PROSPECTS OF DIGITAL WALLETS IN BANESHWOR,

KATHMANDU

By:

Raushan Kumar Sah

T.U. Reg. No: 7-2-364-172-2020
Exams Roll no: 29414/20

A summer project report submitted to

Faculty of Management, Tribhuvan University

In the partial fulfillment of requirements for the degree of

Bachelors of Business Administration (BBA)

At

K&K International College

Tribhuvan University

New Baneshwor, Kathmandu

November 2024
 STUDENT DECLARATION

This is to declare that I have completed the summer project and prepared this report
entitled “Prospects of Digital Wallets in Baneshwor Kathmandu” under the
supervision and guidance of Dr. Sanjeev Pardhan in Partial fulfillment of the
requirements for the degree of Bachelors of Business Administration (BBA) at
Faculty of Management, Tribhuvan University. It is my original work and I have not
submitted it earlier elsewhere for any other purposes.

Signature:
Name: Raushan Kumar Sah
Date: November 2024

2
 CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project entitled "Prospects of digital wallet in
Baneshwor Kathmandu" is an academic work done by Raushan Kumar Sah
submitted in the partial fulfillment of the requirement of degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information provided
by him/her in the summer project report has not been submitted earlier.

Name of the supervisor:

Dr. Sanjeev Pradhan
K&K International college

3
 ACKNOWLEDGEMENTS

My utmost gratitude goes to the Tribhuvan University for including this Project Work
in the syllabus of BBA, which I think is very helpful in developing practical
knowledge of the student. This report aims to understand the prospect of digital
wallets in Kathmandu.
I have tried my best to present the subject matter in a simplest and easily
understandable form. The people who remained source of inspiration and
encouragement to present this report deserve to be acknowledged in the right earnest.
I am thankful to the people of different fields who directly or indirectly helped me in
the completion of the study.
Finally, my deepest appreciation goes to the supervisor of my project Dr. Sanjeev
Pradhan and my friends whose guidance gave me support to accomplish this task.
Furthermore, I would also like to thank all the respondents who gave their valuable
time and effort for filling out the questionnaires.

Thank you!
Raushan Kumar Sah
November, 2024

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 TABLE OF CONTENTS

Title Page........................................................................................................................i

Student’s Decleration....................................................................................................ii

Certificate from the Supervisor.....................................................................................iii

Acknowledgements........................................................................................................iv

Table of Contents...........................................................................................................v

List of Tables................................................................................................................vii

List of Figures.............................................................................................................viii

List of Abbreviation.......................................................................................................ix

Executive Summary........................................................................................................x

CHAPTER I: INTRODUCTION……………………………………………… .1-11

1.1 Context Information........................................................................................1

1.2 Purpose of the study........................................................................................4

1.3 Significance of the study.................................................................................5

1.4 Literature Review...........................................................................................5

1.5 Conceptual Framework……………………………………………………...8

1.5.1 Dependent Variable……………………………………………………….9
1.5.2 Independent Variable………………………………………………….…..9
1.6 Research Methods...........................................................................................9

1.6.1 Research design........................................................................................9

1.6.2 Population of the study.............................................................................9

1.6.3 Sample size...............................................................................................9

1.6.4 Sample method.......................................................................................10

1.6.5 Sources of data.......................................................................................10

1.6.6 Data collection instruments....................................................................10

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 1.6.7 Data analysis tool...................................................................................10

1.7 Limitations of the study.................................................................................11

CHAPTER II: DATA PRESENTATION AND ANALYSIS………………...12-28

2.1 Respondent’s profile......................................................................................12

2.2 Awareness of functionality of digital wallets................................................14

2.3 Source of information....................................................................................15

2.4 Purpose of using............................................................................................16

2.5 Name of the digital wallet.............................................................................18

2.6 Method to load fund......................................................................................19

2.7 Ranking of the performance..........................................................................21

2.8 Factor affecting use of digital wallets...........................................................23

2.9 Opinion on the statements.............................................................................25

2.10 Findings and discussions...........................................................................28

CHAPTER III: CONCLUSION AND ACTION IMPLICATION……..........29-30

3.1 Conclusion.....................................................................................................29

3.2 Action Implication.........................................................................................30

References
Appendices…

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 LIST OF TABLES

Table 1: Respondent’s profile..................................................................................................13

Table 2: Awareness of the functionality..................................................................................14
Table 3: Sources of information...............................................................................................15
Table 4: Purpose of using.........................................................................................................17
Table 5: Name of the digital wallet..........................................................................................18
Table 6: Method to load fund...................................................................................................20
Table 7: Ranking of the performance.......................................................................................22
Table 8: Importance of factors affecting digital wallets..........................................................23
Table 9: Opinions on the statements........................................................................................26
Table 10: Opinions on the statements......................................................................................27

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 LIST OF FIGURES

Figure 1: Awareness of the functionality.................................................................................15

Figure 2: Sources of information.............................................................................................16
Figure 3: Purpose of using......................................................................................................17
Figure 4: Name of the digital wallet used...............................................................................19
Figure 5: Method to load fund.................................................................................................21
Figure 6: Ranking of the performance.....................................................................................23
Figure 7: Factors affecting use of digital wallets.....................................................................25
Figure 8: Opinions on the statements.......................................................................................27

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 LIST OF ABBREVIATION

ATM : Automated Teller Machine

IT : Information & Technology
NFC : Near Field Communication
POS : Point Of Sale
SMS : Short Message Service
TA : Technology Adoption

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 EXECUTIVE SUMMARY

This study is based on prospect of digital wallets with reference to Kathmandu. The
general objective of the study is to identify how familiar has digital wallets been with
the people of Kathmandu. The specific objectives are to find out who are the major
users of digital wallets, to find out for what reasons do most people use digital wallets
for, and to investigate about the effect of digital wallet in day to day life.
This study is mainly based on the highly increasing demand and the rise in the public
awareness regarding the various digital mediums and the increment of IT sector in
making the ease of operations regarding different platforms. The samples for the
study comprised 100 consumers taken from Kathmandu Valley. A structured
questionnaire was administered to the respondents. The data obtained from them was
analyzed using frequency, percentage, bar-diagram and pie-chart.
The use of digital wallets is very high in Kathmandu Valley, in comparison to others.
Through this study the influential factors for the popularity of the wallet is known.
Most of the people seem to be using digital wallets recently that indicates that the
popularity and future prospect in increasing and has not been saturated. Most of the
people are influenced by the rigorous advertisements done by these companies. This
report includes not only the factors affecting popularity but also the outcomes of the
topics. The questionnaires are set in such a way that each and every individual filling
the questionnaire will not have to be confused regarding any topics nor have to
consult anyone else. It’s very simple yet effective and includes nearly every aspects of
the regarding topic to make the report much more efficient.

10
 CHAPTER I

INTRODUCTION

1.1 Context Information

Today the world has become so technology dependent that our day starts with it as
well as ends with it. And one of its major reason being E-commerce. E-commerce is
the process of buying and selling of products and services through internet. This has
made trading so simple that people don’t have to worry about all the hassles and time
loss that they have to bear from the traditional way of trading. This has certainly made
a great impact on the way of doing business. The prospect of E-commerce gave birth
to a new player in the market i.e; Digital Wallet.
A digital wallet refers to an electronic device or online service that helps to make
transactions electronically. It is basically used for making various payments. This can
include purchasing items online using smart phones or computers. An individual’s
bank account is linked with the digital wallet that helps to load fund into the wallet.
The concept of it originated to replace the actual physical wallet by the electronic
wallet. Digital Wallet has a variety of services to offer which includes online bank
money transfers and deposits, recharge of mobile phones and dish TVs, booking
tickets online, utility payments, credit card payments and even online shopping as
well. The present era is an era of digitalization. Many things have been digitalized. By
sitting in one corner we can purchase vegetables, clothes, reserve movies and flight
tickets and much more.
A digital wallet platform allows individuals to perform electronic transactions using
mobile devices, such as smart phones, computers, and other supporting devices.
Digital wallets have multiple usages, including making purchases from websites or
using mobile devices to make in-store transactions. The current economy is
transforming into a cashless economy where daily transactions are being performed
using the digital wallet. Several e-commerce companies have developed digital wallet
payment systems. The development of digitization through the internet has advanced
the transition of globalization and payment systems from manual to online
transactions. People have become more reliant on electronic money to perform
transactions as a result. The Malaysian government encourages people to go cashless
and use digital wallets. A survey by Visa found that nearly half of Malaysians can live
without cash. This study illustrated Malaysia’s potential to evolve into a cashless
society the current advanced technologies make it easier for Malaysia to shift toward
a cashless society. In support of Industry 4.0, Malaysia has taken significant
initiatives to establish the status of a cashless society. According to FinTech News
Malaysia’s report, approximately 17% of the corporations in the Malaysian financial
industry formed a sector to establish digital wallets.

Digitals wallets like eSewa, IMEPay, Khalti and PrabhuPay have proliferated
particularly this year, making aggressive marketing pushes into retail. But despite the
number of cashless apps available to users, most consumers still prefer cash,
according to service providers and vendors.
The growing user base of mobile banking in Nepal has led corporate houses like IME
Group and Prabhu Bank to develop digital wallets, alongside existing tech companies
such as Janaki Technologies’ Khalti and F1Soft’s eSewa. The growing user base of
mobile banking in Nepal has led corporate houses like IME Group and Prabhu Bank
to develop digital wallets, alongside existing tech companies such as Janaki
Technologies’ Khalti and F1Soft’s eSewa.
.
According to Nepal Rastra Bank, the number of mobile banking users soared five-fold
—from 1.75 million in 2016 to 8.34 million in 2019. That translates to around 29
percent of the total population. Data also shows that more than 52 percent of internet
users in Nepal avail mobile broadband services.
The revolution of digital wallet was brought for the first time by a company called
PayPal in the late 1990s. It was used as a software solution for eBay (an E-commerce
platform) users that made it convenient to store their cards for repeat online
purchases. And in Nepal, the revolution was brought by Khalti (powered by Sparrow
Pay Pvt. Ltd.) which became an internet sensation, launched in 2017. Today there are
altogether 8 digital wallets in Nepal. Among them eSewa, Khalti and iPay being more
popular followed by IME Pay, ePrabhu, QPay, Nepzy and Enet Payment. In a
developing country like Nepal, Digital Wallet is still a new thing and hard to
understand but if we look at the developed countries it has become one of the best
way to carry out financial transactions. Developed countries have been making
cashless transactions via digital wallets for a long time now. Nepal is slowly and
gradually transforming towards the digital economy. People have already begun to
pay the bills of the internet, cable network, electricity and various other utility bills
through digital media. Digital wallet as the name resembles, is the digitized version of
traditional leather wallet, to safe keep your money, credit cards, etc. It is basically a
modification in the way you pay for things in a more safer and a secured way. So,
how does this works? Digital wallets mostly work through apps in your Smartphone.
The communication channel might differ from NFC, Weblinks, QR code, SMS, social
media etc. but the overall concept of the wallet remains same.
But according to service providers, it could take some time for consumers to adapt to
cashless transactions.
“The majority of our customers are either teenagers or young professionals and while
teenagers are more tech-savvy, they do not hold bank accounts,” said Dipesh
Bhattarai, a cashier at the Cityscape restaurant in New Baneshwor. “Young
professionals sometimes opt to pay through digital wallets but not that often. Even
customers who work at financial institutions and are fully aware of digital wallets
prefer cash or debit cards.
To better understand the working of wallets, you first need to look towards how
wallets are differentiated.

Digital wallets are categorized into three kinds:-.

The growing user base of mobile banking in Nepal has led corporate houses like IME
Group and Prabhu Bank to develop digital wallets, alongside existing tech companies
such as Janaki Technologies’ Khalti and F1Soft’s eSewa.
Closed wallet: A closed wallet is issued by a company to a consumer for buying
goods and services exclusively from that company. E.g. Daraz, OYO rooms, Sarathi
are some of the examples of company using closed wallet. A company selling
products and/or services can develop a closed wallet for customers. Users of a closed
wallet can use the funds stored to make transactions with only the issuer of the wallet.
The money from cancellations, returns, or refunds is stored in the wallets. Amazon
Pay is an example of a closed wallet.
Semi- closed wallet: A semi closed wallet can be used to buy goods and services
including financial services, at clearly identified merchant locations or establishment,
which have a specific contract with the issuer to accept the payment instruments, but
still do not permit cash withdrawal or redemption by holder. E.g. eSewa, Khalti, IME
Pay, etc.A semi-closed wallet allows users to make transactions at listed merchants
and locations. Although the coverage area of such wallets is restricted, both online
and offline buying can be done through the wallets. However, merchants need to enter
into agreements or contracts with the issuers for accepting payments from the mobile
wallets.
Open wallet: Open wallets can be used for purchase of goods and services including
final services. It can also be used for fund transfer or POS terminals that accept cards
and also cash withdrawal from ATM. E.g. MasterCard, VISA, etc. provides open
wallet services to issuer (Banks).Banks or institutes partnered with banks issue open
wallets. Users with open wallets can use them for all transactions allowed with a
semi-closed wallet in addition to withdrawal of funds from banks and ATMs and
transfer of funds

1.2 Purpose of the study

The major purpose of this is to identify how familiar has digital wallets been with the
people of Kathmandu and future prospect of the digital wallets in Kathmandu. The
specific purposes are as follows:-
 To identify the reason behind prospect of digital wallets in Nepal.
 To find out who are the major users of digital wallets?
 To find out what reason do most people use digital wallet for?
 To investigate about the effect of digital wallet in day to day life.

1.3 Significance of the study

Significance of the study determines who benefits from the report and how that
specific audience has been benefitted from that finding.
 It has helped to understanding the real scenario of the digital wallets in our
country.
  It has provided an approximate guess about which digital wallet is more
popular.
 It assured about how aware are the people about the digital wallets and their
functionality.
 It has been a valuable reference for scholars and researchers to conduct further
similar research.

1.4 Literature review

Literature survey or literature review refers to the content getting from the books
which is related to the topic or given project. It should be referred from some research
paper which is related to the topic which is given to the student. It is any material
which is related to the project from internet and which is valuable for student and that
literature survey helped the student to enhance the report status and calculation,
analysis and tabulation also strong which majorly reflects in the report.
(Chawla, Consumer perspectives about bank mobile banking adoption in India- a
cluster analysis, 2017)The purpose of this paper is to identify which factors influence
mobile banking adoption and examine those factors for segmentation, using a sample
of Indian consumers. Design/methodology/approach In total, 59 statements were
identified based on a literature review, focus group discussions and personal
interviews. Exploratory factor analysis was conducted to identify the relevant factors.
An online survey of 367 mobile phone users in India was conducted. Confirmatory
factor analysis was conducted using structural equation modeling. Appropriate
statistical techniques (hierarchical cluster analysis, k-means cluster analysis) were
used to segment the users. A profile of each segment was developed based on
demographics, mobile banking services used, and attitude and intentions toward
mobile banking. Further, a post hoc test was used to test the variation between the
obtained clusters and user attitudes and intentions toward mobile banking. The
demographic characteristics of users within each cluster were also examined. Findings
Mobile users were segmented into three clusters based on their perceptions of various
factors influencing mobile banking. These segments were labeled as technology
adoption (TA) leaders, TA followers and TA laggards. The results show that both
attitude and intentions toward mobile banking significantly differs across the three
segments. In terms of relative positioning, TA leaders have the most favorable
attitudes and intentions followed by TA followers, and TA laggards. Age was found
to significantly influence TA and usage. Research limitations/implications The
findings of the study are based on responses from young, educated and salaried Indian
consumers from large metro cities. Therefore, it is important to include respondents
from smaller cities and towns to be able to generalize the findings. The sample is
skewed toward users having accounts with private banks and hence, a balanced
representation of respondents from public and private sector banks would help in
identifying gaps pertaining to each sector. In future research, attempting to compare
the results with other developing and developed countries may be beneficial. Practical
implications is the results offer service providers better knowledge about typical
mobile banking user segments, providing banks with ideas for customizing their
services to meet customer expectations. Originality/value This paper provides insights
into factors that influence mobile banking adoption in India, which has not been
investigated. In contrast to earlier studies conducted on internet banking, this study
attempts to examine the perceptions, attitudes and intentions of mobile users.
Although traditional TA models and theories of technology diffusion have been used,
this study attempts to tailor the model specifically for mobile banking.
(Michael Harris, 2016)The prevailing mindset is that younger people value and more
readily adopt technology. The purpose of this paper is to determine if this is true with
respect to banking practices. Design/methodology/approach – A survey was
conducted to evaluate the importance of mobile, online, and physical-based banking
across multiple age groups. Factor analysis and analysis of covariance were used to
evaluate the responses. Findings – The results show that older consumers see more
value in traditional, physical-based banking, all ages are equally interested in
currently emerging technologies (online), and younger users are more interested in the
newest technologies. Research limitations/implications – The stereotype of
technology-adverse elderly may be too limiting. Age influences are not absolute
barriers enacted by time, but are potentially learned behaviors. Practical implications
– Practitioners interested in introducing new technologies to the elderly might
consider making their innovations more compatible with existing technologies already
in use. Originality/value – This study builds on the concepts of technology adoption
and previous work on aging as it relates to adoption. However, it is shown that
cognitive declines are not the only factor that can explain age-related differences in
technology usage. Cohort differences in experience and resources may also be
important. This is of value not only to the banks, but to all businesses that rely on
consumer use of technology to maintain the business relationship.
(Dalbir Singh, 2012)Of late, many banking institutions have been focusing on
developing various types of financial systems for enhancing the banking services to
their clients. However, they experience a challenge in this process, especially in terms
of assessing the weakness rates of adoption among clients. This problem has been
addressed by measuring the impact of different factors on adoption of mobile banking
by adding these factors to various types of models and theories, such as, theory of
reasoned action or technology acceptance model. This study aims to compile and
review the previous researches that have covered the influence of demographic factors
and user interfaces on the adoption the financial solutions (Internet Banking and
Mobile Banking). This study has also described the current situation in developing
countries especially in Jordan. The first objective of this study is to highlight the
vulnerabilities of the previous adoption studies, especially in developing countries.
The second objective is to comprehensively understand the differences between the
various types of financial services. Ultimately, this study has elucidated various
factors which influence the adoption of mobile banking and Internet banking.
(Dahlberg, 2015)also assessed 188 articles on mobile payment research, published in
the period 2007-2014, and found Perceived ease of use and Perceived usefulness are
the most frequent variables, followed by security-based variables (Trust, Risk and
Security) and Social influence. In addition, Shaikh and Karjaluoto (2015b) came to
similar findings after reviewing literature on mobile banking adoption, they assessed
55 relevant articles which were published in scientific journals and conference
publications.
The analysis of platform market entry has mainly focused on how to defeat the
incumbent. Scholars have suggested that new entrants will have to have a platform
quality advantage ( Zhu and Iansiti, 2012), or to transform from a specialist
component maker to an assembler/integrator/system maker (Gawer, 2009b), or to be
associated with an open innovation process and supported by a business ecosystem
( Blondel and Edouard, 2015 Platform-based service innovation or to investigate the
right timing and area (Staykova & Daamsgard, 2015) or to find a distinctive and
underserved segment of users, leverage the existing platforms, differentiate based on
emerging needs and simplify business models for complementors. Platform market
entry, expansion and evolution. Platforms are characterized by their resolvability-the
ability to evolve over time by adding new features and sides to their initial value
proposition. Different from transition issue of product platform which focus on
supporting product innovation, the evolution issue of platform ecosystem focuses
more on the dynamic growth of the whole ecosystem and co-development with
external participants. The payment market has been stable for a number of decades
with well-defined roles (acquirers and issuers), profitable business models (the card
schemes) and a dominant design in which the merchants absorb the costs associated
with payments. However, numerous digital payment solutions, which rely on new
disruptive technologies, are emerging on the payment market, transforming the
payment area from being established into a state of flux. In this article, we investigate
the various factors that determine the success of a given solution. To this end, the
research can build a framework to analyze the entry and expansion strategies of the
digital payment solutions. The timing of entry of the first-mover speeds up the timing
of entry of the early follower, thus determining the order of entry. The timing of
expansion is of equal importance as the timing of entry. If the expansion is not
executed within the optimal time, the previously gained competitive advantage can be
annulled.

1.5 Conceptual framework

The conceptual framework is the basis or foundation upon which the study is
established. It is within the framework of this theory that entire study proceeds. The
preliminary survey of literature and information provides a solid foundation for
developing a theoretical framework. Since the general purpose of the study is to
develop theories about the problem and question, it is Important that the conceptual
framework be carefully developed and presented.
1.5.1 Dependent variable
 Usage of digital wallet in Baneshwor, Kathmandu.
1.5.2 Independent variables
 Accessibility
 Awareness
 Trust and Security
 Socioeconomic Factors
 Technological Infrastructure

Independent Variable Dependent Variable

Accessibility

Awareness

Trust and Security Usage of digital wallet in

Baneshwor, Kathmandu
Socioeconomic Factors

Technological Infrastructure

Figure : Conceptual Framework

1.6 Research methods

This section discusses about research design, population of the study, sample size,
sampling method, sources of data, data collection instrument and data analysis tools.
Each of them has been explained as follows:

1.6.1 Research design

Descriptive research design has been used in the research. Descriptive research is
used to describe characteristics of a population or phenomenon being studied. It does
not answer questions about how/when/why the characteristics occurred. Rather it
addresses the "what" question (what are the characteristics of Kathmandu district
population or situation being studied). The characteristics used to describe the
situation or population is usually some kind of categorical scheme also known as
descriptive categories.

1.6.2 Population of the study

The total people in Kathmandu who use digital wallets are considered to be the
population of this study.
1.6.3 Sample size
Since the population of customers of digital wallet is unknown, 100 customers are
used as samples for simplicity and easiness.

1.6.4 Sample method

The respondents are selected by convenience sampling method because questionnaire
has been distributed to respondents based on time, availability, willingness to
participate, or nearby respondents. Efforts are made to make the sample representative
of the population by including consumers from the different age, gender and
profession.

1.6.5 Sources of data

Primary data will be used for this research to determine the popularity of digital
wallets in Kathmandu. Primary data are collected through structured questionnaire
method. Questionnaire is distributed to respondents to collect the data from them
through the means of internet.

1.6.6 Data collection instruments

In this research, the data collection instruments used to collect primary data will be
collected by the help of structured questionnaires that will contain a specific set of
questions and the respondents are asked to answer those questions whatever they feel
is right. Data are collected using a survey questionnaire containing:-
 Multiple choice questions
 Likert Scale questions
 Rank order questions
 Respondent’s personal information

1.6.7 Data analysis tool

Data analysis tools are the statistical method involved in carrying out the study
including palling, designing, collecting data, analyzing, drawing meaningful
interpretations and reporting the findings. After the data are properly collected and
presented, data analysis will be conducted. Simple statistical tools will be used as:-
 Frequency
 Percentage
  Pie-chart
 Bar diagram
 Mean

1.7 Limitations of the study

Every study has certain limitations. These limitations can exist due to constraints on
research design or methodology and these factors impact on the findings of the study.
Some of the limitations of this study are as follows:-
 Sample size of only 100 respondents taken so difficult to generalize the
finding.
 Probability of wrong information provided by respondents.
 CHAPTER II

DATA PRESENTATION AND ANALYSIS

Here, the primary data collected through the help of structured questionnaire survey
are presented and analyzed. All the information presented here was obtained from the
people who use the digital wallets in Kathmandu valley. The collected data was
sorted, classified, tabulated, and analyzed for the purpose of drawing conclusion. Bar-
diagram and pie-chart has been presented to clarify the actual data. All the data
obtained from the survey are very keenly analyzed and interpreted hereunder and
those data are then converted into information. The work of this part in the report is to
process the non-comprehensive data and presenting the data into pictorial
representations that can be easily understood and which can provide a thorough
knowledge regarding the subject matter to the reader and the reader can easily have a
in-depth idea about the subject matter.
Under this chapter, the respondent’s profile, data presentation and analysis, and
findings and discussions are included.

2.1 Respondent’s profile

Respondents' gender, age and occupation of 100 consumers has been examined. These
characteristics affects in expressing and giving the responses of the questions. These
personal and demographic information are presented below:-
 Table 1: Respondent’s profile

Items Frequency Percentage (%)

Gender Female 48 48
Male 52 52
Others - -
Age-group 0-18 3 3
19-24 80 80
25-30 16 16
Above 30 1 1
Occupation Student 86 86
Business Person 1 1
Job holder 12 12
Other 1 1
Total 100 100
(Source: Questionnaire survey, 2024)
Table 1 shows the gender of the respondents taken for the study. Among 100
respondents 52 are male and 48 are female. Table 1 shows among the 100
respondents, forty eight percent are Female and fifty two percent are male. This
shows the highest majority are male than that of female in the survey conducted.
Table 1 shows the age of the respondents taken for the study. For this characterstics,
the respondents were classified into four groups of age: below 18, 18-24, 25-30 and
above 30. Table 1showsage of respondents. Among 100 respondents, three percent are
below 18, eighty percent are in the age group of 19-24, sixteen percent are in the age
group 25-30, and one percent is above 40. The majority of the respondents fall in the
age group of 19-24.
Table 1 shows the occupation of the respondents taken for the study. For this
characteristics, the respondents are classified into four groups as: student,
businessman, job holder and other.
Table 1 shows the occupation of respondents. Among 100 respondents, eighty six
percent are students, one percent is businessman, twelve percent are job holder and
one percent is involved in other occupation. The majority of the respondents fall in
the group of student.
This section deals with the presentation and analysis of data after administering the
questionnaire to respondents. Percentage and bar-graph are used for the purpose of
proper presentation and analysis of the data. This section contains the questions about
awareness regarding the functionality of digital wallets, source of getting information,
purpose of using digital wallets, which digital wallets is mostly used, how long have
the respondents been using the digital wallets, rating of the digital wallets’
performance and agree-disagree statements.

2.2 Awareness of functionality of digital wallets

Table 2 shows the awareness of the respondents regarding the functionality of digital
wallets. For this, the respondents need to select their answers from among the three
alternatives i.e.; fully aware, partially aware and not aware.
Table 2: Awareness of the functionality

Awareness Frequency Percentage (%)

Fully aware 57 57

Partially aware 42 42

Not aware 1 1

Total 100 100

(Source: Questionnaire survey, 2024)

Table 2 shows the awareness among the respondents regarding the functionality of the
digital wallets. Among 100 respondents, fifty-seven percentage of the respondents
tend to be fully aware regarding the functionality of digital wallets, forty-two
percentage being partially aware and the rest one percentage being not aware. The
majority of the respondents tend to be fully aware regarding the subject matter.
 Awareness
1%

Fully aware
Partially aware
42% Not aware

57%

Figure 1: Awareness of the functionality

2.3 Source of information

Table 3 shows the answer to the question regarding the source from which the people
are getting information regarding the digital wallets. They might be getting
information from various sources. The enlisted sources here which the respondents
need to select are social media, Friends, TV/radio and others. Under the alternative
other, people responded in various ways like books and magazines, campaign, fairs,
family, etc.
Table 1: Sources of information

Source Frequency Percentage (%)

Social media 59 59

TV/ radio 4 4

Friends 31 31

Others 6 6

Total 100 100

(Source: Questionnaire survey, 2024)

Table 3 shows the sources from which the respondents got the information regarding
the digital wallets for the first time. Among 100 respondents, fifty-nine percentage of
people got the information for the first time from various social media platform,
thirty-one percentage of them got from friends, four percent from television and radio,
and the remaining our percent from other sources. So, we can clearly see that the
majority of the respondents went for the social media option.

Sources
1%
4%

Social media
Friends
33% TV/ radio
Others

62%

Figure 1: Sources of information

2.4 Purpose of using

Purpose of using is the real reasons for which people use digital wallets for. For this,
the respondents are provided with four alternatives for which they use digital wallet
for. The table 4 shows the purpose as categorized into four alternatives: for the
purpose of utility payments, booking tickets, bank transfer and all of the above.
 Table 2: Purpose of using

Purpose Frequency Percentage (%)

Utility payments 26 26

Booking tickets 15 15

Bank transfer 10 10

All of the above 49 49

Total 100 100

(Source: Questionnaire survey, 2024)

From the above table, we can make understand why most people use digital wallets
for. In the above table, out of 100 respondents, twenty-six percent of respondents
chose the option utility payments while asked why they use digital wallets, fifteen
percentages answered booking tickets, ten percentages selected the reason as bank
transfer and the maximum number of respondents went for all of the above purposes.
So, we can say that all these options are equally important.

Purpose

2%

19%

Utility payments
Booking tickets
Bank transfer
All of the above
50%

29%

Figure 2: Purpose of using

2.5 Name of the digital wallet
Table 5 shows the name of the digital wallet that is used by the respondents. This will
help to show the popularity of the digital wallet. In Nepal, eight digital wallets are
currently in existence. In Kathmandu also all of them are functioning but the ratio and
their popularity and number of customers are hugely uneven. In the table below, the
name of all the eight digital wallets are given and the respondents are asked to select
the particular digital wallet that they use for their day-to-day transactions and
activities. These digital wallets are: E-sewa, Khalti, IME pay, e-prabhu, Q-pay, i-pay,
Nepzy and Enet.
Table 3: Name of the digital wallet

Name Frequency Percentage (%)

E-sewa 75 75

Khalti 9 9

IME pay 14 14

e-Prabhu 2 2

Q-pay - -

i-Pay - -

Nepzy - -

Enet - -

Total 100 100

(Source: Questionnaire Survey, 2024)

Table 5 shows that most number of respondents i.e; seventy-five percentage use
eSewa as their digital wallet, followed by IME pay with fourteen percentage, Khalti
being used by nine percent and e-Prabhu is used by 2 percent. And out of 100
respondents, no one used Q-pay, i-Pay, Nepzy or Enet. So, we can say that the
number of its users are very minimal. And, the use of the digital wallets like Enet,
Nepzy and i-Pay are mostly found to be used in the rural areas of the country so, its
application is not much seen inside the capital.
 Name of the digital wallet used
1%

14%

E-sewa
9%
Khalti
IME pay
i-Pay

76%

Figure 3: Name of the digital wallet used

2.6 Method to load fund

In order to make transactions firstly, the digital wallets needs to be recharged only
them the transactions can be made. There are few methods through which the digital
wallets can be recharged and they are: by the help of internet banking or mobile
banking, through various E-sewa cash points that are available in the market, through
the counter deposit procedure from the bank or from one E-sewa account to another
also known as P2P (peer-to-peer) transfer.
 Table 4: Method to load fund

Method Frequency Percentage (%)

e-banking/Mobile banking 88 88.9

Cash point 6 6.1

Counter deposits 4 4

P2P transfer 1 1

Total 99 100

(Source: Questionnaire survey, 2024)

Table 6 shows that 99 respondents have given their answers out of 100 respondents to
this particular question out of which, 88.9% of the respondents have answered to have
used internet banking or mobile banking for the purpose of loading the fund to their
respective digital wallets, 6.1% have been using the second alternative that is through
various E-sewa cash points, 4% have been loading fund from counter deposits
through the banks directly and the rest of the respondents have answered to be using
P2P transfer as their source of loading the fund.
 Method to load fund

1%

4%
6%

e-banking/mobile baking
Cash points
Counter deposits
P2P transfer

89%

Figure 4: Method to load fund

2.7 Ranking of the performance

Here the respondents are asked to rate the digital wallets on the basis of its
performance. Table 7 shows the ranking done by the respondents after using the
digital wallets. The respondents were asked to rank the digital wallets on 1-5 scale
where 1 being the excellent and 5 being poor performance.
 Table 5: Ranking of the performance

Rank Percentage (%)

1 18.2

2 27.3

3 34.3

4 17.2

5 3

Total 100

(Source: Questionnaire survey, 2024)

Table 7 shows the ranking done by the respondents as per the performance of the
digital wallets. Out of 100 respondents, 99 respondents have answered to this question
and from that 99 respondents, 18.2% have said that the performance is excellent and
maximum number of respondents have gone with 3 that means they are reporting the
performance to be average and are moderately satisfied and a very minimal percent
that is 3% of the respondents have said it to be a poor performer. So, as a whole the
performance is can be taken as very optimistic and positive.
 Rank
40

35

30

25
Percentage

20 Rank

15

10

0
1 2 3 4 5

Rank as per performance

Figure 5: Ranking of the performance

2.8 Factor affecting use of digital wallets

Table 8 presents the 5-point Likert scale statistics to analyze the factor which could
affect in the decision of using digital wallets. And the factors are: ease of use, secured
transactions, convenience, pricing and time saving. Respondents were asked to rate
the factors as per their importance for which they were provided with options as: very
important, important, neutral, unimportant and very unimportant.
 Table 6: Importance of factors affecting digital wallets

Reason Total Very Importan Neutral Unim Very Weight Wei Ran
s Resp important t (2) (3) porta unimport ed ght k
onde (1) nt (4) ant (5) Value ed
nts Me
an
N % N % N % N % N %

Ease of 92 39 42.4 47 51.1 6 6.5 - - - - 151 1.64 3

use
Secure 90 55 61.1 25 27.7 10 11.2 - - - - 135 1.5 2
d
transact
ions
Conven 87 34 39.1 41 47.2 12 13.7 - - - - 152 1.75 4
ience

Pricing 90 20 22.3 48 53.3 21 23.3 1 1 - - 183 2.03 5

.
1
Time 93 54 58.1 33 35.5 6 6.4 - - - - 134 1.48 1
saving

(Source: Questionnaire survey, 2024)

In the table 8, we can see that the number of respondents are varying in each of the
cases as the question was not compulsory to be filled. The number of responses on
rank one two, three, four and five were multiplied by the numbers one, two, three,
four and five respectively to attain the weighted value. Thus with the lowest weighted
value of 134 and weighted mean of 1.48, the factor ‘Time saving’ was ranked as 1.
Likewise, with the weighted value of 135 and a weighted mean of 1.5, the factor
‘Secured transactions’ was ranked as 2. And, with the weighted value of 151 and a
weighted mean of 1.64, the factor ‘Ease of use’ was ranked as 3. Also, with the
weighted value of 152 and a weighted mean of 1.75, the factor ‘Convenience’ is
ranked 4. Lastly, with the highest weighted value of 183 and a highest weighted mean
of 2.03, the factor ‘Pricing’ was ranked as 5 becoming the least important factor
affecting the use of digital wallets. Therefore, the factor ‘Time saving’ is considered
as the most important factor that affects the use of digital wallets.

70

60

50

40

30
Percentage

Very important
Important
20
Neutral
Unimportant
10
Very unimportant

0
se s ce ng g
fu tion ien ici avin
ac r
seo ns ve
n P es
Ea rt a Co
n Tim
ed
cur
Se
Factors

Figure 6: Factors affecting use of digital wallets

In the fig. no. 7, the factors affecting the use of digital wallets are listed in the x-axis
and the percentages of responses are shown in y-axis.

2.9 Opinion on the statements

The respondents have been asked to give their opinions on the statements under five
alternatives like strongly agree, Agree, Neutral, Disagree and strongly disagree. The
opinions on these statements will help to understand more about the current situation
of digital wallets and the perception of the customers regarding the functionality and
the knowledge of digital wallets.
 Table 7: Opinions on the statements
Statements Strongl Agre Neutr Disagre Stron Total
y agree e al e gly Respon
Disagr dents
ee
Digital wallets can be an 40 53 6 1 - 100
alternative choice for
payments
Digital wallet can substitute 26 45 27 2 - 100
the original payment method

Digital wallet can support 25 55 20 - - 100

the original payment method

Digital wallet is not 4 2 19 45 30 100

necessary
(Source: Questionnaire survey, 2024)
The table 9 shows four different statements for which the respondents are asked to
give their answer under five different alternatives what they feel like about those
statements. The total number of responses for all the statements is 100.
 60
50
40
30
20
10
0
Percentage

ts d d
ar
y Strongly agree
en ho ho ss
ym et et ce Agree
m m
rpa nt nt t ne Neutral
e e
fo m m no
ice pay pay t is Disagree
o al al e
ec
h
in in wall Strongly disagree
v r ig r ig l
ati eo eo ta
ern th th Digi
alt te or
t
an titu pp
be bs su
an su a n
c an tc
ts tc lle
la le le a
w al w
tal lw ital
i a g
Di
g git Di
Di
Statements

Figure 7: Opinions on the statements

Fig no. 8 shows that maximum number of respondents agree with the fact that
“Digital wallets can be an alternative choice for payments”. Similarly, maximum
number of respondents also agree with the statement that says “Digital wallet can
substitute the original payment method”. Likewise, for the statement “Digital wallet
can support the original payment method”, most number of respondents have agreed
and not a single one of them has neither disagreed nor strongly disagreed. But, for the
last statement, maximum number of the respondents have disagreed with it and it
clearly shows that the last statement is not so true.
2.10 Findings and discussions
From the field survey and the analysis on the growing popularity of digital wallets in
Kathmandu, the major findings are as follows:-
1. Majority of the people are fully aware of the functionality of digital wallets
and almost everyone has somewhere heard or have partial knowledge about
the digital wallets.
2. Majority of the people have heard about the digital wallet or have gained
information from the social media and from family and friends.
3. The major purpose of using digital wallets is for utility payments, booking
tickets and bank transfers. Almost everyone use digital wallets for all these
purposes but some of the people use it for only single purpose which may be
ether booking tickets or paying utilities or bank transfers.
4. The most popular digital wallet used by the people is E-sewa followed by IME
Pay and Khalti. Other remaining Digital wallets have very less number of
users.
5. Maximum number of the people use internet banking or mobile banking in
order to load fund into the digital wallets.
6. Almost seventy-five percentage of the people are happy with the performance
of the digital wallets and tend to recommend it to others as well.
7. The most important factor affecting digital wallet is Time saving, followed by
secured transactions, ease of use, convenience and surprisingly pricing factor
being the least important.
8. Maximum number of people agree with the fact that “Digital wallets can be an
alternative choice for payments”.
9. Maximum number of people agree with the statement, “Digital wallet can
substitute the original payment method”.
10. Maximum number of people also agree with the statement which says,
“Digital wallet can support the original payment method”.
11. Maximum number of people disagree with digital wallets being totally not
necessary.
 CHAPTER III

CONCLUSION AND ACTION IMPLICATION

This chapter presents the conclusions drawn from the findings shown in data
presentation and analysis chapter. This chapter also recommends some action
implications regarding the prospect of digital wallets in Kathmandu.

2.11 Conclusion
Digital wallet is a new trend in current scenario of Nepal. It has been replacing the
traditional way of payment. This study concludes the future prospect of digital wallets
in Kathmandu valley. The future prospect of digital wallet has brought many positive
as well as negative changes in the payment system of Kathmandu valley.
The revolution of digital wallet was brought for the first time by a company called
PayPal in the late 1990s. It was used as a software solution for eBay (an E-commerce
platform) users that made it convenient to store their cards for repeat online
purchases. And in Nepal, the revolution was brought by Khalti (powered by Sparrow
Pay Pvt. Ltd.) which became an internet sensation, launched in 2017. Today there are
altogether 8 digital wallets in Nepal. Among them eSewa, Khaltiand iPay being more
popular followed by IME Pay, ePrabhu, QPay, Nepzy and Enet Payment.
As per the study conducted, we can say that majority of the people are fully aware of
the functionality of digital wallets and almost everyone has somewhere heard or have
partial knowledge about the digital wallets. The major purpose of using digital wallets
is for utility payments, booking tickets and bank transfers. Almost everyone use
digital wallets for all these purposes but some of the people use it for only single
purpose which may be either booking tickets or paying utilities or bank transfers.The
most important factor affecting digital wallet is time saving, followed by secured
transactions, ease of use, convenience and surprisingly pricing factor being the least
important.
2.12 Action implication
This study is based on the online survey conducted among the people of Kathmandu
valley. The survey done on future prospect of digital wallets in Kathmandu valley
resulted positively but still there are few suggestions which I would like to point out:

 Digital wallet is a growing trend but still people aren’t aware of using it in a
proper way. So, people must be made aware about the proper use of digital
wallets.
 People must be made aware that digital wallet makes our transaction more safe
and easy.
 Digital wallet can be used as a form of solution for security issue of
transaction and theft of money.
 Government can implement strict policy of replacing traditional transaction
with digital wallets in order to bring change in the mentality of people.
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 APPENDICES

Hello Sir/Madam
My name is Raushan Kumar Sah and I am a student of BBA at K&K International
College. As a part of our curriculum, we are to conduct a research on any topic of our
choice and for that we need to conduct a survey. So, this survey will be helpful for my
final report. This survey is conducted in order to collect data and information for the
purpose of knowing the actual reasons behind the Prospect of Digital Wallets in
Kathmandu. I would like to thank you for your contribution to my report by
answering this survey, which might take you just 5-10 minutes of your time.
GENERAL QUESTIONS
1. Name:
2. Gender:
[ ] Male
[ ] Female
[ ] Others
3. Age:
[ ] Below 18
[ ] 19-24
[ ] 25-30
[ ] Above 30
4. Occupation:
[ ] Student
[ ] Job holder
[ ] Businessman
[ ] Other
SURVEY RELATED QUESTIONS
5. Are you aware of the functionality of digital wallets?
[ ] Fully aware
[ ] Partially aware
[ ] Not aware
6. Where did you get the information from?
[ ] Social media
[ ] Friends
[ ] TV/ Radio
[ ] Others
7. What purpose do you mostly use Digital Wallets for?
[ ] Utility payments
[ ] Booking tickets
[ ] Bank transfer
[ ] All of the above
8. Why do you use Digital Wallets?
[ ] Saves time
[ ] Economical
[ ] Easy access
[ ] All of the above
[ ] None of the above
9. Which Digital Wallet do you use?
[ ] E-sewa
[ ] Khalti
[ ] IME Pay
[ ] e-Prabhu
[ ] Q-pay
[ ] i-Pay
[ ] Nepzy
[ ] Enet
10. Which device do you use to make transactions?
[ ] Computer
[ ] Mobile
[ ] Both
11. How long have you been using Digital Wallets?
[ ] Recently
[ ] Less than 1 year
[ ] More than 1 year
12. How often do you use?
[ ] Daily
[ ] Weekly
[ ] Monthly
[ ] Yearly
13. What method do you use to load fund into Digital Wallet?
[ ] e- Banking / Mobile banking
[ ] Cash point
[ ] Counter deposit
[ ] P2P transfer
14. Do you believe that the transactions are secured?
[ ] Yes
[ ] No
[ ] Maybe
15. How would you rate the Digital Wallet that you have used? ( 1 being Excellent
and 5 being poor performance)
1 2 3 4 5

16. Would you want to continue using Digital Wallet?

[ ] Very likely
[ ] Likely
[ ] Neutral
[ ] Unlikely
[ ] Very unlikely
 17. Please rate the factor below which could affect in your decision of using
Digital Wallet?
Factors Very Important Neutral Unimportant Very
important Unimportant
Ease of use
Secured
transactions
Convenience
Pricing
Time saving

18. How do you agree with these statements?

Strongly Agree Neutral Disagree Strongly
agree disagree
Digital wallet can be
an alternative choice
for payments
Digital wallet can
substitute the original
payment method
Digital wallet can
support the original
payment method
Digital wallet is not
necessary

19. What additional feature according to you, can be added to Digital Wallet’s
services in order to gain more popularity?
Answer: