E-Payment: Buzz Word or Reality

Abstract

The e-payment system in India is experiencing a massive transformation. Mobile phones and e-commerce are growing rapidly and consumers are showing affinity towards digital technology. Indian government is also stepping up by launching “Digital India” initiative to accelerate the awareness, availability and adoption of digital technologies. Today Indian govt., businessman and people are exploring the possibility to move towards a cashless economy. Still these days’ cash remain main mode of transaction amongst the people. As per KPMG report 2017 and the rate of e-payment adoption is increased by approx. ten percent and expected to further increment. The purpose of the study is to analyze behavioral intentions of Indian consumer about e-payment with an application of the UTAUT2 model (unified theory of acceptance and use of technology). This study has applied UTAUT-2 model as a conceptual framework and has considered performance expectancy, effort expectancy, facilitating conditions, hedonic motivation, and habit. For this, the study has targeted 300 respondents based on non-probability convenience sampling method. The data would be processed and analyzed using SPSS version 20 and hypotheses would be performed by applying multiple regression analysis. The biggest challenge in the growth of e-payment in Indian is skeptical mindset of people and their concern about safety and security. People scare that their device can be hacked or virus can be attacked. These serious issues should be addressed by the govt. Furthermore, India faces the challenge of limited adoption of fixed broadband. The work needs to be done in terms of improving the internet infrastructure in the country. This study is contributing to the existing body of knowledge in area of e-payment where there is a research vacuum especially in context of India. Furthermore, it helps to understand the impact of UTAUT 2 models variates on behavioral intention among Indians about e-payment which is again researched by very few people. The outcomes of this study would be beneficial to govt., policy makers, banks, online transaction facilities providers and software developers in developing strategies about e-payment acceptance and use. As this study is confined to India only, its findings may be generalized to other countries directly.