Impact of Psycho-Social Dimensions in Adoption and Use of Credit Cards: An Empirical Study from Pakistan

Abstract

Purpose: The main purpose of this study is to explore those psycho-social factors which are affecting the usage of credit cards in the present day. Furthermore, it is also aimed to investigate the impact of those factors like parental involvement, religiosity, impulsivity, compulsivity, locus of control, social status, customer attitude and financial distress on credit card usage in the context of Pakistan.
 Design/Methodology/Approach: For the purpose, the questionnaire has developed and distributed among users of credit cards in Bahawalpur region of Pakistan. This research is quantitative in nature and a probability sampling technique has been used to collect data. Moreover, regression analysis is used
 Findings: The results reveal that parental involvement, compulsivity, and financial distress have a significant impact on credit card usage. However, the study failed to find out any impact of impulsivity, locus of control and religiosity on credit card usage. Similarly, the customer attitude and social status also did not have any impact on usage of credit cards.
 Implications/Originality/Value: The results of this study extend help to the banks, financial institutions and, particularly, futures researches in the field of digital currency. It is also pertinent to mention that now it is a need of the time to start working and developing new digital banking tools and ways to compete in the digital world.