A

Project report on
“E-WALLET”
IN
E - COMMERCE
Submitted in
Partial Fulfillment of the Requirements for the
Award of
Bachelor of Commerce
By
Y.PAVAN KUMAR
Regd No:162025028

Under the guidance of

S.ASHOK
(Mcom,Phd)
Assistant Prof. in Commerce.

Bachelor of Commerce
The Adoni Arts & Science College Adoni
RAYALASEEMA UNIVERSITY, KURNOOL
2016-19

BONAFIDE CERTIFICATE
BACHELOR OF COMMERCE
 This is to certify that the project report entitled
“A Project report on “E-wallet” is a Bonafide record work done
by MR.Y.PAVAN KUMAR (Regd. No.162025028) submitted in the partial fulfillment of
the requirement for the award of BACHELOR OF COMMERCE in the RAYALASEEMA UNIVERSITY,
KURNOOL.

Head of Department Principal of the College

Place:
Date:
 CERTIFICATE FORM THE GUIDE
This is to certify that MR.Y.PAVAN KUMAR has submitted the
project report entitled “A PROJECT REPORT ON “E-WALLET”, in fulfillment for the
award of Bachelor of Commerce in The Adoni Arts & Science College,
Rayalaseema U-niversity, Kurnool, which is a record of Bonafide work carried out
by him/her under my guidance and supervision.
The results embodied in this project have been not submitted to any oth-
er University or institute for the award of any Degree

S.ASHOK
Assistant Prof. in Commerce.
The Adoni Arts & Science College
Adoni,
Kurnool (Dist).

PROJECT VIVA VOCE CEFIFICATE

This is to certify that MR.Y.PAVAN KUMAR has attended for the
External Project Viva-Voce Examination, and completed successfully
on __________ for the award of Bachelor of Commerce in
Rayalaseema University, Kurnool. 2016-2019.

Internal Examiner External Examiner

 Head of the Department

DECLARATION
I hereby declare that this project report entitled “E-WALLET” has been prepared
by me during the year 2016-2019 in the partial fulfillment of the requirements for
the award of Bachelor of Commerce in Rayalaseema University, Kurnool.
I also declare that this project is the result of my own efforts and
this has been not submitted to any university for the award of any Degree

1. Y.PAVAN KUMAR
Regd No:162025028
2. Y.VENKATESH
Regd No:162025029
3. Y.ANUSHA
Regd No:162025026
4. B.BRAHMAYYA
Regd No:162025032
5. C.MANOJ KUMAR
Regd No:162025009
6. D.VENKATESH
Regd No:162025051

ACKNOWLEDGEMENT
My heartfelt thanks to my Subject expert S.ASHOK for going out of his way to see
that I successfully complete this project. His words of wisdom and patience were m-
uch more than a blessing.
I express my thanks to the staff of THE ADONI ARTS AND SCIENCE COLL-
EGE for their whole hearted support.
I would like to express my sincere thanks to our Correspondent
SRI.CA.DAIVADEENAM REDDY for encouraging us to do the training well
from the college.
I would like to thank our I/C Principal SRI.DR.S.SWARUPA RANI for helping
me to undergo the training well.
Next I owe gratitude to my Head of the Department (HOD) MR.DR.G.CHANDRA
SHEKHAR permitting me to undertake the project in my interested specialization.
I wish to express my gratitude For Co-Guide S.ASHOK for for helping me to under-
go the project.
I also express my gratitude to my parents for blessing me and encouraging me to
undergo the project effectively.

1. Y.PAVAN KUMAR
Regd No:162025028
2. Y.VENKATESH
Regd No:162025029
3. Y.ANUSHA
Regd No:162025026
4. B.BRAHMAYYA
Regd No:162025032
5. C.MANOJ KUMAR
Regd No:162025009
6. D.VENKATESH
Regd No:162025051
 CHAPTER – 1
INTRODUCTION
Introduction

The electronic wallet (e-Wallet) is just like a

leather wallet as it does the same, in terms of e-
cash.

ABSTRACT
The main objective of e-Wallet is to make
paperless money transaction easier. The main
idea behind this paper is to bring in a cheaper,
more versatile and much more easily usable kind of a card. Using this e-Wallet the transaction
procedure can be as sim- ple as: the customer goes to the point of sale (POS), does the
purchasing and when it comes to the payment, the customer submits his e-Wallet to vender who
connects it to his terminal (PC).The vender displays the billing information to the customer who
finalizes it. The amount in the e-Wallet is updated accordingly. Later at periodic intervals, the
vender intimates the bank (in case of credit cards) which transfers the amount from the
customer’(s) account to his.
The advantages of e-Wallet are its ease of use (doesn’t require a separate card reader),
ease of maintenance, flexibility, safety, being the primary ones. The designing of the card is
similar to any other embedded card. The designing cost of the card (e-Wallet) being as low as the
price of a pizza. There are ample enhancements to this application from credit cards to televise
cards. Unlike traditional cards which are application orient-ed, all the applications’ software can
be embedded into this e-Wallet which provides multi-functionality.

INTRODUCTION
A digital wallet is a software component that allows a user to make an electronic payment
With a financial instrument (such as a credit card or a digital coin), and hides the low-lev-
el details of executing the payment protocol that is used to make the payment. A digital wallet,
functions much like a physical wallet. The digital wallet was first con- ceiled as a method of
storing various forms of electronic money (e-cash), but with little popularity of such e-cash
services, the digital wallet has evolved into a service that pro- vides internet users with a
convenient way to store and use online shopping information. A digital wallet has both a
software and information component. The software provides security and encryption for the
personal information and for the actual transaction. Typically, digital wallets are stored on the
client side and are easily self-maintained and fully compatible with most e-commerce Web sites.
A server-side digital wallet, also known as a thin wallet, is one that an organization creates for
and about you and maintains on its servers. Server-side digital wallets are gaining popularity
among major retailers due to the security, efficiency, and added utility it provides to the end-user,
which increases their enjoyment of their overall purchase. The information component is
basically a database of user-inputted information. This information consists of your shipping
address, billing address, payment methods (including credit card numbers, expiry dates, and
security numbers), and other information. A digital wallet is a software component that provides
a client with instrument management and protocol management services. A digital wallet is
linked into an end-user, bank or vendor application and provides the application with instrument
management and protocol management services. The digital wallets that are linked into vendor
and bank applications provide these management services in the same way that end-user digital
wallets do.
E-WALLET
The main objective of e-Wallet is to make paperless money transaction easier. The electronic
wallet (e-Wallet) is just like a leather wallet as it does the same, in terms of e- cash. In today’s
life where monetary value and security both, go hand in hand, it is difficult to satisfy customers
using the routine cards. The main idea behind this paper is to bring in a cheaper, more versatile
and much more easily usable kind of a card.

Salient features of e-Wallet are:-

* More than 40 years of data retention
* Firewall encrypted security logic
* Compatible with many supporting hardware.
* No separate card reader is required to access our card.
* Polarity reversal indicator is pre-built in our card.
* Reusability of our card is unlimited.
* Multiple card features are incorporated in the same card.
* External complexities are less.

CHAPTER – 2

RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

This research project was conducted with an explanatory research approach as the focus was in
discovering ideas and insights into consumer motivations and emerging trends on online
hopping. The research methodology also followed the framework of analysis defined in the
previous section which resulted from the literature review.

As the research work was largely qualitative, the exploratory approach and the analysis and
results from the primary research provides a good understanding of the consumer motivations for
online shopping, and also provides a framework for further analysis if needed by other
researchers focusing on greater depth in some areas or expansion of issues not covered in this
research project.

The focus of the research project is on consumer motivations on online shopping and will not
touch on specific online sites unless these are discussed in the context of increasing online
shopping activities and consumer motivations.

Primary research

The key primary research activities for this project included surveys and in-depth interviews to
understand the key consumer motivations for online shopping.

Surveys

The surveys gave a preview of the various factors which were impacting on online shopping. An
open-ended survey was conducted to give consumers the opportunity to give factors which they
truly feel were their key motivating considerations. The survey was divided into two main
sections:

 Open-ended and unprompted - This section was designed to allow the respondents to
give answers freely without any prompts. This was to ensure that the consumers' thoughts
were captured properly, and that their ideas and key motivations were the ones that were
included in their responses.

 Prompted with specific factors - After the unprompted section, the survey had a section
which had some of the preliminary findings from the literature review. This was designed
to test the literature review findings, and also provide the respondents an opportunity to
highlight some factors which may be important but were not mentioned by the
respondent during the first part of the survey.

Secondary research

Secondary research was conducted to get a good understanding of the current knowledge on
consumer motivations and preliminary thoughts on the emerging trends of online shopping. A
number of preliminary factors had been identified from the literature review, and these were used
as a starting point in understanding the key consumer motivation factors.

Academic journals, industry reports, and other research articles will form the bulk of secondary
research.

Research approach and strategy

A problem-solving approach was used in analysing the outcomes from the primary and
secondary research. This was meant to ensure that the results were analysed in depth, and to
result in strong insights from the interactions with consumers, i.e. detailed recommendations on
actions to pursue to address the research questions for the project (Hester 1996).

The research analysis was based largely on the surveys and interviews of consumers. The
secondary research was a complement to the primary research analysis. Various research
methods were considered for this project and the described approach in this section was
considered the best possible approach in developing a good understanding of consumer
motivation on online shopping.
The research project pursued a good mix of desk research and practical, real-life experience
based on the input of the online shopping consumers. The respondents to the surveys and in-
depth interviews provided good depth and breadth of factors for the consumer motivation
considerations. These gave a good understanding of the emerging trends in online shopping
activities.

Sampling strategy

The sampling strategy followed the general steps in determining a sample:

 Define the target population - Given the scope of the research project, the target
population actually encompassed everyone in the population as the focus was on online
shopping, with an online shopper being just about anyone. I know of some kids as young
as six years who are able to browse through the Internet and identify items they are
interested in, and point these to their parents. For this exercise, the target population was
considered to be anyone that has the capacity to pay for possible online shopping
purchases.

 Define the accessible group - The accessible group for this research project comprised
of the target population that were 'free' to participate in the surveys and interviews.

 Define the steps for participation in the primary research methods - The key method
utilized in this research project for the survey respondents and interviewees were the
referral or 'snowball' recruitment, and the intercept recruitment. The referral recruitment
entailed having people recommend acquaintances and the intercept recruitment involved
intercepting potential respondents in public places, e.g. streets, shopping areas, coffee
shops

Research review

The last step in the research methodology was to review the results and analysis, and ensure that
the conclusions and recommendations were logical and practical. The review was based on input
from various people including online shopping consumers. The review was also helpful in
determining the additional knowledge that will be considered as research contribution resulting
from this project.

Research resources

The main resources used for the research project were people and research publications. The
people who were involved in the project included not only the respondents to the surveys and
interviews, but also my adviser and other instructors, and friends (including classmates) and
relatives who helped in providing support and guidance throughout the research project. The
primary research respondents were particularly helpful in giving their time to provide their
thoughts and ideas which formed the key results and analysis of the research project.

The research publications including academic journals, industry reports and press articles were
very useful in providing a preliminary understanding of the questions and issues involved in the
research project, and also provided excellent guidance in potential areas to pursue and research
methods to consider.

Ethical considerations

Several ethical considerations were adhered to particularly as the research project pursued a
qualitative research approach:

 Respect: All respondents were treated and given respect, and I am fully appreciative of
the time and effort they gave for the research project.

 Confidentiality and privacy: I did not take the names of the respondents to ensure that
their names would not end up with other parties. I did take some information (e.g. age,
gender) from the survey respondents and interviewees as this was needed for the analysis
of the results but these were taken with their consent.

 Transparency and disclosure: I gave the survey respondents and the interviewees a
detailed overview of the research project, and also gave them the opportunity to pose
questions before starting the survey and interviews processes. They were also given the
opportunity to not proceed with the survey and interview if they felt that they did not
want to take part in these.
  Right of refusal: All the respondents were given the option of refusing to provide any
answers that they did not wish to provide an answer to.

The ethical considerations mentioned above are not comprehensive but these were the key ones
which affected the research, and which I adhered to in order to have a robust and ethically
acceptable research approach and methodology.

CHAPTER – 3
 REVIEW OF
LITERATURE

Introduction to Review of literature

Extensible:-
A wallet should be able to accommodate all of the users different payment instruments, and inter-
operate with multiple payment protocols. For example, a digital wallet should be able to hold a
users credit cards and digital coins, and be able to make payments with either of them, perhaps
using SET in the case of the credit card, and by using a digital coin payment protocol in the latter
case. As banks and vendors develop new financial instruments, a digital wallet should be capable
of holding new financial instruments and make payments with these instruments. For instance,
vendors should be able to develop electronic coupons that offer discounts on products without
requiring that users install a new wallet to hold these coupons and make payments with them.
Client-Driven:-
The interaction between the wallet and the vendor, we believe, should be driven by the client
(i.e., the customer). Vendors should not be capable of invoking the clients digital wallet to do
anything that the end-user may resent or consider an annoyance. For example, a vendor should
not be able to automatically launch a clients digital wallet application every time the user visits a
web page that offers the opportunity to buy a product. Imagine what life would be like if, simply
by walking into some ones store, the store owner had the right to reach into your pocket, pull out
your wallet, hold it in front of you, and ask you if you wanted to buy something from him! A
client-driven approach for building a digital wallet is important because software which
customers consider intrusive will hinder the success of electronic commerce for all participants
involved.
Symmetric :-
Vendors and banks run software analogous to wallets, which manages their end of the financial
operations. Since the functionality is so similar, it makes sense to re-use, whenever possible, the
same infrastructure and interfaces within wallets, vendors, and banks. For example, the
component that manages financial instruments (recording for instance account balances,
authorized uses) can be shared across these different participants in the financial operations. If
the wallet components that are re-used are extensible, then we automatically get extensibility at
the bank or vendor. So, for instance, an extensible instrument manager will allow the bank or
vendor to easily use new instruments as they become available.
Generalized or Non –Web-Centric :-
Interfaces should be similar regardless of what type of device or computer that the wallet, bank,
or vendor application is running on. A digital wallet running on an alternative device, such as a
personal digital assistant (PDA) or a smart card, for example, has substantial functionality in
common with a digital wallet built as an extension to a web browser. Thus, a digital wallet in
these two environments should re-use the same instrument and protocol management interfaces.
* The payment gateway receives the response, and forwards it on to the website.
* The entire process typically takes 2–3 seconds.
* The merchant submits all their approved authorizations, in a "batch", to their acquiring bank
for settlement via their processor.
* The acquiring bank deposits the total of the approved funds in to the merchant's nominated
account. This could be an account with the acquiring bank if the merchant does their banking
with the same bank, or an account with another bank..
TRANSACTION PROCEDURE
* The A customer places order on website by pressing the 'Submit Order' or equivalent button.
* The customer's web browser encrypts the information to be sent between the browser & the
merchant's web server. This is done via SSL (Secure Socket Layer) encryption.
* The merchant then forwards the transaction details to their payment gateway. This is another
SSL encrypted connection to the payment server hosted by the payment gateway.
* The payment gateway forwards the transaction information to the payment processor used by
the merchant's acquiring bank.
* The payment processor forwards the response to the payment gateway.
* The payment gateway receives the response, and forwards it on to the website.
* The entire process typically takes 2–3 seconds.
* The merchant submits all their approved authorizations, in a "batch", to their acquiring bank
for settlement via their processor.
* The acquiring bank deposits the total of the approved funds in to the merchant's nominated
account. This could be an account with the acquiring bank if the merchant does their banking
with the same bank, or an account with another bank
TECHNOLOGY USED
* An e-Wallet has both a software & information component.
* The software provides security & encryption for the personal information & for the actual
transaction.
* The information component is basically a database of user-inputted information. This
information consists of your shipping address, billing address, payment methods (including user
name, password & security questions), & other information.
FEATURES OF E – WALLET
* Refillable
* Infinite lifetime
* Current balance can be stored and read
* User authentication is provided
* Universal access
* Maximum possible cash
* Cannot be duplicated

Client-Side E-Wallet:-
* Some people prefer to access the Internet using one machine (e.g. those who stay home most of
the time or access sites from their work PC only). A Client-side e-wallet is more suitable for
these kinds of people. The client-side e-wallet is an application running on the client PC that
holds e-coin information.
* Fig. 1 shows how a vendor application server debits e-coins from the client- side e-wallet.
When buying an article content a customer clicks the title of the article on the web browser (1)
and then the web server sends the request to the vendor application server (2). The vendor
application server sends the price of the article to the e-wallet application (3) and then the e-
wallet application returns the e-coins, paying for the content to the vendor application server.
* Customers can buy article content using the client-side e-wallet at different news paper sites
without the need to log in after the e-wallet application is downloaded to their PC. Their e-coins
are resident on their own PC and so access to them is never lost due to network outages to one
vendor. The e-coin debiting time is slower for a client- side e- wallet than the server-side e-wallet
due to the extra communication be-teen vendor application server and customer PC’s e-wallet
application.

Server-Side E-Wallet :-
* Some people prefer to access the Internet from multiple computers (e.g. a business person
who often travels around). A Server-side hosted e-wallet is suitable for these people. The server-
side e- wallet is stored on the vendor server and is transferred from the broker to each vendor
when required.
* Fig. 2 shows how a vendor application server debits e-coins from the server side e-wallet.
When a customer clicks title of an article on his/her browser (1), the web server sends the request
to the vendor application server (2), which then debits e-coins from the customer’s e-wallet (3)
paying for the content. Customers can buy articles using the server-side e-wallet anywhere in the
world and the e-coin debiting time is very fast on the server-side e-wallet system. However
customers are required to remember e-coin IDs and password in order to log into a newspaper
site when changing vendor. When a customer moves from one vendor to another, their e-wallet
contents must be passed from the previous vendor site to the new one. If the first vendor site
becomes unavailable, the customer temporarily does not have access to their e-wallet.
ADVANTAGES OF E-WALLET
Ease of use :-
* Withdraw or deposit value by telephone
* Pay the exact amount, no fiddling for change
* No signature required
* Immediate payment
In the future, access points may include mobile phones
Accessibility and convenience :-
* Cash machines and telephones give more access points to funds in bank account
* Available 24 hours / 365 days
* Cash machines and telephones cannot run out of electronic cash
Flexibility:
* Transfer value by telephone
* Pay person to person
* For low or high values
* Multi-currency capability
* No age limit, so suitable for all the family
Safety and control:
* Spend only what you have
* Read your balance
* Load value at home
* Lock your card or wallet
* Keep track of what you have spent and where
* Customer is traceable if a lost card is found

DISADVANTAGES OF E-WALLET
* Users must download the wallet form and software, after the download is complete, the wallet
is installed as a plug-in or ActiveX control which is within a browser that must also be install
browser.
* Digital wallets and peer-to-peer (P-to-P) payment systems have failed to attract meaningful
adoption for business-to consumer (B-to-C) transactions. However, P-to-P payments have
become common for consumer auctions, renewing hope that other payment-related offerings
might yet succeed.

FUTURE CHALLENGES
Key Challenges :-
There are three key challenges that must be overcome first.
1. Mass Market Appeal :-
Ensuring a mass market appeal for the digital wallet is important to leverage scale economies
and the network externality effect1. One way to increase the mass market appeal is to make the
digital wallet usable for all day-to-day transactions. Hence it is important to support both point of
sale transactions and peer-to-peer transactions between individuals. Both of these require support
from financial institutions, retailers and government bodies : coordinating .Utility of the digital
wallet is influenced by one’s social network. If a majority of the participants in a person’s
network are not digital wallet ready, then one has to still use cash for monetary exchange these
stake holders is a real challenge. It should be noted that the Korean and Japanese methods to
increase mass market appeal may not work in Singapore due to differences in industrial
organization and cultural preferences.
2. Stake Holder Dynamics :-
Any successful digital wallet deployment will need the Cooperation of multiple stake holders
such as banks, retailers, regulatory bodies, and consumer. This is a challenge because satisfying
the business and strategic goals of multiple stake holders is difficult. For example, bank A may
choose not to be a part of a consortium where competing banks play a leading role. In addition
some stake holders may have already invested in alternative technologies and may not be in a
position to make further investments. Achieving buy-in from all stake holders may require the
support of the government and regulatory bodies. Fortunately the Singaporean government is
receptive towards digital wallet-type integration efforts.
3. Compelling user experience :-
The third challenge is designing a digital wallet that consumers want to use. This requires a
usable interface, and support for all financial transactions that a user may want to perform. We
plan to reuse some of the user interfaces and design principles developed in Japan and South
Korea. However there are many important features that still need to be created. These include
comprehensive backup and restore solutions, integration of a large number of monetary and
identification implements, and support for peer-to-peer cash transactions. For example, this is the
most common payment mode when paying for taxi rides and when paying for food and drink. As
such, consumers would resist using a digital wallet if they still had to carry a conventional wallet
for cash transactions.
 CHAPTER – 4
DATA ANALYSIS & PRESENTATION

1. Which e-wallet app you are using

 30

25

20

15
28
22
10

0
payTm freecharge

Conclusion: Most of the customers are using e-wallet payTm more than freecharge

2. Which company gives more offers

30

25
25

20

15
12

10 8
5
5

0
PayTm Freechaege A&B None

Conclusion: The PayTm gives more offers to the customers, A&B gives 12% and the freecharge gives
less than PayTm offer to the customer

3. Which company gives large cashback

 5

payTm
freecharge
26 A&B
none

14

Conclusion: The first paytm company giving large cashback to the customers and second
freecharge giving large cashback.

4. Which one have more features

35

30

25

20

15

10

0
payTm freecharge

Conclusion: The paytm have more features more than freecharge .The payTm is the user
friendly.

5. Which e-wallet company you are using ?do you want to switch from your existing e-wallet
company?
 25

20

15

10

0
Paytm &No Paytm&Yes Freecharge&No Freecharge&Yes

Conclusion: Most of the customers are using E- wallet payTm. Customers don’t want to exist
from the E-wallet payTm.

6. If you both e-wallet provide you 10rs which one you would prefer

30

25

20
28
15 22

10

0
payTm freecharge

Conclusion: So many customers will prefer to use e-wallet payTm than the freecharge

7. Which one taken more time in transactions

 30

25 25
25

20

15

10

0
payTm freecharge

Conclusion: The both paytm & freecharge takes more time in transactions

8. As a new user and after demonetization everything will cashless then which e-wallet you
like you use

payTm
freecharge
12 others
30

Conclusion: After demonetization also so many customers will like to use e-wallet payTm

9. What will your rating for Paytm

 30 28

25

20

15
12
10
10

0
* *** ****

Conclusion: The rating for payTm ****(28%)

10. What will your rating for paytm

13

19

*
***
****

18

Conclusion: The rating for payTm ****(19%)

CHAPTER – 5
 FINDINGS AND SUGGESTIONS

FINDINGS:

1. It is found that more people using payTm than the freecharge app.

2. The payTm company gives large cashback than freecharge.

3. The payTm company gives more offers than other companies.

4. It is found that payTm have more features than freecharge.

5. More peoples are using payTm e-wallet. Peoples don’t want to exist from the payTm e-wallet.

6.Number of customers are prefers to use payTm than freecharge.

7. The payTm and freecharge both the companies will taken more time in transactions.

8. After the demonetization everything will cashless but the more customers would like to use the

payTm e-wallet than freecharge and other e-wallet.

9. More rating for the payTm than others.

10. Most of the customers are using payTm than others so the more rating for payTm only.

SUGGESTIONS:

1. The companies should give more cash backs for the customers.

2. The usage of e-wallets should be increased

3. The e-wallet companies should make their applications and software a user friendly interface

assisting the customers in having easy access.

4. Government should take initiative in developing the e-wallets in rural and urban areas.

5. The businesses in rural areas should start facilitating the e-wallet services to its customers

6. The Customers should start using the e-wallets and thus making their part in digital INDIA.

7. The charges for the E-wallets should be decreased.

8. Several promotions should be made in popularizing the use and impact of E-wallets.

9. Various benefits and gifts should be given for the customers who use E-wallets more.

10. The rural area people should be made aware of the usage of E-wallets.

CONCLUSION
In today’s fast moving world where people live very stress full life, this approach and
innovativeness in wallet making would provide some help to people while shopping, traveling
etc as it is very easy to use. It also have tracking device which would provide safety to your cards
and ultimately to money. So people should buy this wallet because of the safety purpose, easy to
use and good quality.