Perception of Investors on the Adoption of Digital Payment in the FMCG Sector: an Empirical Study using Pls-Sem

Abstract

The quick digital transformation of India's financial system has had a big effect on fast-moving consumer goods (FMCG), as a lot of transactions need safe and easy payment solutions. There has been a lot of research on how consumers utilize digital payments, but not as much on how investors think about the digital maturity of FMCG companies. This study investigates the influence of four factors—perceived benefits, technological awareness, regulatory and policy support, and trust in digital payment systems—on investor perceptions regarding the adoption of digital payments in the FMCG business. We employed a quantitative method to collect primary data from individual Indian stock market investors, and we used Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze it. The results indicated that all four criteria had a significant and positive effect on investor perception, with Regulatory and Policy Support being the most influential predictor. The R² study indicated that the model accounted for 49.8% of the variance in investor perception, while evaluations of the measurement model confirmed both construct validity and reliability. These findings contribute to the growing literature on digital finance by highlighting the strategic significance of investor opinion in digital adoption, especially in high-frequency sectors such as FMCG. The report offers valuable information for organizations and policymakers aiming to align digital transformation goals with investment readiness and market confidence.