Adoption of digital payment systems in the era of demonetization in India

Abstract

Purpose This study aims to investigate the actual usage (AU) of digital payment systems by the consumers during the period of demonetization (from November 9, 2016 to December 30, 2016) in India. Design/methodology/approach The conceptual frame work for this study is based on the unified theory of acceptance and use of technology (UTAUT 2) and innovation resistance theory. A total of 766 sample respondents were surveyed using a pre-tested questionnaire. The empirical validation of the framework and analysis was done using partial least squares (PLS)-structural equation modeling (SEM) technique. Findings The results suggest that the behavioral intention (BI) to use and innovation resistance (IR) affect the usage of digital payment systems. The relation between BI to use digital payment systems and the AU of digital payment systems is moderated by the stickiness to cash payments. Research limitations/implications This cross-sectional study is limited by geographic constraints and highlights the AU of digital payment systems by using the UTAUT 2 and IR theory only during the demonetization period. Practical implications This study offers valuable insights to the economists, policymakers and digital payment service providers regarding the usage of digital payment systems by consumers during demonetization. Originality/value This study assumes importance as it empirically examines the influence of BI and IR on the AU of digital payment systems during the demonetization period in India. This study empirically validates the moderating influence of stickiness to cash payments on the AU of digital payment systems.

Critical Factor of Mobile Payment Acceptance in Millenial Generation: Study on the UTAUT model

“…The variable facilitating condition and behavioural intention towards use behavior has a p value below the error level so the two variables have a significant influence on use behaviour. These results are in line with previous studies where behavioural intentions [5,21,29,32] and facilitating conditions [5,23,[28][29][30] have a significant influence on use behaviour.…”

“…This proves that the supporting infrastructure can increase the intensity of the use of mobile payments, especially among the military generation. When the infrastructure is ready to be used, facilitating conditions are present as a guide, assistance, and training that has been provided as a means to support information systems [28]. Some researchers also support that facilitating conditions in the context of using technology such as mobile payment, mobile banking, mobile applications and the like have an influence on behavioral intention [23,[28][29][30].…”

“…Facilitating conditions refers to one's trust in technical infrastructure that can support the use of technology [5,21,27]. When the infrastructure is ready to be used, facilitating condition comes as a guide, assistance and training that serves as means to support information systems [28]. Some researchers also support that facilitating conditions in the context of the use of technologies, such as mobile payments, mobile banking and mobile applications, have an influence on behavioural intention [5,21,23,[28][29][30].…”

Effects of the Digital Payment System on Smes Performance in Developing Countries; A Case of Ghana

“…Globally, SME's constitute over 90 percent of enterprises, generate approximately 50 percent of employment and contribute over 40 percent to GDP in developing countries (WB, 2019). Specifically, in Ghana, SMEs account for more than 92 percent to all businesses, and contribution to GDP exceeds 70 percent (Peprah, Mensah, & Akosah, 2016 (Sivathanu, 2019), perceived usefulness, perceived benefits and perceived ease of use. Most of the scholar employed the technology acceptance model (Davis, 1989), Unified Theory of Acceptance and Use of technology(Venkatesh, Morris, Davis, & Davis, 2003).…”

The impact of demonetization on Indian firms’ performance: does company’s age make a difference?

“…For instance, Sivathanu (2018) investigated the actual usage of digital payment systems by the consumers during the demonetization period (from November 9, 2016 to December 30, 2016) in India. Ohlan (2017) addressed whether India's demonetization has a significant impact on the number of the international tourists visiting India during the time of the process.…”