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The IUP Journal of Information Technology
Adoption of Mobile Wallets in India: An Analysis
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Usage of mobile phones in emerging economies presents unique opportunities to businesses. Mobile phones provide innovative solutions to online payments and in-store purchases. The acceptance of mobile payments also helps the marketers in promoting their offerings. The analysis of spends by customers can help identify their future requirements. The customers in India had been wary of payments by credit cards and debit cards. The attractive deals, discounts and cashbacks have attracted more customers to pay via mobile wallet (m-wallet). The Government of India is helping in the growth of fin-tech industry with various incentives and initiatives. The paper analyzes the various factors affecting the adoption of m-wallets by Indian customers. It also analyzes the types of transactions carried out by the customers and their preferences while selecting an m-wallet for payments.

 
 

The number of mobile phone users globally is expected to cross five billion, and India alone is expected to add around 310 million new subscribers in the coming three years (GSMA, 2017). The smartphone user base in India—with Chinese brands dominating the market—crossed 300 million in 2016. Mobile phone features are rapidly changing as per consumer’s requirement, purchase and pay for goods and services. Since the invention of smartphones, significant innovations have focused on mobile as a channel. The near ubiquity of smartphones and high-speed connectivity are enabling innovation in areas such as artificial intelligence and driving the digital transformation. The number of Internet users in India is expected to reach 450-465 million by mid-2017, up 4-8% from 432 million in December 2016. Overall Internet penetration in India is currently around 31%, and 77% of urban users and 92% of rural users consider mobile as the primary device for accessing the Internet, largely driven by availability and affordability of smartphones (IMRB, 2016).

With the increasing use of mobile phone for communication, entertainment and shopping purposes, there is a growing influence of smartphones in kid’s and teen’s personal life (Singh and Kumar, 2012; and Saurabh and Kumar, 2017). The adoption of mobile payment for paying bills and booking airline tickets, train tickets, movie tickets online on phone has increased dramatically in the last four years. As high-speed mobile Internet services become easier to access in urban and even tier 2 cities, leather wallets may soon be going out of fashion and will be replaced by mobile wallet (m-wallet). M-wallets are increasingly growing in India.

 
 

Information Technology Journal,Mobile payments, Digital payments, Mobile wallets, Online payments.