Investigation on the factors influencing the continuation intention to use digital wallet in the rural parts of India using extended UTAUT2

Kiruthikasri Lakshmanan and Nagarajan Shanmugavel

Asian Journal of Economics and Banking, 2025, vol. 9, issue 1, 22-47

Abstract: Purpose - This study aims to identify the significant factors that influence the continuation intention (CI) to use a digital wallet in the regions with low technology infrastructure and among the consumers possessing low levels of digital and financial literacy. Design/methodology/approach - Data for the study were collected from the rural parts of South India with 295 digital wallet users. Co-variance-based structural equation modelling (SEM) (CB-SEM) using maximum likelihood estimation method and Bayesian SEM (BSEM) approaches were executed to test the influence of independent variables on the dependent variable and to ensure the validation of the proposed hypothetical model. Findings - The results showed that trust, incentives, technology satisfaction (TS), facilitating condition, performance expectancy, effort expectancy, habit and hedonic motivation significantly influenced the CI to use a digital wallet. In addition, incentives positively impact habit for the CI to use a digital wallet. Research limitations/implications - The present study is based on the samples from the regions with low technology infrastructure and among the consumers possessing low levels of digital and financial literacy in the rural parts of South India, which limits the generalisation of results. Practical implications - The results provide impetus to the government, digital wallet marketers and users regarding how the CI to use a digital wallet can be encouraged among the low-adoption regions. Originality/value - This study remains unique as the assessment of CI to use a digital wallet was conducted in low-adoption regions (rural parts of India) in extending Unified theory of acceptance and use of technology 2 with TS. A comparison of results arrived from CB-SEM with those of the BSEM ensures that the validation of the hypothetical model is found to be another major methodological contribution towards the consumer behaviour literature.

Keywords: Trust; Incentives; Technology satisfaction; Rural India; Digital wallet; Continuation intention; C12; C51; C83; D11 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajebpp:ajeb-08-2024-0100

DOI: 10.1108/AJEB-08-2024-0100

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