Adoption of Emerging Digital Technologies in Financial Services: A Behavioural Study of Third-Party Payment Aggregators in India

Abstract

Digital banking is essentially about using the internet and mobile technology to effectively carry out and manage your banking needs from anywhere without having to be physically present in a bank. After the demonetarization and Covid-19 pandemic, digital banking in India entered the new phase with the advent of Unified Payment Interface (UPI). A payment aggregator is basically a middleman that makes online payments simple and seamless. The Indian payment aggregator market handled transactions worth about INR 265 trillion in FY 2023-24, and this figure is expected to almost double, reaching nearly INR 593 trillion by FY 2028-29. This study employed the purposive sampling technique to collect the samples. The primary data were collected through a survey instrument in the form of a questionnaire. Out of the 600 questionnaires distributed, 572 were successfully completed and deemed valid for analysis. Some limitations arose in collecting information from TPPA users, which slightly constrained the data-gathering process. The primary tool for this study was a questionnaire designed using a five-point Likert scale to measure respondents’ perceptions and attitudes. To analyse the data, the study applied SPSS, PLS-SEM through SmartPLS4. This approach allows a thorough assessment of both the measurement and structural models which provide more reliable and precise estimates. The results found that effort expectancy, perceived and social influence has a significant influence on behavior intention of adopting Third Party Payment aggregators in India. And the variables like facilitating condition, perceived cost, performance expectancy and perceived trust have less significant impact on behavior intention.