Factors Influencing E-payment Adoption and its Effect on Consumer Buying Behaviour in Bhutan

Abstract

Aims: This study examines the factors influencing adoption of e-payment systems in Bhutan and their effects on consumer impulse buying behaviour, providing insights into a developing country's digital payment landscape. Study Design: A quantitative research approach was used to analyse key determinants of e-payment adoption and their impact on consumer buying behaviour. Place and Duration of Study: Data were collected from 399 respondents in Thimphu and Phuntsholing from June to August 2024. Methodology: A structured questionnaire was distributed to selected e-payment users and regression analysis was conducted to explore the relationships among factors such as ease of use, perceived usefulness, trust, security, and social influences. Results: The findings indicate that perceived ease of use, security, and social influences significantly drive e-payment adoption. Conversely, trust negatively impacts adoption and perceived usefulness shows no significant effect. E-payment adoption positively influences consumer impulse buying behaviour. Conclusion: The acceptance of e-payments in Bhutan depends on ease of use, security, and social factors, with trust being a significant barrier. This research highlights the need for improved security measures and initiatives to build consumer trust, promote e-payment use and reduce impulsive buying. The findings provide insights for businesses and policymakers, including the Royal Monetary Authority and banks, to enhance digital payment infrastructure and consumer engagement in Bhutan. Future research should also examine cultural and contextual factors and rural perspective influencing e-payment adoption in emerging markets, aiding our understanding of digital payment systems in developing nations.