An application of the extended UTAUT model to understand the adoption of cashless transactions: evidence from developing country

Abstract

Purpose This study aims to identify the factors influencing cashless transactions toward digital payment systems using the extended UTAUT model in developing countries. This model was extended with perceived usefulness, perceived ease of use, facilitating conditions, perceived security/trust and social influence for assessing consumer behavior toward cashless transactions. Design/methodology/approach Using structural equation modeling (SEM), this study conducted a cross-sectional survey to collect data, providing a snapshot of the relationship between exogenous and endogenous variables. Findings The results of the study indicate that perceived usefulness, facilitating conditions, perceived trust/security and social influence have a significant influence on consumer intentions toward cashless transactions. Oppositely, leaving the perceived ease of use has no significant influence on consumer intentions toward the usage of cashless transactions. Originality/value The contribution of this study is to extend the UTAUT model for adopting cashless transactions in developing countries that will help government agencies, service providers and financial institutions design effective strategies in the future.