How neighbor influence negatively affects digital payment adoption in Vietnam

Abstract

This study aims to assess the impact of neighborhood effects (NEs) on the adoption of digital payments (DP), focusing specifically on the northern mountainous regions of Vietnam. The innovation of our research lies in integrating the UTAUT2 model with the theory of herd behavior (THB). By analyzing interview data from 427 respondents using structural equation modeling (SEM), we discovered that NEs exert both a direct negative and an indirect positive influence on the adoption of DP. However, the overall impact is significantly positive. This underscores the crucial role of information shared by relatives, friends and colleagues in promoting awareness of DP. The findings highlight the importance of neighbors in enhancing citizens’ awareness and usage of DP in their daily lives. The article also discusses implications and suggests directions for future research.

Keywords

• Neighborhood effect
• herd behavior
• digital payment
• UTAUT2 model
• digital payments adoption
• structural equation modeling