Factors influencing the adoption of cashless transactions during COVID-19: an extension of enhanced UTAUT with pandemic precautionary measures

Abstract

This paper aims to extend the enhanced “unified theory of acceptance and use of technology (UTAUT)” model with pandemic precautionary measures (PPM) to examine the variables that influence the adoption of “cashless transactions (CLT)” during pandemic periods such as COVID-19. For this purpose, this research polled 363 people from 15 zones of Chennai City, India. Utilizing the responses, the relationship between components was explored using a PLS-SEM approach in two distinct research models to examine the influence of PPM in the enhanced UTAUT. The results indicate that the model with PPM (model 2) exhibited an improvement over the model without PPM (model 1) in the variance explained of behavioural intention from 77.3 to 82%. Further, in model 1, performance expectation is the most potent predictor of individuals’ intentions to use CLT, and in model 2, performance expectations deteriorated slightly in its ability and PPM became the most potent predictor. Furthermore, these findings reveal that the PPM-included enhanced UTAUT has significantly strengthened its ability to explain behavioural intent to adopt CLT. Thus, this research model has the potential to be of great use in investigating the adoption of CLT in any epidemic period.

Transforming Healthcare: The Revolutionary Benefits of Cashless Healthcare Services

“…One of the key advantages of cashless hospital services is the exceptional convenience and accessibility they offer. Patients no longer have to worry about carrying huge amounts of cash for medical procedures or consultations thanks to cashless transactions [26].…”

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

“…This concept encompasses trust in service providers such as financial institutions and telecommunications companies (Sarmah et al, 2021). Further, this trust might result from pleasant previous experiences or a well-established reputation (Raj et al, 2023). Additionally, security, convenience, prestige, familiarity, and regulation build trust among consumers and encourage them to embrace CLT methods (Chawla and Joshi, 2020;Giovanis et al, 2019).…”

“…"Personal innovativeness" pertains to an individual's readiness and openness to adopt and utilise novel technologies (Raj et al, 2023). 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).…”

“…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).…”

“…The shift to cashless economies can also reduce government spending and promote employment. However, the full benefits of a cashless economy cannot be realised until a significant percentage of the population regularly engages in CLT (Vimal Raj et al, 2023). Furthermore, "cashless transactions (CLT)" were described as modes of payment that do not require the exchange of tangible currency.…”