This empirical study investigates the impact of mobile-wallet usage dimensions on customer satisfaction and loyalty. The study determined the effect of M-wallet service on customer satisfaction and assessed the mediating role cost on the relationship between customer satisfaction and customer loyalty. This empirical research ascertains the significance of mobile wallets in contributing to financial inclusion, evaluates the impact of M-wallet services on the satisfaction of customers, and assesses the consequential impact on customer loyalty. The data were gathered from mobile-wallet users from B-school students in Hyderabad city, India, via a structured questionnaire that has 24 items to measure seven reflective constructs: service quality, ease of use, usefulness, cost, security, loyalty, and customer satisfaction. Purposive sampling was used to maintain the characteristics of the respondents, as the empirical study focused on B-schools in and around Hyderabad. The valid responses of 500 participants were subjected to exploratory and confirmatory factor analysis and SEM analysis. The survey instrument was reliable and consistent as revealed by reliability statistic Chronbach’s alpha, and that the constructs-maintained discriminant validity. The measurement and structural models and model fit statistics indicate that data fit the model well. The five factors of service quality, ease of use, usefulness, cost, and security are statistically significant and influence the customer satisfaction of mobile wallet users. However, the impact of security and ease of use on customer loyalty was not statistically significant. Perceived cost partially mediates the nexus between customer satisfaction and the loyalty of mobile wallet users. The study assessed the long-term impact of mobile wallet services on customer allegiance and contributes nuanced insights into the dynamic landscape of mobile wallet services. Customer satisfaction, trust, and ease of use are critical for increasing customer loyalty and satisfaction. The study suggests that m-wallet providers should enhance control over their technological tools, improve service quality, reduce costs, enhance security, foster customer relationships, and understand their aspirations. Electronic services, such as mobile wallets, have transformed businesses, simplified operations, provided information, and fostered customer relationships. Organizations must improve service quality and specifications to ensure customer satisfaction, leading to increased market share, competitive capabilities, and customer growth. The research indicates that companies can encourage the use of m-wallets by informing customers about their creation, password configuration, and safeguarding. It emphasizes the need for businesses to learn from developed countries' experiences in payment channels and electronic financial transactions. It also emphasizes enhancing technology management for service efficiency, cost reduction, customer relationship building, and security. This empirical research investigates the long-term impact of mobile wallet services on customer loyalty, customer satisfaction, and customer satisfaction. This suggests that managers should prioritize trust and satisfaction to increase loyalty and value, thus fostering enduring customer relationships. Digital wallets could facilitate transformative innovation in central bank digital currencies (CBDCs), despite their significant impacts, by enhancing their relationship with digital wallet applications.
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