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Adoption of digital payment systems in the era of demonetization in India: An empirical study

Brijesh Sivathanu (Symbiosis Centre for Information Technology, Symbiosis International University, Pune, India)

Journal of Science and Technology Policy Management

ISSN: 2053-4620

Article publication date: 5 January 2018

Issue publication date: 8 March 2019

10140

Abstract

Purpose

This study aims to investigate the actual usage (AU) of digital payment systems by the consumers during the period of demonetization (from November 9, 2016 to December 30, 2016) in India.

Design/methodology/approach

The conceptual frame work for this study is based on the unified theory of acceptance and use of technology (UTAUT 2) and innovation resistance theory. A total of 766 sample respondents were surveyed using a pre-tested questionnaire. The empirical validation of the framework and analysis was done using partial least squares (PLS)-structural equation modeling (SEM) technique.

Findings

The results suggest that the behavioral intention (BI) to use and innovation resistance (IR) affect the usage of digital payment systems. The relation between BI to use digital payment systems and the AU of digital payment systems is moderated by the stickiness to cash payments.

Research limitations/implications

This cross-sectional study is limited by geographic constraints and highlights the AU of digital payment systems by using the UTAUT 2 and IR theory only during the demonetization period.

Practical implications

This study offers valuable insights to the economists, policymakers and digital payment service providers regarding the usage of digital payment systems by consumers during demonetization.

Originality/value

This study assumes importance as it empirically examines the influence of BI and IR on the AU of digital payment systems during the demonetization period in India. This study empirically validates the moderating influence of stickiness to cash payments on the AU of digital payment systems.

Keywords

Citation

Sivathanu, B. (2019), "Adoption of digital payment systems in the era of demonetization in India: An empirical study", Journal of Science and Technology Policy Management, Vol. 10 No. 1, pp. 143-171. https://doi.org/10.1108/JSTPM-07-2017-0033

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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