The impact of digital payment system; evaluating willingess to pay

Abstract

This study investigates the factors influencing consumers' willingness to pay within the digital payment system in Lalitpur Sub-Metropolitan City. The primary objective is to identify specific factors within the digital payment system that affect consumers' willingness to pay. Additionally, the study aims to establish the relationship between perceived ease of use (PEU), perceived usefulness (PU), trust (TU), effort expectation (EE), and consumers' willingness to pay. Finally, it analyzes the impact of these variables on consumer willingness. To achieve these objectives, a mixed-methods approach was employed, combining quantitative surveys with qualitative interviews and focus groups. The survey data were collected from 273 respondents across various wards of Lalitpur, using random sampling to ensure a representative sample. The collected data were analyzed using SPSS software, applying both descriptive and inferential statistical techniques, including correlation and regression analysis. The analysis reveals that perceived usefulness and perceived ease of use significantly influence consumers' willingness to pay for digital payment systems. Trust also plays a crucial role, while effort expectation shows a negligible impact. The study's regression model demonstrates that perceived usefulness has the highest positive impact on willingness to pay, followed by perceived ease of use and trust. Policy implications of this study suggest that enhancing the perceived usefulness and ease of use of digital payment systems can significantly increase consumer adoption. Building trust in these systems through robust security measures and transparent policies is also essential. Policymakers and stakeholders should focus on these areas to promote the adoption of digital payments, thereby contributing to broader financial inclusion and digital transformation goals. Keywords: CW, PEU, PU, TU, EE etc.