Dynamics of Technology Adoption During Street Vendors Acceptance of Digital Payment Apps: An Extension of UTAUT2 Using PLS-SEM

In this study, we employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the factors influencing the adoption of digital payment applications among street vendors. Street vendors, who significantly contribute to the informal sector, are well-known in India because they offer affordable goods and services at their customers’ doorsteps. Understanding the mechanics of technology adoption is essential to fostering digitalization in the unorganized sector. We performed a primary survey to get input from 306 street vendors in New Delhi, India for analysis. Three additional constructs—Privacy Risk, Security and Digital Literacy—were introduced to the UTAUT2 model and were tested using PLS-SEM. The results reveal that while digital literacy strongly influences behavioural intention among street vendors in India, privacy risk and security were not significantly influencing behavioural intention to use mobile-based digital payment applications. While street vendors have been ignorant of privacy risks and security, there are increasing cases of fraud and data leaks during digital transactions. Therefore, as a managerial implication, it is suggested that digital payment-based companies should pay close attention to conducting awareness programs on privacy risks and security for street vendors to ensure the smooth and safe adoption of digital payment apps in the informal sector.