Factors influencing diffusion of mobile payments with reference to Delhi NCR

Abstract

newline This study aims to explore the changing landscape of payment systems, particularly focusing on what drives the adoption and growth of mobile payment systems in the Delhi-NCR region. By combining the Technology Acceptance Model (TAM) with the Diffusion of Innovation Theory (IDT), the research intends to offer a thorough understanding of how these frameworks interact to influence user behaviour. The study will measure the impact of IDT factors, including personal adoption-related aspects and social/external influences, on the elements of TAM in relation to mobile payment systems. It will also investigate how key TAM factors, like perceived usefulness and perceived ease of use, affect user satisfaction with these systems. Lastly, the research will investigate whether demographic factors such as age, gender, income, and education play a significant role in user satisfaction. Through these objectives, the study aims to reveal important insights into the dynamics of technology adoption and customer satisfaction in the mobile payments sector. newlineDesign/ Methodology: This study explores the factors that affect the adoption of mobile payments in the Delhi-NCR region, combining the Technology Acceptance Model (TAM) with the Diffusion of Innovation Theory (IDT). A quantitative approach was employed, the data were collected through adapted standardized questionnaire via web-based survey from Delhi-NCR residents aged 16 and older, chosen through convenience sampling. The questionnaire featured 25 items based on IDT (covering aspects like compatibility, complexity, relative advantage, observability, and trialability) and 11 items based on TAM (focusing on perceived usefulness, ease of use, and user satisfaction), all measured on 5-point Likert scales and adapted from previous research. Ethical considerations, such as obtaining informed consent and ensuring confidentiality, were strictly followed. This research sheds light on the factors that drive mobile payment adoption, enhancing our understanding of consumer behaviour in a rapidly changing urban environment. newlineFindings: This study provides important insights into the factors that affect mobile payment adoption and user satisfaction. Key determinants such as trialability, complexity, compatibility, and observability were found to positively influence perceived usefulness and ease of use, whereas relative advantage did not have a significant effect. Additionally, perceived usefulness and ease of use were shown to enhance user satisfaction. The analysis of demographic factors revealed notable differences in user satisfaction based on age, education levels, and occupation, while factors like gender, marital status, income, and duration of app usage did not show significant variations. These findings enhance our understanding of the main drivers behind mobile payment adoption and satisfaction, offering valuable insights for stakeholders. newlineImplication: Present study offers significant theoretical and practical insights. From a theoretical perspective, it builds on the Technological Acceptance Model (TAM) by validating additional elements such as trialability, observability, and complexity, which provide a deeper understanding of the factors that affect technology adoption. On a practical level, the results emphasize the importance for mobile payment service providers to prioritize user-friendly features that improve trialability and compatibility, while also tackling perceived complexity to enhance user satisfaction. Marketing strategies should be tailored to account for demographic variations such as age, education, and occupation to increase adoption rates. Furthermore, policymakers can leverage these findings to create frameworks that support secure and inclusive mobile payment systems, while training initiatives can help raise awareness about the benefits and ease of use, fostering wider acceptance. newlineKeywords: Mobile Payment Systems, Technology Acceptance Model (TAM), Diffusion of Innovation Theory (IDT), User Satisfaction, Technology Adoption, Demographic Factors Delhi-NCR newline newline