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

Munish Gupta, Sanjay Taneja, Vikas Sharma, Amandeep Singh, Ramona Rupeika-Apoga () and Kshitiz Jangir
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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

JRFM, 2023, vol. 16, issue 6, 1-23

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.

Keywords: central bank digital currency; unified payments interface; use behavior; behavioral intention; performance expectancy; hedonic motivation; social influence; perceived risk; UPI usage experience; India (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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