How Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) Affects the Usage of Digital Payments

Abstract

Purpose: This paper examines the digital payment systems adoption through the lens of the Technology Acceptance Model (TAM), focusing on how Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) influence user behaviour across different global contexts.

Design/Methodology/Approach: The study adopts a literature-based approach, synthesizing empirical findings from diverse regions, including India, Bangladesh, Kenya, China, Europe, and the United States. The existing studies are reviewed to check out how PU and PEOU interact with contextual factors such as trust, culture, and social influence.

Findings: The review highlights PU as the strongest driver of adoption, as users value efficiency, convenience, and security in financial transactions. PEOU serves as a facilitator, reducing barriers to entry and building confidence during initial use. The interplay of these constructs with cultural and social dynamics explains why adoption patterns vary across countries and demographic groups.

Originality: This paper offers a critical review of previous studies, highlighting the combined effect of PU and PEOU instead of studying them separately. This also highlights the implications for policymakers, technology innovators in finance, and banking organisations while identifying areas that need further investigation.

Paper Type: Research Thought