The present chapter explores the sustainability of mobile payment wallets amid low-cost data usage. To evaluate sustainability, the chapter evaluates the association between perception and satisfaction of m-Wallet. The chapter examines 506 m-Wallet users' perception and satisfaction. A self-administrated questionnaire was used to collect responses using an online survey. Five factors were extracted after exploratory factor analysis. Perception comprised of usefulness, self-efficacy, and ease of use. Structural equation modeling was employed on perception, satisfaction, and security. It was discovered that perception has a direct and indirect impact on satisfaction. Security has a direct impact on satisfaction. Security was utilized as a partial mediating factor between perception and satisfaction.
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Mobile technology has affected people across the world. A large number of consumers are using mobile, due to the extension of new services such as mobile wallet. The monthly data usage on mobile is expected to be 19 GB in 2023 and will increase to 46 GB in 2028 (Ericsson, 2022). Mobile data usage has increased in India from 1.24 GB in 2017-18 to 14.1 GB in 2021-22. There were only 32.8% broad band connections in India in 2015. Now there are 96% broad band connections (Mankotia, 2022) in 2022. The incentive package of USD 10 billion to promote manufacturing of semi-conductor will drive the domestic production of smart phones in India. The launch of 5G will create demand for 840 million 5G devices (Business Standard, 2022).
By 2023, the Indian digital payment market is expected to exceed $1 trillion. Indian government is working on reducing the corruption by digital transactions (Niti Aayog, 2020). With 18.3 transactions per inhabitant, India has the lowest number of digital payment transactions among the BRICS countries (RBI, 2020a). Under Mr. Narendra Modi's leadership, India has a lot of room to expand in terms of digital transactions. In 2016, the Modi government launched a demonetization campaign and a number of measures to strengthen the digital economy. After India's demonetization, the development and uptake of alternative payment systems, commonly known as e-money, accelerated. In India, the share of e-money transactions has increased from 0.9% in 2012 to 21.5% in 2017 (RBI, 2020b). The cost of data has significantly decreased in India from INR 268.9 in 2014 to INR 6.6 in 2021 (Sharma, 2021).
M-Wallet is a fund transfer or payment application that is part of the mobile data service (MDS). Banks, non-bank financial service providers, e-commerce enterprises, and technology companies are all now offering mobile wallets. Mobile wallet usage and growth has been aided by the widespread use of smartphones. Oxigen was the first non-bank organization to be integrated with the National Payments Corporation of India for instant money transfers utilizing the IMPS service, which was established in 2008 (Dataquest, 2014). Mr. Vijay Shekhar Sharma established the Paytm mobile wallet in 2010 (Paytm, 2020). Customers were forced to consider non-cash payment solutions at the time of demonetization in 2016. Covid-19 was another reason which pushed cashless payments in India.
M-wallet has gained popularity due to ease of use for payments, cash back, a wide range of bill payments, recharge, and shopping without the need for cash (Singh, 2011; Praiseye, and John 2018; Kumar and Seri, 2014; Paripunyapat and Kraiwanit, 2018; Nandhini and Girija, 2019). The growth in mobile is driven by rural areas now in India. Rural sector in expected to grow at 6%, as compared to urban sector which will grow at 2.5% (Business Standard, 2022). The demand for smart phones will increase to 400 million in 2026 (Business Standard, 2022). Mobile wallets have reduced dependence on banks for financial transactions in offline format and cash. Citizens are not required to go to bank for withdraw and payment. There is no waiting line in banks in current scenario (Patnam and Yao, 2020). The central government is promoting digital payment system and reducing corruption, so that farmers can take the benefits (Tiwari, 2019). M-wallet has finished the middlemen role in the payment system (Mohan, 2020).