Psychological Factors Influencing Credit Card Usage of Employees in Colombo District, Sri Lanka

Abstract

Credit card is one of the trending cashless transaction methods used worldwide with the advancement of technology. Records in Central Bank of Sri Lanka (CBSL) show the demand and the number of credit cards issued are increasing day by day due to different reasons. Researchers have revealed that different demographic, socio-economic and credit card attributes were reasons for use of credit cards among different types of credit card holders. But the influence of psychological factors is also a subject of considerable research. Therefore, the objective of this research is to identify the influential psychological factors on credit card usage of employees in the Colombo district. With the aid of different sampling techniques where necessary, 385 respondents were selected for the sample. Required data were collected through a structured questionnaire and psychological variables were measured by ten-point Likert Scale Statements. Multiple linear regression analysis was carried out with the aid of Minitab 20. Results of the study revealed that the perceived financial cost, user pattern, social status and attitudes are highly influential psychological factors while convenience and financial optimism have not significantly influenced the credit card usage of employees in the Colombo district. Future research is suggested to identify the influence of similar factors for other districts and commercial banks separately, and apply advanced analysis to identify the latent factors that affect credit card usage of employees in the Colombo district.