Exploring Factors Influencing Usage of E-Wallets in India

Abstract

Purpose: With the fast evolving digital infrastructure and massive usage of smart phones, marketers are exploring digital payment mechanism. Consumer behavior studies are primarily focusing on spread and drivers for adoption of various online platforms. Adoption of different online platforms is used for information-seeking, views and e experience-sharing; and buying online, by different customer segments. The agenda of the marketers is to encourage the adoption of these convenient solutions. Understanding the triggers and drivers are equally crucial for the survival and growth of online marketers, especially when it results into changed buying payment habits. Thus, this research study examines online buying behavior of Indian retail customers in the preference for E-wallet as payment platform; and the factors as drivers to shift from other payment options. Design: Online survey has been conducted through structured research instrument to collect insights about preference and reasons for using E-wallet present in India. Collected responses through online Google form have been analysed. Statistical technique, Principal Component Analysis was employed in the study and four important factors were extracted. Findings: Only E-wallet users have been asked, majority of it were male and of the age group 20 to 25 years, with completed post-graduation. It is important to note that respondents have more than one E-wallet in their smart phones. This indicates their comfort with digital payment mechanism. Most important factor reported, relates to the e-wallet users’ positive attitude towards E-wallets. Identified factors are termed as “Positive Attitude”, “Compatibility”, “Perceived Trust” and “Risk Concerns”. Originality: It is worth mentioning that the retail merchants are dependent upon acceptability of retail customers to pay via E-wallets. So adoption and usage of E-wallet works as pull of consumers, even the government keeps pushing digital platforms through offering discounts. Initial cash-backs and other offers worked as trigger yet the mass adoption in daily payments is the concern of this research. Trial and availing offers only cannot be termed as adoption. Therefore, in the current perspective going beyond identification of popular E-wallets preferred by Indian customers, an inductive analysis is conducted to identify factors which are encouraging adoption and usage of E-wallets in India. Other than initial personal interviews, and literature review; online survey was conducted to avoid any directional responses. Implications and suggestions are discussed. In the context of urban consumers the findings provides practical insights to the marketers.