CHAPTER-1

INTRODUCTION

1. INTRODUCTION

The rapid rise in the growth of mobile technology throughout the world is a phenomenon
that has been particularly remarkable among poor people, largely because of the
prepaid model. As a result, all classes of society now have access to financial services as
people become increasingly familiar with a mobile-money system.

In fact, mobile technology, viewed as a payment or banking channel, has the potential to
allow two important questions to be addressed at the same time: on the demand side, it
represents an opportunity for financial inclusion among a population that is underserved
by traditional banking services. On the supply side, it opens up possibilities for financial
institutions to deliver a great diversity of services at low cost to a large clientele of the
poorest sections of society and people living in remote areas.

Although there are more than 120 mobile money projects being undertaken in about 70
emerging markets (Beshouri et al. 2010), mobile payment has only become a normal
practice in a few countries, despite its huge potential. The lack of worldwide
dissemination of a service with such a huge potential shows that successful cases are not
clearly understood, and as a consequence, are not being easily replicated. This suggests
that lessons are not being learnt from the places where the system has been successfully
adopted. Furthermore, we suspect that the obstacles to its adoption in most countries
are not being investigated deeply enough to allow implementation strategies to be
employed on the basis of reliable business models. If these issues can be clarified, the
potential social and economic impacts of mobile money can be more effectively
measured and this can persuade policy- makers to create favourable regulatory
environments for fostering the practice of digital payments.

In view of the importance of mobile mone y and payment initiatives, and the gaps in the
current state of knowledge in the field, the objective of this paper is to provide a
knowledge base on mobile money, based on a comprehensive literature review, and can
be employed to identify significant experiences, together with the models being
 deployed around the world, especially in developing countries. Although there are
literature reviews currently available both in the general context of mobile payment
(Dahlberg et al., 2008) and in the field of mobile financing in developing countries
(Duncombe and Boateng, 2009), the present work focuses on mobile payment/mobile
money (as opposed to mobile financing in general) with a special stress on local
development (but not limited to works that deal with development or developing
countries). This article also updates and substantially expands the existing literature reviews
on the subject. While Dahlberg et al. analysed 73 peer-reviewed papers, and Duncombe
and Boateng reviewed 43 research papers (17 peer-reviewed and 23 non-peer-reviewed),
the present review examines a total of 196 papers (94 peer-reviewed and 92 non-peer-
reviewed) published between 2001and 2011.

The remainder of this paper is structured as follows: Section 2 outlines the theoretical
background for this paper; Section 3 describes the methodology employed. Following
this, the results are analysed in Section 4. Lastly, Section 5 discusses the results and
makes some concluding remarks for the paper.

2. CONCEPTUAL BACKGROUND

Financial services provided through digital mobility technologies have multiple

configurations, goals, and characteristics. Depending on the combination of agents,
technologies and objectives, they may have banking features, which are known as
mobile banking. They may also have transaction payment features, which are
recognized as mobile payments. Finally, they may also replicate the concept of money with
digital features, which is then called mobile money.

However the definitions of these concepts are not rigid and their delimitations are not very
clear. In fact there is a considerable confusion with regard to the terms which are often
used freely, regardless of their original meanings. This is the case with mobile payments:
it may refer to bill payments, acquisition payments, or a transfer of financial resources or
money between economic agents, and still come into the banking domain. In certain
contexts, other concepts would be more appropriate, like mobile money, mobile transfer
and/or mobile banking.

This confusion of terms is not restricted to mobile services, but also to their objectives.
For example, the term “bankarization” has been used as a synonym for financial
inclusion or even economic inclusion, although these concepts are quite distinct.
 The wide use of these inaccurate definitions led us to establish an initial conceptual bas
is, to support the literature review. It should be stressed that the definitions given below
are not the results of the review carried out in this paper, but was prepared as a
preliminary phase on the basis of related work (Jenkings et al, 2008; Laukkanen et al.,
2008; Shen, 2011).

Table 1: Definition of the main concepts employed in this research study

Concept Definition

This refers to transactions carried out through mobile technologies and devices. In
Mobile
addition to mobile payments, it includes every kind of mobile transaction offered by technology,
ns whether it involves financial values or not.

Mobile payments include payments made or enabled through digital mobility

technologies, via handheld devices, with or without the use of mobile
telecommunications
Mobile networks. These payments are digital financial transactions,
payments
although not necessarily linked to financial institutions or banks. There are several models of mobile
payments that
are currently employed worldwide.
Mobile banking can be understood as a set of mobile banking services, involving the use of portable
devices connected to telecommunications networks that provide users with
access to mobile payments, transactions and other banking and financial services linked
Mobileto customer accounts, with or without the direct participation of traditional
banking
banking institutions. This concept can also be regarded as the banking channel through which the
digital mobile services are provided by the institutions to their clients, i.e. by integrating the concepts
of service and channel.

Electronic money – being essentially digital – has attributes related to mobility and portability, and is
equivalent to mobile-money or mobile-cash. It can be differentiated from other means of electronic
payment (such as credit cards, debit cards, smart cards, etc.) because of its ability to replicate the
essential attributes of traditional money, such as:
Mobile liquidity, acceptability and anonymity.
money
Mobile money may be related to mobile wallet, which refers to a digital repository of
electronic money developed and implemented on mobile devices, allowing peer-to-peer transactions
(P2P) between mobile devices (M2M) from users of the same service. It is similar to a normal
physical wallet and is able to store money and credit and debit cards.

I. Duration of Internship
As per the Sharda University curriculum I had eight weeks to learn about the organization
functions and its operation. During the duration of eight weeks I was only placed at Noida.
Even though I was placed in Noida for eight weeks, it was ample for anyone as even the
eight weeks looked lesser to work and know all the process of the department. As per the
curriculum I worked in Phonerpe Company from 17th May, 2017 to 15th July, 2017.
1.2 BRIEF HISTORY OF PHONERPE COMPANY
Phonerpe is an Indian electronic payment and e-commerce brand based out of Delhi NCR,
India. Launched in August 2010, it is a consumer brand of parent company One97
Communications. The name is an acronym for "Payment through Mobile. The company
employs over 13,000 employees as of January 2017 and has 3 million offline merchants
across India. It also operates the Phonerpe payment gateway and the Phonerpe Wallet.

Among other sources of funding, in 2015, Phonerpe became the first Indian company to
receive funding from Chinese eCommerce company Alibaba, after it raised over $625
million at a valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in
Phonerpe parent company One97 Communications.

Phonerpe was founded and incubated by One97 Communications Limited in 2010 as a

prepaid mobile recharge website. In an interview, its founder Vijay Shekhar Sharma related
how he was inspired during a visit to China, when he saw vegetable vendors using their
mobile phones to receive payments from some customers. This led to him establishing
Phonerpe wallet in 2013.

In 2013, the company launched Phonerpe Wallet, which became India's largest mobile
payment service platform with over 150 million wallets and 75 million Android based app
downloads as of November 2016.[7] The surge in usage of the service was largely due to
the demonetization of the 500 and 1000 rupee currency notes.[8] After 8 November 2016,
Phonerpe's transactions and profit increased significantly.

Phonerpe has invested $5 million in auto rickshaw aggregator and hyperlocal delivery firm
Jugnoo, It has also acquired Delhi-based consumer behavior prediction platform Shifu for
$8 million and local services startup Near.in for $2 million

Phonerpe is one of the largest online payment gateway and recharge portal in India. It was
launched in 2010 and over six years it has gained immense popularity all over the nation.
Moreover, Phonerpe also has Reserve Bank of India (RBI) approved license to establish
India’s first payment banks. All the existing users of Phonerpe find the mobile wallet system
and the online recharge facility to be highly reliable and secured process to go with.
Phonerpe has also partnered with leading online shopping stores like Flipkart, Snapdeal and
Amazon to help people buy their favorite goods through Phonerpe mobile wallet system and
there is also no need of sharing debit card details and other sensitive information on the
internet. Phonerpe has revolutionized online payment trend and has been influencing it
positively without any hindrances for 6 years.
Ever since the government of India has introduced demonetization of 1000 and 500 rupees
note and introduced the new 2000 and 500 note, the move has been welcomed by all the
honest citizens of India. However, small businessmen and many common people, often
found it difficult to segment the amount of 2000 and 500 note into 100 rupees. In a situation,
where the development of nation is on the anvil despite tides of certain inconvenience, all
the honest citizens of India stood strong and cooperated with the government efforts to
demonetize, and in order to bolster such historical move and bring some light of comfort
among Indians, Phonerpe rushed to help people resolve any issues and hindrances bypassing
demonetization.

Phonerpe account holders in India are shielded from any of the despondency born out of
demonetization. Many of the local stores, both big and small nowadays have Phonerpe
accounts. Thus people, whosoever is having their own Phonerpe accounts could easily
purchase essential items by making transaction through Phonerpe mobile wallet.
Furthermore, there is absolute no need to share sensitive information regarding debit or
credit card details or swiping them in a POV machine. Phonerpe also made life very much
easy in the period of demonetization as people do not have to stand in long queues to
exchange old notes of 1000 and 500. Since hundreds of people are rushing to the banks or
ATMs to exchange old currency and many times finding them to be cashless, such a
frustrating moment could be avoided by possessing Phonerpe wallet.

Phonerpe wallet is highly secured and easy to use, and one can also use it while online
shopping. E-commerce giants such as Amazon, Jabong, Phonerpe, and Snapdeal have
partnered with Phonerpe to allow people to purchase goods by leveraging Phonerpe mobile
wallets offers and that also with exciting cashback and discount benefits. Since the
emergence of new 2000 and 500 rupees notes also lead to difficulty in segmenting into 100
rupees change, Phonerpe thereon played its significant role in buying essential commodities
and household goods without getting intimidated by through of how can one give change of
2000 rupee note for a purchase worth 100 rupee. Based on reports, the number of mobile
 wallet users have increased four times than what was before, and Phonerpe account holders
have accounted to almost half of it.

Phonerpe’s unparalleled contribution to make the demonetization go smoother and

procuring safe cashless transaction has been adored by many people all over India.

I. The Core Philosophy of Phonerpe company

Core philosophy can be expressed in terms of vision mission and objective of any
organization, Phonerpe organization has the following Mission, Vision, Objective, Brand
Commitment and Values. They are:
Mission:
100 million user product from India.
Make Phonerpe the most trusted mobile commerce brand in the country.

Vision:

“ to make Phonerpe an Indian Internet conglomerate”.

Commitment:
“You’re money is all yours, seal of trust we care ”.

Values:
C - Customer Focused
R - Result Oriented
I - Innovative
S - Synergistic
P–Professional

II. Objectives
The principle objectives of Phonerpe company are as follows:
 To promote cashless payments solutions.
 Providing international quality services to the corporate.
 Enhancing the market share.
 Not only providing employment opportunities but also career development for the employees
of the company.
 Providing quality-banking services to the segment of customers in the commercial sector.
 Identify business prospect.
Introduce modern banking technology to facilitate transactions

1.4 ORGANIZATION STRUCTURE

 Board of directors

 Vijay shaker Sharma, Founder & CEO

 Ravi Adusumali, SAIF Partners
 Vivek Mathur, SAIF Partners
 Jing Xiandong, COO, Ant financial services group
 Peng Yijie, President, Alipay international
 Ruchi Sanghvi, Investor and adviser
 Naveen tewari, founder, InMobi
 Neeraj arora, founder, InMobi
 Neeraj arora, Global business head, Whatsapp Incc
 Ratan Tata, Chairman of tata sons
 Jai das, managing director, sapphire ventures

Investors
 Alibab Group owns 40% stake in Phonerpe ($680M)
 Silicon Valley bank
 SAIF partners, Hong kong bassed PE firm
 Sapphire Ventures, an expansion-stage VC firm
 Ratan Tata, Tata group

Competition
 Snapdeal / Freechange
 Flipkart Money
 Amazon
 Mobikwik
 RechargeItNow
 PayU Money
 Oxigen Wallet
 Services provided by Phonerpe
Mobile recharge:
there was a time when Phonerpe Business model consist if just mobile recharge and bill
payments services. Online recharge services for mobile subscriptions TV channals
subscriptions, data-card, and metro card, etc are prvided on phonerpe.

Online shopping:
now just like other online shopping sites phonerpe also started its online shopping shoping
under phonerpe mall name , where all phonerpe users can buy all things the need from
Phonerpe online site or mobile app in there phones.

Phonerpe offers amass collection of Mobile & Accessories, Home Appliances, Computers &
Accessories, Storage; Pendrives, External hard disks, Memory Cards, Camera, Personal
Grooming, clothing, shoes, fashion accessories Audio & Video Gaming, etc.

Phonerpe bookings:
With having phonerpe user or mobile App customers can easily do;

 hotel bookings:

 train ticket bookings

 flight ticket bookings

 movie ticket bookings

 event ticket bookings

 Phonerpe payments bank:
India’s first bank with zero fee on online transactions, no minimum balance and free virtual
debit card. Phonerpe Payments Bank is offering savings and current accounts with a debit
card and the ability to make fast and easy payments. It will soon enable you to access a range
of financial services such as Insurance, Loans, Mutual Funds offered by our partner banks
with the seamless Phonerpe experience. Under this customers can:

 send money

 receive money

 save money in your phonerpe wallet

and lots more …………………………….

Services Offered

mobile DTH Data Card Electricty Bill

recharge Recharge Recharge Recharge

Landline Bills Gas bill Financial Metro Card

payments payments services recharge

Water bill Broadband

payments bill payment
Challenges faced to Phonerpe Company:
Phonerpe, the mobile wallet and e-commerce start-up, became a household name in the last
two months. So much so that it has become a generic term associated with any e-wallet and
has become an all-pervasive brand with high recall value. Demonetization gave a fillip to
mobile wallet firms like Phonerpe helping them gain users at exponential rates every day.

Since the demonetization drive was announced by Prime Minister Narendra Modi on
November 8, Phonerpe has added new users at unforeseen rates and its trading volume grew
by leaps and bounds. But the brand has been facing some critical challenges in terms of
transaction glitches, advertising faux pas and even a trademark infringement case against the
brand. It is by overcoming these challenges that the digital wallet sector’s market leader,
Phonerpe, can stabilize its brand image and grow at a steady rate.

Let’s take a look at the hurdles Phonerpe faces:

Focus on advertising at the cost of infrastructure

The leading e-wallet firm has been battling continued transaction problems. Customers
trying to load money onto their Phonerpe wallets have had money deducted from their bank
accounts but the credit had not reflected in their Phonerpe wallets. Users also complained
that efforts to transfer money back to their bank accounts were also failing.

The technological backend of Phonerpe seems to have crumbled under high pressure.
“When demonetization was announced, Phonerpe could not have anticipated the
1000% jump in users. What a technology company like Phonerpe should have done at that
point was focus on strengthening its backend and creating a robust platform, instead of
focusing on advertising,” said N Chandramouli, CEO TRA.

The primary concern during this time has been the alleged non-responsiveness of the
Phonerpe customer care. Phonerpe users have been trying to reach out to Phonerpe via
Twitter to get their transaction related issues sorted. In return, Phonerpe has been trying to
draw the attention of its users to the various reasons why a transaction might be failing and
sharing information on how to contact Phonerpe’s customer care on Twitter and on the
Phonerpe blog. Phonerpe’s Twitter profile has been bombarded by messages from distressed
uses who are having problems making transactions via Phonerpe.

Phonerpe has been struggling to cater to its 170 million users, 20 million of whom
join between November 10 and December 20. Harish Bijoor, CEO Harish Bijoor and
Consults, said “Much of the time Phonerpe is in the news it is about the tumult and any
tumult is not good for a brand. The image of the brand is closely related to how robust the
company is and in the case of Phonerpe, how prepared it is to bite into the demonetisation
pie. Demonetisation was a humongous opportunity for Phonerpe, and Patym seems to have
taken a bigger bite than it can chew. A growth of 200-400% may have been easily digested
but 500-600% jump is tough to digest. At crucial points like these a firm must manage its
greed.”

In addition, some days ago the Phonerpe app went missing from the iOS App Store because
a recent update of the app was buggy. “By the time we submitted the fix, uploaded it on app
store and got it approved from Apple for release, it was late in evening. This is why
yesterday, while the debugging and updating was going on, we kept our iOS users logged
out to avoid any larger disruption on the platform. With more than 95% users being on
android and the website, the disruption was restricted to our iOS users. We do sincerely
regret the inconvenience caused by this outage,” Phonerpe said on their blog.

Suspected Insider Fraud

Adding to this mix of unfortunate incidents, Phonerpe’s employees are now being
investigated by CBI sleuths for defrauding the company itself. It has been reported that
based on complaints from Phonerpe, two cases of fraud amounting to nearly Rs 10 lakh
have been registered against 22 private individuals. The police suspect that insiders
facilitated the fraud. “What surely influences the brand value of Phonerpe are the technical
glitches and the insider fraud that has come to light,” said Chandramouli.

Controversial Advertising Strategy

Many newspapers across India were splashed with a Phonerpe ad on the morning of
November 9thcongratulating Prime Minister Modi for “taking the boldest decision in the
financial history of Independent India.” Opposition political parties and politicians criticised
Phonerpe for this ad. From Delhi Chief Minister Arvind Kejriwal and West Bengal Chief
Minister Mamata Banerjee, to RJD chief Lalu Prasad Yadav, nobody spared Phonerpe.
The taunts of “Pay to Modi”, “Pay to Me” are not just smart quips, they dragged Phonerpe
into a political war. “In the case of the newspaper ad and the comments made by the
Opposition the brand tends to get coloured - not a secular colour but a party colour. It is
possible that some would stay away from the app because of this party connection but that
may not be too large a section of the public,” said Bijoor.

Another advertisement from Phonerpe also faced criticism and this time Patym was
pressured into withdrawing the ad and changing the ad. The digital ad ‘Drama Bandh
Karo…Phonerpe Karo’ was seen to be mocking the situation and wasn’t appreciated by
viewers. The brand modified the creative by replacing the ‘Drama bandh karo’ tagline with
‘Chinta Mat Karo, Phonerpe Karo’. Even though Twitterati may have been repulsed by the
advertising gimmickry of Phonerpe its brand image may not have been greatly affected
experts said. “The borderline controversial advertising may not adversely affect the brand
image of Phonerpe by a lot. It should be pointed out that the brand did get lost in getting
more customers. Customers would have joined in large numbers anyway,” said
Chandramouli.

Trademark Infringement Case filed by PayPal

On December 18th another kind of misfortune befell Phonerpe. US-based e-wallet company,
PayPal filed a trademark infringement case against Phonerpe. In the complaint, PayPal has
said that Phonerpe has no reason to adopt identical colours and colour scheme other than to
take advantage of the reputation built by PayPal. The complaint from PayPal came on the
last day of the statutory four-month period that follows advertising a logo. Phonerpe
advertised its logo on July 18.
This issue hardly impacts the day to day use of Phonerpe as a mobile wallet app. But it is a
very real issue, said Chandramouli. “The colours are indeed the same! This surely is not a
case of a copy-cat brand. What possibly happened was that whoever designed the logo did
not put in much thought. Who else would do it so blatantly? It is more of an early start-up
syndrome. Phonerpe must consider changing the colour of its logo if nothing else,” he said.
 SWOT Analysis

1. Phonerpe has got extremely high brand awareness across India

2. Phonerpe was able to scale up its business quickly after
demonetization
3. Offers multiple cashback options to customers
4. Phonerpe is largely accepted by merchants across India, which
has helped the brand grow
5. Strong marketing campaigns have helped spread brand
awareness
6. Word of mouth of cashless transactions and ease of use has
been accepted well by the people
7. Strong investments from Ratan Tata, Alibaba group etc have
Strengths strengthened Phonerpe's position

1. Audience in India is less the savvy as majority consider cash as

primary currency
Weaknesses 2. Phonerpe has diversified too much

1. Phonerpe can cater to a larger audience with some offline

presence as well
2. Phonerpe can educated customers on accepting cashless
transactions and online payments which would in turn boost their
customer base
Opportunities 3. Offer more banking services along with online payment options

1. Banks offering ewallets on their saving accounts

Threats 2. Security and privacy of user is a concern for Phonerpe
 LITERATURE REVIEW

This work is based on literature review, aiming to contribute to the progress of a

specific substantive domain, as recommended by Bem (1995) and Webster and Watson
(2002).

The first phase of the research consists of a comprehensive survey of the published
literature on the question of “Mobile Money and Local Development”. The main
objective is to map out the current state of knowledge on mobile means of payment and
the bearing they have on social development, as reflected in relevant research
publications. Since developments in this area have been greatly influenced by the
activities of practitioners, in addition to traditional „academic‟ sources (peer reviewed
journals and conference papers), it is also important to take account of practitioner-
oriented, non-peer reviewed sources (such as consultant‟s reports, official reports, and
other occasional and published papers) (cf. Duncombe and Boateng, 2009).

Hence, the aim of this mapping of the existing literature is to identify what has been
published about the subject (i.e. different contexts and research results), how the research
has been conducted (i.e. the methodological approaches employed), and why they have
been produced (i.e. the underlying reasons and main objectives), as well as the question
of where the studies are targeted (i.e. the geographical locations).

In the pursuit of this goal, the search for relevant publications was divided into two
subgroups:
 (a) papers in peer-reviewed, indexed journals and conference proceedings; (b) publications
from non-peer-reviewed, practitioner-oriented sources. The methodological procedures
employed for each of these groups are correspondingly described in the following sections.

3.1 Peer-Reviewed Publications

In the case of the peer-reviewed publications, the strategy adopted to search for relevant
publications was a keyword-based search in the most important academic reference and
re search indexes, databases, and digital libraries. As a first step, the terms "mobile
money" and "mobile payment" were defined as keywords that might be present in the
title or the abstract of relevant peer-reviewed journal and conference publications. The
sources for this search, along with the corresponding number of papers found for each of
the selected keywords, are shown in Table 2.

After examining the abstracts of the articles that resulted from the first stage of the
search outlined above, only those articles were selected that came within the scope of the
research - “the impact of mobile money on local development”. Most of those articles
contain the keywords, but have no direct relation to the scope of the research (e.g. they
only mention the keywords being sought en passant whilst discussing a different topic).
As the result of this filtering process, a list of 63 relevant articles was selected for closer
examination.

After examining the abstracts of the articles that resulted from the first stage of the
search outlined above, only those articles were selected that came within the scope of the
research - “the impact of mobile money on local development”. Most of those articles
contain the keywords, but have no direct relation to the scope of the research (e.g. they
only mention the keywords being sought en passant whilst discussing a different topic).
 As the result of this filtering process, a list of 63 relevant articles was selected for closer
examination.

An initial analysis of the 63 selected articles revealed that most deal with t he
situation of developed countries and rarely address social and development issues. For
this reason, a set of another 15 journals (listed in Table 3) was selected to cover sources
that are not indexed in the databases referred to above, but are directly related to
Information and Communication Technologies and Development, and thus could better
address the project focus on local development.

A new search was undertaken in the journals from Table 3 using the same keywords
“mobile payment” and “mobile money”, but also supplemented with the search string
“(financial inclusion) AND mobile”, so as to maximize the coverage of development-
related works. On the basis of this new search, 55 articles were found. The abstract of
these articles was screened to select only those articles that would come within the scope
of “the impact of mobile money on local development”, which resulted in 31 new
articles being selected.

1 CAPES [Federal Agency for Support of Post-graduate Education] is a department of

the Brazilian Ministry of Education that is responsible for post-graduate education

programmes. It currently keeps a database of more than 29 thousand journals, the
complete papers of which are available for all public higher education institutions
(http://periodicos.capes.gov.br).
Together with the 63 articles selected in the previous stage, a final set of 94 articles was
selected for more detailed analysis, as explained in the following section. The
complete list of peer- reviewed papers analysed can be found in Annex 1.

3.2 Non-peer-revie wed publications

The choice of the sources for non-peer-reviewed publications was made in two stages:
first, the researchers listed the available publications in the web portals of the
organizations that are directly related to the topic “Mobile Money” and which were
already known to the researchers. During the analysis of the articles carried out in this
first stage, the additional research sources that were referenced in the articles were
 selected for a second stage of the analysis, in which a search using Google Scholar search
engine (http://scholar.google.com) was conducted, that led to other articles that have not
yet been analysed.

Since many of these sources have a large knowledge base with an associated
keyword-based search mechanism, the same keywords were used that had been defined
for the peer-reviewed publications (see Section 3.1). In this manner, more than 530
articles were identified and ordered in degrees of importance and in accordance with an
initial evaluation. The search for articles and materials was pursued until the researchers
could not find any further publications that could be linked to the project goal.

In the CGAP knowledge base, the articles were analysed in the order in which they appear
in the search engine's response until the 100th position. In each of these articles, other
relevant features were found and analysed, such as hyperlinks to CGAP (both internal and
external). Eac h article contained from zero to five other relevant references. Thus, more
than 200 articles were effectively analysed in the CGAP database during this stage of the
work.

There is no search engine inside the GSMA portal that is effective enough to allow us
to, replicate the method described above. Thus, the content (web pages showing cases and
discussing the subject) was analysed during the visits to each relevant section. As a result,
nearly 50 articles were identified and analysed in this portal. The number of analysed
articles in each source, as a result of this procedure, is shown in Table 4. Out of these
530 publications (including articles, white papers, webpages and multimedia content), 92
were selected to form the non-peer- reviewed corpus. The complete list of non-peer-
reviewed papers can be found in Annex 2.

3.3 Analytical Procedures

For a detailed analysis of the corpus of 94 selected articles, the first step was to
define the dimensions of the analysis, i.e. the dimensions through which each of the
articles would be classified. The initial set of dimensions was drawn from a list contained
in the project, which in
turn was obtained from a ´brainstorming´ session by the researchers in the planning stage.
This initial list was subjected to a validation test in which three different researchers read
each of three papers from the corpus and tried to classify them in accordance with the
dimensions. Following this, the results were shared and the suitability of the dimensions
was discussed at a meeting; this led to a final set of 17 dimensions, listed in Table 5.

Each paper in the corpus was analysed by a researcher and tabulated in each of the 17
analytical dimensions listed in Table 5. This tabulation was conducted by picking
quotations from the corresponding paper that matched a certain dimension and/or
adding the researchers´ own comments. The only dimensions that were filled in were
those in which the paper made significant contributions.

The final stage consisted of an analysis of the resulting tabula tion with the aim of
identifying common features and groups of similar articles in the different dimensions. As
a result, the five dimensions listed in Table 6 were selected for categorization. In Table 6,
the first item includes the reference dimensions, i.e. the dimensions that are used to
identify each paper: who wrote it (author), when (year), where it was produced
(institution), and where it appears (source title and type of publication). The criterion for
the selection of the remaining dimensions (2 to 5) was the prospect they offered of
producing significant groupings, i.e. dimensions in which the papers could be put into
subgroups that contained more than five similar papers. Each of these subgroups was
then identified by a category name, which was inductively defined from the analysis
of the tabulation.

Finally, each peer-reviewed paper in the corpus was coded by means of the categories in
Table 6. The final codification was thus used as a basis for producing the graphics and
for drawing the conclusions outlined in Section 4. During the final stage of the analysis,
i.e. the categorization, the researchers realized that the categories inductively defined for the
peer-reviewed corpus were not very applicable to the non-peer-reviewed publications.
Hence, there is a need for a new categorization, which is planned for further work in
the future. Furthermore, while undertaking the literature review, we also detected that
there are a significant number of papers that deal with the topics on mobile payment/
money but use the term “mobile banking”, and thus had been left out of the current review.
This variation in terminology should also be taken into account in any future work.
Especially for the analyses of the non-peer-reviewed articles, we also used the "Tag
Clouds" method. It was mainly used to allow an analysis to be conducted of the items for
which we could not find a reasonable categorization. A Tag Cloud is a graphical
representation of words and terms, and is used to draw attention to a feature that is more
expressive than others, and also to facilitate access to related content, by providing a
visual summary of the contents of the database (Sinclair & Cardew-Hall, 2008). In our
case, the criterion for the relative highlighting of terms was the frequency with which the
terms appear in the chosen quotations for a certain analytical dimension, so that the
generated Tag Clouds allow us to become familiarized with the main issues dealt with
in the analysed articles.
 Awards
 2017
Vijay Shekhar Sharma wins Forbes Top 40 Under 40 Award.
Phonerpe wins Best Digital Wallet award at the 11th IAMAI India Digital Summit.
Phonerpe wins Best Consumer Mobile Service award at the 11th IAMAI India Digital
Summit.

 2016
Phonerpe wins ET Brand Equity Most Trusted Brand of the Year 2016.
Vijay Shekhar Sharma wins IMPACT Person of the Year Award 2016.
Phonerpe wins FT Future of Fintech Award.
Phonerpe wins Outstanding Startup of the Year Award at Forbes Leadership Awards
2016.
Vijay Shekhar Sharma wins Uttar Pradesh government’s top Yash Bharti Award.
Vijay Shekhar Sharma wins ET Panache Trendsetting Entrepreneur Award.
Vijay Shekhar Sharma chosen as Entrepreneur of the Year at ET Awards for Corporate
Excellence.
Vijay Shekhar Sharma named Businessman of the Year at GQ Men of the Year Awards.
Phonerpe wins the Mobile Wallet Provider of the Year Award in the B2C category at the
Frost & Sullivan Awards Ceremony.
Phonerpe receives ET Telecom Game Changer of the Year Award for 2015.
NDTV Indian of the Year Award for Phonerpe CEO Vijay Shekhar Sharma.
 2015
Phonerpe won NDTV Cisco Digitizing India Awards for Disruptive Digital Innovator.
Vijay Shekhar Sharma featured in Economic Times "India's Hottest Business Leader
under 40"
Phonerpe won the Frost & Sullivan India ICT Award for Mobile Commerce
Company of the Year in B2C segment.
One97/Phonerpe recognized among Smart Innovators of 2014 at the Inc India Awards.
Vijay Shekhar Sharma recognized among the most Innovative CEOs of 2014 by Inc India.
Phonerpe Wallet gets the Best Digital Wallet Award at IAMAI' India Digital Awards in
Delhi on 15th Jan 2015
 2014
Phonerpe App gets featured in Apple App Store’s Best of 2014 in the Mobile/DTH Recharge
& Shopping Category
Phonerpe is the winner of Indian Express IT Award in Mobility Solutions 2014
Phonerpe App is a finalist at the international Meffys in Consumer Trust category
Gold Winner at the MMA Smarties in the Mobile App category
Silver Winner at the MMA Smarties in the mCommerce category
Among Delhi/NCR’s Top 50 Brands at a celebration by Paulwriter
Best Mobile Money product at the 4th India Digital Awards

 2013
Knowledge Faber Best Mobile Wallet Program Award
Special mention in m Billionth Awards in mCommerce/mBusiness category
Gold Winner at the MMA Smarties for mCommerce

 2012
Most Innovative Startup of the Year at the Entrepreneur India event by Franchise India
 Chapter two
BANKING INDUSTRY

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised
and well-regulated. The financial and economic conditions in the country are far superior to
any other country in the world. Credit, market and liquidity risk studies suggest that Indian
banks are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models
like payments and small finance banks. The central bank granted in-principle approval to 11
payments banks and 10 small finance banks in FY 2015-16. RBI’s new measures may go a
long way in helping the restructuring of the domestic banking industry.

The digital world that we live in today is that where every civilian has a bright prospect to
transform the lives in many ways that were hard to envision just a couple of years ago. It is
the outcome of several innovations and technology advances. Today, every nation wants to
be fully digitalized that will empower society in a better manner. The 'Digital India'
programme, an initiative of honourable Prime Minister Mr. Narendra Modi, will emerge
new progressions in every sector and generates innovative endeavours for geNext. The
motive behind the concept is to build participative, transparent and responsive system. All
educational institutions and government services will soon be able to provide I-ways round
the clock. Digital India will provide all services electronically and promote digital literacy.
Digital Technologies which includes the concept of cloud computing and mobile
applications have emerged as the catalysts for express economic growth and citizen
empowerment. Companies all over the world desire to invest in Digital India- the 21st
century India, as a growth opportunity. Hence, an attempt has been made in this paper to
understand Digital India – as a campaign where technologies and connectivity will come
together to make an impact on all aspects of governance and improve the quality of life of
citizens. Global investors like Sundar Pichai, Satya Nadella, Elon Musk have supported
Modi's Digital India initiative.
Author: Nitin Gupta, Co-Founder and CEO, PayU (India)- Reference

Prior to exploring the innumerable possibilities of ‘Digital India’, let us first understand the
concept of the program. This is a program intended to transform India into a digitally
empowered society and knowledge economy. The idea is to provide people with a ‘cradle to
grave identity’ that is “unique, lifelong and online.” The authorities have conveyed that the
overall scope of this program is to prepare India to have the requisite knowledge to be
equipped for the future and make technology the center that enables change. It envisions
becoming the umbrella program across sectors. The project focuses on being transformative
that helps realize the popular equation i.e. IT+IT= IT, which means India Today +
Information Technology = India Tomorrow.

‘Digital India’ is a vision, which is based on three key areas. The first is to make various
utilities available to the citizens through cutting-edge digital infrastructure. It will enable
delivery of services like banking and access to service centers at the doorstep of citizens
with the assistance of high speed internet. The second area of vision will be the focus on
governance and services. This digital movement will bring everything in the palms of people
across departments and places. It will enable providing services to people in real time,
cutting across every hindrance. It will also enhance the usage of cloud services and enable
citizens to receive their due just from these services. Furthering the benefits, it will ease the
procedures for starting businesses in India and even the financial transactions will become
effortless as people wouldn’t have to set foot outside their houses. The third and the
foremost vision would be to empower citizens digitally. The digital resources, like
documents etc. will be easily available on the cloud, making access to information easier
and faster. This will consequently lead to a digital revolution in the country. Further, the
services would be friendlier as they would be available in native languages, making their
penetration comprehensible and vast.
 With e-Governance coming into power, the private sector sees a lot of opportunity in this
space. This will magnify the efficiency of the Government and induce more transparency
into the system. Digital payment companies stand to benefit with this move as it will
increase the number of people accessing Internet in India. The future of a country is
generally determined by the growth of its economy and the Digital India campaign is one
such way that will not only strengthen the economy of India, but will also play a major role
in putting India in the league of developed nations. The transformation of the country into a
knowledge economy will ensure the industry gets rock solid support and a fertile ground to
flourish in the time to come. Additionally, the huge investment of Rs.1.13 lakh-crore and 18
lakh direct or indirect jobs in the country will generate trust among major investors across
the globe making it the new mecca for emerging technologies. Consequently, the next Apple
or Facebook might just come from India!

Furthering the benefits of Digital India, the roadmap ahead looks promising. By the year
2019, 2.5 lakh villages will have broadband connection along with the added feature of
phone connectivity. The imports of the country will turn zero as India will have a staggering
400, 000 Public Internet Access Points. Not only that, over 2.5 lakh educational institutions
including schools and universities will have Wi-Fi facility. The program aims to impact the
employment scenario immensely by increasing skills and job prospects. It is estimated that
by 2019, about 1.7 crore young Indians will have proper training in IT, Telecom and
electronics. This directly leads to 1.7 crore jobs for Indian Youth in about four years from
now.

With these developments, India is expected to become the world leader in IT interface
with e-Governance and e-services getting maximum exposure. Driven by such digital
engagement, Indian firms are expected to leave the best-in-the-world companies behind,
with their IT expertise permeating into services like health, education and banking.

Therefore, it can be concluded that ‘Digital India’ is all set to transform the interface of the
country’s socio-economic dynamics. It is deemed to bring systems and infrastructure up to
speed and leverage the country’s workforce, establishing a firm foundation towards
sustainable practices and eventually progress.

II.1 Banking Industry at Glance

The name bank derives from the Italian word ban co "desk/bench,” used during the
Renaissance by Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, there are traces of banking activity even in ancient
times.
In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders
would set up their stalls in the middle of enclosed courtyards called Marcella on a long
bench called a banc us, from which the words ban co and bank are derived. As a
moneychanger, the merchant at the bancus did not so much invest money as merely convert
the foreign currency into the only legal tender in Rome—that of the Imperial Mint.
In the earlier stage, bank was the place for keeping and lending money. But with the
evolution of transaction and globalization, the meaning and function of bank is gradually
changed.
According to the Concise Oxford Dictionary, the term bank is defined, as “A bank is an
establishment of the custody of money which it pays out on customer’s order”. So, bank is
the financial institution that deals with the financial situation of the society. It accepts
deposits, and invests those deposits as loan for individuals, corporate, government and
private organizations to earn profit as interest. So, bank works as a lively body of the
country, which helps in economic and social development of a country. The function of bank
is not only depositing and lending money but also remittance of money, providing letter of
credit, bank guarantee, etc. Bank has also developed credit money such as Visa card, Debit
Card, Credit Card, etc. to facilitate the general public. ATM (Automatic Teller Machine) and
SCT (Smart Choice Technology) is the latest form of credit money issued by bank. So, bank
can be considered as the backbone of overall economic development of a country.

2.4 Introduction on Commercial Bank:

According to the Blake's Law Dictionary, "Commercial Bank" means a bank authorized to
receive both demand and time deposits, to engage in trust services, to issue letter of credit,
to rent time – deposit boxes, and to provide similar services. Likewise section 2(a) of
commercial Bank Act 2031(1974) has define that "Commercial Bank " means a bank which
operates currency exchanges transaction, accepts deposits, provide loan, performs dealing
relating to commerce except, agricultural, industry of similar other objective..
 Bank is an institution that deals in money and its substitutes and provides other financial
services. Banks accept deposits and make loans and derive a profit from the difference in the
interest rates paid and charged, respectively. Though, Bank can be categorized into different
types on the basis of its functions, objectives etc. The World Bank will always be
synonymous with Commercial Banks and its functions. Basically the functions of
commercial Bank all over the world are the same. Basic functions are various types of
deposit facilities namely, current, savings and fixed. Safety of public money, remittance of
money, letter of credit, guarantee, loans, lockers facility, foreign exchange, serving as agent
of client etc. The commercial Banks of Nepal also do all these functions .Some banks also
have the power to create money Commercial Bank is a bank with the power to make loans
that, at least in part, eventually become new demand deposits. Because a commercial bank is
required to hold only a fraction of its deposits as reserves, it can use some of the money on
deposit to extend loans. When a borrower receives a loan, his checking account is credited
with the amount of the loan; total demand deposits are thus increased until the loan is repaid.
As a group, then, Commercial Banks are able to expand or contract the money supply by
creating new demand deposits. Commercial Banks specialize in loans to commercial and
industrial businesses. Commercial banks are owned by private investors, called
stockholders, or by companies called bank holding companies .The main objectives of a
Commercial Bank are to earn profit by collecting the fund scattered around the general
public, and mobilizing it.
So, the main functions of Commercial Banks happen to be collecting deposits from
general public and lending loans to various economic sectors that require financing.
Commercial Banks make profit by charging a bit higher interest rate in loans than they pay
to depositors. So the main source of income of commercial banks is interest income.

2.5 Functions of Commercial banks

The main functions of commercial banks are accepting deposits from the public and
advancing them loans. However, besides these functions there are many other functions
which these banks perform. All these functions can be listed as follows:
 Accepting deposit and making payment of Cheque.
 Performing transactions related to loan.
 Issuing notes and currencies for exchange purpose.
 Exchanging foreign currencies.
 Preparing financial policy and analyzing the market price.
 Creation and control of credit.
 Performing agency function.
 Transferring money from one place to another for remittance.
 Performing number of financial transactions to help the trade.
 Priority and deprived sector lending.

3. RESULTS

Figure 1 shows the distribution of the papers that were analysed for this review in the
period from 2002 until the first half of 2011 (although the timeframe defined for the
review was 2001-2011, the search results did not include any paper published in 2001).
It clearly shows that mobile payment/money is a recent phenomenon, a fact that is borne
out by the significant and continuous increase in the number of publications since 2007. It
should be noted that although the review was only able to cover the first half of 2011 (the
current point in time), there has already been a large number of papers on the subject
published this year, especially from practitioner-oriented sources.

Figure 1: Distribution of the analysed papers over a period of time

 In addition, the analysis of non-peer-reviewed publications only began in 2008. This can
be explained, on the one hand, by the fact that the sources for these publications were
mostly web sites, which tend to focus on updated, recent articles rather than on historical
records of past publications. On the other hand, the selection process we used for non-
peer-reviewed publications (see Sect. 3.2) may also have prioritized more recent
publications, since they are usually ranked higher in the web search engines used.

3.1 Peer-reviewed papers

The analysis of the selected peer-reviewed papers offers some interesting insights as regards
the location of the studies published in the reviewed papers. On the top of the list is Kenya
with 10 papers, which should not come as a surprise in the light of the success of the
paradigmatic M- PESA case. China is second in the ranking, with 9 papers, which can be
explained by the large number of Chinese institutions publishing in the area. The list of
countries analysed in 5 or 4 papers of the corpus includes Finland, India, the Philippines,
South Africa, and USA. The Philippines and South Africa are most likely included because
of their recent initiatives in mobile money /payment, while Finland, India and USA provide
the context of the studies carried out by the prolific number of their institutions in the field. It
should be pointed out that our attribution of location to a paper is not exclusive – i.e. it can
handle two or more location categories at the same time; conversely, not all the papers can be
attributed to a location category but only those that mention a specific country/region as their
object of study.

Table 7: Location of studies in peer-reviewed papers (categorized)

Location Pape rs
USA, Europe and Japan 26
Africa 14
Latin America 1
China and India 22
Other Asian/Oceania Countries 21

By analyzing the location of the studies grouped into categories (Figure 2 and Table 7), it can
be seen that what is mainly addressed is the situation of developed countries (in the
category of countries like Europe/USA/Japan) with 26 papers, followed by a significant
number of articles
(22) that address today‟s two largest emerging economies (China and India);
additionally, 21 papers study many other different countries in Asia and Oceania. As
for the situation of
developing countries, African countries are cited in 14 papers, while – quite surprisingly –
only one of the analysed papers was targeted at Latin America.

Figure 2 shows the distribution of the location of the studies in the analysed papers of the
specific period, and makes clear that the growing number of studies since 2007 (already
referred to above) was accompanied by a trend which sought to broaden the spectrum of
countries addressed, including more studies on China/India, and other Asian/Oceania
countries. One of the most notably difficult is, Africa which has been included as an object
of study in mobile payment/money articles since 2007, probably due to the spread of
knowledge about the success of individual cases like Kenya.
Figure 2: Peer-reviewed papers: location of studies

With regard to the methodology employed (Table 8), most of the peer-reviewed articles that
were analysed, consist of essays (i.e. articles that set out and/or analyze a situation in a
theoretical manner, without a more extensive discussion of specific cases and/or undertaking
of other types of empirical research). Other methods that are used by many of the
analysed articles include surveys (27 articles) and case studies (24 articles). The latter are
subdivided into analyses based on self- conducted empirical research (13 articles) and case
studies relying upon secondary data (11 articles). In this context, the term case study is
broadly used to cover all kinds of analyses of specific cases (that are mostly countries), but
do not always entail rigorous methods. In future work, it would be worth refining the
analysis of these cases to evaluate the rigor of the research methods used, and to allow a
more satisfactory estimate to be made of the power and extent of their conclusions.
Table 8: Peer-reviewed papers: methodology of studies

Methodology pape rs %
Case study: empirical research 13 14%
Case study: based on secondary data 11 12%
Essay 32 34%
Experiment 1 1%
Focus groups 2 2%
Research design: development of new technology / processes 3 3%
Review of existing research 5 5%
Survey 27 29%

Table 9 makes a cross analysis between the methodology employed by the peer-reviewed
papers analysed versus the location of their objects of study. Here, it is evident that most
case studies, whether based on secondary data or on empirical research, were conducted in
developed countries (9 in USA/Europe/Japan), although Africa also appears as a frequent
location for case studies with 8 papers. As for China/India and Other Asian/Oceania
countries, although in total the number of papers that deal with them is closer to
USA/Europe/Japan (see Table 7), in terms of methodology they are distributed in a
different way, since there are relatively fewer case studies on China/India (6 articles) and
other countries in Asia/Oceania (5 articles) – in these two latter categories, surveys are most
often relied on as the methodology. The complete absence of empirical studies of any kind
on Latin America or Arab countries is remarkable.
Table 9: Peer-reviewed papers: methodology vs. location

USA/Europ Afric Latin China/ Asia/

Methodology
e a Ame India Oceani
Case study: empirical research /Japan
7 4 rica0 5 a 3
Case study: based on secondary data 2 4 0 1 2
Essay 7 4 0 6 2
Experiment 0 0 0 0 1
Focus groups 2 0 0 0 1
Design research: develop. of new
0 0 0 1 0
technology
Essay 7 4 0 6 2
Review of existing research 0 2 1 1 2
Survey 6 3 0 8 10

With regard to the main areas investigated by the surveyed studies, consumer adoption,
market analysis and mobile money and payment for the poor are the most common issues
addressed (see Table 10). Many of the consumer adoption studies commonly use
theoretical models on

´technology acceptance´ like TAM (Technology Acceptance Model) and its succeeding
variations, to identify the factors that may influence the adoption of mobile
money/payment technology. As for Market Analysis, this is a label that covers a wide
range of studies that, in some ways, discuss the prospects and, forms of the mobile
money/payment market and/or obstacles to it.

Table 10: Peer-reviewed papers: Key focus themes

Context pape rs %
Consumer adoption 29 30%
Market analysis 27 28%
MM for the BoP 23 24%
Technical frameworks / approaches 7 7%
Merchant adoption 4 4%
Analysis of failures 4 4%
Technological factors 3 3%
Figure 3: Peer-reviewed papers: Key focus themes

By analyzing the distribution over a period of time in Figure 3, it is clear that the way
Mobile Money / Mobile Payment reaches the Bottom of the Pyramid (or is used for
development) has been established as a serious issue since 2007, and coincides with the
point in time at which research studies began covering typical developing countries (e.g.
Africa, see Fig. 5) – a fact that may also be due to the widespread knowledge of the Kenyan
case.

Only half of the analysed papers mention any obstacles to the implementation of mobile
payment initiatives. The main drawbacks that are mentioned concern technological issues
(e.g. security, interface design) and the unwillingness to adopt them (by consumers or
merchants), each of them mentioned in 16 papers (Table 11). The lack of acceptable
standards leading to interoperability problems, and a lack of knowledge of mobile payment
are mentioned by 10 papers.

Table 11: Peer-reviewed papers: obstacles to implementation

 Obstacles to imple me ntation pape rs %
Technological/security / user interface limitations 16 18%
Lack of Infrastructure (electricity, mobile coverage etc.) 5 6%
Unwillingness of consumers and merchants to adopt / Lack of trust 16 18%
Lack of Standards / interoperability 10 11%
Regulations / Legal framework 7 8%
Problems of Scale / Network Effect 6 7%
High Costs / Overhead 8 9%
Lack of cooperation between market players 4 5%
Lack of knowledge of m-money / m-payment 10 11%
Low Levels of Literacy and Financial Education 3 3%
Other 2 2%

A cross-analysis between obstacles to implementation and location of studies is shown in

Table
12. An interesting - albeit understandable - result is that whereas in developed countries
technological limitations and the unwillingness of consumers and/or merchants to adopt
are mostly cited, in the case of African countries, regulations and high costs appear as
the most important obstacles to implementation.

With regard to socioeconomic implications, the high degree of dispersion of the topics
mentioned in the analysed papers, did not allow us to make a significant categorization. For
this reason, we decided to offer a visual presentation of the socioeconomic implications in
the form of a tag cloud generated from key phrases taken from the analysed publications
(Fig. 4).
Table 12: Peer-reviewed papers: obstacles to implementation vs. location

USA
Latin China Oceania
Barrie rs Europe Africa
Ame India Asia
Japan
rica
Technological / security / user interface
6 2 0 3 7
limitations
Lack of Infrastructure (electricity,
0 2 0 0 2
mobile coverage etc.)
Unwillingness of consumers and
6 2 0 1 5
merchants to adopt / Lack of trust
Lack of acceptable Standards /
4 2 0 2 3
interoperability
Regulations / Legal framework 1 4 1 2 1
Problems of Scale / Network Effect 3 2 1 1 1
High Costs / Overhead 4 4 1 1 1
Lack of cooperation between market
1 0 0 2 0
players
Lack of knowledge of m-money / m-
3 2 0 1 6
payment
Low Levels of Literacy and Financial
0 0 0 0 0
Education

The most significant terms include financial, services, access, (m-)payment, transfer, and
banking. This could suggest that the expansion of access to financial services is one of the
mostly cited socioeconomic implications of mobile payment systems.
 Figure 4: Cloud of tags with Socioeconomic Implications

3.2 Non peer-reviewed papers

All the 92 non- peer-reviewed articles analysed at this stage of this study are dated from
2009 onwards. This suggests that the subject "mobile money" has achieved more importance
in non- peer-reviewed sources in recent years, following its appearance and recognised
importance in the peer-reviewed articles.

The most significant sources of these articles were the CGAP and GSM Association. This is
not surprising, since both organizations have activities concerned with "mobile money", and
formed the starting- point of the data collection at this stage of the work.

In a preliminary stage, we analysed material taken from non- peer reviewed publications
by means of the tag cloud method. Some analytical dimensions have been researched
through transcripts taken from the articles, which made this preliminary session feasible.

Before generating the tag, we removed the words "mobile" and "money" in all the
simulations, because they were used as keywords in the search for articles. We also
grouped words that appeared to be written differently, such as "banks" which
encompasses "bank", "Bank" and "Banks". This procedure was adopted for the most relevant
words, but was unnecessary for less popular terms, since the goal of the cloud of tags is to
display graphically the importance of the most common words.
Figure 5: Cloud of tags for the actors involved

With regard to the actors involved, it is notable that the “MNOs” and “Banks” appear
with greater emphasis, followed by “Agents” and the “CGAP” and “GSMA” organisations.
This observation is not surprising, although, the fact the “users” and “customers” do not
feature prominently is of great interest.

Moreover, when the term "Agents" is analysed in these articles, we understand that it applies
to both the intermediaries in the business model of MNOs initiatives, and the distribution
partners in branchless banking business models. In other words, the word "Actor" in the
cloud tags has different meanings.

This analysis also shows that the dimension “Customers/Users” has been less discussed in
these publications, suggesting that greater attention is paid to the suppliers or organizations
involved. In fact, the articles suggest that the “Customers/Users” dimension has been
shelved for "future research opportunities”.

It was also striking that other agents that were often mentioned as being very important do
not feature prominently, such as the Government and Regulations related to the legal
environment.

Regarding the application context, we observed in Figure 6 that the transcripts also laid
more emphasis on the words "services", "success", “country”, "market" and "business".
Moreover, it again highlighted the dimension of the suppliers (mainly the MNOs but also the
banks).
 Figure 6: Cloud of tags in the context of applications

One of the curious findings is that the word "success" is given prominence. This may mean
that those articles cover cases of success or initiatives related to the subject "mobile money",
although few articles analyze the documented initiatives in a critical way.

When it comes to the obstacles to the implementation and success of the mobile money
services, the non- peer-reviewed articles show that the key constraints mainly apply to
the following categories:

 Users: user adoption and experience, mainly related to security, privacy, trust, fraud and risk
perception. It also includes psychological inhibitions caused by the technology and new
services.

 Business Models: business model problems arising from, restrictions and complexity,
including obstacles to adoption and the need for an ecosystem with multiple operators and
relations. This category also includes the remuneration and commissions of agents paid to
resellers (the problem may be either the large or small amount of commission paid).

 Suppliers: lack of infrastructure and service coverage (availability and capillarity); need for
new skills on the part of the agents; competition with traditional (formal and informal)
service providers; and lack of banking expertise.

 Price/Cost : on the user side, the constraint may be the cost and price of devices and services;
 on the supplier side, the problem is the financial sustainability of the initiatives. This category
also includes the difficulties of remaining price competitive for low-value transactions.

 Regulation: the need for public regulation, especially to enable innovative business models in
highly regulated environments.

Other restrictions and obstacles were also identified, such as: conservatism (opportunities for
new services, different from traditional banking services); economic constraints; and a
specific market context.

It is also worth noting that the female dimension was often discussed and highlighted, because
of its important role in social development strategies.

The “results of mobile money” (initiatives, concepts, and business cases) have been discussed
in non-peer reviewed articles. However, although many articles stated that "mobile
money" is a reality in several contexts and countries – and usually mentioned the M-PESA
case in Kenya –
most of them still viewed "mobile money" as an opportunity or prospect for the future. In
other words, despite the potential of mobile money, it will not be achieved immediately.

Mobile money has been considered to be an important MNO strategy, mainly on account
of its churn reduction, but also because it offers a potential new source of revenue for the
MNOs. Thus, even though mobile money is a small fraction of the total MNO revenue
today, it may be a long- term opportunity if some of the profitability issues can be solved.

In addition to the obstacles and restrictions discussed earlier, the results also
mentioned the following: the lack of effective marketing efforts; the profitability of the
mobile money business models (including consumer pricing, cost reduction strategies for
customers; financial sustainability; and the way that the services are priced and
perceived by the users); liquidity factor for agents; public regulations; and the need to
reach scale. For many authors, mobile money is still a very complex service, which
must be simplified before it may become a useful financial service for mass users.

Whether viewed as an obstacle or an opportunity, the results show that consumer trust
is an essential attribute for the adoption and effective use of mobile money services, and
its construction may involve various measures from simple marketing initiatives to
profound changes in business models.

ABOUT PHONERPE
The growing adoption of smartphone and mobile internet has given a much-needed boost
to mobile wallet industry in India. Players like Phonerpe, MobiKwik, Freecharge are all set
to take the charge of the next revolution in mobile space.
In a country like India with a massive user base of 239 million smartphone users, it
comes as no surprise that smartphones have assumed the mantle of primary Internet gateway
for a majority of Indians. Smartphone proliferation has directly influenced a change in the
behaviour of the Indian audience. The payment system is witnessing a change in the air, as
people spend more time on apps, they have started trusting and adopting online shopping
services as well as online payment apps.
It has been revealed that not only big urban cities but more than 58% of the residents of
smaller towns in India are using mobile wallet apps.
Till now, mobile payments especially contactless payments have been considered to be a
form of technology that would only gain relevance in highly mature smartphone markets
like those of the US. However, one of the most interesting fact that this report has brought to
light is the increasing number of Indian consumers who have been using mobile wallet apps
in their everyday life. In spite of the popularity of mobile wallets, there is one persistent
question that is stuck in our mind- are people using Wallet Apps like Phonerpe only for
their offers? Or has the convenience of online shopping nurtured a feeling of ease in
the Indian smartphone user’s mind? Stick with us as we get to the bottom of the thriving
mobile wallet app ecosystem.
Phonerpe means “Pay through Mobile”. It is one of the largest is one of the fastest growing
Indian e-commerce shopping websites launched in 2010. The name of the company who
launched the Phonerpe is One97 communication. Initially it is focused on Mobile and DTH
recharging. The Company headquartered in Noida, India. It gradually provided recharging
and bill payment of various portals including electricity bills, gas bills as well as telephone
bills.
In 2014 Phonerpe has started the business same like as the facilities are getting from the
other E-Commerce company such as Flipkart, Amazon, and Snapdeal. Today, it is India's
most popular online destination for prepaid mobile & DTH recharges and shopping, and its
Android and iOS apps have been ranked among the most popular apps. In only 3 years since
the founding, the company created a user base of 25 million wallet users and 10 million app
downloads.

ADVANTAGES OF DIGITAL PAYMENT-

As the country moves towards a cashless environment after demonetisation, the initial awe
and confusion have given way to a flurry of concerns. Will the emphasis on online
transactions provide convenience and tangible benefits or just add to stress and additional
charges?

To incentivize the move towards a cashless economy, the government has come up with a
rash of discounts and freebies on digital transactions. But will these be substantial enough
and, along with other benefits, counter the higher risk of identity theft once the currency
notes are back in circulation? What are the gains and drawbacks of financial digitization?
Here’s a look at what may be in store for you.

Convenience
The ease of conducting financial transactions is probably the biggest motivator to go digital.
You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM
withdrawals. It’s also a safer and easier spending option when you are travelling.

Discounts

The recent waiver of service tax on card transactions up to Rs 2,000 is one of the incentives
provided by the government to promote digital transactions. This has been followed by a
series of cuts and freebies. It’s a good time to increase your savings if you take advantage of
these. For instance, 0.75% discount on digital purchase of fuel means that the petrol price in
Delhi at Rs 63.47 per litre can be brought down to Rs 62.99/l with digital payment.

Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your
costs. Add to these the cashback offers and discounts offered by mobile wallets like
Phonerpe, as well as the reward points and loyalty benefits on existing credit and store
cards, and it could help improve your cash flow marginally.

Tracking spends

“If all transactions are on record, it will be very easy for people to keep track of their
spending. It will also help while filing income tax returns and, in case of a scrutiny, people
will find it easy to explain their spends,” says Manoj Nagpal, CEO, Outlook Asia Capital.
“Besides the tax, it will have a good impact on budgeting,” says Pai.

Budget discipline

The written record will help you keep tabs on your spending and this will result in better
budgeting. “Various apps and tools will help people analyse their spending patterns and
throw up good insights over a couple of years,” says Jhaveri. Controlled spending could also
result in higher investing. If the same amount of cash does not flow back into circulation and
people continue to use mobile wallets and cards, it is also likely to bring down the latte
factor. This means that the Rs 10 you spent on candy or chips, or that regular cup of coffee
office is likely to take a hit since you will be short of loose change and smaller currency
notes. There’s a lesser chance of budgetary leaks and unaccounted for spends sneaking into
your budget at the end of the month.

Lower risk

If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get
your cash back. “In that sense, the digital option offers limited security,” says Pai. This is
especially true while travelling, especially abroad, where loss of cash can cause great
inconvenience. Besides, if the futuristic cards evolve to use biometric ID (finger prints, eye
scan, etc), it can be extremely difficult to copy, making it a very safe option.

Small gains

It may not seem like much of an advantage, but being cashless makes it easy to ward off
borrowers. Another plus is that you can pay the exact amount without worrying about not
having change or getting it back from shopkeepers.
GO DIGITAL, GET DISCOUNTS

Service tax :
Waiver of service tax of 15% on digital transactions up to `2,000.

Fuel :
0.75% discount on digital purchase of fuel through credit/debit cards, e-wallets or mobile
wallets.

Rail tickets :
0.5% discount on monthly and seasonal suburban railway tickets from 1 January 2017.
Online rail ticket buyers get up to `10 lakh free accident insurance too.
Rail catering :
5% discount on digital payments for railway catering, accommodation, retiring rooms, etc.

Highway toll :
10% discount on NH toll payment via RFID or fast-tags in 2016-17.

Insurance :
10% discount by government general insurers on premium paid online via their portals. 8%
discount on new LIC policies bought online via its site. POS: Rs 100 a month is the
maximum rent that PSU banks can charge for PoS terminals.

Rupay :
Kisan credit card holders to get RuPay Kisan cards.
Govt. has given awards those who use RuPay cards
1000-3000 2 awards od rupees 2 lakhs
3000 and above rupees 10 lakhs

DRAWBACKS OF DIGITAL TRANSACTIONS:

Higher risk of identity theft

“The biggest fear is the risk of identity theft. Since we are culturally not attuned to digital
transactions, even well-educated people run the risk of falling into phishing traps,” says
Nagpal. With the rising incidence of online fraud, the risk of hacking will only grow as more
people hop on to the digital platform.

Besides, the latest move by the government to remove the two-factor authentication process
for online transactions up to `2,000, will not help. Irrespective of the size of transaction, the
absence of this additional layer of security will expose thousands to the risk of identity theft.
Another weak link is the inadequate redressal mechanism. “With the poor redressal system
in India, imagine what a poor rickshaw puller will do if he has his Aadhaar ID stolen?” asks
Mumbaibased financial trainer P.V. Subramanyam.

“Given the tedious process and poor grievance redressal, people will have no easy recourse
if they lose money online,” adds Nagpal. There is no stringent legal process to deal with this
kind or scale of fraud. Add to it the mass identity theft from banks’ or companies’ databases
and it can turn into a financial nightmare akin to the data breach in the Indian banking
system in October this year.

Losing phone

Since you will be dependent on your phone for all your transactions on the move, losing it
can prove to be a double whammy. It can not only make you susceptible to identity theft, but
you could also be rendered helpless in the absence of physical cash or any other payment
option. This can be especially problematic if you are travelling abroad or in smaller towns or
villages with lack of banking infrastructure or other payment options. Another drawback is
that you need to keep your phone constantly charged. If the phone dies on you, you will be
stranded, particularly if you are in the middle of an important purchase or dealing with an
emergency.

Difficult for tech-unsavvy

India has a low Internet penetration of 34.8%(2016), according to the Internet Live Stats,
and only 26.3% of all mobile phone users have a smartphone (2015), as per Statista figures.
Besides the practical difficulty of going digital, “a bigger block is the psychological shift.
It’s a problem for the older people, who may suddenly find themselves locked out of their
accounts if they can’t download an app or don’t have cash. The digital medium may prove a
challenge for the tech-unfriendly people, who will need more time to adapt or the
availability of other options to conduct transactions.

Overspending
 While there is no denying the convenience of card or mobile wallet transactions, it could
open a spending trap for an unsuspecting population. According to behavioural finance
theorists, the pain of parting with money is felt more acutely if you use physical cash instead
of a card. Hence, using cash instead of cards or mobile wallet acts as a natural bulwark for
people who find it difficult to control their spending.

Besides, a high penetration of the digital payment system is contingent on the fact that the
same amount of cash does not come back into circulation. If it does, people are more likely
to switch back to the former ease of using cash as it is a habit that they may find difficult to
break.

Chapter 3

Research Methodology

The research methodology used is explorative study which includes primary data and
secondary data. The sample size chose are 20 customers of Pay U Money and Pay tm which
constitutes 20 customers belonging to 18-30. Our survey is based on questionnaire method.

 Awareness about Phonerpe or Payu Money-

 Pay tm or Pay u Money refers to the electronic payment for online transactions which offers
recharges, shopping, utility bill payments etc. Nowadays, people are aware about various
services provided by pay tm or pay u money. It catches the attention of young customers as
it gets noticed by working on unique ads. As this brand is increased day by day by the
people it has created 100% awareness about the pay tm or pay u money by both the age
groups and agreed about various facilities provided by it.

 Any delay in payment-

 Pay tm have the option of recharging and shopping from whenever, anywhere and access
from wherever they are. Before opting, pay tm people should think twice or not whether
they provide service. Pay tm plays a significant role in payment of online transactions, but
they suffer from the technological barriers as server may busy. According to the survey, it
shows greater volume for positive i.e. 60% people have agreed that there is no delay in
payment and 40% people have disagreed between 18 to 30 years. Even there is a positive
reaction in 30 to 45 years, as 80% people agreed and 20% people disagreed. The disagreed
people have told about that they have recharge mobile for Rs.100 but for 40-45 min it did
not process and did not refund to bank a/c. this error was due to technical fault in pay tm.
Pay tm have the option of recharging and shopping from whenever, anywhere and access
from wherever they are. Before opting, pay tm people should think twice or not whether
they provide service. Pay tm plays a significant role in payment of online transactions, but
they suffer from the technological barriers as server may busy. According to the survey, it
shows greater volume for positive i.e. 60% people have agreed that there is no delay in
payment and 40% people have disagreed between 18 to 30 years. Even there is a positive
reaction in 30 to 45 years, as 80% people agreed and 20% people disagreed. The disagreed
people have told about that they have recharge mobile for Rs.100 but for 40-45 min it did
not process and did not refund to bank a/c. this error was due to technical fault in pay tm.

 Security system

Nowadays, pay tm offers advanced account protection to gain this we have to login to
additional layer of security on pay tm website. Pay tm has designed 2 step authentications to
keep safe and secure our pay tm in mobile applications.

This feature is to make sure our account safe always. As the security system is available to
all in advanced way, people are well known about the attractive security training; majority
of people i.e. 100% have satisfied with this between 30-40 years. Meanwhile, between 18-
30 years’ age group 16 people are agreed and 4 people are disagreed because all of them are
vulnerable to password thefts. To secure our pay tm transactions, we tend to use same
password on all platforms and websites for our convenience.

 Problems encountered while making payments

 Pay tm strongly believes in a sincere and transparent approach to its users. Pay tm treats the
users fairly all times and encounter the problems and they take care of all complaints
effectively. As the main aim of pay tm is at minimising customer complaints, grievances and
reviews and redressal as they give first preference to customers to solve their problems. All
the employees at pay tm works in a good faith and people are attracted towards this pay tm
or Pay u money application 15 people of them are agreed and 5 people are disagreed in 18-
30 years of age group. As well, complaints raised by users are dealt with an open mind with
courtesy and in timely manner most of them are satisfied nearly 6 of them agreed and 4 of
them disagreed between 30-45 years’ age group.

 Problem solving: Refund to A/c, Refund to wallet, no refund

For every problem, there is a solution. Here also pay tm users will come across some of the
problems like delay in service, refundable etc. at the same time they also provide solutions
to the customer problems. Pay tm solve the problems by refunding their amount to their A/c
or to the wallet. Sometimes it may not refund also. According to the survey, the amount has
been refund to their wallet is high than refund to their a/c for the 18-30 years’ age group.
The amount that has been refund to their wallet is 16, and refund to their a/c is 4. But for the
30-45 years’ age group users have received their amount to their a/c is high i.e. 6 than
compare to refund to their wallet is 4. So, pay tm app has provided these types of solutions
as the users are increasing day by day.

 Satisfied with coupons, cash backs and offers

Pay tm not only process quick online transactions for payments of recharge, utility bill
payments etc. it also provides various offers like coupons, cash backs etc. recently pay tm is
giving special offer as if we make payment for Rs 100 using our pay tm wallet we will get
Rs 105 cash back within 5-6 min as it will be valid for only 2 coupons. As it provides
various offers it is attracted by all the users. Special offers, coupons, cash backs etc offered
by pay tm plays a major role. As in today’s world people foresee about the various attractive
gifts and keen to get benefit from one thing. As per this majority of people i.e. 17 are
satisfied and 3 are unsatisfied between 18-30 years of age group. And also between 30-45
years 8 people are satisfied and 2 people are unsatisfied.
 Satisfied with Phonerpe or PayU money

Pay tm mainly focus on payment of online transactions, DTH recharge, utility bill payments.
It provides true, accurate and complete information about pay tm or pay u money. It acts as a
pivotal role as we can pay through debit card, credit card, net baking. It also provides
security system to safeguard our wallet balance and it also offers cash backs, discount
vouchers etc. Though it has been introduced recently people are well known about this and
satisfied in processing it. Nowadays world is growing at large, they provide various
applications to make online payments i.e. Pay tm, Pay u Money, net banking etc. Based on
the users, pay tm or pay u money creating a new brand in the society. According to the
survey in both the age groups i.e. 18-30 years and 30-45 years’ age group people gave their
100% satisfaction towards pay tm but they have a request to get quick payment of
transactions to benefit more to them.
 Findings

 People are more aware about the online payments through mobile applications and there
is a wider increase in growth rate.

 Due to advanced feature in pay tm and pay u money net banking has been directly
replaced.

 Pay tm and Pay u Money is giving 2 level security authentication to safeguard our
payment details.

 Pay Tm Company has come across the customer problems immediately while making
payments.

 Pay tm and Pay u money is providing easy payment structures compared to Digital
payment system.

Suggestions

 People should be more accurate about refunding their amount directly to their wallet if any
delay in payment.

 People should update their pay tm or pay u money applications from time to time in order to
safeguard.

 Users should be more careful about the offers, cash backs provided by pay tm or pay u
money.

 The digital payment system has to take necessary steps to overcome delay in processing of
payments.
 Analysis

Digital Transformation is far beyond just moving from traditional banking to a digital world.
It is a vital change in how banks and other financial institutions learn about, interact with
and satisfy customers. An efficacious Digital Transformation begins with an understanding
of digital customer behavior, preferences, choices, likes, dislikes, stated as well as unstated
needs, aspirations etc. And this transformation leads to the major changes in the
organizations, from product-centric to customer-centric view.

A study by CGI entitled, Understanding Financial Consumers in the Digital Era sheds some
light on the desires of today’s digital consumer. Interestingly, at a time when financial
institutions seem to be in a lock-step with each other, consumers are raising the bar on their
expectations. And, according to the study by CGI, they are willing to leave where they
currently bank if their needs are not met.

The most effective way to understand and bring the organization from traditional banking to
digital banking is Omni-Channel approach. Omni-channel is a multichannel approach to
customer service where all the channels are tightly integrated, keeping customer in the
centre of the integration. As customers continue to change their channel usage patterns,
banks and credit firms need to focus on delivering a seamless customer experience across
various touch points. More than just an axiom, Omni-channel banking is a prospect to take
bottom-line on higher note by gaining insights from customers’ channels, behavior and
preferences. Today’s customers are more sophisticated and tech savvy, and to cater to their
specific needs, each customer needs a unique experience from banking. They want the
companies to understand their unstated needs as well as their likes. So, it should come as no
surprise that these customers are expecting similar kind of response and service from
banking institutions too. From researching new services, opening an account, checking
balance, conducting transactions, loans, credits, wealth management, customer support,
delivering an Omni-channel experience has become a key to success in this competitive
market place.

In the current multichannel model, customers are directed to the least expensive channel
which grounds to not only the dissatisfaction, but also the channel hopping. The whole
process is inefficient, costly and inconsistent. Omni-channel is not the replacement of
multichannel, but it’s the enrichment. Espousal of Omni-channel is indispensable to ensure
that customer experience is unified, incorporated and supports customer at the right time, in
the right place as the right way. It must be as per their mobile and digital life style. Staying
germane in current banking revolution entails deep acquaintance of customers’ needs, wants
and demands. It also requires the precise mixture of IT infrastructure and innovative new
technologies to certify that one remains ahead in current market space to drive top, as well
as bottom lines upwards.

Few statistics on the future of customer engagement:

• 73% of marketers view customer centricity as critical to the success of their business and
role at the company. (The CMO Council, Mastering Adaptive Customer Engagement 2014)
• 70% of buying experiences are based on how the customer feels they are being treated.
(McKinsey)

• A 2% increase in customer retention has the same effect as decreasing costs by 10%.
(Leading on the Edge of Chaos, Emmet Murphy and Mark Murphy)

• In the retail banking industry, customers who are fully engaged bring 37% more annual
revenue to their primary bank than do customers who are actively disengaged. (Gallup State
of the American Consumer 2014)

• Fully engaged policy owners purchase 22% more types of insurance products than actively
disengaged policy owners. (Gallup State of the American Consumer 2014)

• The majority of businesses are unable to support an Omni-channel customer journey.

(Forrester Wave Customer Service Solutions 2014) • Only 12% can provide a seamless
hand-off between channels. (Forrester Wave Customer Service Solutions 2014)
 DIGITAL INDIA AND ITS IMPACT

The programme contains tasks that target to make sure that govt. services are available to
people digitally and people get advantage of the newest information and connections
technological innovation. Gandhiji felt that 'India resides in its villages,' and technology will
help the villages to grow and prosper. Digital libraries, online magazines, e-books can be
made available for free which will further help in knowledge sharing. PM Modi rightly said
in his speech in San Jose, "I see technology as a means to empower and as a tool that
bridges the distance between hope and opportunity. Social media is reducing social barriers.
It connects people on the strength of human values, not identities." Technology is a bridge
indeed, a bridge that connects the hope that India's villages will be educated and aware to
the opportunity of internet and access to information from across the world. 'Digital India' is
not just an initiative but a need for this country, where majority of population still does not
have access to the world of internet. The Digital India initiative seeks to lay emphasis on
egovernance and transform India into a digitally empowered society. It is to ensure that
government services are available to citizens electronically. Digital India also aims to
transform ease of doing business in the country. The Department of Electronics and
Information Technology (deitY) anticipates that this program will have a huge impact on the
Ministry of Communication and IT. The program is projected at Rs 1, 13,000 crore which
will prepare the country for knowledge-based transformation. It will focus on providing high
speed internet services to its citizens and make services available in real time for both online
and mobile platform. Modi's government is focussing on providing broadband services in all
villages of the country, tele-medicine and mobile healthcare services and making the
governance more participative.
 MAJOR PROJECTS UNDER THE INITIATIVE-

Digital India comprises of various initiatives under the single programme each targeted to
prepare India for becoming a knowledge economy and for bringing good governance to
citizens through synchronized and co-ordinated engagement of the entire Government. Nine
projects have been undertaken. These are as follows:

1. Highways to have broadband services:

Government aims to lay national optical fibre network in all 2.5 lakh gram panchayats.
Broadband for the rural will be laid by December 2016 and broadband for all urban will
mandate communication infrastructure in new urban development and buildings. By March
2017, the government aims to provide nationwide information infrastructure.

2. Easy access to mobile connectivity:

The government is taking steps to ensure that by 2018 all villages are covered through
mobile connectivity. The aim is to increase network penetration and cover gaps in all 44,000
villages.

3. IT Training for Jobs:

This initiative seeks to train 10 million people in towns and villages for IT sector jobs in five
years. It also aims to train 0.3 million agents to run viable businesses delivering IT services.
Additionally, the project involves training of 0.5 million rural IT workforces in five years
and setting up of BPOs in each North-eastern state.

4. Manufacturing of electronics:

The government is focusing on zero imports of electronics. In order to achieve this, the
government aims to put up smart energy meters, micro ATMs, mobile, consumer and
medical electronics.
5. Provide public access to internet:

The government aims to provide internet services to 2.5 lakh villages which comprises of
one in every panchayat by March 2017 and 1.5 lakh post offices in the next two years. These
post offices will become Multiservice centres for the people.

6. E-Governance:

The government aims to improve processes and delivery of services through e-Governance
with UIDAI, payment gateway, EDI and mobile platforms. School certificates, voter ID
cards will be provided online. This aims for a faster examination of data.

7. E-Kranti:

This service aims to deliver electronic services to people which deals with health,
education, farmers, justice, security and financial inclusion. 8. Global Information: Hosting
data online and engaging social media platforms for governance is the aim of the
government. Information is also easily available for the citizens.

8. Early harvest programs:

Government plans to set up Wi-Fi facilities in all universities across the country. Email will
be made the primary mode of communication. Aadhar Enabled Biometric Attendance
System will be deployed in all central government offices where recording of attendance
will be made online.
 IS INDIA DIGITALLY READY

There is no doubt in it. India is ready for this. Immediately with the introduction of this
campaign, many organizations came forward to lend their hands for achieving India a
digitally equipped country. Organizations like BSNL, Reliance Ltd. are coming forward to
spread digitalization among rural areas. And over 42000 villages all over India will be
having seamless mobile connectivity by 2018. The Internet Saathi initiative aims to cover
4,500 villages over the next 18 months, starting with Gujarat, Rajasthan and Jharkhand.
India is aiming to achieve universal digital literacy across the country. The prime importance
is to make sure every individual can be able to leverage the potential of Digital India. The
focus is at least one person in a household should transform into an e-literate. This can be
achieved by BBNL which is planning to connect 2, 50,000 panchayats under the scheme.
This will ensure the digitization and connectivity of local institutions like panchayats
offices, schools, other government offices and libraries etc. India is reforming its
government through technology in the name of E-Governance with the advancement of
technology and digitalization. Under the e-governance programme, out of 252 schemes
planned, 222 services have been provided in short span of time. The nine pillars of Digital
India programme clearly confirms that India as a nation is at its nascent stage. One can
easily assure that India will be digitally ready in the next three years.
 Chapter 4

Recommendations/Suggestions

 Bank should ask consumer feedback regularly to know the extent of consumer’s satisfaction
with the service and product of the company. If they are dissatisfied, then the reasons for
dissatisfaction should be found out and should be corrected.

 Company should adopt effective promotional strategies to increase the awareness level
among the consumers.

 Since customer’s satisfaction is the key to success, the Company should increase its
brand image through improvement performance and services to the customer’s satisfaction.

 With regard to E commerce products and services, consumers respond at different rates,
depending on the consumer’s characteristics. Hence, Phonerpe Company should try to bring
their new product and services to the attention of potential early customers.

 Due to intense competition in the financial market, Phonerpe Company should adopt
strategies to attract more customers.

 As there is intense competition, Phonerpe Company should work hard to maintain its position
and offer better service and products to consumers for future expansions.

 Majority of the people find banking and online business important in their life, so the
company should employ the strategies to convert the want in to need which will enrich
E commerce business.
4. DISCUSSION AND CONCLUSION

This paper has extensively analysed academic and non-academic papers related to the
important topic of mobile money. After searching significant sources to identify who
(researchers and institutions) is publishing what (the related topics) and where (the
countries studied, journals and databases), this paper has attempted to provide a
comprehensive picture of the knowledge production and dissemination of mobile for
payments around the world.

By examining peer-reviewed and non-peer-reviewed papers from relevant academic

and non- academic sources, we sought for information related to mobile money and
payment that could help us to understand the following dimensions: the interactions
between the different actors involved in these initiatives; the factors that impeded or
encouraged their adoption; the main services delivered; the effects on local flows of
money; legal and regulatory environments as well as the role of authorities; and related
issues of gender behaviour.
Although a fairly extensive search was carried out on almost two hundred papers, which
can be considered to be very representative of the publications on mobile money and
payment, we found that little attention had been paid to the dimensions we searched for.
This gap in the literature helps to explain why a service with such a huge potential has
not been disseminated worldwide. This failure includes the following factors: the fact that
successful cases are not clearly understood, and as a result, are not being easily
replicated; the problem that obstacles and unsuccessful cases are, in most countries, not
being investigated in sufficient depth to allow implementation strategies to be based on
reliable business models; and the fact that the potential social and economic effects are not
being assessed properly with the result that the policy makers are not convinced of the
need to invest heavily in fostering favourable regulatory environments for digital
payment.

At the same time, the literature review revealed the most important issues currently being
investigated by specialists in the field with regard to mobile money and payment, and
thus allowed us to understand the main contribution they can make to this area of study.
This information can act as a starting- point for drawing up a research agenda that can be
adopted by academics, policy makers and practitioners concerned with the subject of
mobile payments.
Furthermore, some clear gaps in our knowledge of mobile payments were discovered
by the research and analysis. Some of these gaps represent important issues that can be
explored in future research in the field. Similarly to Duncombe and Boateng (2009), the
present literature review confirms the same gaps pointed to by those authors
(geographical, methodological and conceptual), even analyzing a more comprehensive
sample. It was confirmed the existence of an important theoretical gap related to the
central themes of study in the analysed articles: an expressive portion of them focuses
on issues such as adoption or market analysis, neglecting other relevant themes, such as
regulation and effective socio-economic impacts. Even among the studies focused on
consumer adoption, there is a significant concentration on a few theories: many of
them use theoretical models like TAM (Technology Acceptance Model) and its variations,
aiming to identify the factors that may influence the adoption of mobile money and
payment, denoting another theoretical gap.

In addition, the studies are concentrated in a few cases/countries, with emphasis on

Kenya and the Philippines, although there are experiences in dozens of other
countries (Beshouri et al. 2010). Thus, an important geographic gap is evidenced,
because although there are emerging
mobile money/payments initiatives worldwide, academic and non-academic production
does not cover them adequately, as is the case of emerging initiatives in Latin American
countries. On the peer-reviewed papers side, this situation might be attributed to the
relative absence of Latin American researchers in the mainstream of academic journals,
which are largely dominated by researchers from developed countries. On the other hand,
the emergence of studies in Africa and Asia is a striking feature and suggests that the
experiences in these countries have attracted more interest from researchers in developed
countries. As other non-academic research institutions and consultancy firms have
embarked on their publishing activities on this subject later than the academic
institutions, the influence of such cases in Africa, for example, has become dominant. The
low economic and social importance attached to mobile payment experiences in the region
– such as the case of Daviplata, in Colombia and Paggo, in Brazil, for example –
might also be related to the limited ability of banks, MNOs and regulators to understand
regional peculiarities concerning mobile payment models. This situation opens up
opportunities for researchers to turn their attention to this issue and carry out in-depth
investigations in the region.
As an example of track research that can also be followed by researchers, current
experiences of financial inclusion can point to correspondent banking networks, which
had been successful in developing alternative payment channels for the poor in countries
like Brazil, Colombia and Peru, for example, long before mobile payment models
became a part of the international agenda (Diniz et. al. 2011; Mas 2009; Kumar et. al.
2006). Although different in many ways from one another, the correspondent and mobile
payment systems require a complex web of relationships among a wide range of actors
to deliver financial services to an underserved part of the population, which is at the
same time supported by a strong regulatory environment. Understanding the process of
building such a complex network of relationships could be helpful to mobile money
researchers in at least two ways: first to encourage an analysis to be conducted of the
actors‟ interactions that made it possible for this complex network to grow in countries in
the region; and second to seek opportunities to include the use of mobile devices in the
correspondent model, since it is still based on a system of cash payments, which is
clearly an inefficient method that must be superseded.

Another important gap that was identified in the published literature related to mobile
money is the relative absence of an analysis of the economic or social impact. Most
studies, in particular non-academic ones, take social and economic impacts for granted
or just give them a cursory mention, without further investigation or corroborative
analysis. To improve research in this area,

studies related to microfinance could be inspirational, since in this field the emergence of
randomized studies and other techniques have led to this system being widely adopted.
This follows many years of numerous superficial investigations but few in-depth
research- based studies that can be used to provide evidence of the real impact of
microfinance practices on alleviating poverty at micro (household), meso (community)
and macro (regional or country) levels. It is understandable that the effects of these
studies in social sciences are still to be felt, in view of the unsuitable conditions for
carrying out experiments and isolating variables (because of the sheer number involved and
the difficulty of making precise measurements) in order to make comparisons, either
geographically or over a period of time. Despite the challenge, it is essential for this area
of studies to be sponsored by research institutions.
Among the many questions in the area of mobile payment studies that require
answers, the following should be highlighted: the typology of business models, the legal
issues involved in the implementations (whether successful or unsuccessful), the kinds of
technology associated with the particular business models adopted, cultural and demand
conditions for a model being disseminated, an analysis of the telecommunications and
banking market, obstacles to its adoption, gender issues and services. What is now
apparent is a scenario that can be regarded as the dawn of an investigation into mobile
money and payment. In view of the recent history of this subject-area, this can be expected.
Similarly, answers to these questions must be found to ensure that mobile money and
payment really takes off, as everybody involved in this market believes it is bound to
happen in the near future, and money as we know it today will be largely handled by
electronic devices. Moreover, this trend should be welcomed for the sake of social and
economic development and to benefit the majority of the population, including the poor.
 Lesson Learnt
Most important lesson that I had learnt during the eight week period is how to perform
various tasks in the organization, to cope with the real working environment and how to
involve oneself in the world of business by applying the theoretical knowledge gained in
four walls of a classroom into the practical field of real life situation. Further, it provided the
practical exposure and helped to understand corporate social responsibility, develop
corporate attitude and venture entrepreneurship. The internship also taught me as how to
socialize with the people, to deal with senior staffs, how to make the working environment
cozier and friendlier. I had also learnt that the behavioral issues are very important inside the
organization. All in all, the learning environment of Phonerpe Company was pleasant and
outstanding and the staffs of the bank were also very kind to provide their continuous
guidance and support throughout the learning phase.
The major lessons learnt during the internship period are summarized in the points below:

 Familiarize with the realistic environment and to provide required strength to face the
problems that comes in the way.
 Obtain insights into career opportunities through interaction, observation and work
experience in the organization.
 Record the document arrival information through software.
 Managing the chunks of files to be dispatched.
 Helping in the checking of document for auditing purpose.
 Use the office equipment like photocopy, fax machine, writer, printer etc.
 Importance of time management.
 General banking practices and corporate culture.
 Socialize with coworkers.

Therefore, these lessons broadened the knowledge and brought work maturity in me. So,
these two months of internship was the time where I got the most exposure to what it is like
to work in real life than what was learnt in the classroom. The internship program gave me
the experience, which will help to build a platform and prepare for the future.
 Annexure

Bibliography

BOOKS
Shrestha, M.K & Bhandari, D.B (2007). Financial Markets and Institutions. Kathmandu:
Asmita Publication

WEBSITES

www.phonerpe.com

www.google.com
www.wikipedia.com
www.scribd.com
www.sharesansar.com

REPORTS
Annual report of phonerpe 2016/2017

OTHERS
Brochure of Phonerpe