INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
Mobile Wallet Adoption and Innovation - Sustainable Growth of  
Business in India  
Dr. P. Deivanai  
Assistant Professor (SG), Department of Commerce, Avinashilingam Institute for Home Science and  
Higher Education for Women, Coimbatore.  
DOI: https://doi.org/10.51583/IJLTEMAS.2025.1411000041  
Received: 18 November 2025; Accepted: 27 November 2025; Published: 06 December 2025  
INTRODUCTION  
A foremost technological revolution is leading today’s world, particularly in the area of Information  
Technology (IT). The growth of IT is becoming a more tremendous and vital factor for the development of  
Industries and businesses in the upcoming days (Gbongli Kolman, et.al.2016). Due to the development of  
technology, the payment system too evolved into electronic-based payments. In the olden days barter system  
was followed in which the goods were exchanged for other goods. The barter system has vanished by the  
development of cash and now the cash has been desperate by the emerging technology of mobile-based  
payment services. One such evolving mobile based payment service is a mobile wallet. Mobile wallets are  
those mobile-based applications in which the user can hold money electronically without using their bank  
accounts. They can make payments up to the amount of money they hold within their wallet and they can  
recharge the wallet using various bank accounts. During the process of transactions money can be sent from  
the wallet to the payment merchant. According to Robin Arnfield (2015), “Mobile Wallet is a digitalized  
virtual currency version which is available for the consumer on their mobile device or tablets, where money  
can be used for purchasing goods and services at anytime and anywhere with the hassle-free transaction”.  
According to Rehman et al (2022), compatibility, observability, perceived ease of use, perceived usefulness,  
trialability and convenience have positively influenced towards the mobile wallet adoption. In addition to that  
H Vyas et al., (2019), “the study resulted that there is a significant relationship between technological factors  
such as observability, trialability, compatibility with perceived usefulness and further perceived usefulness has  
significant relationship with mobile wallet usage”.Jin et al (2019) concluded that perceived usefulness,  
perceived ease of use and trialability were the significant technical factors that led towards mobile wallet  
adoption in Malaysia. Further, Govender and Sihlali had found that there is a significant influence between  
perceived ease of use, perceived usefulness, social influence and actual usage of mobile wallet. New  
innovative technology with advanced features is being introduced in the market day by day. One such novel  
technology is mobile wallet, which is being experienced by both new and existing users. According to Rehman  
et al (2022), “the various features such as convenience, rewards and cashbacks, remote access etc…influence  
the customer towards the actual use of mobile wallet. Besides features, there are various factors that motivates  
the customer towards mobile wallet adoption. Thus, the present study focus on the impact of technological  
factors on actual usage of mobile wallet.  
Scope of the Study  
The main goal of the study is to comprehend the various technical factors that motivates the customer towards  
mobile wallet adoption. It provides an overview on the effect of technical factors on mobile wallets adoption  
and so it helps the fintech companies to enhance the features of mobile wallet in-order to attract new users.  
Objectives of the Study  
To analyse the impact of technological factors on actual usage of mobile wallets.  
To study the growth and development of Mobile Wallet Adoption  
www.ijltemas.in  
Page 469  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
THEORETICAL FRAMEWORK  
The research determinants that the leads the customers towards mobile wallet adoption, thus the present study  
explores the technological factors such as perceived ease of use, observability, trialability and convenience, its  
inflence on mobile wallet user’s. The technological factors have been adopted from the previous research  
(Vijay et al, 2022). Compatibility consists the technology satisfies the needs, values and experience of the  
users. Convenience means the reduced effort and time needed to learn a new innovation. Convenience is the  
most influential factor which drives the user’s to be an adopters in the future. Observability defines that  
tangibility of a newly innovated technology which has been availed for visibility. Trialability denotes the  
level at which the users or adopters are capable of trying out an innovation. Trialability is the process of pilot  
tests taken by customers towards a new technology before its adoption. Perceived Ease of Use refers to the  
customers easy adoptability towards the new technology which means to be a user-friendly technology.  
Proposed model of the study  
Hypothesis  
H1: Compatibility has a significant effect on perceived usefulness  
H2:Convenience has a significant effect on perceived usefulness  
H3: Observability has a significant effect on perceived usefulness  
H4:Trialability has a significant effect on perceived usefulness  
H5: Perceived ease of use has a significant effect on actual usage of mobile wallet.  
METHODOLOGY  
The study area was chosen Coimbatore, It comprehends people with the highest literacy rate and so the people  
of Coimbatore are aware of new technologies and innovations. The study concentrate on convenience  
sampling method under the non-probability sampling technique was used for selecting the sample size of the  
study. Both the primary and secondary data were adopted for the study. The primary data were collected using  
a structured questionnaire from 187 mobile wallet users. Secondary data were collected from various websites,  
books, articles and journals. Subsequently, the descriptive and PLS SEM (Structural Equation Model) were  
used for analysis.  
www.ijltemas.in  
Page 470  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
ANALYSIS AND DISCUSSION  
Profile of the Respondents  
The Demographic Profile of the mobile wallet user’s gives an overview that who was the mobile wallet  
adopters.  
Table 1 Socio-economic Profile of the Respondents  
Socio Economic Profile  
Frequencies  
Percentage  
(N = 187)  
19  
Below 20  
10  
56.6  
22.4  
11  
Age (in years)  
21-35  
106  
42  
36-50  
Above 50  
20  
Gender  
Male  
99  
53  
Female  
88  
47  
Higher Secondary  
Undergraduate  
Postgraduate  
Diploma  
6
3.2  
91  
48.6  
28.3  
8.4  
Education  
53  
15  
Professional Degree  
Professionals  
Employee  
22  
11.7  
17  
32  
103  
27  
55  
Occupation  
Own business  
Home maker  
Below 25000  
26000-45000  
46000-70000  
Above 70000  
14.5  
13.5  
25.2  
49.7  
19.3  
5.8  
25  
47  
Monthly Income  
(in Rs)  
93  
36  
11  
Source: Primary Data  
Based on the results, most respondents are 21-35 years of age (56.6%), which shows that mobile wallets are  
more familiar among the young generations. Male customers (53%) are highly using mobile wallets for their  
www.ijltemas.in  
Page 471  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
payment transactions. About 48.6 percent of the sample respondents are undergraduates, employed (55%) and  
who were obtaining Rs.26000-45000 as their monthly income (49.7%).  
Effect of Technological Factors on Actual Usage of Mobile Wallet  
Structural equation modeling (SEM) has been applied using Smart PLS to analyze the hypothesis of the study.  
Even though PLS is a non-parametric test, yet to ensure the generalizability of the findings descriptive and  
normality of the data were analyzed. Descriptive mean and standard deviation are calculated. The first step in  
structural equation modelling is to ensure the reliability and validity which are the two main criteria used in  
PLS-SEM analysis to evaluate the outer model (Joseph et al., 2013). The first step in evaluation of outer model  
is evaluating item loadings, followed by Cronbach’s alpha, composite reliability, and Average Variance  
Extracted (AVE). The threshold level for item loading is higher than 0.70 and the same for Cronbach’s alpha  
and composite reliability is 0.7, while the threshold for AVE is greater than 0.5 (Hair et al., 2013). In this  
regard, it is necessary to confirm that the items used to evaluate one construct are discriminated against from  
the items used to measure another construct. The evaluated values for the above-mentioned tests are mentioned  
in table 4.19.  
Figure 1 Validated Model  
A Structural Equation Model was developed to test the effect of technological factors on actual usage of  
mobile wallet. The model integrates the technological factors influencing customer to use mobile wallet. The  
variables incorporated in the SEM model includes compatibility, convenience, observability and trialability  
leads to perceived usefulness and it led towards the actual usage of mobile wallet.  
Table 1.2 confirmed that the items used to measure one construct are different from other constructs. First the  
outer model was found reliable and valid and then the inner model has been analyzed. Further, the model  
consists of four independent variable and one mediating and dependent variable were explored in the model  
and their direct relationships were listed below.  
www.ijltemas.in  
Page 472  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
Table 2 Evaluation of Reliability and Validity Statistics  
Constructs  
Measurements  
Factor  
Loadings  
Cronbach’s  
Composite  
Reliability  
(CR)  
Average  
Variance  
Extracted  
(AVE) (>0.5)  
Alpha  
(>0.7)  
(>0.7)  
COMP1  
COMP2  
COMP3  
CONV1  
CONV2  
CONV3  
CONV4  
OBS1  
0.762  
0.738  
0.780  
0.669  
0.770  
0.836  
0.785  
0.706  
0.806  
0.850  
0.734  
0.809  
0.861  
0.544  
0.753  
0.784  
0.817  
0.778  
0.711  
0.724  
0.894  
0.828  
Compatibility  
Convenience  
0.735  
0.804  
0.578  
0.589  
0.767  
0.851  
Observability  
Trialability  
0.710  
0.726  
0.832  
0.844  
0.623  
0.645  
OBS2  
OBS3  
TRI1  
TRI2  
TRI3  
PU1  
PU2  
Perceived  
Usefulness  
0.788  
0.857  
0.550  
PU3  
PU4  
PU5  
Actual Usage of  
Mobile Wallet  
AUMW1  
AUMW2  
AUMW3  
AUMW4  
0.803  
0.870  
0.629  
Source: Primary Data  
www.ijltemas.in  
Page 473  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
The above table depicts that convenience (β=0.323, t=2.929, p=0.003) has a significant impact perceived  
usefulness. Likewise, observability (β=0.186, t=2.374, p=0.018) and trialability (β=0.352, t=3.264, p=0.001)  
were also having significant influence on perceived usefulness. Whereas, compatibility (β=0.101, t=1.099,  
p=0.272) was found to be insignificant and have no influence on perceived usefulness. The moderating  
variable perceived usefulness (β=0.683, t=14.690, p=0.000) has a significant impact on the independent  
variable (actual usage of mobile wallets). Thus, the above calculations such as Cronbach’s alpha, composite  
reliability and AVE (average variance extracted) are found to be reliable and valid.  
Table 3 Discriminant Validity – Fornell Larcker Criterion  
CMP  
0.794  
0.760  
0.670  
0.640  
0.707  
0.655  
CONV  
AUMW  
OBS  
PU  
TRI  
CMP  
CONV  
AUMW  
OBS  
0.767  
0.651  
0.536  
0.736  
0.649  
0.793  
0.717  
0.683  
0.634  
0.790  
0.648  
0.613  
PU  
0.742  
0.742  
TRI  
0.803  
Source: Primary Data  
According to Fornell Larcker Criterion, the square root of AVE of a given construct is larger  
than its correlation with any other construct (Henseler et al., 2015). The evaluated values for the discriminate  
validity are mentioned in the table 4. 19. Further, collinearity was measured through Variance inflation factors  
(VIF). In order to check whether there is any inter relationship that exists among the variables. The VIF values  
for the variables were compatibility (3.278), convenience (2.939), observability (1.907), trialability (2.111) and  
perceived usefulness (1.00). According to Kock and Lynn (2012) the VIF values should be less than or equal  
to 3.3 (VIF ≤ 3.3) to ensure the absence of multi-co linearity among the variables. Thus, it can be inferred that,  
there is no inter relationship among the variables, since the VIF scores for all the variables are less than 3.3.  
Table 4 Summary of Hypotheses Testing  
Hypotheses Independent Path Dependent Standard  
P
R2  
Result  
Variable  
Variable Coefficient Value  
H1  
H2  
H3  
H4  
Compatibility  
Perceived  
Usefulness  
0.092  
0.110  
0.078  
0.108  
0.272  
0.003  
0.018  
0.000  
Convenience  
Observability  
Trialability  
Perceived  
Usefulness  
Perceived  
Usefulness  
0.467 0.464  
Perceived  
Usefulness  
www.ijltemas.in  
Page 474  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
H5  
Perceived  
Usefulness  
Actual  
Usage of  
Mobile  
Wallet  
0.047  
0.691 0.684  
0.000  
Source: Primary Data  
Hypotheses - testing of the structural model followed by confirmation of the reliability and validity of the  
measurement model. Subsequently, the structural model was evaluated to validate the hypotheses (H1-H5) for  
this study. The proposed conceptual model (Figure 2) was tested using SEM in line with the principles of  
maximum likelihood estimation. This includes the assessment of path estimates through the observation of  
standardized beta (β) coefficients and p-values (p). The path estimates are required to be significant at a 5%  
level in order to accept the hypotheses. The results of this analysis are presented in table 4.21 which provides  
evidence and shows the relationship between independent and dependent variables. The results of the study  
show s that only four hypotheses can be accepted as the p value is less than the significance level of 0.05.  
Thus, it implies that H2 (convenience and perceived usefulness: β= 0.323, p=0.003), H3 (observability and  
perceived usefulness: β=0.185, p=0.018), H4 (trialability and perceived usefulness: β = 0.352, p= 0.001) and  
H5 (perceived usefulness and actual usage of mobile wallet: β = 0.683, p= 0.000) have significant relationship  
and whereas H1 compatibility value is 0.272 which is greater than 0.05 level of significance. And hence H1  
hypothesis is rejected.  
CONCLUSION  
Today, in the era of information technology, every business wants to deliver their products and services  
through electronic channels” (Maitlo, 2015). An extended form of information technology helps the people  
adopt towards digital payment services that are offered by fintech companies. And one such digital payment  
application is mobile wallets. There are various factors motivating the customer towards the actual usage of  
mobile wallet.  
The technological factor is the most important factor that motivates the customer towards mobile wallet  
adoption. Thus, the study resulted that convenience, trialability, observability of technological factors has a  
significant relationship with perceived usefulness and which lead to the actual usage of mobile wallets. Though  
the Digital India concept is motivating the customer towards digital payment adoptions, educating and training  
of mobile wallet is essential to raise the mobile wallets users in India.  
The service providers, of fintech companies should offer a wide range of facilities in a user-friendly manner so  
that the public can access the latest technology efficiently. The users must be aware of the guidelines and  
regulations issued by the companies as well as the governments. The customer could avoid entering into the  
attacks made by the hackers and thefts.  
REFERENCES  
1. Alaeddin, O., Altounjy, R., Zainudin, Z., & Kamarudin, F. (2018). From physical to digital:  
Investigating consumer behaviour of switching to mobile wallet. Polish Journal of Management  
Studies, 17(2), 18-30.  
2. Adharsh, J. Harikrishnan, Adarsh Prasad and J.S. Venugopal (2018), “Transformation Towards E-  
Wallet Payment Systems Pertaining to Indian Youth”, International Journal of Pure and Applied  
Mathematics, volume 119(12), 2583-2594.  
3. Burhan Ui Islam Khan , Rashidahi , Asifa Megraj and Adil Ahmad (2017), “A Compendious Study of  
Online Payment Systems: Past Developments, Present Impact, and Future Considerations”,  
International journal of advance computer science and applications ,Vol. 8(5), 256-271.  
4. Elgazouly, M. Y., AbdelAziz, G. S., & Abdelgawad, D. F. (2022). Toward a cashless economy:  
Exploring Drivers of Mobile Wallets Adoption from Consumers’ and Service Providers’  
Perspectives. The Academic Journal of Contemporary Commercial Research, 2(3), 75-98.  
www.ijltemas.in  
Page 475  
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,  
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)  
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025  
5. Govender, I., & Sihlali, W. (2014). A study of mobile banking adoption among university students  
using an extended TAM. Mediterranean journal of social sciences, 5(7), 451.  
6. Hidayat-ur-Rehman, I., Alzahrani, S., Rehman, M. Z., & Akhter, F. (2022). Determining the factors of  
m-wallets adoption. A twofold SEM-ANN approach. Plos one, 17(1), e0262954.  
7. Kumar, S., & Gupta, A. (2021). Factors Affecting Adoption of M–Wallets: Moderating role of  
Financial Incentives. Ramanujan International Journal of Business and Research, 6, 132-143.  
8. Kanimozhi and K.S. Kamatchi (2017),“Security Aspects of Mobile Based E- Wallet”, International  
Journal on Recent and Innovation Trends in Computing and Communication, 5(6)1223-1228.  
1. Karamjeet Kaur , Dr. Ashutosh Pathak (2015), “E-Payment System on E-Commerce in India”,  
Karamjeet Kaur Int. Journal of Engineering Research and Applications, vol. 5 (2) 79-84.  
9. Latha, R., & Vatchala, C. (2019). Exploring the Factors Influencing the Mobile Wallet Usage  
Intention. International Journal of Engineering Development and Research, 7(2), 77-81.  
10. Mater, W., Matar, N., Alismaiel, O. A., Al Moteri, M. A., Al Youssef, I. Y., & Al-Rahmi, W. M.  
(2021). Factors influencing the intention behind mobile wallet adoption: Perceptions of university  
students. Entrepreneurship and Sustainability Issues, 9(1), 447.  
11. Sunny, P., & George, A. (2018). Determinants of behavioral intention to use mobile wallets--a  
conceptual model. Journal of Management (JOM), 5(5), 52-62.  
12. Vyas, P Shukla & N. Pandya (2019). exploration of mobile wallets adoption among smart phone users  
in varoda city of gujarat states. The Indian Journal of Commerce, vol. 72, No. 1.  
13. K. Suma Vally, Dr. K.Hema Divya(2018), “A Study on Digital Payments in India with Perspective of  
Consumers Adoption”, International journal of pure and applied mathematics, Volume 118 issue no.  
24.Pg no .1-9.  
14. G.Udhayaraj and D.Jjocil (2017), “A Study on Electronic Payment System - E-Wallet”, International  
Journal of Emerging Technology in Computer Science & Electronics (IJETCSE),Volume 24 Issue no  
3.Pg no.60-62.  
15. Burhan Ui Islam Khan , Rashidahi , Asifa Megraj and Adil Ahmad (2017), “A Compendious Study of  
Online Payment Systems: Past Developments, Present Impact, and Future Considerations”,  
International journal of advance computer science and applications ,Vol. 8, issue no. 5 Pg no . 256-271.  
16. Madhu Chauhan and Isha Shingari (2017), “Future of E-Wallets: A Perspective from under Graduates”  
,International Journal of Advance Computer Application and Software Engineering, volume-7, issue  
no-8. Pg no. 146-150.  
www.ijltemas.in  
Page 476