Exploring User Acceptance of Digital Payments in India: An Empirical Study Using an Extended Technology Acceptance Model in the Fintech Landscape

Abstract

India has experienced a significant digital payments transformation, driven by technological advancements, smartphone penetration, and government initiatives. This research explores the role of digital payments and mobile payments in India's Fintech revolution. Using an extended technology acceptance model, the study investigates user acceptance and perceived usability. The research identifies factors influencing perceived usefulness, behavioral intention, and actual usage of digital payments. Four constructs—Financial Literacy, Trust and Privacy, Service Quality, and Perceived Ease of Use—are analyzed using structural equation modeling. The results show the growing adoption of digital and mobile payment platforms like Paytm, Google Pay, and PhonePe, even among financially excluded segments. However, financial literacy does not directly impact digital payment acceptance. The study concludes that digital and mobile payments have disrupted the payment landscape in India, bringing efficiency and simplicity. Enhancing financial literacy is crucial for wider adoption. The findings contribute insights for businesses, policymakers, and users in leveraging the benefits of digital and mobile payments during India's Fintech revolution.