Determinants of Customers' Acceptance of Electronic Payment System in Indian Banking Sector - A Study

Internet is perhaps one of the most important tools to businesses and individuals in the recent world economy. Globalization, financial liberalization and technology revolution have opened the door of new and more efficient delivery and processing channels as well as more innovative product and services in banking industry. With increased educational qualification and growing wealth consumers' need and expectations are continually changing and they are involving themselves more and more in their financial decisions. After deregulation and reforms in Indian Banking scenario payment systems like Debit Card, Credit Card, ECS, EFT, RTGS, NEFT have offered variety of services to the customers. Despite the growth of electronic payment system over physical check-based system, its rate of adoption in India especially in Metro cities like Kolkata has been relatively slow. Its slow adoption rates raise many questions.. The aim of the study is to determine the factors influencing consumer's adoption on the light of Technology Acceptance Model. Survey based questionnaires are designed and Factor Analysis is used to find reliable and consistent factors. Proposed model illustrates the level of fulfillment of each acceptance factors and therefore predicts its adoption and indicates areas of improvement.