Impact of Demographic Factors on Consumer’s Usage of Digital Payments

Abstract

The post-demonetization phase in India has triggered more cashless transactions; a shortage of cash in the system had forced consumers to shift themselves from cash to cashless transactions. In the retail space, the thrust has shifted on costs, as banks continued their efforts towards migrating customers to lower-cost electronic and automated channels to reduce human intervention. On the contrary, it is also vital to check the customers’ demographic impact on the usage of digital payment services. The objective of the study is to analyse the changing customer dynamics and improve the customer experience from the outcome. This article aims to investigate the impact of demographic factors on consumer usage (CU) of Digital payments during post-demonetization. Further, exploring the impact of demographic factors (gender, age, education, marital status and income) on CU and satisfaction of 599 respondents towards various digital payment methods in tier I and tier II cities of India. The results show a significant impact of age, education, occupation, and income of respondents and no significant impact of gender and marital status of the respondents on consumers’ usage. The outcomes of the current work revealed useful insights into consumer’s usage and satisfaction with four prevailing digital payment methods vis-à-vis demographic factors. This study is significant as it empirically examines the impact of demographic factors on the CU of digital payment systems during the post-demonetization period in India.