Developing and validating a Cashless Transaction Adoption Model (CTAM)

Abstract

This research intends to develop and validate a research model for the adoption of cashless transactions. For this purpose, this study was carried out using a two-stage approach. The first step in developing the conceptual framework for this study was undertaking an extensive evaluation of the prior research. Second, an empirical validation of the conceptual framework that was constructed in this research to investigate the use of cashless transactions was obtained. The study results reveal that twelve independent variables explained 84.7 percent of the variation in behavioural intention to adopt cashless transactions. In addition, performance expectancy is the strongest predictor of users' intentions to embrace cashless transactions, followed by perceptions of the economy's security and economic offence reduction, social influence, perceived trustworthiness, expected level of effort, and innovativeness. Further, in terms of impediments, perceived risk and cost are the negative influence factors influencing behavioral intention to adopt cashless transactions. Furthermore, this study's findings indicate that perceived economy's security (β = 0.279) was the second, and perceived economic offence reduction (β = 0.224) was the third most influential factor in adopting cashless transactions. These findings come from an evaluation of three new independent variables. Therefore, the CTAM has contributed to the literature by comprehensively explaining the user acceptability of cashless transactions. Consequently, this CTAM offers a more in-depth explanation than any other research for why individuals embrace cashless transaction systems.

Factors influencing the adoption of cashless transactions: toward a unified view

“…Therefore, individuals who are more innovative and open to using new technologies may have a higher BI to use CLT compared to those who are less innovative (Raj et al, 2023;Vimal Raj et al, 2023). Moreover, prior research found a positive link between PI and individuals' BI towards adopting CLT (Williams, 2021;Vimal Raj et al, 2023;Raj et al, 2023). Therefore, we hypothesise the following: H5.…”

“…The concept was first introduced in the TPB and TRA technology adoption models and has since been combined into consequent adoption models (Alalwan et al, 2017). Moreover, earlier research has indicated a robust association between BI and actual behaviour (Sivathanu, 2019;Raj et al, 2023;Sarmah et al, 2021;Gupta and Arora, 2020;Alalwan et al, 2017;Sripalawat et al, 2011;Vimal Raj et al, 2023;Shin, 2009;Patil et al, 2020). Therefore, we hypothesise the following: H12.…”

“…"Perceived risk" is the degree to which people believe CLT procedures will lead to adverse outcomes, including money loss, fraud or identity theft (Raj et al, 2023). Further, this certainty makes CLT approaches less appealing since it raises concerns about transaction security (Vimal Raj et al, 2023). Moreover, previous research has shown that the associated PR negatively impacts BI using CLT technologies (Abegao Neto and Figueiredo, 2022;Raj et al, 2023;Priya et al, 2018;Vimal Raj et al, 2023;Bashir and Madhavaiah, 2015b;Giovanis et al, 2019).…”

“…The notion of "perceived trust" refers to a person's impression of the reliability of the institutional surroundings (Vimal Raj et al, 2023;Alalwan et al, 2017). This concept encompasses trust in service providers such as financial institutions and telecommunications companies (Sarmah et al, 2021).…”

“…Similarly, the CLT methods, such as mobile payments, e-wallets and contactless cards, are relatively new technologies that require users to be comfortable with and willing to use them (Williams, 2021;Saha et al, 2022). Therefore, individuals who are more innovative and open to using new technologies may have a higher BI to use CLT compared to those who are less innovative (Raj et al, 2023;Vimal Raj et al, 2023). Moreover, prior research found a positive link between PI and individuals' BI towards adopting CLT (Williams, 2021;Vimal Raj et al, 2023;Raj et al, 2023).…”