ANALYSIS OF DIGITAL WALLETS FOR SUSTAINABILITY: A ... · Customers are very happy with the e-wallets as it is most convenient to them and transactions are speedily made through these

http://www.iaeme.com/IJM/index.asp 358 [email protected]

International Journal of Management (IJM) Volume 11, Issue 7, July 2020, pp. 358-370, Article ID: IJM_11_07_035

Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7

ISSN Print: 0976-6502 and ISSN Online: 0976-6510

DOI: 10.34218/IJM.11.7.2020.035

© IAEME Publication Scopus Indexed

ANALYSIS OF DIGITAL WALLETS FOR

SUSTAINABILITY: A COMPARATIVE

ANALYSIS BETWEEN RETAILERS AND

CUSTOMERS

Dr. Ritika Malik

Management Consultant and Faculty, Bharti Vidhyapeeth Institute of Management and

Research, Paschim Vihar, New Delhi, Affiliated to Bharti Vidhyapeeth Deemed University,

New Delhi, India

Dr. Aarushi Kataria

Assistant Professor, Bharati Vidyapeeth University, New Delhi, India

Dr. Naveen Nandal* Assistant Professor, Ansal University, Gurugram, India

*Corresponding Author E mail: [email protected]

ABSTRACT

Digitalization has made a new but substantial entry in the Indian market; which

was considered to be unorganized and traditional in many aspects. Over the years,

due to better networks, stakeholder’s acceptance and Government initiative, there is a

new framework is evolving for digital payments under organized wallets backed by up

Government as well as private players. No denying fact that due to this intervention,

various linkages to the sustainability is arising, which is the utmost need in the Indian

context. In this paper 100 consumers (50 Digital Wallet users and 50 Non Digital

wallet users) and 50 retailers (25 Digital Wallet Acceptor and 25 Non 25 Digital

Wallet Acceptor) will be surveyed using a structure questionnaire. Using SPSS, their

responses were analyzed and a model will be proposed in order to establish and

determine the various interlinking’s among the digitalization, wallets and

sustainability in Indian context using Mann Whitney U Test and Kruskal-Wallis test

(H test). This paper has implication for future digital marketing strategists, policy

makers and research enthusiasts of the similar area. This paper will be a convergence

of digitalization and sustainability in Indian context.

Key words: Digital wallet, Digitalization, Consumers, Government, Retailers

Analysis of Digital Wallets for Sustainability: A Comparative Analysis Between Retailers and

Customers


Cite this Article: Dr. Ritika Malik, Dr. Aarushi Kataria and Dr. Naveen Nandal,

Analysis of Digital Wallets for Sustainability: A Comparative Analysis between

Retailers and Customers, International Journal of Management, 11(7), 2020,

pp. 358-370.

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7

1. INTRODUCTION

Now-a-days after the demonetization happened, wallets are taking pace, means it is the one

which holds cards and cash in it. Digital wallets helped in most of the different needs that is

from purchasing a candy or to transfer money from one account to another with the help of

digital wallets one can save lot of time that is if a person needs cash so for that he or she needs

to stand in a long queues of bank or say ATM but with the help of digital wallets it can be

done in a few seconds that is by tapping on a wallet app with the help of mobile application

and the payment is made. In today’s world these digital wallets are very popular and

tomorrow there will be a direct payment system which will be done through different

intermediates like mobile wallets and different companies which are dealing in plastic money

in other words transactions which is cashless and which can be replaced with a hard cash

notes. The open wallets are opened for services that are multiple in nature that is helps

consumers to transfer funds, purchase goods & services, withdraw funds etc. Semi-opened

funds are those funds which are limited to some condition that is which is linked to an

individual company. Others are closed wallets; E-commerce companies are mostly taking care

of such wallets. For these wallets merchant reserves some amount with them and semi closed

wallets are those which does not provide redemptions ore withdraws. There is also a security

maintained for all the data which is there on a mobile wallet which includes name, type and

other key elements and also if the data is lost it can be recovered easily with the help of the

option that is backup option. Customers are very happy with the e-wallets as it is most

convenient to them and transactions are speedily made through these digital wallets. Mobile

commerce market development is entirely because of these mobile payments. These digital

wallets are different from other traditional online payment that is these digital wallets can be

used at any time and at any place. At the same time these are some limitations which are

drawn in digital wallets that is they are not interoperable.Also, the other limitation is like the

wallet does not earn any interest the money transferred. Also those merchants like owner of

small shops, Kirana stores these merchants can’t draw more than 25000 in a month from a

digital wallet and hence cash flow is affected because of this. Those founders who founded

mobile wallet companies they are not optimistic about the future if any challenges persist like

challenge relates to interoperability. Hence to gain competitive advantage after the

demonetization and looking towards the public many companies now have launched e-

wallets. But not all companies are able to survive in the market and hence only few companies

are there who gained competitive advantage these companies are paytm, oxigen, free charge,

payUmoney. There are also different applications of digital wallets but it differs from person

to person that is according to needs & preferences of the customers. Some application of

digital wallets is like paying movie shows, also travel bookings. Hotel rooms booking,

transferring money from one account to other’s account, paying insurance premium etc. Thus,

users are comfortable n shifting to mobile wallets, Digital wallets now-a-days are extending

their influence by offering various types of services to their customers and also at the same

time breaking the geographical barriers. Digital wallets help customers in many ways that is

customer can with the help of digital wallets store and organize coupons, help in loyalty

programs, card payments & tickets. Also, some digital wallets have different features such as

payment of bill services related to location aware connection with the social media. Therefore,

Dr. Ritika Malik, Dr. Aarushi Kataria and Dr. Naveen Nandal


digital wallets are ruling now as most of the companies started using such type of e-wallets to

gain competitive advantage and fulfill customer service. Thus, large banks and financial

organizations are adopting different models like joint venture model those who are looking

towards digital wallet services from a holistic perspective. Therefore, this digital wallet is still

at their infancy and these e-wallets will take some time to gain momentum and to adopt these

services.

2. LITERATURE REVIEW

According to Dewan, et al. (2005) studies the Research Directions of current and future. This

paper basically focused on factors affecting first and second order of the digital directions and

analysis was made at all levels that is at organization, individual and at the global level.

According to Yu,(2002); studies payment through electronic mode and this research focuses

on analyzing and comparing of different types. This paper focuses on exploring the merits and

demerits of payments through electronic systems. According to Dodgson, et al. (2015);

studies managing digital money. This research paper basically focusses on managing digital

money that is the researcher states that for individuals saves time as well as cost while using

digital money. According to Kazan & Damsgaard (2014). Studies a concept of Digitalization

that is designs on digital payments in which comparison is made on four European solutions.

The study mainly put emphasis on firstly mobile phones that is music players, navigation

devices cameras etc. and secondly the next target is on payment. According to Dahlberg

(2007); studies the research on payment through mobile phones that is its past, present and

future implications on the basis of literature review. The researcher to enhance the analysis of

literature focused on various different factors and made a framework to organize the mobile

payment research. According to Ming-Yen Teoh (2013); studies the perception of consumers

on electronic payments and also different factors affecting it. Thus the study was analyzed on

the basis of different tools. In this paper the focus is to study the discovery of different factors

that influenced the customer’s perspective on payment through electronic mode and the

customers were Malaysian consumers. According to Rowley (2010); studies understanding

digital content marketing. In this researcher examines difficult situations faced to develop a

value in the area of digital content. According to Deaton (2005); studies enhanced digital

wallet. The researcher aims to explain the digital wallet and hence states that it can receive

and also maintains and allow the retrieval of different forms of enhancement. According to

(Weiss, 2011); studies payments through mobiles as well as digitalized wallets. This paper

states that these are various factors such as convenience benefit, versatility of consumers is a

key for the success because of a new techiques. According to Balan & Ramasubbu (2009)

studies the digital wallet: opportunities and prototypes. This paper focus on describing the

opportunities of the digital wallet. There are lot of problems stated by researcher because of

physical wallets. Hence researcher states that digital wallets are ruling now-a-days. According

to Rathore (2016) studies the aspects where consumers adopts digital wallet. In this study

researcher basically focus on studying the different aspects which affects the decision of

customers in considering online payment in a digital era. According to Bradley (2014) studies

Digital Wallets Executive Briefing. The main reason of the study is to know the importance of

digital wallets. According to Athey, et al. (2017); studies the privacy concerns while using

digital platform in context to small costs and small talk. This research focus on investigating

the distortions in the behavior of the consumers when faced with choice. According to

Christina white, Sapient Nitro; et al (2011) studies Digital Wallets in the future. In this paper

the author states that digital wallets are taking its pace that is from digital family pictures to an

online app of banking to the phone and then to behavior of the consumer is adopting the new

digital wallets. According to G Reza Kiani (1998) studies the opportunities of marketing in

the digitalized world. The researcher states that with the introduction of World Wide Web,


Customers


there is a tremendous growth in the media environment and electronic commerce is growing

rapidly. According to Eduardo Henrique Diniz ; et al (2001-2011) focused on review based

research. In this researcher aims to give complete understanding and fills by providing the

comprehensive review. According to Tomi Dahlberg; et al (2015) focused on research on

mobile payment research. In this paper the researcher seeks to study the payment progress

through mobiles over the last few years. Hence for this researcher made agenda to encourage

researchers to explore new topics. According to Nadarajah Asokan; et al (2000), studies about

the online payments. The researcher helps to study the privacy concerns for payment through

electronic mode, also survey the different ways to pay online.

2. OBJECTIVES OF THE STUDY AND HYPOTHESIS

On the basis of above reviews, different aspects raised, the major aim is to explore

Sustainability in digital wallets. Keeping in view the stated objective, the following

hypotheses are drawn:

3. METHOD

Sample

The responses from different customers selected and random sampling technique was

implemented. A sample size of 100 Consumers that is 50 consumers who use digital wallets

and 50 consumers who are not using digital wallets were selected and at the same time 50

Retailers were also chosen in which 25 were those retailers who use digital wallets and 25

were those retailers who don’t use digital wallets across Delhi-NCR.

Measures

Well structured questionnaire was made and divided into two parts, that is demographics were

taken into consideration while in the second part the emphasis was put on to gather

information regarding usage and non usage of digital wallets. The respondents were asked to

rate according to their preferences. The reliability of the questionnaire was tested using

Cronbach Alpha IBM-SPSS Version 19 software. It was found to be above 0.60, which is

acceptable.

Results

Mann Whitney U Test and Kruskal-Wallis test (H test), using IBM-SPSS Version 19 software

was performed to test the different hypotheses.

4. CONSUMERS USING DIGITAL WALLETS



Table 1 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. gender of the consumers

Source: Authors’ own.

The value of p was found to be above 0.05 (5% level of significance), therefore null

hypothesis is accepted.

Table 2 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Profession of the consumers





Customers


Table 3 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Mobile

Brand of the consumers




Table 4 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Internet

Connection of the consumers






5. CONSUMERS NOT USING DIGITAL WALLETS

Table 5 Brands heard about, Distribution of not using Digital Wallets, Reasons of using, if you have

to use then how will you uses Digital Wallets vs. Gender of the consumers





to use then how will you uses Digital Wallets vs. Profession of the consumers





Customers


6. RETAILERS USING DIGITAL WALLETS

Table 7 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Genders

of the Retailers




Table 8 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Internet

Connection of the Retailers





hypothesis is accepted but one hypothesis is rejected in this as level of significance is less

than 0.05 that is for Distribution of brands of Digital wallets is not same across categories of

internet connection.

Table 9 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs. Mobile

Brand of the Retailers



hypothesis is accepted

Table 10 Brands, Frequency, for whom you are using, how you are using Digital Wallets vs.

Profession of the Retailer: Authors’ own.


hypothesis is accepted


Customers


7. RETAILERS NOT USING DIGITAL WALLETS


to use then how you will use Digital Wallets vs. Profession of the Retailer.



hypothesis is accepted but it is rejected in the case of; if retailer have to use then how will he

use across the categories of profession therefore in this case null hypothesis is rejected.


to use then how you will use Digital Wallets vs. Gender of the Retailer.






use across the categories of Gender therefore in this case null hypothesis is rejected.


to use then how you will use Digital Wallets vs. Mobile Brand of the Retailer.




use across the categories of Mobile Brand therefore in this case null hypothesis is rejected.


to use then how you will use Digital Wallets vs. Internet Connection of the Retailer.





Customers


8. DISCUSSION AND CONCLUSION

From the above study it can be concluded that if we look towards consumers using digital

wallets so its been revealed that there is no difference in consumers using digital wallets, the

brands of digital wallets they prefer the most, frequency of their using digital wallets, how

they are using digital wallets or for whom they are using digital wallets in comparison of all

the categories of Gender, Profession, Mobile Brand or Internet connection. On the other hand

if we look towards consumers who are not using digital wallets in that case also there is no

difference in why consumers are not using digital wallets, the brands of digital wallets heard

about, If have to use digital wallets then what all will be the reasons of using it and also if

have to use then how will you use digital wallets in comparison of all the categories of

Gender, Profession, Mobile Brand or Internet connection. In the case of Retailers who are

using digital wallets in their case the study revealed that there is no difference in consumers

using digital wallets, the brands of digital wallets they prefer the most, frequency of their

using digital wallets, how they are using digital wallets or for whom they are using digital

wallets in comparison of all the categories of Gender, Profession, Mobile Brand or Internet

connection but null hypothesis is rejected in one case where it shows there is a difference in

the brands of digital wallets the retailers prefer the most in comparison of Internet connection

and hence in this case it can be said that Retailers says they will choose brands of digital

wallets according to their internet connectivity that is if they are having Internet connectivity

then their preference for digital wallets brands will be changed and if they are not having

Internet connectivity then it will be different, so there is a difference exists between the both.

On the other hand Retailers who are not using digital wallets in that case also there is no

difference in why consumers are not using digital wallets, the brands of digital wallets heard

about, If have to use digital wallets then what all will be the reasons of using it and also if

have to use then how will you use digital wallets in comparison of all the categories of

Gender, Profession, Mobile Brand or Internet connection but there is a difference exists and

null hypothesis is rejected in the case where it says if retailers have to use then how he will

use digital wallets in comparison to Gender, Profession and Mobile Brand except in

comparison of Internet Connection as it states that in case of Internet connection there is no

difference between the both. Hence it is said that if retailer have to use then retailer will use

digital wallets affects retailers’ gender, profession and Mobile brand. Thus this study has been

revealed keeping in mind the consumers and retailers both and both consumers who are using

digital wallets and those consumers who are not using digital wallets and on the other hand

same has been analyzed for retailers that is retailers who are using digital wallets and the

consumers who are not using digital wallets and the analysis has been done on different

parameters in context to gender, profession the mobile brand they use and the internet

connection of both the consumers as well as the retailers.

REFERENCES

[1] Athey, et al. (2017); studies the privacy concerns while using digital platform in context to

small costs and small talk. MIT & NBER.

[2] Balan, R. K. & Ramasubbu, N., (2009). The Digital Wallet: Opportunities and Prototypes.

Invisible Computing .

[3] Bradley, M., (2014). Digital Wallets Executive Briefing, s.l.: ITAC.

[4] Dahlberg (2007); studies the research on payment through mobile phones that is its past,

present and future implications on the basis of literature review. Electronic Commerce

Research and Applications, Volume 30, pp. 1-17.

[5] Deaton, T., (2005). Enhanced digital wallet.



[6] Dewan, et al. (2005) studies the Research Directions of current and future. Journal of the

Associations for Informations Systems , 6(12), pp. 298-337.

[7] Dodgson, M. et al., (2015). Managing Digtial Money: From the Editors. Academy of

Management Journal, 58(2), pp. 325-333.

[8] Kazan & Damsgaard (2014). Studies a concept of Digitalization that is designs on digital

payments in which comparison is made on four European solutions, Proceedings of the

European Conference on Information Systems .

[9] Ming- Yen Teoh, W., Chong, S. C., Lin, B. & Chua, J. W., (2013). Factors affecting

consumers’ perception of electronic payment: an empirical analysis. Internet Research, 23(4),

pp. 465-485. Rathore, D. H. S., 2016.

[10] Adoption of digital wallet by consumers. BVIMRSR'S Journal of Management Research, 8(1).

[11] Rowley, J., (2010). Understanding digital content marketing. Journal of Marketing

Management , 24(5-6), pp. 517-540.

[12] (Weiss, 2011); studies payments through mobiles as well as digitalized wallets. Biometric

Technology Today, Volume 9, pp. 8-9.

[13] Yu, H.-C., Hsi, K.-H. & Kuo, P.-J., (2002). Electronic payment systems: an analysis and

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ANALYSIS OF DIGITAL WALLETS FOR SUSTAINABILITY: A ... · Customers are very happy with the e-wallets as it is most convenient to them and transactions are speedily made through these