Scholarly Research Journal for Interdisciplinary Studies,

Online ISSN 2278-8808, SJIF 2021 = 7.380, www.srjis.com

PEER REVIEWED & REFEREED JOURNAL, MAY-JUNE, 2021, VOL- 8/65
https://doi.org/10.21922/srjis.v8i65.1352

A STUDY ON CONSUMER PREFERENCE TOWARDS DIGITAL WALLETS

DURING COVID 19 PANDEMIC

Mrs. S. S. Mandalkar1 & Mr. Prathamesh R. Bobhate2

1
Ph.D. Scholar, Assistant Professor, Department of Accounting and Finance, Changu
Kana Thakur A.C.S. College, New Panvel, Dist - Raigad, Maharashtra, India
Email id – [email protected]
2
Assistant Professor, Department of Accounting and Finance, K.V. Pendharkar
College of Arts, Science & Commerce (Autonomous), Dombivli, Dist.- Thane,
Maharashtra, India Email id – [email protected]

Paper Received On: 21 JUNE 2021

Peer Reviewed On: 30 JUNE 2021
Published On: 1 JULY 2021
Content Originality & Unique: 70%

The ongoing spread of COVID-19 has become one of the biggest threats to the global economy and
financial markets. To contain the impact of coronavirus outbreak, India, just like many countries
across the globe, is taking several measures; including a nationwide lockdown, limiting movement of
the entire population, shutting down public places and transports, urging the public to stay indoors,
maintaining social distancing and developing work from home culture. During the period of
lockdown, usage of digital wallets has increased. The digital wallet is a leading concept in India that
has been beating credit card handling and is gradually beginning to swap the old traditional
payment methods. The Digital wallets are virtual wallets; where one can easily store cash for
making offline & online payments. Digital wallet app growth point outs the increasing need for
efficient payment methods. These offer a much more secure & faster way for engaging transactions.
The start- ups & large corporate businesses are also continuously on the lookout for customer-
friendly technologies, thereby giving more value & convenience to the customers; especially during
COVID-19 era, to retain old & attract new customers. This study was carried out to find out the
factors, which affect consumer preference & frequency of usage towards digital wallets. Using a
structured questionnaire with the help of ‘Google form’, the primary data was collected from a
sample of 115 respondents. ANOVA and frequency analysis were used to find out the factors that
affect the consumer preference & impact of various factors on consumer preference towards digital
wallets were also analyzed.
Keywords: Digital wallets, Consumer preference, Covid-19, Dependence on IT, Ease of use

Scholarly Research Journal's is licensed Based on a work at www.srjis.com

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies

 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15088
(Pg. 15087-15094)

1. Introduction:
A digi-wallet is nothing but a digital version of an online bank account with all types of
transaction services. A digital wallet (or e-wallet) is a software-based system that securely
stores users' payment information and passwords for numerous payment methods and
websites. By using a digital wallet, users can complete purchases easily and quickly with
near-field communications technology. Digital wallets largely eliminate the need to carry a
physical wallet by storing all of a consumer's payment information securely and compactly.
Some digital wallets not only offer ease of use, but also offer customer rewards and perks for
using them. Digital wallets are also beneficial to businesses that collect consumer data so
they can not only personally target consumers through loyalty programs and promotional
offers, but they can also understand overall buying habits. As COVID-19 reshapes the
perceptions and needs of digital payments, the risk of cash handling & passing on that risk
to the other party with reference to COVID-19 also gets nullified. From the start of the
COVID- 19 pandemic, retailers, business leaders and consumers have all been trying to
wrap their heads around the shifts in retail and payments. Getting consumers to tap into
mobile wallets is just the first step and in a post-pandemic world, the role of payments
leaders will continue to innovate and motivate adoption and usage. The pandemic has
rapidly shifted people’s mindsets, needs and adoption habits. If you can provide that peace
of mind for your customers during the uncharted times of COVID-19, your customer will
remember how you helped them interact with fewer surfaces while providing an optimal and
easy experience. So far, digi-wallets have been mostly used by urban populations with a
higher educational background in countries like India. Given the rise of smartphone users
among the underserved in small towns and villages, businesses have a greater opportunity in
these untapped areas.
2. Review of Literature:
Poonam Painuly and Shalu Rathi (2016) in their research paper “Digital wallet: An
upcoming mode of business transaction” have analysed that ease of transaction, secured
profile and convenience in handling application put forth the benefits of wallet money and
also concluded that business sectors like banking,retail, hospitality etc., are making use of
wallet money and mobile payment instruments including contactless and remote payment in
the customers – business and customers to customers areas.
Sahut, Jean-Michel (2009) proposes a joint approach to analysing key factors affecting the
adoption of e-wallets by using the ‘Technology Acceptance Model” and identified that the
Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies
 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15089
(Pg. 15087-15094)

key factors of success of this payment method are security, anonymity of transactions, the
cost of transactions, as well as the plurality of functions (payment, travel card, e-key for
building access, etc.)
Govender & Sihlali (2014) explored the factors determining the adoption of mobile
banking (m-banking) services among students who are more technically knowledgeable.
The questionnaire is prepared based on the qualitative approach. Based on the extension of
the Technology Acceptance Model, the theoretical framework is developed to investigate
the factors that determine a student's acceptance of mobile banking. The constructs of TAM
for mobile adoption such as Perceived Ease of Use, perceived usefulness, Perceived Value,
Trust Intention to Use, and Usage Behavior were used.
Cabanillas et.al., (2015) they have developed a model to examine a user's intention to use
mobile payment based on TAM and MPTAM (Mobile Payments Technology Acceptance
Model). The study investigated the moderator effect of the user’s age between the subjective
rules and the facility of use. The study findings show that most of the younger mobile
payment users are satisfied and accepted the mobile technology tools when compared to
older mobile users. This study has indicated that older consumers are the stronger
relationship between facility to use and subjective rules. So the mobile technology provider
should give more attention to older consumers to create knowledge about usable new tools.
3. Research Methodology:
The research study is undertaken to observe the consumer preference towards digital wallets
during COVID-19 pandemic. Research methodology has adopted comprehensively, taking
into account the scope and objectives of the study. It is mainly concerned with sources of
data collection, sample framework, methods of data analyses and data interpretation.
3.1 Objectives of the study:
● To understand the impact of demographic factors on consumer preference towards
digital wallets
● To find out the most preferred digital wallets used by customer & to know the
most popular digital wallet among various electronic payment modes
● To study the awareness and usage of customer using digital wallets
3.2 Research Design:
This is a systematic way to solve the research problem and it is an important component for
the study. A research design is the arrangement of conditions for collection and analysis of
data in a manner that it aims to combine for collection and analysis of data relevant to the
Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies
 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15090
(Pg. 15087-15094)

research purpose.
3.3 Sources of data:
The study is based on the primary data collected from 115 respondents by using a structured
questionnaire. Five-point linear scale was used too in the questionnaire for obtaining
responses to a few questions.
4. Data Analysis:
For the purpose of data analysis, ANOVA & frequency distribution method was used under
the study. Here, after the analysis, the interpretation of the same is made, so as to conclude
upon the objectives of the study.
Table 4.1: Demographic profile of the respondents
Characteristics Categories No. of Percentage (%)
respondents
20-30 75 65.22
Age 31-40 22 19.13
41-50 13 11.30
50 & above 5 4.35
12th 3 2.61
Educational Graduate 38 33.04
Qualification Post-graduate 58 50.43
Professional 14 12.17
Any other 2 1.74
Service 74 64.35
Businessman 4 3.48
Occupation College student 24 20.87
Housewife 1 0.87
Any other 12 10.43
Below 2,50,000 50 43.48
Annual income 2,50,000 - 5,00,000 37 32.17
(in Rs.) 5,00,000 - 17 14.78
10,00,000
10,00,000 & above 11 9.57

Interpretation: 75% of the total respondents belong to the age group of 20 - 30 whereas
only 5% belong to the age group of 50 & above. Maximum i.e. 58% respondents are post-
graduate as only 2% are from any other category. Only 1% of the total respondents are
housewives as 74% respondents are in service. 11% of the respondents are having annual
earnings more than Rs.10,00,000 whereas 50% are having earnings below Rs.2,50,000.

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies

 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15091
(Pg. 15087-15094)

4.2 Hypothesis of the study:

1. H01: There is no significant difference between age and consumer preference
towards digital wallets during COVID 19 pandemic
Anova

Source of variation SS Df MS f p-value f crit

Between groups 4.536862 1 4.536862 0.071431 0.802479 7.708647

Within groups 254.055 4 63.51386

Total 258.5923 5

2. H02: There is no significant difference between the educational qualification and

consumer preference towards digital wallets during COVID 19 pandemic

Anova

Source of variation SS Df MS f p-value f crit

Between groups 26.67675 1 26.67675 0.048688 0.83268 5.987378

Within groups 3287.501 6 547.9168

Total 3314.178 7

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies

 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15092
(Pg. 15087-15094)

3. H03: There is no significant difference between occupation and consumer preference

towards digital wallets during COVID 19 pandemic
Anova

Source of variation SS Df MS f p-value f crit

Between groups 3.574905 1 3.574905 0.03856 0.850805 5.987378

Within groups 556.2585 6 92.70975

Total 559.8334 7

4. H04: There is no significant difference between level of income and consumer

preference towards digital wallets during COVID 19 pandemic
Anova

Source of variation SS Df MS f p-value f crit

Between groups 11.98015 1 11.98015 0.073617 0.799568 7.708647
Within groups 650.9439 4 162.736
Total 662.9241 5

Interpretation - The significance values obtained are 0.802479, 0.83268, 0.850805 &
0.799568 respectively, which are greater than 0.05, so we can’t reject the null hypothesis.
Thus, it can be concluded that there indeed are no significant differences among customer
preferences towards digi-wallets, when classified by age, educational qualification,
occupation & income levels respectively.
4.3 (a)

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies

 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15093
(Pg. 15087-15094)

4.3 (b)

5. Findings:
 There is no significant difference among customer preferences towards digi-
wallets, when classified by age, educational qualification, occupation, gender,
marital status & income levels respectively.
● Google Pay seems to top the list of most popular digital-wallets with 81%
● 63% of the respondents prefer digi-wallets because of the availability of phone,
84% prefer because of the convenience, 45% prefer because of the security
features, 57% prefer to remain safe from the risk of getting infected by COVID-19
while handling cash, 56% prefer because of the ease in acceptability, 48% prefer to
earn rewards or bonus/discount coupons/credit points
6. Conclusion:
In simple words, we can say that growth of digital wallets points out the increasing need
for efficient payment methods. These also offer a much secure & faster way of making
online payments. The start-ups and large corporate businesses are also continuously on
the lookout for customer-friendly technology, thereby giving more value to the customer;
has also forced the customer to prefer this mode as around 79% customers prefer it to pay
their TV/Dish/Internet/Mobile recharges, 64% customers prefer for making all utility bill
payments, 36% prefer it paying for transportations, 69% prefer it for online shopping,
63% prefer for ordering food, 77% prefer for money transfers & 7% prefer for other
utilities; 47% customers also mentioned that they started to prefer digi-wallets during
COVID-19 outburst & in the end 63% customers also mentioned that given some other
alternatives, they would still prefer digi-wallets, which eventually is about to grow even

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies

 Mrs. S. S. Mandalkar & Mr. Prathamesh R. Bobhate 15094
(Pg. 15087-15094)

more; in times to come.

7. References:
Akhila Pai H, Study on consumer perception towards digital wallets, e ISSN 2348 –1269
Dr. Mamta Brahmbhatt, A study on customers’ perception towards e-wallets in Ahmedabad city.
Dr.Hem Shweta Rathore (2016) “Adoption of digital wallet by consumers” BVIMSR’s Journal
of management research. Volume 8 issue 1, pp 69-75.
Padashetty D. S, Kishore KS (2013) “An empirical study on consumer adoption of mobile
payments in bangalore city-a case study” Researchers World.Volume 4 issue 1, pp 83 -
94
M.Nandhini, K.Girija, Customer perception regards E-wallets, International Journal of Recent
Technology and Engineering (IJRTE) ISSN: 2277-3878, Volume-8 Issue-4,
November 2019
Sharma, S. K., Mangla, S. K., Luthra, S., & Al-Salti, Z. (2018). Mobile wallet inhibitors:
Developing a comprehensive theory using an integrated model. Journal of Retailing and
Consumer Services, 45, 52-63.
Prasad Yadav, Miklesh and Arora, Madhu(April 10, 2019). Study on Impact on Customer
Satisfaction for E-Wallet Using Path Analysis.Model International Journal of
Information Systems & Management Science, Vol. 2, No. 1, 2019. Available at
SSRN:https://ssrn.com/abstract=3369651
Subramanian, Sp Mathiraj & Geeta, Shetty Deepa. (2019). IMPACT OF GST ON ONLINE
MARKETPLACES.
Singh, S., & Rana, R. (2017). Study of Consumer Perception of Digital Payment Mode. Journal
of Internet Banking and Commerce, 22(3), 1-14.

Copyright © 2021, Scholarly Research Journal for Interdisciplinary Studies