Mobile Wallet Adoption in India: An Analysis

Abstract

India is continuously striving to position itself as one of the biggest digital economies. In this endeavor, several initiatives such as demonetization are being undertaken. Demonetization has brought about a significant shift in the mindset of the Indian consumers. As a consequence, the consumers have started looking for technology that may not only facilitate their transactions, but is also secure, hassle-free and easy-to-use. In India, almost 94% of the people have access to mobile phones. Therefore, the increased usage has provided the platform for facilitating cashless transactions and digital payments with the help of mobile wallet (m-wallet). These days, m-wallets are used for executing various financial transactions. In the emerging economies, m-wallets provide a platform to target a large population. In India, m-wallet services are growing because of its various advantages. However, the consumers’ liking, disliking and preferences keep changing with the passage of time. Therefore, in this study, an attempt has been made to explore the various factors affecting the intention to use m-wallets, through the relevant literature, by applying exploratory factor analysis. A survey was conducted among 243 respondents across India. Factors such as convenience, safety, complexity, trialability, compatibility, service quality, privacy, availability of information and ease of use were identified. This study would be of help to the policy makers as well as marketing strategists to design more customized m-wallets. Moreover, it would assist the banking industry in incorporating these observations in the form of features in their m-wallet services.