Consumer Trust, Security Perception, and Resistance toward Cashless Payment Systems: Evidence from Madurai District

Abstract

The rapid proliferation of cashless payment systems in India has transformed the financial landscape, yet adoption remains uneven across urban and semi-urban populations. This study investigates the interplay among consumer trust, security perception, and resistance toward cashless payment systems among residents of Madurai District, Tamil Nadu. Grounded in the Technology Acceptance Model (TAM), Innovation Resistance Theory (IRT), and the Trust-Risk framework, the study employs a quantitative cross-sectional research design with data collected from 400 respondents selected through stratified random sampling. Primary data were gathered using a structured questionnaire comprising five-point Likert-scale items validated for reliability (Cronbach's alpha > 0.80) and construct validity. Statistical techniques including descriptive statistics, exploratory factor analysis (EFA), Pearson correlation, multiple regression analysis, and structural equation modeling (SEM) were applied using SPSS 26.0 and AMOS 24.0. The findings reveal that consumer trust exerts a significant positive influence on cashless payment adoption, while security perception mediates the relationship between trust and adoption intention. Innovation resistance, driven largely by usage barriers and value barriers, significantly inhibits cashless payment uptake. Demographic variables including age, education, and income level moderate these relationships. The study contributes to the understanding of behavioral determinants in digital payment ecosystems within the South Indian context, offering actionable insights for fintech providers, commercial banks, and policymakers seeking to enhance digital financial inclusion.