Factors influencing the adoption of cashless transactions: toward a unified view

Abstract

Purpose – This study aims to construct an appropriate framework by incorporating essential components from the most renowned theories to investigate the variables that impact behavioural intentions towards embracing cashless transactions (CLT). Design/methodology/approach – A survey was conducted to ascertain the users’ intention to adopt CLT in Chennai, Tamil Nadu, India. Further, this study used a “partial least squares-based structural equation modelling” technique to analyse the relationships between latent factors. Findings – The results of the proposed model revealed that 11 independent variables together explain the intention to use CLT with a 60.5% explanatory power. Further, perceived usefulness is the most influential factor in predicting users’ willingness to adopt CLT, followed by social influence, perceived costs, attitude, trust and device barriers. Finally, the findings of moderator effects indicate that income and experience interact positively and strongly with behavioural intention to adopt CLT. It indicates that high-income, experienced users are more likely to convert their intentions into actions. Originality/value – This study integrated critical elements from the major theories, such as Theory of Reasoned Action, Technology Acceptance Model, Decomposed Theory of Planned Behaviour, the unified theory of acceptance and use of technology (UTAUT) model and UTAUT2, to investigate the adoption of CLT. As a result, 11 crucial factors were identified from the existing literature that impacts CLT adoption without overlapping. Consequently, the model presented in this study provides a more profound understanding than previous research regarding why individuals adopt CLT systems. Accordingly, these results could aid policymakers in addressing people’s concerns and facilitating a seamless transition to a cashless society.

Keywords

• Cashless transactions
• Behavioural intention
• TAM
• UTAUT
• PLS-SEM
• India