Exploring Consumer Behavior Towards Mobile Wallet Adoption In Rural Surat, Gujarat

Abstract

The advent of digital transformation has significantly simplified and expedited our daily routines, opening doors to novel experiences. Modern-day banking and commerce are more complex and reliant on technology than ever before, to the extent that envisioning a day without technological intervention seems challenging. The swift evolution of technology has profoundly impacted the banking sector, with the surge in digital banking demands from millennials causing significant disruptions. Particularly, younger generations, such as Generation Z (born between 1997 and 2012, aged 11 to 26), are adopting cutting-edge technologies like blockchain and artificial intelligence at a faster pace than their predecessors. A notable trend within the banking industry is the utilization of APIs (Application Programming Interfaces), enabling businesses to access customer data securely. This technology is widely adopted by fintech companies to enhance operational efficiency. According to a 2020 survey by Insider Intelligence, over 60% of industry leaders anticipate that the banking sector will be transformed by advancements in artificial intelligence, blockchain, and the Internet of Things by 2025. Many banks are reportedly investigating blockchain technology to reduce expenses and optimize processes.
A mobile wallet, essentially a digital wallet holding details of credit cards, debit cards, and loyalty cards, can be accessed via applications installed on smartphones or tablets. Retailers partnered with mobile service providers accept payments made through mobile wallets. These wallets either come pre-installed on mobile devices or can be downloaded from app stores. The introduction of the Oxigen wallet in India in July 2004 marked the beginning of digital transactions in the country. Following suit, Wallet365.com emerged, paving the way for digital transactions. The Indian digital wallet market subsequently saw dominance by major players like Paytm, Google Pay, Amazon Pay, and Airtel Money. E-wallets form the backbone of India's e-commerce sector, with projections indicating a compound annual growth rate (CAGR) of 41% from 2018 to 2023, driven by the rapid expansion of the e-commerce market. The growth of the mobile wallet market in India is closely tied to the booming e-commerce sector.
Given the increasing popularity of mobile wallets, coupled with the government's push towards a cashless economy and the aftermath of demonetization, mobile wallets are poised to gain greater traction in rural India. As ICT penetration expands, the effects of demonetization, and digital initiatives aimed at rural development become more pronounced, it becomes imperative to explore the adoption trends of digital payment models in rural India. Rural regions play a pivotal role in the nation's economic growth. Therefore, this study seeks to investigate the factors influencing the adoption of mobile wallets in the rural outskirts of Surat, aiming to understand rural consumers' attitudes towards mobile marketing. Employing a quantitative research approach, a questionnaire was designed to assess the applicability of the Unified Theory of Technology Acceptance and Utilization (UTAUT2) in this context.