Determinants inhibiting digital payment system adoption: an Indian perspective

Purpose - The main purpose of this study is to identify the determinants that inhibit the adoption or usage of digital payment systems (DPSs) in India. Design/methodology/approach - This study used a qualitative technique, including in-depth semi-structured interviews. Data analysis was conducted using thematic analysis, incorporating both deductive categorisation and inductive coding to identify factors responsible for the non-adoption or discontinuation of DPS use. Findings - The findings are in the form of themes and sub-themes that were generated from the data analysis: digital divide (DD), which includes the digital access divide, digital capability divide and digital innovativeness divide; socio-demographic divide (SD), which includes education, geographical location, gender, age and income; psychological barriers, which include a lack of perceived ease of use, vulnerability to risks, technophobia and a lack of trust; and other barriers, which include a lack of awareness, a cash-dominated society and a lack of interoperability. Research limitations/implications - The factors identified in this research can be further validated and tested in future studies using quantitative data. This will enable stakeholders to better comprehend the impacts of these factors on DPS adoption or usage. Practical implications - The study’s practical implications are specifically relevant to the Union Territory (UT) administration of Ladakh, as there is a DD and an SD among different sections of the population of the UT of Ladakh. UT administrations must prioritise efforts to eliminate these divides. The implications for banks and DPS providers are that they should conduct financial literacy training about DPSs in remote rural areas and invest in developing user-friendly and simplified DPS user interfaces to improve relationships with DPS users and their long-term retention. Originality/value - The findings of this study reveal the three levels of the DD that determine DPS adoption or usage, which have not been discussed together in the literature in the DPS context and that must be addressed to expand DPS adoption, thus providing a more holistic view of the DD in the context of DPS.