Impact of digital payment systems on consumer behavior

Abstract

The influence of digital payment methods on consumer behavior was examined in this thesis in Helsinki, Espoo, and Vantaa, three of Finland's most technologically sophisticated and urbanized cities In order to investigate how customer preferences, trust, and behavioral intentions change in reaction to technology improvements in financial services, the study concentrated on three primary digital payment methods: online transactions, contactless card payments, and MobilePay.

Targeting adult customers in the chosen cities between the ages of 18 and 65, the study's primary data collection method was a structured online survey. 101 people answered the survey after it was disseminated through social media and neighborhood associations. Questions in the survey were taken from well-known frameworks, including the Unified Theory of Acceptance and Use of Technology (UTAUT), the Technology Acceptance Model (TAM), and the Consumer Behavior Theory. The information was organized into four sections: behavioral intentions, attitudes and views, usage patterns, and demographic data.

According to the findings, 71.3% of respondents said they used contactless payments every day, making them the most popular option. Despite widespread awareness, just 3% of people used MobilePay every day, which was lower than anticipated. With 65.3% of transactions occurring online each week, they continue to be crucial. Finnish digital payments were assessed as safe and private by 62.4% of respondents, indicating a high level of trust in digital infrastructure. Remarkably, 55% of users between the ages of 55 and 65 reported using contactless cards every day. Just 0.9% of respondents preferred using cash, making it all but defunct. A small percentage (6.9%) was still hesitant to offer digital payments, indicating pockets of reluctance that could be brought on by unfamiliarity or privacy concerns. The study concluded that digital payment methods have a major impact on consumer behavior in metropolitan areas of Finland.