Barriers to Cashless Payment Adoption

Merla J. V.*, Deepha Jeya Merlin D.**
*-** Department of Commerce, Women's Christian College, Nagercoil, Kanyakumari, Tamil Nadu, India.
Periodicity:January - June'2025
DOI : https://doi.org/10.26634/jdf.3.1.21336

Abstract

The cashless payment system has experienced significant growth within the banking industry due to its convenience and numerous benefits, which makes cashless payments more appealing to consumers than traditional cash transactions. Despite these advantages, customers face barriers that hinder the full adoption of cashless payment systems. At the same time, customer trust plays a vital role in the adoption process, with factors like reliability, transparency, security, privacy, and responsiveness in digital payment platforms. This research aims to examine the barriers and trust determinants of cashless payment adoption using a convenience sampling method with a sample size of 120 respondents from Kanyakumari District. The results indicate that security concerns, digital illiteracy, and inadequate infrastructure are the primary barriers, while privacy, security measures, responsiveness, and reliability are critical in building trust among users. The study suggests various measures such as improving infrastructure, enhancing security features, and educating customers to promote the growth and adoption of cashless payment systems. Addressing these barriers and enhancing the understanding of customer trust will foster the rapid growth and adoption of cashless payment systems.

Keywords

Cashless Payments, Digital Payment, Consumer Trust, User Resistance, Cybersecurity Concerns.

How to Cite this Article?

Merla, J. V., and Merlin, D. D. J. (2025). Barriers to Cashless Payment Adoption. i-manager’s Journal on Digital Forensics & Cyber Security, 3(1), 49-53. https://doi.org/10.26634/jdf.3.1.21336

References

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[6]. Trivedi, H., & Sanchiher, S. (2023). Challenges in digital payment adoption in India. International Journal of Education, Modern Management, Applied Science & Social Science, 5(2), 32-38.
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