Perceived Risk Act as an Antecedent Towards the Usage of Digital Payment System

Abstract

India is a nation of diversity with unity. One such example is digital payment system, but every good action is backed by a nuisance action i.e. Online Payment Fraud. The fraud brings in the concept of risk in the mindset of users. Thus, the study focusses on the perceived risk which acts as a barrier to use the digital payment system. The study also focuses on the impact of the elements of perceived risk (financial risk, security risk, performance risk and social risk) and the demographic variables (age and gender) on perceived risk and eventually impacting the intention to use digital payment system. The findings suggested that increase in number of fraud cases have made the perceived risk strong component for the intention to use digital payment system. The results shows that risk elements and demographic variables were significantly impacting the perceived risk that was restricting the users to use digital payment system. The curbing down of frauds and enhancing the people knowledge about the digital payment system can curtail the perceived risk concept from the mindset of users.