Deciphering the influence of compatibility, trust, and perceived enjoyment on intention to use digital payments

The technological revolution in the present century resulted in the meteoric expansion of digital payments in the banking industry. Despite the escalating significance of digitalization in several sectors, existing literature largely neglected the underlying relationship between compatibility and trust in digital payments and users’ intention to use them. Anchored in the theory of technology acceptance (TAM), this study aims to devise a conceptual model to scrutinize the boundary conditions propelling individuals to use digital payments in the context of the banking industry. The model is evaluated through the data collected from 507 respondents from account holders in a middle-income country, India. The dynamic interplay among the key variables was tested after checking the measurement properties using LISREL software for structural equation modeling. The results from the hierarchical regression and PROCESS macros reveal that (i) perceived ease of use (PEOU) and perceived usefulness (PU) are positively associated with the actual use of digital payments, (ii) actual use of digital payments is significant and positively related to customer satisfaction, and (iii) customer satisfaction is a precursor to customers’ intention to continue using digital payments. The results also support the three-way interaction between (i) PEOU, compatibility, and trust and (ii) PU, compatibility, and trust in influencing the actual use of digital payments. The findings indicate that perceived enjoyment significantly and positively moderated the relationship between the actual use of digital payments and customer satisfaction. This study offers several recommendations for practicing managers in companies engaging in digital transactions. This study underscores the importance of PEOU and emphasizes the minimization of steps in completing digital payments. Further, this study recommends that companies identify the conditions under which customers feel digital transactions could be more helpful. By demystifying the antecedents to the use of digital payments, the findings from this study accentuate the pivotal role of trust, compatibility, and perceived enjoyment and enrich the theoretical landscape of TAM.