Consumer Perception And Adoption Of Digital Payment Methods: A Study On Trust And Security Concerns

Abstract

The proliferation of digital payment methods has revolutionized the landscape of financial transactions, offering convenience and efficiency to consumers worldwide. However, the widespread adoption of these technologies is contingent upon consumers' trust in the security measures implemented by service providers. This review paper examines consumer perception and adoption of digital payment methods, focusing particularly on the role of trust and security concerns in shaping user behavior.

Drawing upon a comprehensive analysis of existing literature, this paper explores the factors influencing consumers' trust in digital payment systems, including security features, privacy protections, and regulatory frameworks. Additionally, it investigates the impact of perceived risks, such as data breaches and identity theft, on consumer willingness to adopt and utilize digital payment platforms.

Furthermore, this study delves into the strategies employed by service providers to enhance trust and mitigate security risks in digital payment ecosystems. These strategies encompass technological innovations, such as encryption and biometric authentication, as well as educational initiatives aimed at raising awareness about safe usage practices.

Through synthesizing empirical findings and theoretical frameworks from multidisciplinary sources, this review paper offers insights into the complex interplay between trust, security concerns, and consumer behavior in the context of digital payments. It provides practical implications for policymakers, financial institutions, and businesses seeking to foster greater consumer confidence and promote the widespread adoption of digital payment methods in an increasingly digitized economy.