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Determinants in adopting cashless payments in Europe: a multilevel analysis

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  • Jose Domingo García-Merino

    (University of the Basque Country (UPV/EHU))

  • Leire San-Jose

    (University of the Basque Country (UPV/EHU))

  • Nerea San-Martin

    (University of the Basque Country (UPV/EHU))

Abstract

The use of electronic currency for transactions, denoting a cashless paradigm, has become increasingly common. However, this financial innovation is not prevalent in all countries. This study aims to explain the discrepancies across countries, including individual and country factors. It may be superficially posited that this lag in development stems from individual or microlevel usage challenges. However, the application of the Technology Acceptance Model highlights the presence of overarching characteristics conducive to extensive adoption. Thus, an additional stratum, the multilevel perspective, needs to be examined. This analytical framework incorporates not only individual attributes but also the sociotechnical framework or meso-level factors in which they operate. A multilevel econometric model is used. The results of these analyses show that the impact on the adoption of cashless payments extends beyond individual factors (attitude to technology use, perceived usefulness, and perceived ease of use). Our primary contribution, conceptually and empirically, is to broaden the analysis vision. A comprehensive multilevel analysis revealed that broader contextual elements, such as infrastructure and national skills, exert a significant influence on the adoption of cashless transactions. Consequently, the widespread acceptance of cashless payment methods is not only contingent on individual choices but is also a collective phenomenon in which the surrounding environment plays a crucial role as a catalyst for the end users in the cashless economy.

Suggested Citation

  • Jose Domingo García-Merino & Leire San-Jose & Nerea San-Martin, 2025. "Determinants in adopting cashless payments in Europe: a multilevel analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-20, December.
    • Handle: RePEc:spr:fininn:v:11:y:2025:i:1:d:10.1186_s40854-024-00750-z
    DOI: 10.1186/s40854-024-00750-z
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