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A PROJECT ON CONSUMER PERSONALITY AND ADOPTION

FOR MOBILE WALLET IN AHMEDABAD REGION

GROUP MEMBERS:
ADITYA SHUKLA (1011517006)
NEEVA SHAH

(1011517060)

SUBMITTED TO :
Shanti Business School

GUIDED BY:
DR. VIPUL PATEL

WHAT IS MOBILE WALLET ??


A Digital Wallet / Mobile Walletrefers to an electronic device that allows an
individualtomakeelectroniccommercetransactions.Thiscanincludepurchasing
items on-line with a computer or using a smartphone to purchase some goods or
services.
Anindividual'sbankaccountcanalsobelinkedtothedigitalwallet.Theymightalso
havetheirdriverslicense,healthcard,loyaltycard(s)andotherIDdocumentsstored
onthephone.
The credentials can be passed to a merchants terminal wirelessly via near field
communication(NFC).Increasingly,digitalwalletsarebeingmadenotjustforbasic
financialtransactionsbuttoalsoauthenticatetheholder'scredentials.

MOBILE WALLET SERVICE PROVIDERS

RESEARCH INFORMATION
Research purpose / Objective:
Theobjectiveoftheresearchistounderstandthepersonalitiesofanindividualinrelation
toadoptionofmobilewalletservicewiththeresearcharealimitedtoAhmedabad.Italso
exploresknowledgeabouttheserviceprovidersofmobilewallet.
Research questions:
Inordertoachievethementionedpurpose,itisnecessarytoresearch:
1. WhatfactorsinfluencetheadoptionofmobilewalletfromtheconsumersinAhmedabad?
2. HowmobilewallethasbeenadoptedbyconsumersinAhmedabadwithregardstotheir
personalities?

RESEARCH BACKGROUND
In today-world, smartphone has become important part of everyday life. As it
has become more affordable, the number of smartphone users has increased
dramatically. The quantity of smartphone consumers will reach 1.75 billion in
2014 (eMarketer, 2014).
Smartphones are not only used as communication devices, but also to used as
socialized tool, entertainment tool, internet access tool, and even payment tool
(Rajgopal, 2012). Thanks to technology, mobile users can nowadays use their
smartphones to make money transaction or payment by using applications
installed in the phone.
Besides payment, people can also store receipts, coupons, business cards, bills
in their smartphones. When smartphones can function as leather wallets, it is
called Digital Wallet or widely known as Mobile Wallet.

Motivationoftheresearchcamefromvariousfactors.Firstofall,themobilewalletisarecentterm
andtopicthathasbeendiscussedintechnicalforumsandfinancialwebsitesinseveralyearslately.

Therefore, the research is made to gain practical knowledge about mobile wallet through research
processinordertounderstandhowconsumersperceivethisnewtechnologicalservice.

Secondly, we are one of the smartphone users and we would like to explore the capability of the
phonewith technology. Otherusersperhapsalsohavethisdesire.Forthatreason,weconductthis
researchtoobservepeoplesopinionsaboutthisnewservice.

ABSTRACT: MOBILE WALLET ADOPTION


Thewidespreaduseofsmartphonesandtechnologicaladvancesinnear-fieldcommunication
technologiesarequicklytransformingmobilepaymentsystems.
Thesetechnologieshavemadeitpossibleforconsumerstousetheirsmartphonestopayfor
their purchases through various payments systems such as Google Wallet, PayPal, Paytm,
SBIBuddy,ApplePay,etc.
These mobile payment systems, commonly referred to as mobile wallets, are designed to
eliminate the need for consumers to carry multiple credit cards or cash in their wallets,
therebymakingitmoreconvenientforconsumerstoshop.
Mobile wallets is a major innovation in mobile marketing because they are another major
channelthroughwhichmarketerscanbetterreachandservecustomersinaverypersonalized
way.

Realizing the potential benefits of mobile wallets for both marketers and
consumersdependsonthespeedofadoptionofthisnewtechnology.
This study examines Personalities and their Intention to use Mobile Wallet by
adopting the technology. Drawing on the theoretical technology adoption and
diffusionliteratures,amodelofthefactorsthatinfluencemobilewalletadoption
withregardstodifferentPersonalitiesisproposed.
The results show that mobile wallet adoption is driven by factors such as ,
perceived risk, social influence, facilitating conditions, perceived usefulness of
thetechnologyandperceivedeaseofuse.
Socialnormissignificantonlythoughpeerpressures.

MOBILE WALLET OVERVIEW


Mobile wallet is the digital equivalent to the physical wallet in which we carry
money.Itisanonlineplatformwhichallowsausertokeepmoneyinit,justlikea
bankaccount.
Auserneedstomakeanaccountwithamobilewalletprovider.Afterwhichmoneyis
added to the mobile wallet account using a debit, credit, online transaction from
bankaccountorviacash(arechargekiosk).
The main difference between a mobile wallet and online transactions via bank
accountisthat,unlikebanksmobilewalletdoesnotchargeanyamountofmoneyon
everytransactionandsavesthecustomerfromthehassleofenteringcarddetailsand
pinnumberforeachandeverytransaction.

GROWTH OF MOBILE WALLET


Some mobile wallet providers are giving facilities to unbanked consumers to deposit

moneyintotheirwalletthroughagents,butthatisgeographicallyverylimited.

Mobile wallet providers have now become a kind of mini banking institutions

(Paymentsbanks)anditwouldnotbesurprisingiftheywillgettheirbankinglicenses,
andfollowthepathlikePaytm,Airteletc.

Thiswill beverylucrative if wetake intoconsiderationtheGovernmentsagendaof

financial inclusion. Paytm has over 100 million wallet users, which is double that of
VisaandMaestropenetrationtogether(inIndia).

DRIVERS OF MOBILE WALLET: MERCHANTS


Thephysicalstoresarecalledmerchantorpointofsale(POS),forexample,a
retail outlet or a restaurant. A successful mobile wallet must have a large
merchant base that accepts the wallet. Merchant plays a very crucial role in
mobile wallet establishment. If the merchants do not support the payment by
mobilewallet,thetransactionwillbedifficulttomake.
Due to the fact that consumers would like to have alternative payments,
merchants have to adapt in the mobile wallet market. The main focus of
merchantistoselltheproductsfasterandcheaper.Therefore,thechangeisa
necessaryactionformerchant.

DRIVERS OF MOBILE WALLET: CUSTOMERS


For any business, it is undeniable that consumers are the most important factor. It is very
crucial to gain the adoption from consumers due to various reasons. The interesting thing is
thatpayingbymobiledevicemayattractconsumers.
Whenwefindtheexample,weshouldlookatStarbuckssuccessfulmobilewalletapplication.
According to Forbesarticle written by Steven Bertoni, Starbucks mobile wallet is used the
mostinAmerica.About10millioncustomerspayfortheirlatteswiththeapp,makingmore
than5milliontransactionsperweek(Bertoni,2014).
Itsloyaltyprogramhadbeendesignedexcellentlythatenableditscustomersexperiencingall
the available marketing campaign directly from their phones, which illustrated by offers
instantdiscountsforfreecoffeeorfoodandlinkstodirectlytoStarbuckshotrewardprogram
inrealtime(Bertoni,2014).

MOBILE WALLET TECHNOLOGIES

a)DIRECTCARRIERBILLING-
This has been the traditional technique for decades. It is also called direct operator
billingormobilecontentbilling,whichletstheusersmakeapurchaseviatheirphones
frommerchantswithoutenteringcreditcarddata.InIndiaPaychamp.comisoneofthe
exampleforDirectCarrierBilling.

STEPSTOUSE:
1.The customer selects an item to buy on the mobile internet and decides to make a
purchase.
2.The consumer is redirected to the Paychamp payment service, and is shown the
billableamountforconfirmation.
3.The consumers account is charged, and is redirected back to the merchant
website/app.Theconsumergetsaccesstothedigitalgood/service.

b)QRANDBARCODES
QRcodesarethesquarebarcodes[seePicture1]thatpowermanycloud-basedadvertising
andpaymentapps(Webster,2012).Theoptionalconfirmationcodecanbe

requiredforsecuritypurpose.
WecanseeanexampleofQRcodeinPicture1.

c)NFCISTHEACRONYMFOR(NEARFIELDCOMMUNICATION).
Anydeviceswhichareinstalledthistechnologycancommunicateandexchangeinformation
as well as data within a few centimetres distance (GSMA, 2012). To make it function, both
devicesarerequiredtohaveNFC(Webster,2012).


c)CLOUD-BASEDSOLUTION
Cloud-basedsolutionisalsoknownascloudcomputingwhichisdefinedasamodel
for enabling ubiquitous, convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and
services)thatcanberapidlyprovisionedandreleasedwithminimalmanagementeffort
or service provider interaction (Peter Mell, Timothy Grance, 2011). For example,
PayPal is trying to let its users make transaction just by typing their mobile phone
numberandPINcodeatphysicalPOS(Webster,2012).

PROMINENT MOBILE WALLET SERVICE PROVIDERS IN INDIA

1. PAYTM
.PaytmstartedoutwithMobilerecharges,DTHplans,andBillpaymentsandthen
launchedane-commercemarketplaceinFebruary2014.Itswalletpartnersinclude
Uber, BookMyShow, and Makemytrip, along with others incategories such
asshopping,travel,entertainment,andfood.
.Notably, Paytm is the only wallet that supports bookings on IRCTC, and has
alicense from RBI to set up a payments bank, enabling it to offer current and
savingsaccountdeposits,issuingdebitcardsandofferingInternetbankingservices.

2. FREECHARGE
FreeCharge lets you recharge any prepaid mobile phone, postpaid mobile, electricity

billpayments,DTHanddatacardinIndia.Itrecentlyaddedmetrocardrechargingasa
featureofitsplatform.Thewalletcanbetoppedupwithdebitcards,creditcardsand
netbanking,andcanbemanagedviaanapporfromtheWebbrowser.
Acquired by Snapdeal in April 2015, FreeCharge launched its own digital wallet for

makingtransactionacross,andatthetimeclaimedauserbaseof5millionwalletusers
inanemailedfactsheet.
If you're regularly using Snapdeal - or one of itsmany new ventures, such

asShopOorFindMyStyle-thenusingFreeChargemakessense.Otherwise,it'saquick
andeasywaytotakecareofrechargesandbills.

3. MOBIKWIK
MobiKwik can also be used to recharge mobiles and pay bills, but it's also accepted
acrossmerchantssuchasBookMyShow,MakeMyTrip,Domino'sPizza,eBay,among
others. It has a section with cash backs offers listedonitswebsitewith include both
onlineandofflineplayers.
MobiKwik quoted a user base of 25 million last month on its website,
and over 4, 00,000 daily transactions. Top ups can be done using net
banking, debit cards, and credit cards, the app can be used to send
and request money between friends and family members as well,
using a mobile number or email ID. There is no additional charge for
such remittances.

Continue
AnotherreasontodownloadthisappisthatMobiKwikoffersadoorstepcash

collectionservice,makingitidealforuserswhodonothaveaccesstoabank
account or credit card. The cash collection is currently available in Delhi,
Mumbai,GurgaonandJaipuronly,andamaximumofRs.10,000canbeadded
tothewalletinacalendarmonth.Ifyou'relookingforadigitalwalletwitha
strongofflinepresencethenMobiKwikcertainlyseemstobeagoodoption.

4. AIRTEL MONEY
Airtel Money is a semi-closed wallet that doesn't permit cash withdrawal or

redemptionbythecustomer.Itcanbeusedtodorecharges,makemoneytransfersto
contacts,shopsandbankaccounts,makebillpaymentsandpayforonlineshopping.
Itcanbeusedtobooktrainticketsaswell,butitisn'taseamlessuserexperience.
The app lets you request money with NFC-based payments, and

can be used to transact without loading money in the wallet first,


using debit/ credit cards, or net banking, for checkout. The app also
lets you split bills and expenses with friends, by entering their
phone numbers.

Continue.
Cash can be loaded into the wallet from anAirtel money outlet or anAirtel
relationshipcenter.TheappisidealforuserswhoneedtotopuptheirAirtel
prepaid SIMs on a regular basis, and today, it's getting tied up with other
partnersaswell,includingUber.AirtelMoneyisalsooneofthefewplayers
that has been given a payments bank license from the RBI. This means that
Airtelcanofferinterest,oritsowndebitcard,amongstotherpossiblefeatures.

5. VODAFONE M-PESA
Vodafone M-pesa claims to be India's largest cash out network, with over
85,000 M-pesa agents spread across the country. The service lets you send
money to anyone, to recharge prepaid numbers, DTH connections, post-paid
Vodafonenumbers,utilitybillsandonlineshopping.Moneycanbetransferred
tobankviaitsinbuiltIMPSservice,ortoamobilenumber,butchargesapply
in slabs - for example, sending Rs. 2,000 to a bank account or an M-pesa
accountcostsRs.38.DTHandprepaidrechargescanbedonethroughm-pesa
forfree.

6. CHILLR
Chillrletsyousendmoneyinsecondstoanyoneinyourphonebook,without
havingtoknowtheiraccountnumber,IFSCcode,orwaitingforanOTPSMS.
OnlyHDFCBankandBankofBarodacustomerscanusetheservicetosend
money, while other bank customers can receive money using the app. The
account needs to be enabled via net banking or mobile banking first, by
makingarequestforanMMID,andageneratinganMPIN.

Continue
Ifyou'reanHDFCorBankofBarodacustomer,theappisidealforsplitting
bills with friends, and paying utilities like mobile, DTH and data card
recharge, as it makes transactions directly from your bank account, without
havingtoworkwithanotherthird-partywallet.Chillrcanalsobeusedtopay
orrequestmoneyusingaQRCodepresentedbythemerchantoruser.Upon
scanning,aninvoiceisgeneratedonyourphone,whichneedstobeconfirmed
andauthorized,usingyourmPIN.

STEPS TO ADD MONEY IN PAYTM WALLET

OpenPaytmapporsite
LoginonPaytm
Clickonwallet(walleticon)
Enteramountwhichyouwanttoadd.
Click Add to wallet option

Applypromocodeifyouhaveanyinpromotional/voucherfield
IfyouhavenotpromocodethenleavefieldblankandclickonProceed to pay Rs.
Choosesuitablemethodtopayamount,completepaymentprocess.
YouramountwillbecreditedinstantlyinyourPaytmwallet.