Factors Determining the Acceptance of E-Wallet

Abstract

Census 2011, conducted by the Government of India, revealed that India is a very young country with about 65% of the population under 35 years of age. A Forrester research for online retail pegs Indian M Commerce to touch USD 19 billion by 2019. A study done by Internet and Mobile Association of India (IAMAI) in 2010 revealed that 70 % of the active users of mobile internet fall into the age group of 18-35 years, a cohort, also known as Gen Y. As mobile devices champion the ecommerce revolution in India, the future financial transactions are expected to be done using E-Wallets. These facts motivated the researcher to explore factors which determine the acceptance of e-wallet amongst Gen Y. In the first phase, an exploratory study was executed to identify factors influencing the adoption of a new payment platform like e-wallet. The resultant factors mirrored the technology acceptance model (TAM) model with two added factors. This model was tested using statistical tools like factor analysis and structural equation modeling. The results established perceived ease of use and perceived usefulness as the factors influencing the acceptance of e-wallet services in India.

Keywords: Technology Acceptance Model, Theory of Reasoned Action, Gen Y, M-commerce, E-wallet

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