Challenges of Digital Payment Adoption in Developing Economies

Abstract

The Everyday monetary activities depend increasingly on digital financial transactions because of the convenience and speed they provide. Several issues stand in the way of broader digital payment system usage despite their increasing presence throughout Chennai. This research examines the principal user challenges by analyzing security issues along with usability problems and knowledge gaps. The research conducted factor analysis to find two essential behavioral factors which impact users. Users face challenges in two categories: security as well as trust and usability issues combined with insufficient knowledge about digital payment rules and support programs. Security matters to numerous users who continue expressing such concerns. User fears about transaction fraud, combined with interrupted payments and unstable internet connections, prevent people from moving to digital payment methods completely. Users remain uncertain because of digital platform reliability issues and the distrust of digital payment systems. Many digital payment consumers lack knowledge about payment functionality alongside security safeguards and support resources available during system issues. Systems face further erosion of trust because customers experience inadequate service support alongside little government oversight. Digital payment adoption in Chennai requires stronger cyber security protocols combined with expanded user education about digital literacy and enhanced customer service resources. The adoption of digital payments will become stronger through increased digital-friendly merchants combined with enhanced government policies and outreach activities. By solving these obstacles, the digital payment environment in the city will achieve improved security alongside enhanced efficiency.