The impact of mobile wallets on consumer spending frequency and loyalty: An empirical study conducted in Bangalore urban
Keywords:
Mobile wallets, Consumer spending, Brand loyalty, Impulse purchases, Loyalty programs, Payment behavior.Abstract
The rise of mobile wallets like PhonePe, Google Pay, Paytm, Amazon Pay etc., has revolutionized consumer behavior, transforming how we spend and interact with brands. This study delves into the dual impact of mobile wallets, show how they influence consumer spending frequency and foster brand loyalty. By focusing on key factors such as ease of use, rewards programs, and security, the study sheds light on the growing role of mobile wallets as more than just payment tools but as strategic enablers of consumer engagement. Through a survey-based approach, data from a diverse group of respondents was analyzed using Chi-square tests to uncover the relationship between mobile wallet adoption and spending habits. The findings reveal that frequent users of mobile wallets not only spend more often, particularly on smaller transactions, but also exhibit a tendency toward impulse purchases driven by convenience and instant rewards. Moreover, loyalty programs integrated into mobile wallets significantly enhance brand loyalty, encouraging repeat purchases and stronger consumer-merchant relationships. This study emphasizes the importance of personalization, seamless user experiences, and strategic rewards in shaping consumer behavior. For businesses, mobile wallets represent a powerful opportunity to engage consumers meaningfully, increase transaction frequency, and build long-term loyalty. As mobile wallets continue to gain momentum, their role as a central hub for payments, promotions, and personalized offers positions as indispensable tools in the evolving digital economy.
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