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Does Previous Experience with the Unified Payments Interface (UPI) Affect the Usage of Central Bank Digital Currency (CBDC)?

Author

Listed:
  • Munish Gupta

    (University School of Business, Chandigarh University, Mohali 140413, India)

  • Sanjay Taneja

    (University School of Business, Chandigarh University, Mohali 140413, India)

  • Vikas Sharma

    (University School of Business, Chandigarh University, Mohali 140413, India)

  • Amandeep Singh

    (Chitkara Business School, Chitkara University, Rajpura 140401, India)

  • Ramona Rupeika-Apoga

    (Faculty of Business, Management and Economics, University of Latvia, LV-1586 Riga, Latvia)

  • Kshitiz Jangir

    (Department of Business Administration and Commerce, Manipal University Jaipur, Jaipur 303007, India)

Abstract

In this study, we examined the influence of users’ experiences with the unified payments interface (UPI) system on the usage behavior of central bank digital currency (CBDC) in India. Our research developed a novel conceptual framework that investigated the relationships between technology, cognitive factors, and behavioral intentions towards CBDC use. The framework integrated UPI usage experience as a moderator within existing models of behavioral intentions and use behaviors. We collected data through a survey conducted in major Indian cities during the pilot launch of CBDC. By utilizing a partial least squares structural equation model (PLS-SEM), we analyzed the proposed model and the relationships between the constructs. Our findings revealed the significant impact of hedonic motivation and performance expectancy on users’ behavioral intentions towards CBDC. Social influence also played a significant role in CBDC usage. Furthermore, we identified that prior UPI usage negatively moderated the relationship between performance expectancy and behavioral intention, as well as the relationship between social influence and use behavior. However, prior UPI usage did not significantly moderate the relationships between perceived risk, hedonic motivation, behavioral intention, and use behavior. These findings contribute to our understanding of the factors influencing CBDC adoption and usage behavior in India.

Suggested Citation

  • Munish Gupta & Sanjay Taneja & Vikas Sharma & Amandeep Singh & Ramona Rupeika-Apoga & Kshitiz Jangir, 2023. "Does Previous Experience with the Unified Payments Interface (UPI) Affect the Usage of Central Bank Digital Currency (CBDC)?," JRFM, MDPI, vol. 16(6), pages 1-23, May.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:6:p:286-:d:1155218
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    References listed on IDEAS

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    1. Ibn Kailan Abdul-Hamid & Aijaz A. Shaikh & Henry Boateng & Robert E. Hinson, 2019. "Customers' Perceived Risk and Trust in Using Mobile Money Services—an Empirical Study of Ghana," International Journal of E-Business Research (IJEBR), IGI Global, vol. 15(1), pages 1-19, January.
    2. Ghazanfar Ali Abbasi & Lee Yin Tiew & Jinquan Tang & Yen-Nee Goh & Ramayah Thurasamy, 2021. "The adoption of cryptocurrency as a disruptive force: Deep learning-based dual stage structural equation modelling and artificial neural network analysis," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-26, March.
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