User Perception On Benefits And Problems Associated With Digital Transactions In The Covid Era

Abstract

Digital transactions are given a big push in India and this becomes more relevant given the COVID pandemic situation since handling of hard cash may be a vector of the deadly virus. Consumer transformation to digital transaction depends on their perceived benefits and problems. Thus the main objective of the study was to examine the consumers’ perception of benefits and problems associated with digital transactions. Primary data was collected from 122 respondents who use digital payment modes in a suburban area of Virudhunagar in India. Data was collected using a structured questionnaire with five point Likert scale. Chi square for cross tabulation was used to find if there was a significant difference between the difference groups of respondents. Linear regression was used to find the impact of the factors on the overall preference towards digital transactions. It was found that a large portion of the respondents have used debit cards followed by net banking Paytm and Google pay and few respondents have used credit cards, Phonepe, etc. Fear of misuse of personal information and fear of losing security and safety of financial information had significant impact on the overall preference of digital transactions. It is suggested that if service providers can instil enough confidence on the security of data then most of the consumers will be confident on the digital transactions.