Impact of Perceived Risk on Adoption of Digital Payment by Customers in Madurai City

Abstract

Digital payment services such as the Unified Payments Interface (UPI), mobile wallets, cards and internet banking have paved the way for customers to make everyday transactions in India. In spite of their convenience, customers hesitate to adopt them because of apparent financial loss, fraud, privacy invasion, transaction failure and uncertainty about dispute resolution. This study is designed to examine the impact of perceived risk on the adoption of digital payment by customers in Madurai city. The main objective is to identify the key dimensions of perceived risk and to observe the relationship between perceived risk and digital-payment adoption, including differences in risk perceptions across selected demographic groups. A descriptive and analytical research design is proposed where primary data is collected through a structured questionnaire from adult customers in Madurai city. The statistical tools used are Percentage analysis, standard deviation, Pearson correlation and one-way analysis of variance (ANOVA). The previous research study indicates that people can stop from wanting to adopt a new technology or behavior when they sense risk. The specific type of risk that matters the most depends heavily on the state of the situation. Since primary data were supplied, the numerical analysis establishes a strong empirical conclusion about customers in Madurai city. The framework helps researchers and service providers to identify the concerns of the customer and to develop digital-literacy, security-awareness and grievance-redressal initiatives.