Transforming Payments in a Smart City: The Rise of Digital Wallets in Mangalore

Abstract: In the era of digital transformation, financial transactions are rapidly shifting from traditional cash-based systems to digital platforms. This study investigates the adoption of digital wallets in Mangalore, an emerging Smart City, focusing on their usage patterns, influencing factors, and key barriers. Primary data was collected from 300 respondents across various demographic groups using a structured questionnaire. Descriptive statistics, paired-samples t-tests, and multiple regression analyses were employed to assess digital wallet usage compared to cash transactions, the impact of demographic and technological factors, and the perceived barriers to adoption. Results indicate that digital wallet usage is significantly higher than cash for routine financial activities. Adoption is strongly influenced by age, education level, smartphone access, and perceived ease of use, while security concerns, technical issues, and digital illiteracy remain significant obstacles. These findings highlight the growing acceptance of cashless payments in Mangalore but underscore the need for improved digital literacy, enhanced security measures, and supportive infrastructure. The study provides insights for policymakers, financial institutions, and technology providers to strengthen digital payment ecosystems in urban India.

Digital Wallets, Cashless Transactions, Smart City, Mangalore, Financial Technology and Consumer Behavior

1. Abraham, F. (2019). A study on cashless economy and its challenges faced by retailers. International Journal of Research and Analytical Reviews, 6(1), 204–210. [Google Scholar] [Crossref]

2. Agrawal, R. K. (2017). Study on Introduction of Cashless Economy in India: Benefits & Challenges. International Journal of Research in Management, Economics and Commerce, ISSN, 187-189. [Google Scholar] [Crossref]

3. Ajao, Q., Oludamilare, O., & Sadeeq, L. (2023). Drivers of mobile payment acceptance: The impact of network externalities in Nigeria. arXiv preprint arXiv:2305.15436. [Google Scholar] [Crossref]

4. Baghla, A. (2018). A study on the future of digital payments in India. International Journal of Research and Analytical Reviews, 5(4), 85-89. [Google Scholar] [Crossref]

5. Chadha, A. (2019). A study on the future of India’s digital payments and cashless economy. Journal of Emerging Technologies and Innovative Research, 6(2), 450–457. [Google Scholar] [Crossref]

6. Chandrakala, D. V. (2019). A Study on Cashless Economy in India. JETIR, 6(1), 110-118. [Google Scholar] [Crossref]

7. Choudhary, A. (2018). On way towards a cashless economy challenges and opportunities. International Journal of Business Management & Research (IJBMR), 8(2), 1-18. [Google Scholar] [Crossref]

8. Ganzha, D. (2021). The impact of COVID-19 on the adoption of cashless payments. Journal of Banking and Financial Technology, 5(3), 211–225. [Google Scholar] [Crossref]

9. Government of India. (2015). Digital India Programme. Ministry of Electronics & Information Technology. https://www.digitalindia.gov.in [Google Scholar] [Crossref]

10. Husain, A. (2021). Cashless Transaction Systems: A Study of Paradigm Shift in Indian Consumer Behaviour (Doctoral dissertation, DAYALBAGH EDUCATIONAL INSTITUTE). [Google Scholar] [Crossref]

11. IMF Staff. (2023). Sweden: Financial Sector Assessment Program – Technical Note on Central Bank Digital Currency and Fintech. IMF Country Report No. 134. [Google Scholar] [Crossref]

12. Iradianty, A., & Aditya, B. R. (2021, March). Student awareness of digital payment services (case study in Indonesia). In Journal of Physics: Conference Series (Vol. 1823, No. 1, p. 012036). IOP Publishing. [Google Scholar] [Crossref]

13. Jin, X., & Fan, M. (2022, October). “I Used To Carry A Wallet, Now I Just Need To Carry My Phone”: Understanding Current Banking Practices and Challenges Among Older Adults in China. In Proceedings of the 24th International ACM SIGACCESS Conference on Computers and Accessibility (pp. 1-16). [Google Scholar] [Crossref]

14. Leena, M. D. (2023). India’s transition towards a cashless economy. Journal of Financial Inclusion and Digital Transformation, 4(1), 22–33. [Google Scholar] [Crossref]

15. Malik, G., & Singh, D. (2022). Go digital! Determinants of continuance usage of mobile payment apps: Focusing on the mediating role of gamification. Pacific Asia Journal of the Association for Information Systems, 14(6), 4. [Google Scholar] [Crossref]

16. National Payments Corporation of India (NPCI). (2023). UPI product statistics. https://www.npci.org.in [Google Scholar] [Crossref]

17. Pizzan-Tomanguillo, N. D. P., Pereyra-Gonzales, T. V., León-Ramírez, S. V., Bautista-Fasabi, J., Rosales-Bardalez, C. D., Gómez-Apaza, R. D., & Pizzán-Tomanguillo, S. L. (2024). Evolution and trends in digital wallet research: A bibliometric analysis in scopus and web of science. Publications, 12(4), 34. [Google Scholar] [Crossref]

18. Raharja, S. U. J., Muhyi, H. A., & Herawaty, T. (2020). Digital payment as an enabler for business opportunities: A go-pay case study. Review of Integrative Business and Economics Research, 9, 319-329. [Google Scholar] [Crossref]

19. Reserve Bank of India (RBI). (2022). Report on digital payments. https://www.rbi.org.in September 2024. The Swedish payments landscape – A detailed analysis. Digital & Card Payment Yearbooks. [Google Scholar] [Crossref]

20. Sarkar, M. P. (2019). Literature review on adoption of digital payment system. Global Journal of Enterprise Information System, 11(3), 62-67. [Google Scholar] [Crossref]

21. Sivabalaji, M. (2023). The future of payment systems in India. Journal of FinTech and Digital Innovations, 5(1), 35–49. [Google Scholar] [Crossref]

22. Sivathanu, B. (2019). Adoption of digital payment systems in the era of demonetization in India: An empirical study. Journal of Science and Technology Policy Management, 10(1), 143-171. [Google Scholar] [Crossref]

23. Tawade, P. H. (2017). Future and scope of cashless economy in India. International Journal of Advance Research and Innovative Ideas in Education, 2(3), 177-181. [Google Scholar] [Crossref]

24. Torre, D., & Xu, Q. (2020). Digital payments in China: adoption and interactions among applications. Revue d'économie industrielle, (172), 55-82. [Google Scholar] [Crossref]

25. Visa. (2025, July). 18% of consumers are ‘committed’ mobile wallet users defining future payment flows. PYMNTS Intelligence. [Google Scholar] [Crossref]

• Advanced Techniques for Fake News Detection on Twitter Using NLP and AI: A Comprehensive Review
• Review of Self Compacting Geopolymer Concrete Using Slag Sand as Fine Aggregate
• Performance of Local Construction Contractors – Case Study of Registered Contractors in Monrovia, Liberia
• Cross-Cultural Perspectives on Innovation Management in Multinational Organizations
• Modeling of Reaction Between Dissolved Oxygen (DO) And Biological Oxygen Demand (BOD) in Degradation River