wallets are usually are subsidiary
companies and henceforth the users of e-wallets also enjoys valuable deals of the parent company of e-
wallet service providers, For example, there will be no processing fee for AirAsia ticket purchases
made by travelers who pay using the Big Pay wallet, over and above all the mentioned above factors to
attract consumers, e-wallet providers have invested significantly to enhance their services' security,
safety, and convenience (Mobile payment and e-wallet adoption in emerging economies: A systematic
literature review).
Adoption E-wallets has been determined as a vital tool for developed economy. However, in a
developing economy such that of Pakistan, according to G20 financial inclusion indicators, Pakistan
has the lowest percentage in formal bank account holders as compare to other developing economies,
an average common man does not have access to banking accounts for which an inequitable society
might be in an upbringing which would eventually have an adverse impact on social and economic
well-being of an individual, as around 80% of the population of Pakistan is marked to be unbanked
(FINANCIAL INCLUSION FOR THE COMMON MAN). where there are several problems for a
business to adopt electronic payment system, there still prevails a need for the adoption of electronic
payment system to overcome time, and monetary costs of a transaction, and with these reduced
financial cost a firm can aim towards producing a more effective, efficient and satisfying product for
the consumers market of Pakistan. Adoption of such a technology proved to be a very difficult task for
the financial service provider, but howsoever with the passage of time the e-wallets industry has
significantly grew as cellular density has increased from 54.6% to 71.4%, which has enabled the
fintech institutions to change the landscape of the Pakistan, with front leading companies like
Easypaisa, JazzCash, Upaisa, Sadapay, Simsim and MobiCash etc.
For a while now, the financial industry has relied on innovation to introduce new offerings to the
marketplace. For instance, the automated teller machine (ATM) revolutionized how consumers
handled their monetary resources when it debuted in the 1960s. The Fintech movement, however, goes
beyond how new technology is affecting the banking sector. It encompasses several items, methods,
applications, operating models, technology, and delivery mechanism development techniques. The

4
 F/SOP/FYDP 02/06/00

bulk of financial technology research examines whether people and businesses are eager to adopt novel
systems like contactless banking, fundraising, and digital lending from a commercial viewpoint
supplied by fintech startups.(Qun Zhao et al,2021)

5
 F/SOP/FYDP 02/06/00

Chapter 3
Methodology

As per the above literature review and our objectives it can be clearly deduced that our
research is based on qualitative factors. Our problem is concerned with growth on usage of e
wallets. Henceforth, we will be focusing on adding the features that will help in growth of
usage of e wallets. Previous studies and questionnaires have been built to study and examine
the influencing factors on the adoption of e wallets, but these questionnaires at a primary
dichotomous (Khalil,2021). As we have discussed earlier total population is 140 million sim
users, this is our meant population because to register with any e wallet a user must have 3G
and 4G networking sim. As per the e-wallets that we have taken into account with the
population of 65 million to have a digital account which could range from digital wallets to
online bank accounts by end of 2023 up from about 43 million, Now in the nation of around
213 million. The users of Simsim is marked to be around 185,000 users, Easypaisa marks its
users to be 7.4 million of which 2.4 million are wallet users(Shehzad, 2021) Jazzcash says
10 million as it’s active users, and likewise, UPaisa have almost 9 million users registered.

Primarily, we have conducted an interview with one of the IT specialists associated with the
E-wallets industry. They ended up in concluding the fact that the major factors that needs to
be improved to enhance the usage of e-wallets is not the technological aspect, but rather the
confidence of the users in these e-wallets.

Above we have already discussed about the total population of all the e-wallets currently
operating in Pakistan, now we are going to sample out from our population with the most
effective method being the adoption of simple random sampling, which would enable us to
have an equal chance of selecting a member from the population belonging to different
background, age, ethnicity, which helps in elimination of most possible biases. After
determining our sample, we will carry out questionnaires among the individuals of
universities like NED University of Engineering and Technology (NEDUET), University of
Karachi (UoK) , and Sir Syed University of Engineering and Technology (SSUET). The
reason we have selected such organizations is the fact that in such entities it is easy to carry
out random sampling, as these are densely populated organization with individuals
belonging from different backgrounds, this would help in providing a more demographic
6
 F/SOP/FYDP 02/06/00

result. Our questionnaire would not only consist of a dichotomous questions, but rather
more detailed once, targeting towards the confidence of users on e-wallets, and what are the
likely features they’d want to see organizations to improve to further magnify the usage of
these e-wallets.

7
 F/SOP/FYDP 02/06/00

References

Argon., & Waqas, R. (2011). Conducing the Cashless Revolution in Pakistan Using Enterprise
Integration. Journal of Management Engineering, 21(4), 31-45.

Dr, N. G., & Aditi, Y. (2017). A Qualitative Study Of Bank’s Strategic Planing For An
Investment In Fintech Company and its Challanges. Journal of Management and Production,
10(6), 81-105.

Khalil, A. (2021). Easypaisa steadfast in making Pakistan cashless, financially inclusive

society.Interviews,56(2), 123-175.

Muhammad, S., Irum, S., Rehana, K., & Imran, S. C. (2018). FinTech and Islamic Finance-
Challenges and Opportunities. Journal of Economics and Development Studies , 5(4), 120-135.

Nguyen, S., & Huynh, A. (2018). Is Pakistan Ready to Embrace Fintech Innovation?. Journal of
Economics, 23(2), 141-153.

Pireh, P., Ross, P. B., & Sarah, W. (2020). Fintech in developing countries charting new
customers journey. Journal of Financial Transformation, 44(1), 4-7.

Ploypailin, K. (2021). Opportunities and Challenges for Fintech Startup. Journal of ABAC,
41(2), 41-60.

Qun, Z., Pei, H. T., & Jin, L. W. (2021). Improving Financial Service Innovation Strategies for
Enhancing China’s Banking Industry Competitive Advantage during the Fintech Revolution.
Journal of Financial Sustainibility, 11(2), 66-70.

Rana, M., Safia, A., & Junwu, C. (2022). Drivers of Cash-on-Delivery Method of Payment in E-
Commerce Shopping. Journal of Financial Transformation, 56(1), 9-12.

8
 F/SOP/FYDP 02/06/00

Rana, M. S. Y., Muhammad, S. A., Waseem, U. H., & Muhammad, M. (2022). Role of Web
Design, E-Payment and E-Traceability with Mediating Role of Consumer Behavior to Develop
Customer Satisfaction for Emerging Bricks and Clicks Business Model Trends in South Punjab.
Journal of Education, Administration and Law, 5(2), 123-135.

Raynor, R. (2020). Internet banking in Pakistan and extended technology acceptance perspective.
Journal of Bank Marketing, 27(3), 51-59.

Saeedi., (2018). Prospects and Problems for E-commerce in Pakistan. Journal

ofEconomics,Finance and Managment, 2(4), 131-139.

Shahriari,. (2014). Emergence of Fintech Companies in Southeast Asia. Journal of Pacific

Business and Industries, 18(4), 18-21.

Shehzad, A. K. (2021). Antecedent of Customer Satisfaction with Impact of Logistics Service

Quality, E-Payment Through Moderating Role. Journal of Humanities and Social Scienes, 9(2),
283-292.