Exploring the drivers of digital payment system adoption in an emerging economy: The mediating role of user satisfaction among youth in Dhaka, Bangladesh

Sinha Marzuka Sultana; Sadman Kabir; Nurun Nahar; Zeba Alam

doi:10.56879/ijbm.v5i4.169

Authors

Sinha Marzuka Sultana Bangladesh University of Professionals Author https://orcid.org/0009-0003-2232-9296
Sadman Kabir Bangladesh University of Professionals Author https://orcid.org/0000-0002-1619-4140
Nurun Nahar Bangladesh University Author https://orcid.org/0009-0009-9606-5805
Zeba Alam Bangladesh University of Professionals Author

DOI:

https://doi.org/10.56879/ijbm.v5i4.169

Keywords:

Performance Expectancy, Effort Expectancy, Trust, Perceived Risk, Digital Literacy, Social Influence, User Satisfaction, Adoption Of Digital Payment Systems

Abstract

The purpose of this study is to investigate the mediating effect of user satisfaction in the adoption of digital payment systems in Bangladesh. Data was collected from 303 active users of digital payments using a structured questionnaire survey and evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM) utilizing SmartPLS 4 and SPSS. The structural model was used to examine the suggested hypotheses and the measurement model was evaluated to determine the validity and reliability of constructs. The findings show that the relationships between performance expectancy, trust, digital literacy, and social influence with digital payment adoption are significantly mediated by user satisfaction. However, the impacts of perceived risk and effort anticipation on adoption behavior are not significantly mediated by user satisfaction. The results highlight the importance of experiential factors in influencing emerging economies' decisions to adopt digital payments. In the context of Bangladesh, the study adds to the field of literature by combining social, psychological, and technological factors into a single satisfaction-based framework. Digital payment providers and legislators can translate these results into greater initiative for digital literacy and social-trust building campaigns, besides improving service quality.

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Author Biographies

Sinha Marzuka Sultana, Bangladesh University of Professionals

Sinha Marzuka Sultana is a Lecturer in the Department of Business Administration in Finance and Banking under the Faculty of Business Studies at the Bangladesh University of Professionals (BUP). She started working as a Lecturer of Finance in the department in June 2024. Prior to that, she completed her BBA and MBA (Major in Finance) from the same University. In her teaching career of over 2 years, she taught courses like Principles of Finance, International Financial Management, Financial Technology, Monetary Economics, Financial Reporting and Accounting, and E-Commerce and E-Banking in BBA program.
Sadman Kabir, Bangladesh University of Professionals

Sadman Kabir is an Assistant Professor of Finance in the Department of Business Administration- General under the Faculty of Business Studies at the Bangladesh University of Professionals (BUP). He started working as a Lecturer of Finance in the same department back in February 2020. Prior to that, he completed his BBA and MBA in Finance and Banking from the University of Rajshahi with merit. In his teaching career of more than 6 years, he taught courses like Principles of Finance, Financial Management, Corporate Finance, Investment Management, Financial Analysis and Control, Principles of Accounting in BBA, MBA, and MBA Professional programs. He has published several research papers in national and international Scopus indexed journals.