INDIAN INSTITUTE OF MANAGEMENT AMRITSAR

Pattern of e-wallet
usage
A study carried out on the students of IIM
Amritsar

Anshumaan Singh Teotia

Akhilesh Rai
Aryan Singh Chouhan
Shashank Sejwal
Vankawala Ronak Pankaj

PGP/01/11
PGP/01/07
PGP/01/13
PGP/01/41
PGP/01/45

The project tries to explain a relation between the e-wallet users and their
spending patterns. Primary data has been used for this purpose.

TABLE OF CONTENTS

Abstract

Introduction

Survey Details

Questionnaire

Method of Study

Interpretation of the model

Regression Analysis

Shortcomings of the model

14

References

15

ABSTRACT

With an ever increasing population and technology penetration, India offers many
opportunities for mobile payments. While most of the population remains
underserved, there lies a huge opportunity in terms of tapping the potential
pertaining to non-cash based payments landscape.
Tapping of this market has been done through mobile phones. With the high
proliferation of mobile phones, tapping the Indian consumer base pertaining to noncash transactions has become very easy. The high acceptance rate of the mobile
payment systems has proved the affinity of the Indian masses towards the reverse
innovation products.

INTRODUCTION

India has an evolving landscape in terms of online payments. Among online

payment, transactions via E-Wallets is very popular these days. A large
number of people are switching from traditional cash transactions to online
payments which is result of rapid globalization and expansion of ecommerce. Mobile wallet is a very young concept in India that has taken on
consumer psyche rapidly. Today, mobile wallet is one of the successful
business ideas for start-ups. The evidence lies in the fact that it has
surpassed credit cards in terms of the number of users in just a fraction of
time. At present, there are 10-12 mobile wallet companies operating in the
country. The Reserve Bank of India (RBI) data speaks of 19.9 million credit
cards issued by 55 scheduled commercial banks in India till October 2014 in
which HDFC Bank has issued the highest number of credit cards 5.6 million
followed by 3.3 million by ICICI Bank. The most important reasons for using
E-wallets are increased adoption of smartphones, tablets and other mobile
technology, low carrier charges and expansion of e-commerce during the
recent years. According to a study by research firm RNCOS, the current
Indian market size for mobile wallet (m-wallet) stands at about 350 crore
and is estimated to rise to 1,210 crore by 2019.
The top mobile wallets companies in India are:1) PayTM: PayTM is one of the fast growing companies in the mobile wallet
space in India. Accroding to Vijay Shekhar Sharma, chairman and managing
director of One97 Communications, PayTM aims to cross the 100-million
users mark by 2016. Currently, PayTM does more than 30 million orders of
various digital and physical goods every month.
2) Mobikwik: Started in 2009, MobiKwik claims to have 12 Million users. The
MobiKwik Wallet claims to enable users to pay in a flash for their recurring
mobile recharge, bill payments and online purchases on popular e-commerce
websites (and apps) including eBay, Snapdeal, ShopClues, MakeMyTrip,
redBus, BookMyShow, Dominos Pizza, etc.
3) Oxigen: Oxigen is one of the oldest players in the payment market while
the company jumped into the mobile wallet space just last year. With its
service, people can share money with their friends and family over their
preferred social networks and messaging platforms like Facebook, WhatsApp,
Google+, and Twitter. It allows users to use their wallet to recharge their
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mobile phones, pay bills and shop across a large number of online
merchants.
4) Citrus Pay: Another key player in the mobile wallet space is Citrus Pay
which has quickly garnered attention from users in India. It claims to have
completed transactions on its platform to the tune of 1bn dollars. In addition
the company has attracted funding from investors such as Sequoia Capital,
Beenos, and E-Context Asia, among others.
5) mRupee: mRupee is a semi closed wallet and is licensed by Reserve Bank
of India. Over the last couple of years of operations, mRupee has enabled
customers to pay bills, recharge mobile and send money to their near and
dear ones through a wallet platform which operates on a Customer SelfInitiated as well as a Retailer Assisted Model thus catering to a wide
spectrum of users.
6) Freecharge: Founded in 2010, FreeCharge claims to be strong in the
mobile space with 20 million registered users. It is not a mobile wallet but a
mobile recharge platform. The company recently was acquired by Snapdeal
for $400 million. It has raised $113 million so far from investors like San
Francisco-based Valiant Capital Management and Hong Kong-based Tybourne
Capital Management. There is a cross-pollination of services to help
FreeCharge customers buy products from Snapdeal, and vice versa.

SURVEY DETAILS

Technology is advancing every second and this advancement of the

technology can be seen in every field and aspects of life from life science,
engineering to simplest thing as pencil. The change and advancement of the
payment system by the time have evolved from barter system in the ancient
time to online payment, where money is transferred online from users bank
account/prepaid wallet(online) to the sellers account.
The agenda of our research is to analyze the use of e-wallet among the user,
how and where they spend the money using various online money carriers.
Our research is based on primary data that was collected among our batch
mates and their pattern of spending money through e-wallet. We have used
Google forms to collect our data online where various questions were been
asked regarding the topic which further are being analyzed and the data
collect are used in various statistical technique we learned in our first
trimester subject and these techniques are-Correlation ,Regression. The
population here represents the students of Amritsar and the sample that has
been taken is the students of IIM Amritsar, as the sample shows the usage
from zero spending to very high spending. We wanted to see the pattern of
usage of e-wallet for various purposes among the students.
The main purpose of our survey was to see the relationship between the
spending pattern we also and amount students keep in there e-wallet, we
have checked the relation between the reason to use e-wallet like ease of
use ,discounts ,cash back etc and the purpose of using the e-wallet like
ordering food ,booking movie tickets & cab and shopping.

QUESTIONNAIRE

The data was collected by means of asking many questions relevant to our
purpose. These questions mainly consisted of questions like:
1.
2.
3.
4.
5.
6.
7.
8.

Sex
Do you prefer Online Shopping?
Why they use e-wallet?
Do you use online wallet to pay for your purchase?
What is the average amount to keep in your wallet?
Which wallet they use?
For what purpose the use the wallet?
How they use the e-wallet?

METHOD OF TESTING

The data collected was first refined the range data we have taken and
converted to nominal data. Then we have applied various statistical
technique on the data to see the correlation and regression, using Microsoft
excel. And made graph to see the relation of e-wallet and its users, Pivot
table also depicts the same. The main thing to check here is the reason why
students use the e-wallet for various usage .This has been done through the
correlation matrix between the reasons and usage of the e-wallet.

INTERPRETATION OF THE MODEL

Our model tries to predict the impact that different variables such as
spending on Food, Shopping, Cab booking and Mobile recharge have on the
overall spending done by users via e-wallets. The findings of the model are
as follows:
Average money kept in e-wallets (Sample Mean) = 784.09
Range = Maximum value Minimum value = 2500 0 = 2500

Various Correlation coefficients:

1) Booking a cab is positively correlated with Discount given, Time saving
and Cashbacks.
The correlation coefficients are 0.3577 for Discount, 0.196 for Time saving
and 0.305 for Cashbacks.
2) Mobile recharge is positively correlated with Discount given and Time
saving and negatively correlated with Cashbacks.
The correlation coefficients are 0.2497 for Discount, 0.1800 for Time saving
and -0.3874 for Cashbacks.
3) Shopping is positively correlated with Discount and Time saving and
negatively correlated with Cashbacks.
The correlation coefficients are 0.1951 for Discount, 0.0059 for Time saving
and -0.1069 for Cashbacks.
4) Booking a movie ticket is positively correlated with Discount and Time
saving and negatively correlated with Cashbacks.
The correlation coefficients are 0.2443 for Discount, 0.0461 for Time saving
and -0.1800 for Cashbacks.
5) Ordering food is negatively correlated with Discount and positively
correlated with Time saving and Cashbacks.
The correlation coefficients are -0.1152 for Discount, 0.2444 for Time saving
and 0.2429 for Cashbacks.

REGRESSION ANALYSIS

Value of Correlation coefficient (R) = 0.8136

This indicates the strength of linear relationship between the
independent variables (Booking a cab, Shopping, Mobile recharge,
Booking a movie ticket and ordering food) and the dependent variable
(Usage on e-wallets).

Value of Coefficient of Determination (R2) = 0.6619

This value indicates that 66.19% of the variation in the dependent

variable is explained by the changes in the independent variables.
Remaining 33.81% is due to random factors not explained by the
model. We call this as the unexplained variation.
Standard Error = 429.55
This value indicates that the forecasted model will deviate from the
actual model by 429.55.
Hypothesis Testing for various Independent variables:
The Null hypothesis for all the independent variables is
H0: Variable is not having a significant impact on the dependent
variable.
H1: Variable have a significant impact on the dependent variable
Small p-values for Intercept, Booking a cab, Mobile recharge, shopping
and ordering food indicates that the Null hypothesis will be rejected
and these variables will be included in our regression analysis. P-value
for booking a movie ticket is 0.1288 which is greater that a significance
level of 0.05. This indicates that booking a movie ticket will not be
included in our regression analysis.
The final regression equation is:
(Amount in e-wallet) = 187.62 + 0.8822(Booking a cab) + 1.53(Mobile
Recharge) + 0.434(Shopping) + 0.583(Booking movie ticket) +
1.833(Ordering Food)

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ANALYSIS
Average Money kept in
wallet
Max
Min

784.09
2500
0

Why do people use the E wallet for booking the cab?

Book a
Cab

Discount
s

Book a
Cab
Discoun
ts

1
0.357714
988

Time
saving
Cashbac
ks

Time
saving

Cashb
acks

0.196380
478

1
0.206583
561

0.305026
617

0.043519
414

0.16735
967

Why do people use the E wallet for Mobile Recharge/Bill payments?

Mobile
Recharge
Mobile
Recharge
Discounts
Time
saving
Cashbacks

1
0.249742
657
0.180047
032
0.387465
96

Discounts

1
0.532467
532
0.662541
349

Time
saving

Cashba
cks

1
0.433200
11

Why do people use the E wallet for Shopping?

Shoppin
g
Shoppin
g

Discount
s

Time
saving

1
11

Cashb
acks

Discoun
ts
Time
saving
Cashba
cks

0.195114
644
0.005976
57
0.106912
13

1
0.670820
393
0.266666
667

1
0.149071
198

12

Why do people use the E wallet for booking a movie ticket?

Book
Movie
Tickets
Book Movie
Tickets
Discounts
Time saving
Cashbacks

1
0.244398
586
0.046136
578
0.180098
76

Discount
s

Time
saving

Cashb
acks

1
0.101129
979

0.032897
585

0.53674
504

Why do people use the E wallet for ordering food?

Order
Food
Order
Food
Discoun
ts
Time
saving

1
0.115256
81
0.244496
621

Cashbac
ks

0.242982
696

Discount
s

Time
saving

1
0.188561
808
1.75542E
-17

1
0.14907
12

How do people use the e wallet money

13

Cashb
acks

14

Regression for usage

Break up for the usage from available e wallet options

Users

26%

PayU

13%

Paytm
Mobikwik
Other

42%

19%

Wallets
PayU
Paytm

Users
8
26
15

Mobikwik
Other
Options
Book a Cab
Mobile
Recharge
Shopping
Book a movie
Order Food

12
16
User
17
18
11
13
14

User
Book a Cab
19%

Mobile Recharge

23%

Shopping
Book a movie

18%

Order Food
25%
15%

16

SHORTCOMINGS OF THE MODEL

The model does not include all possible variables that may predict the
changes in the dependent variable (Amount in e-wallets). There can be other
variables like Income and Pocket money that could have been included in the
model. Including so many variables would have made the model better
explained but it could also result in making the model much more complex.

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REFERENCES

Article by Onkar Sharma (online) http://www.dqindia.com/top-6-mobilewallets-in-india/ dt September 2, 2015 accessed on October 10, 2015
Market Intelligence Report by Ashish Anand,
http://www.slideshare.net/ashishpsrt/market-intelligence-report-on-mobilewallets accessed on October 10, 2015.

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