IMPACT OF DIGITAL WALLETS ON CONSUMER BEHAVIOR IN INDIA

Abstract

In todays tech-driven world, digital wallets such as Paytm, GPay, MobiKwik, and so on, are gaining immense popularity among consumers. With economies becoming digital as more and more consumers opt for computerized alternatives to the traditional leather wallet, the industry has become a profitable base for potential investors. In India, specifically, the growth of digital wallets has been propelled by the demonetization policy, which significantly reduced the volume of currency in circulation, implemented by the government in 2016. One of the major consequences of an increase in the popularity of digital wallets has been a shift in the behaviors and spending habits of consumers, particularly in India, where the transition to a cashless economy has been considerably rapid. The goal of this study is to assess the apparent impact of the transition to digital economies on consumer behavior, and the various factors associated with this shift. This assessment was made by surveying users of digital wallets, between the ages 18 and 65, to seek their responses on how shifting to digital wallets has impacted them, their spending habits, etc. The responses were closely analyzed and interpreted to come to a conclusion.