Title: Cashless payments in India: an empirical study on credit card selection and usage preferences

Authors: Rashi Banerji

Addresses: Department of Management and Commerce, Manav Rachna University, Faridabad, Haryana, India

Abstract: RBI and GoI have put combined efforts through various policy measures like Aadhar enabled payments, UPI-based payments, financial inclusion, demonetisation, improved digital infrastructure, etc. to progress Indian economy towards cashless payments. Credit cards are one of the widely accepted out of many cashless payment methods. Credit cards are innovative financial instruments which provide multiple benefits to consumers including cashless payment facility, short term borrowing and access to reward program, lounges, memberships which make them unique. The present study aims to empirically test the credit card selection scale and credit card usage preferences of Indian consumers through structured equation modelling. This study aims to contribute to the literature by modifying the credit card selection criteria scale developed by Gan and Maysami in 2006. The findings suggest that scale must be modified for Indian consumers. Economics, flexibility, promotion, reputation and convenience emerged as important factors that influenced credit card selection, and demographic variables age and income influenced credit card usage preferences.

Keywords: cashless payments; credit card selection criteria; credit card usage; Indian consumer; age; income; emerging economy.

DOI: 10.1504/IJFSM.2020.113162

International Journal of Financial Services Management, 2020 Vol.10 No.4, pp.309 - 321

Received: 08 Jun 2019
Accepted: 01 Jul 2020
Published online: 22 Feb 2021 *

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