Determinants of Electronic Payment System Adoption: Financial Literacy Across Demographic Cohorts

Abstract

Purpose: This study examines the influence of financial literacy on the adoption and usage of Electronic Payment Systems (EPSs) across different age groups, exploring how generational differences interact with financial knowledge to shape digital payment behaviors.

Design/Methodology/Approach: A systematic literature review was conducted following three-step approach, analyzing 47 studies published between 2013 and 2023. The review utilized databases including PubMed, Google Scholar, Elsevier, and Springer, with search terms related to financial literacy, electronic payment systems, and age groups.

Findings: The analysis revealed four key themes: (1) Financial literacy positively influences digital payment adoption, with financially knowledgeable individuals demonstrating greater willingness to engage with EPSs; (2) Generational attitudes toward electronic payments vary significantly, with younger generations showing higher comfort and adoption rates; (3) Financial education interventions can effectively promote digital payment adoption across age groups; and (4) Barriers to digital payment adoption include infrastructure limitations, trust issues, and varying levels of financial and digital literacy. The research demonstrates that age-specific approaches to financial education are essential for broader EPS adoption.

Originality: This study addresses significant gaps in the literature by specifically examining the intersection of financial literacy, electronic payment systems, and age demographics. Unlike previous research that predominantly focused on general populations, this work provides insights into how financial literacy affects EPS adoption across generational cohorts, offering targeted recommendations for age-specific interventions to enhance financial inclusion.

Paper Type: Review of Literature