Impact of Perceived Ease of Use on Adoption of Digital Payment Systems in Tiruchirappalli District: The Mediating Role of Consumer Trust

Abstract

Purpose: This study investigates the key forces behind the adoption of digital payments in the rapidly growing digital economy of India. In particular, it examines how Perceived Ease of Use (PEOU) influences the adoption of digital payment systems and the mediating effect of Consumer Trust in this correlation with narrowed research on the Tiruchirappalli district of Tamil Nadu.

Methodology: A quantitative research design was used whereby a structured questionnaire was used to gather data on 440 participants, comprising of students, traders, and employees in the urban and semi-urban regions of Tiruchirappalli. To guarantee that the respondents were acquainted with the digital payment tools at the basic level, the study used purposive sampling. Analysis of data was done in the form of Partial Least Squares Structural Equation Modelling (PLS-SEM) which was done to assess measurement model (reliability and validity) and structural model (path analysis and mediation).

Findings: The findings show that there is a high positive influence of Perceived Ease of Use on the Consumer Trust as well as actual adoption of digital payment systems. Remarkably, in the path analysis, Consumer Trust is found to be a powerful significant mediator. This implies that although an easy-to-use interface is vital in attracting users, it is the trust on the reliability and security of the system that will lead to long-term adoption. The model reveals the 58.4 percent of the variability in the adoption behavior of the residents of the study area.

Practical Implications: The results offer strategic implications to Fintech developers and policy makers. In order to make Tier-2 cities such as Trichy more digital, providers should prioritize a so-called Trust-by-Design methodology that ensures the ease of user experience can be converted to perceived financial safety and technical stability.

Originality/Value: This has given a contribution to the Technology Acceptance Model (TAM) by confirming that Trust is a critical psychological bridge in a local, Tier-2 Indian setting and a gap that usually goes unnoticed by studies in metropolitan settings.