Adoption of E-wallets: A Post Demonetisation Study in Ahmedabad City
Pacific Business Review International Volume 10 Issue 10, April 2018
12 Pages Posted: 2 Feb 2021
Date Written: 2018
On 8th November 2016 honorable prime minister of India took a phenomenal step by declaring that two highest denomination currency notes in India (500 rupee notes and 1000 rupee notes) will not remain legal tender. Demonetization decision coupled with government’s initiative to make India a cashless economy is expected to bring a phenomenal transformation in the way people make payments and expected to increase inclination towards online payment. Among the various modes of online payments the mode gaining popularity during present time is E-wallets. In a nation such as India where larger part of clients still favors Cash-On-Delivery, it is difficult to fasten the pace of process of innovation diffusion such as digital wallets. This generates research interest to study the alacrity of people to use E-wallets and factors influencing the adoption of E-wallets including the factors refraining the usage of it, during the post demonetization period. This research paper is aimed at examining the adoption of E-wallets as a mode of payment in Ahmedabad City and to ascertain the factors encouraging and discouraging the usage of E-wallets during the post demonetization period. This paper also throws light on ancillary issues like impact of demonetization decision on preference for online payments, impact of various demographic factors on usage of E-wallets, problems faced by people while using E-wallets etc. The study is based on 318 valid responses received through a structured questionnaire. Data collected was analyzed by using percentages, cross tabulation and statistical tools like ANOVA. Through this study we found that, E-wallet users give very high level of importance to attributes like security, privacy concerns and pricing (Fees). The major problems frequently encountered by the respondents while using E-wallet are long transaction time taken by E-wallet for processing the transaction, security breach and delayed payment. Demonetization drive of government of India has contributed immensely towards awareness, usage and acceptance of online payment.
Keywords: E-wallets, Demonetization, Online Payment, Smart Phone Users
JEL Classification: G19
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