Connectivity, cost and power need to be addressed for mass adoption of digital payments: WeSchool Survey

Feb 14, 2017 | Posted by admin in Faculty Talk   No Comments »

In order to understand the impact of demonetization, WeSchool conducted a study across Mumbai and Bengaluru with over 2000 respondents. Basis the data from the survey, WeSchool has provided simple solutions using design thinking to address the challenges identified in the study.

The study brought to the fore some of the challenges for adopting digital payment system for vendors (self-employed), it is the cost of POS Terminal whereas for consumers it is the connectivity, power and cost of access for all categories in rural areas.

Currently, market is flooded with mobile e-wallets of which some are not as secure as BHIM App made by government where the app verifies the phone number automatically. Through our study it is found that many vendors had a particular type of e-wallet like Paytm but, the customer does not have the same e-wallet to transact. Basis this, our students  along with the faculty members have the following recommendations:

ü  Bharat Interface for Money (BHIM) app should be endorsed and promoted through public sector undertaking and private banks. Security of the BHIM App should be propagated by the Government

ü  Integrated e-wallet is promoted by all financial institutions to increase both adoption to digital payment mechanism

ü  A compatible QR Code created by BHIM App recognized by all other e-wallets; however the vice-versa need not be true


There are three ways to transfer money, through a QR code, through a phone number, or through the UPI address. As per our study a QR code created by an app say a BHIM App or ICICI Pocket App or SBI Buddy App; will be recognized in by its respective app only. In other words a QR code created by Pockets App cannot be recognized by Buddy App or vice versa. Thus, we recommend there should be a compatible QR Code created by BHIM App which is recognized by all other e-wallets; however the vice-versa need not be true. This will automatically make the BHIM App the most preferred e-wallet app.

From our survey we were able to statistically prove by using Chi-square test, that there exists a strong relationship between gender and Internet Banking usage. This reaffirms the government’s VISAKA initiative of MHRD to educate people to go cashless is a step in right direction.

Details of the study:

The study is undertaken primarily by S.P.Mandali’s Prin.L.N.Welingkar Institute of Management Development and Research (WeSchool) by Group Director Prof Dr Uday Salunkhe for both Mumbai and Bengaluru.

The teams have interviewed and have got responses from over 1100 individuals in urban setting; over 500 responses from individuals in semi-urban setting and over 250 responses from individuals from rural setting.

The WeSchool Mumbai team interviewed a random sample of about 1200 spread over various locations such as Mumbai (Suburbs), Navi Mumbai (APMC Market), Nagpur, Washim, Raigad, Pimpalegaon, Goti and even at Kota, Ahmedabad.

The WeSchool Bengaluru team has taken a sample of 800 from locations like Bellur, Hoskote, Gubbi, Chandapura and Muthanallur.



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