Barriers to Adoption of Digital Payment Methods in Pakistan

Abstract

The purpose of this study was to determine barriers to adoption of digital payment methods in Pakistan. The study examine all those factors or inhibitors that affect the consumer adoption of digital payment. Due to a number of problems, such as limited bank access, low trust and due to privacy risk individuals don’t use digital payment methods. Pakistan has low levels of electronic services. This study includes four independent variables that are the barriers mentioned in the framework in Chapter 2 named as privacy barrier, security barrier, ease of use and trust extracted from TRI 2.0 model that enhanced with barriers to technology acceptance. The study consists of following objectives in Chapter 1; to identify the effect of barriers on intention to use digital payment method. And methods to overcome those barriers. The study is based on quantitative methodology, which consists of questionnaire survey filled by mostly bank customers who are account holder but not using apps, SME employees, and university students within age group of 20 to 40 above from Punjab, Capital, Sindh and KPK. Four Hypothesis were created in chapter 2 and then tested with data collected from PLS-SEM, evaluated results show that two variables accepted as their results were significant . Results showed that Privacy has a negative impact on intention to use digital payment whereas trust has a positive impact on intention to use digital payment methods in Pakistan. This study will be helpful for other researchers in future to do research on qualitative data for more information