A Study on Challenges Faced by Customers using Digital Wallets

International Journal of Economics, Commerce and Research (IJECR) ISSN (P): 2250–0006; ISSN (E): 2319–4472 Vol. 10, Issue 1, Jun 2020, 69–76 © TJPRC Pvt. Ltd.

A STUDY ON CHALLENGES FACED BY CUSTOMERS USING DIGITAL WALLETS HANNA FREDERICK1 & JANSIRANI K2 1 2

Associate Professor, Department of Commerce, MCC, Chennai, Tamil Nadu, India

Research Scholar, Department of Commerce, University of Madras, Chennai, Tamil Nadu, India

ABSTRACT Digital wallet is a emerging trend in financial sector specially in digital banking. It is a prior remittance instrument which allows consumers to take cash in cash lower form and helps to do remittances without having cash or cards. Since there is a noted transformation in both how business is conducted and how services are provided to customers. This study focused on the challenges in using digital wallets. The study is conducted across Tambaram and the primary data was collected with questionnaire from digital wallet user with the sample size of 100 respondents through simple random sampling. The objective of the paper is to identify awareness on E-wallets, reason for using digital wallets and challenge faced ANOVA, Chi-Square, and frequency analysis was used.

KEYWORDS: Digital Banking, Payment Mechanism, Cash Lower Payments & Digital Wallets or E-Wallets

INTRODUCTION The improvement of innovation and mechanical headway as made cell phone to turn into basic piece of day by day life of individuals. Cell phones are utilized as a wellspring of specialized gadget, mingled device, stimulation, web and even instalment device. Portable wallet with the help of portable innovation as permitted the

Original Article

Received: Oct 21, 2019; Accepted: Nov 11, 2019; Published: Jan 23, 2020; Paper Id.: IJECRJUN202010

proprietors of cell phone to complete numerous monetary exchange what's more, distinguishing proof actualizes.

The ID executes incorporate name, kind and other key words which improves the security for every one of the particulars on the transportable wallet and these particulars are clamber able and lost information's can be recover by using an increase alternative. The portable wallet cash is used in the various areas of the world organized financial establishment, Consumer and organizations. The financial foundations have taken a higher level part in giving an upper level giving another management and instalment to the customers essential. For buyer are dragged by the purchasing offices that is given by adaptable purse and clients are pulled in on account of comfort and expedient exchange. If there should arise an occurrence of organizations, the organizations targets giving office of exchange administrations and instalment decision to their customers and the different instalment blend office giving by the organization are connected to portable wallet administration. These days, the area of ICT (information communication technology) through portable correspondence makes another arrangement of versatile wallet. Organizations try for cease lower development and maintainability in their exhibitions. Along these lines, the creation and presentation of portable wallet opens up new roads of business zones to exceed expectations and develop. This demonstration of mechanical progressions will help in making smooth and enduring business exchanges. This capacity underpins their clients to move their instalments with the utilization of their cell phones in the simplest manner. Presently multi day's portable innovation all through the world is developing as a supporting device in return of budgetary administrations. Versatile wallets appeared around five

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years back and have demonstrated its rapid acknowledgment and prominence on a high pace in business world. As of late, it is viewed as the most broadly acknowledged advanced instalment mode—because of its effort owerness and security highlights. Mobile wallets area unit electronic device wherever we will store cash for quick remittances. We can load cash from your bank account via credit/debit cards or net banking. Most wallets are semi-closed wallets, i.e. we can transfer money to people who have the same wallet, or make payments at dealers who are authorized to accept from that particular tool. There are also different other electronic wallets in app stores like Google pay. We can move any of them to build digital settlements in an easy way. They realize, Airtel money Vodafone mpesa & Jio cash. Even financial institutions have established their own digital transaction apps like State bank buddy and yespay. This paper analysis the important reasons for customers preferring E- wallet and what are the challenges and difficulties faced while using the different types of E-wallets.

Objectives of the Study •

To identify the reasons for using-wallet or mobile wallet,

•

To analyse the challenges faced by customers using digital wallets.

REVIEW OF LITERATURE K. JACOB DAVIS, P. BALAJI AND PROF. S. GURUSAMY (2005): An Empirical Investigation in the fallout of Demonetization this paper analysed that the use of technology products in banking sector gives an view and helps the banks to work more effectively. Digital wallets reduce the time of customer to transfer money from one point to another.

SUJITH T S, JULIE C D (2015). Opportunities and Challenges of E- Payment System in India, this study reveal at identifying the issues and stimulation of digital payment network and offer some results to develop the e-payment system. E-transfer system not only gives more opportunity but many warnings also.

SHALU RATHI and POONAMPAINULY (2016) in their analysis paper “have analysed that easy mode of shift, secured profile and consolation in holding request place forth the benefits of purse cash and conjointly eliminated that trading sectors like retail, hospitality banking, etc., are creating use of E- wallet and online payment tools including contact lower and remote payment in the customers– business and consumers to consumer places.

J. MARY JAYAKODI, ANDDR. S. MANIKANDAN (2017) in his research paper explain the application and using of purse cash supported by totally different firms and varied factors that have an effect on the application and usage of wallets supported by totally different firms and varied factors that have an effect on the customer’s call to acquire mobile billfold and varied risks and difficulties two-faced by the users of E-wallet.

SHIVANGI JAISWAL and PANKAJ JOGE(2018) ‘‘A Study on Consumers Acceptance of Mobile Wallet with Special Reference to Durg/Bhilai. This research studies the application and utilization of E-wallet inscribed by various business concern and differed variables that have an effect on the consumer’s varied risks and challenges by the users of mobile wallets

Impact Factor (JCC): 6.5424

NAAS Rating: 3.27

A Study on Challenges Faced by Customers using Digital Wallets

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RESEARCH METHODOLOGY Table 1 S. No

Research Methodology

1.

Research design

2.

4.

5.

6.

7.

Types of the research Method of data collection Sampling method Sample size Sampling area Data collection tools

8.

Statistical methods

3.

Sources (Descriptive, correlation, regression, experimental review meta analytic) and sub type research problems, hypothesis, independent and dependent variables, data collection methods and a statistical analysis plan.

Descriptive research Primary and secondarydata are used for this study Simple random sampling 100 respondents Among the E-wallet using customer in Tambaram Well- structured questionnaire the statistical tool used for the study is SPSS Software a) Frequency analysis b) Xx test c) ANOVA

DATA ANALYSIS AND INTERPRETATION Demographic Analysis

GENDER

Valid

Male Female Total

Table 2 Frequency Percent Valid Percent 37 37.0 37.0 63 63.0 63.0 100 100.0 100.0

Valid

18-25 26-30 31-35 Above 35 Total

Frequency Percent Valid Percent 43 43.0 43.0 27 27.0 27.0 16 16.0 16.0 14 14.0 14.0 100 100.0 100.0

Cumulative Percent 43.0 70.0 86.0 100.0

Frequency Percent Valid Percent 21 21.0 21.0 29 29.0 29.0 50 50.0 50.0 100 100.0 100.0

Cumulative Percent 21.0 50.0 100.0

AGE

Below 1,00,000 INCOME 1,00,000 - 2,00,000 Valid Above 2,00,000 Total

Cumulative Percent 37.0 100.0

Hypothesis Analysis H0: there is a noted relationship between age and reason for preferring digital wallet H1: there is no noted relationship between age and reason for preferring digital wallet Age * Reason for Preferring Digital Wallet EASE OF SENDING MONEY Table 3: Crosstab Count Reason for Preferring Digital Wallet EASE OF SENDING MONEY Total Strongly agree Agree Neutral 18-25 20 19 4 43 Age 26-30 5 16 6 27 31-35 4 12 0 16 www.tjprc.org

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Above 35 Total

8 37

6 53

0 10

14 100

Table 4 Xx Test Value dofAsymptotic. Sig. (2-sided) Pearson Xx test 15.319a 6 .018 Likelihood Ratio 17.496 6 .008 Linear-by-Linear Association .302 1 .583 N of Valid Cases 100 Age * Reason for Preferring Digital Wallet BILL PAYMENT Table 5: Crosstab Count Reason for Preferring Digital Wallet BILL PAYMENT Total Strongly agree Agree Neutral 18-25 16 21 6 43 26-30 9 15 3 27 Age 31-35 0 14 2 16 Above 35 4 8 2 14 Total 29 58 13 100

Pearson Xx test Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Table 6 Xx test Value dof 8.993a 6 13.253 6 1.454 1 100

Asymptotic. Sig. (2-sided) .174 .039 .228

Age * Reason for Preferring Digital Wallet MOBILE RECHARGE Table 7: Crosstab Count Reason for Preferring Digital Wallet MOBILE RECHARGE Total Strongly agree Agree Neutral 18-25 12 17 14 43 26-30 8 9 10 27 Age 31-35 2 8 6 16 Above 35 4 6 4 14 Total 26 40 34 100

Table 8 Xx test Value dofAsymptotic. Sig. (2-sided) Pearson Xx test 2.364a 6 .883 Likelihood Ratio 2.615 6 .855 Linear-by-Linear Association .053 1 .817 N of Valid Cases 100

Impact Factor (JCC): 6.5424

NAAS Rating: 3.27

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Age * Reason for Preferring Digital Wallet CLEAR INTERFACE Table 9: Crosstab Count Reason for Preferring Digital Wallet CLEAR INTERFACE Total Strongly agree Agree Neutral Disagree 18-25 6 17 10 10 43 26-30 4 7 13 3 27 Age 31-35 2 8 4 2 16 Above 35 6 6 2 0 14 Total 18 38 29 15 100

Table 10 Xx test Pearson Xx test Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value

dof

16.803a 17.153 6.658 100

9 9 1

Asymptotic. Sig. (2sided) .052 .046 .010

Age * Reason for Preferring Digital Wallet FAST RESPONSE

18-25 26-30 Age 31-35 Above 35 Total

Table 11: Crosstab Count Reason for Preferring Digital Wallet FAST RESPONSE Strongly agree Agree Neutral Disagree 6 19 8 10 5 11 9 2 0 8 8 0 0 6 8 0 11 44 33 12

Total 43 27 16 14 100

Table 12 Xx test Value dofAsymptotic. Sig. (2-sided) Pearson Xx test 20.419a 9 .015 Likelihood Ratio 26.007 9 .002 Linear-by-Linear Association .029 1 .865 N of Valid Cases 100 Age * Reason for Preferring Digital Wallet TEZ MODE Table 13: Crosstab Count Reason for Preferring Digital Wallet TEZ MODE Total Strongly agreeAgreeNeutralDisagreeStrongly Disagree 18-25 4 10 15 11 3 43 26-30 2 7 12 4 2 27 Age 31-35 0 4 10 2 0 16 Above 35 0 8 4 2 0 14 Total 6 29 41 19 5 100

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Table 14 Xx test Value dof Pearson Xx test 13.859a 12 Likelihood Ratio 15.973 12 Linear-by-Linear Association 1.577 1 N of Valid Cases 100

Asymptotic. Sig. (2-sided) .310 .192 .209

Age * Reason for Preferring Digital Wallet CHAT BEFORE PAYMENT Table 15: Crosstab Count Reason for Preferring Digital Wallet CHAT BEFORE PAYMENT Total Strongly agree Agree Neutral Disagree Strongly Disagree 18-25 2 9 14 16 2 43 26-30 0 9 12 6 0 27 Age 31-35 0 12 0 4 0 16 Above 35 0 2 10 2 0 14 Total 2 32 36 28 2 100

Table 16 Xx test Value dofAsymptotic. Sig. (2-sided) Pearson Xx test 31.516a 12 .002 Likelihood Ratio 35.736 12 .000 Linear-by-Linear Association 2.541 1 .111 N of Valid Cases 100 Age * Reason for Preferring Digital Wallet EASIEST WAY TO CHECK BALANCE Table 17: Crosstab Count Reason for Preferring Digital Wallet EASIEST WAY TO CHECK BALANCE Total Strongly agree Agree Neutral Disagree 18-25 4 10 13 16 43 26-30 0 8 12 7 27 Age 31-35 0 6 8 2 16 Above 35 4 0 8 2 14 Total 8 24 41 27 100

Table 18 Xx test Value dofAsymptotic sig (2-sided) Pearson Xx test 22.134a 9 .008 Likelihood Ratio 26.057 9 .002 Linear-by-Linear Association 2.037 1 .154 N of Valid Cases 100

INTERPRETATIONS The above chi- square tables reveals the noted relationship between age and reasons for preferring E- wallet. If the noted Value is lower than 0.05 the alternative hypothesis is accepted and the null hypothesis is rejected. In this study reasons like ease of sending money, clear interface, fast response, Chat before payment, easiest way to check balance are have the Impact Factor (JCC): 6.5424

NAAS Rating: 3.27

A Study on Challenges Faced by Customers using Digital Wallets

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lower noted values and therefore there is a noted relationship between age and these reasons.

H0- there is a noted relationship between Age and Challenges use in E-Wallet H1: there is no noted relationship between Age and Challenges use in E-Wallet Table 19 ANOVA Between Groups FRAUD RISK Within Groups Total Between Groups LAUCK OF SECURITY Within Groups Total Between Groups HACKING Within Groups Total Between Groups MALWARE Within Groups Total Between Groups PHISHING ATTACKS Within Groups Total Between Groups RISK OF LOSING DEVICE Within Groups Total Between Groups LACK OF AWARENESS Within Groups Total Between Groups NON-FAMILIARITY Within Groups Total Between Groups LACK OF TECHNOLOGICAL SKILL Within Groups Total Between Groups ADDITIONAL CHARGES Within Groups Total

Sum of SquaresdofMean Square F Sig. 29.451 3 9.817 4.012.010 234.909 96 2.447 264.360 99 2.319 3 .773 1.781.156 41.681 96 .434 44.000 99 1.459 3 .486 .927 .431 50.381 96 .525 51.840 99 6.422 3 2.141 2.550.060 80.578 96 .839 87.000 99 5.935 3 1.978 2.847.042 66.705 96 .695 72.640 99 27.913 3 9.304 3.879.012 230.277 96 2.399 258.190 99 1.804 3 .601 .532 .661 108.436 96 1.130 110.240 99 .357 3 .119 .106 .956 107.353 96 1.118 107.710 99 7.764 3 2.588 3.906.011 63.596 96 .662 71.360 99 8.822 3 2.941 2.910.038 97.018 96 1.011 105.840 99

INTERPRETATION The above ANOVA table reveals the noted relationship between age and challenges in using digital wallets. Challenges like fraud risk, punishing attack, risk of losing device, lack of technical skill, additional charges have the noted value which is lower than 0.05 and therefore there is a noted relationship between these challenges and age group.

CONCLUSIONS Electronic payments allude to the method of instalment which does exclude physical money or checks. It incorporates check card, MasterCard, shrewd card, e-wallet and so on. Online business has its principle interface in its improvement on – line in the utilization of instalment techniques, especially e-wallets are additionally drifting. The dangerous to the online instalments is burglary of instalments information, individual information and false dismissal with respect to clients. In this manner, and until the utilization of electronic marks is wide spread, we should utilize the innovation accessible for the

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minute to ensure a sensible least degree of security on the system.

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(2016) “Mobile “ Wallet: an Upcoming Mode of Business Transactions ransactions “International “ Journal Poonam Painuly and Shalu Rathi(2016) in Management and Social Science. cience. volume 4, pp, 356363.

2.

Dr. S. Manikandan, and nd J. Mary Jayakodi (2017) “An Empirical Study on Consumers Adoption doption of Mobile Wallet with Special Reference to Chennai city ity “International Journal of Granthaalayah’’ volume 5(5).

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https://www.dotcominfoway.com/blog/opportunities https://www.dotcominfoway.com/blog/opportunities-and-challenges-for-the-wallet-integration integration

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10. https://www.paymentscardsandmobile.com/mobile-wallet-global-usage-statistic/ https://www.paymentscardsandmobile.com/mobile

AUTHOR PROFILE

Dr. (Mrs). Hannah Frederick , M Com, M Phil, Ph.D is working as Associate Professor in Commerce, at the Department of Commerce, Madras Christian College. Her has a total teaching experience of 28 years. Her area of specialisation is Finance and Human resource management. She has produced produced one research scholar and is at present guiding five research scholars towards Ph.D. She has also produced 7 M.Phil scholars. She has published 14 research articles in 3 National journals, 4 International journals , 6 UGC approved journals and 1 Scopus Scopus Journal of which some were awarded the best paper. She is specialised in applying the latest statistical tools in research. She has chaired a session at a conference held by XIME, Bangalore. She has also delivered a lecture on Research Methodology at WCC. WCC. At present she is the member of the College Senatus and has held different positions at the college.

Jansirani K,, currently pursuing her PhD in Department of commerce at Madras Christian college (Autonomous) ( affiliated to University of Madras in Chennai, nai, Tamil Nadu, India.

India

Impact Factor (JCC): 6.5424

NAAS Rating: 3.27