Good Afternoon.

Welcome to my presentation on Mobile Wallet Versus Unified Payment

Interface A System Reliability Analysis.

mobile-based virtual wallet where certain amount is preloaded in the account created with
the mobile wallet service provider, and is spent online or offline in merchants listed with
the mobile wallet service provider. In simple terms, mobile wallet allows users to make
payments through smartphones, tablets and related electronic devices. India Mobile
Wallet Market Forecast & Opportunities, 2020 report states that the mobile wallet
market in India is forecast to reach US$ 6.6 billion by 2020.

Nielsen report suggests that Paytm is the most popular mobile payment app among
Android smartphone owners in urban India, Freecharge is the second most popular service
with 26% reach and 40 minutes of usage per month. Mobikwik (17% reach and 29 minutes
usage) is the next most popular service followed by My Airtel (10% and 18 minutes usage),
Oxigen Wallet (7% and 17 minutes usage), My Vodafone (6% and 17 minutes usage), Paytm
Wallet (5% and 14 minutes usage) and Pockets by ICICI (4% and 23 minutes usage).

Over the past four years, mobile wallet transactions have jumped from Rs 10 billion of
transactions in 2012-'13 to more than Rs 490 billion in the year 2015-'16.

Many brands have tied up with Mobile Wallet providers like Paytm for huge discounts
which is advantageous for consumers.
Payment can be made from even less popular banks. Helps generate revenue for payment
Gateways and banks on every transaction
It is source of employment for Finance and software personnel.

Unified Payments Interface (UPI) allows users to make a transaction through aliases. The
customer can pay directly from a bank account to different merchants, both online and
offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet
passwords. 29 banks have already tied up with the RBI-promoted National Payments
Corporation which launched the UPI. Since UPI is simple and has less chance of failed
transaction, UPI will be a tough competitor for Mobile Wallet.

Immediate money transfer through mobile device round the clock 24*7 and 365 days.
Single mobile application for accessing different bank accounts
Single Click 2 Factor Authentication Aligned with the Regulatory guidelines, yet provides
for a very strong feature of seamless single click payment.
Virtual address of the customer for Pull & Push provides for incremental security with the
customer not required to enter the details such as Card no, Account number; IFSC etc.
Bill Sharing with friends.
Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
Merchant Payment with Single Application or In-App Payments.
Scheduling PUSH and PULL Payments for various purposes.
Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
Donations, Collections, Disbursements Scalable.
Raising Complaint from Mobile App directly.

Analyze system reliability of Mobile Wallet

Analyze system reliability of Unified Payment Interface
Compare reliability and suggest better alternative for the customer.

Lets first see the Mobile Wallet pathway. It can be seen that the pathway has six nodes. A
transaction failure in any node will result in failure of the entire Mobile Wallet payment
system. To measure the reliability of the system, Reliability Analysis is carried out using
Mathematica Version 10 software. The failure probability of mobile data connection was
obtained from Telecom Regulatory Authority of India (TRAI) research papers. As there is no
reliable data on Mobile Data Connection drop rates, the data on Average Call Drop Rate
was taken as a proxy for Data Connection drop rate. Call Drop rate is the percentage of calls
which, once they have been correctly established are interrupted prior to their normal
completion by the user, the cause of the early termination being within the operators
network. The Payment Gate way failure rate was obtained from Instamojo data of Credit
card , Debit card and Net banking transaction failure rate.

The formula basically combines the Probability Distribution of the 6 nodes to calculate the
Mean Time to Failure of the Mobile Wallet System. The Mean Time to Fail of this system is
found to be The Mean Time to Failure = 0.0540
The Median Time to Failure = 0.0374

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It can be seen that the pathway has just 2 nodes. To measure the reliability of the system,
Reliability Analysis is carried out using Mathematica Version 10 software. The failure
probability of mobile data connection was obtained from Telecom Regulatory Authority of
India (TRAI) research papers. As there is no reliable data on Mobile Data Connection drop
rates, the data on Average Call Drop Rate was taken as a proxy for Data Connection drop
rate. Call Drop rate is the percentage of calls which, once they have been correctly
established are interrupted prior to their normal completion by the user, the cause of the
early termination being within the operators network. The Payment Gate way failure rate
was obtained from Instamojo data of Credit card , Debit card and Net banking transaction
failure rate.

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The formula basically combines the Probability Distribution of the 6 nodes to calculate the
Mean Time to Failure of the Mobile Wallet System. The Mean Time to Fail of this system is
found to be The Mean Time to Failure = 0.1349
The Median Time to Failure = 0.0935
We can see that the UPI system is more reliable by a factor of 2.5

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The Unified payment Interface has Mean Time to Failure of 0.1349 and Median Time to
Failure Rate of 0.0935.
The Mobile Wallet system has Mean Time to Failure of 0.0540 and Median Time to Failure
Rate of 0.0374.
Unified Payment Interfaces Mean Time to Failure is superior to the Mean Time to Failure of
Mobile Wallet system by a factor of 2.5

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The Unified Payment Interface is found to be of superior reliability and Time to Fail is
higher hence customers should chose Unified payment System over Mobile Wallet for ecommerce and m-commerce transactions.
The Mobile Wallet companies like Paytm should encourage users to transfer money in their
virtual mobile wallet. This will reduce the nodes in the pathway in payments routed
through Mobile Wallet and improve the Reliability and increase the Time to Failure of the
Mobile Wallet system
Mobile Wallet companies can tie up with banks to incorporate Unified Payment Interface in
their mobile apps

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