Abstract
Contactless payment is arguably the fastest growing payment methods across the globe. The purpose of this article is to do a study of the consumer acceptance of contactless payments in India using a survey sample of 165 respondents from Chennai. While technology acceptance model (TAM) has been normally used, the proposed model make use of seven variables (perceived usefulness, perceived ease of use, perceived risk, engagement, compatibility, trust and hedonic motivation) taking into consideration the customer, service provider and the technology eco system. Findings of the study indicates that perceived ease of use, compatibility and perceived usefulness were the main factors influencing contactless payment acceptance. This study extends the knowledge of consumer’s payment-decision making and provides insights into how to promote contactless payments.
Highlights
It wouldn’t be wrong to say that Govt. of India’s decision to go for demonetization way back on Nov. 2016 has provided the desired impetus for the country’s march towards digitisation
The primary goal of this article is to increase our current understanding of the factors that impact the consumer acceptance of contactless payment, in light of Technology Acceptance Model
The model developed proposed that contactless payment acceptance can be modelled with the variables, perceived usefulness, perceived ease of use, perceived risk, hedonic motivation, compatibility, trust and engagement
Summary
It wouldn’t be wrong to say that Govt. of India’s decision to go for demonetization way back on Nov. 2016 has provided the desired impetus for the country’s march towards digitisation. The digital revolution is taking the world by storm, and no other area we can say for sure has witnessed a metamorphosis similar to what has been seen on the payments and settlement systems. This has resulted in an increased digital option for the common man. Contactless payments involve technology which helps to make low value transactions possible This can be done by waving smartphones, key fobs or bank cards near payment terminals in order to make instant purchases (Turkmen & Degerli, 2015). The technology behind this payment mechanism, makes use of Near Field Communication (NFC) wherein communication happens between the NFC chips and the NFC enabled payment terminals which emit an electromagnetic field that can exchange data with
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