ADOPTION OF DIGITAL PAYMENT SYSTEMS AMONG RURAL AND URBAN CONSUMERS IN KERALA

The rapid advancement of financial technology has transformed the payment landscape in India. Digital payment systems have become increasingly popular due to their convenience, speed, and efficiency. Government initiatives promoting digital financial inclusion and the widespread use of smartphones have accelerated the adoption of digital payment platforms. The present study examines the adoption of digital payment systems among rural and urban consumers in Kerala. The study also analyses consumer perceptions and behavioural patterns regarding digital payment methods. Primary data were collected from 300 respondents using a structured questionnaire. The results indicate that urban consumers demonstrate higher adoption levels of digital payment systems compared to rural consumers due to better digital infrastructure and awareness. However, rural consumers are gradually adopting digital payments due to increasing smartphone penetration and government awareness programmes. The study highlights the importance of digital literacy, improved security mechanisms, and stronger digital infrastructure in promoting wider adoption of digital payment systems.

Keywords

digital payment systems, consumer behaviour, rural consumers, urban consumers, kerala, and financial technology.

References

Davis, F., D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008

Gupta, K., & Arora, N. (2020). Investigating consumer adoption of digital payment systems in India. International Journal of Bank Marketing, 38(5), 1083–1100.

National Payments Corporation of India. (2023). Annual report 2022–23. NPCI. https://www.npci.org.in

Reserve Bank of India. (2022). Annual report 2021–22. Reserve Bank of India. https://www.rbi.org.in

Singh, N., & Rana, N. P. (2017). Consumer adoption of internet banking in India: An extension of the technology acceptance model. International Journal of Bank Marketing, 35(4), 557–580.

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540

To cite this article

Anil Raj, V., Rajasekaran, A., & Misha, V. (2025). Adoption of Digital Payment Systems among Rural and Urban Consumers in Kerala. Sparkling International Journal of Multidisciplinary Research Studies, 9(1), 27-34.