Consumer Adoption of Iot Enabled Digital Payment Systems

Abstract

Industry 4.0 technologies are shifting rapidly, and IoT-integrated payment solutions such as smart devices and contactless systems have changed the way transactions are done in terms of convenience, security, and user experience. This research examines the impact of IoT-enabled technologies on digital payment adoption and consumer behavior and also to analyze the factors influencing consumer behavior intention towards IoT enabled digital payments, particularly perceived ease of use, consumer trust, and perceived risk, The research comprised a sample of 192 respondents, collected through a purposive sampling approach focusing on individuals experienced in digital payment system. The PES SEM model is used in the study to exhibit the effect of perceived ease of use, consumer trust, and perceived risk on consumer’s usage behavioural intention regarding IoT-enabled digital payments. The findings exhibit that perceived ease of use has the most significant positive impact on usage behavioral intention, followed by trust and security. Perceived risk has a favorable but smaller effect, implying that although risk perceptions exist, they continue using digital payment systems due to increased familiarity and trust. The model shows that it is able to clarify significantly (R² = 0.638) and make accurate forecasts (Q² = 0.617). The findings add to the literature on adoption of technologies by showing that the Technology Acceptance Model (TAM) could be used in payment circumstances that use the Internet of Things (IoT).