IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v12y2023i4p459-473.html
   My bibliography  Save this article

Impact of Demographic Factors on Consumer’s Usage of Digital Payments

Author

Listed:
  • Sarika Lohana
  • Deepankar Roy

Abstract

The post-demonetization phase in India has triggered more cashless transactions; a shortage of cash in the system had forced consumers to shift themselves from cash to cashless transactions. In the retail space, the thrust has shifted on costs, as banks continued their efforts towards migrating customers to lower-cost electronic and automated channels to reduce human intervention. On the contrary, it is also vital to check the customers’ demographic impact on the usage of digital payment services. The objective of the study is to analyse the changing customer dynamics and improve the customer experience from the outcome. This article aims to investigate the impact of demographic factors on consumer usage (CU) of Digital payments during post-demonetization. Further, exploring the impact of demographic factors (gender, age, education, marital status and income) on CU and satisfaction of 599 respondents towards various digital payment methods in tier I and tier II cities of India. The results show a significant impact of age, education, occupation, and income of respondents and no significant impact of gender and marital status of the respondents on consumers’ usage. The outcomes of the current work revealed useful insights into consumer’s usage and satisfaction with four prevailing digital payment methods vis-à -vis demographic factors. This study is significant as it empirically examines the impact of demographic factors on the CU of digital payment systems during the post-demonetization period in India.

Suggested Citation

  • Sarika Lohana & Deepankar Roy, 2023. "Impact of Demographic Factors on Consumer’s Usage of Digital Payments," FIIB Business Review, , vol. 12(4), pages 459-473, December.
    • Handle: RePEc:sae:fbbsrw:v:12:y:2023:i:4:p:459-473
    DOI: 10.1177/23197145211049586
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/23197145211049586
    Download Restriction: no
    File URL: https://libkey.io/10.1177/23197145211049586?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Scott, Susan V. & Van Reenen, John & Zachariadis, Markos, 2017. "The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services," Research Policy, Elsevier, vol. 46(5), pages 984-1004.
    2. Scott Schuh & Joanna Stavins, 2013. "How Consumers Pay: Adoption and Use of Payments," Accounting and Finance Research, Sciedu Press, vol. 2(2), pages 1-1, May.
    3. Buckley, Ross P. & Malady, Louise, 2015. "Building consumer demand for digital financial services – the new regulatory frontier," Journal of Financial Perspectives, EY Global FS Institute, vol. 3(3), pages 122-137.
    4. Sharma, Sujeet Kumar & Mangla, Sachin Kumar & Luthra, Sunil & Al-Salti, Zahran, 2018. "Mobile wallet inhibitors: Developing a comprehensive theory using an integrated model," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 52-63.
    5. Sudarsan Jayasingh & Uchenna Cyril Eze, 2012. "Analyzing the Intention to Use Mobile Coupon and the Moderating Effects of Price Consciousness and Gender," International Journal of E-Business Research (IJEBR), IGI Global, vol. 8(1), pages 54-75, January.
    6. Sangita Dutta Gupta & Ajitava Raychaudhuri & Sushil Kumar Haldar, 2018. "Information technology and profitability: evidence from Indian banking sector," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 13(5), pages 1070-1087, November.
    7. Borzekowski, Ron & Kiser, Elizabeth K., 2008. "The choice at the checkout: Quantifying demand across payment instruments," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 889-902, July.
    8. David-West, Olayinka & Iheanachor, Nkemdilim & Kelikume, Ikechukwu, 2018. "A resource-based view of digital financial services (DFS): An exploratory study of Nigerian providers," Journal of Business Research, Elsevier, vol. 88(C), pages 513-526.
    9. Porter, Constance Elise & Donthu, Naveen, 2006. "Using the technology acceptance model to explain how attitudes determine Internet usage: The role of perceived access barriers and demographics," Journal of Business Research, Elsevier, vol. 59(9), pages 999-1007, September.
    10. Schuh, Scott & Stavins, Joanna, 2010. "Why are (some) consumers (finally) writing fewer checks? The role of payment characteristics," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1745-1758, August.
    11. Vinayagamoorthy A. & Sankar C., 2012. "Mobile Banking –An Overview," Advances In Management, Advances in Management, vol. 5(10), October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ulf Kalckreuth & Tobias Schmidt & Helmut Stix, 2014. "Choosing and using payment instruments: evidence from German microdata," Empirical Economics, Springer, vol. 46(3), pages 1019-1055, May.
    2. Greene, Claire & Prescott, Brian & Shy, Oz, 2022. "How people pay each other: Data, theory, and calibrations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    3. Sergei Koulayev & Marc Rysman & Scott Schuh & Joanna Stavins, 2016. "Explaining adoption and use of payment instruments by US consumers," RAND Journal of Economics, RAND Corporation, vol. 47(2), pages 293-325, May.
    4. Vânia G. Silva & Esmeralda A. Ramalho & Carlos R. Vieira, 2017. "The Use of Cheques in the European Union: A Cross-Country Analysis," Open Economies Review, Springer, vol. 28(3), pages 581-602, July.
    5. Tobias Trütsch, 2016. "The impact of mobile payment on payment choice," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 30(3), pages 299-336, August.
    6. Rodrigo Lluberas & Joaquín Saldain, 2014. "Paper or plastic? Payment instrument choice in Uruguay," Documentos de trabajo 2014007, Banco Central del Uruguay.
    7. Mohammad Ashraful Ferdous Chowdhury & Mohammad Abdullah & Nurun Nowshin Chowdhury Nazia & Debarshi Roy, 2023. "The nonlinear and threshold effects of IT investment on the banking sector of Bangladesh," Economic Change and Restructuring, Springer, vol. 56(6), pages 4253-4283, December.
    8. Laine, Liisa T. & Ma, Ching-to Albert, 2017. "Quality and competition between public and private firms," Journal of Economic Behavior & Organization, Elsevier, vol. 140(C), pages 336-353.
    9. Joanna Stavins, 2017. "How do consumers make their payment choices?," Research Data Report 17-1, Federal Reserve Bank of Boston.
    10. Arango, Carlos & Huynh, Kim P. & Sabetti, Leonard, 2011. "How do you pay? The role of incentives at the point-of-sale," Working Paper Series 1386, European Central Bank.
    11. Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
    12. Kosse, Anneke, 2013. "Do newspaper articles on card fraud affect debit card usage?," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5382-5391.
    13. Tamas Briglevics & Scott Schuh, 2013. "U.S. consumer demand for cash in the era of low interest rates and electronic payments," Working Papers 13-23, Federal Reserve Bank of Boston.
    14. Jaemin Son & Mehmet Huseyin Bilgin & Doojin Ryu, 2022. "Consumer choices under new payment methods," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-22, December.
    15. Iheanachor, Nkemdilim & Umukoro, Immanuel, 2022. "Partnerships in digital financial services: An exploratory study of providers in an emerging market," Journal of Business Research, Elsevier, vol. 152(C), pages 425-435.
    16. Anneke Kosse, 2013. "The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers," International Journal of Central Banking, International Journal of Central Banking, vol. 9(4), pages 77-98, December.
    17. Geoffrey R. Dunbar, 2019. "Demographics and the demand for currency," Empirical Economics, Springer, vol. 57(4), pages 1375-1409, October.
    18. Ulf Von Kalckreuth & Tobias Schmidt & Helmut Stix, 2014. "Using Cash to Monitor Liquidity: Implications for Payments, Currency Demand, and Withdrawal Behavior," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(8), pages 1753-1786, December.
    19. Ben Fung & Kim Huynh & Leonard Sabetti, 2012. "The Impact of Retail Payment Innovations on Cash Usage," Staff Working Papers 12-14, Bank of Canada.
    20. Kim Huynh & Jozsef Molnar & Oleksandr Shcherbakov & Qinghui Yu, 2020. "Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency," Staff Working Papers 20-7, Bank of Canada.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:fbbsrw:v:12:y:2023:i:4:p:459-473. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.