Digital Payment Adoption in E-Commerce: Determinants, Barriers, and Consumer Acceptance

Abstract

The expansion of electronic commerce has been closely linked with the evolution of digital payment systems. Secure, fast, and convenient payment mechanisms such as Unified Payments Interface (UPI), mobile wallets, debit and credit cards, and internet banking have transformed transaction processes. However, digital payment adoption remains uneven across demographic and geographic segments. This study examines the determinants influencing digital payment adoption in e-commerce platforms, focusing on perceived usefulness, ease of use, trust, security concerns, financial literacy, and socio-demographic characteristics. A quantitative research design was employed, and primary data were collected from 300 online shoppers through structured questionnaires. Statistical techniques including percentage analysis, correlation, regression analysis, and factor analysis were applied. The findings reveal that perceived security and trust are the strongest predictors of digital payment usage, while digital literacy and income level significantly moderate adoption levels. The study concludes that strengthening cybersecurity frameworks, enhancing financial literacy, and improving user experience are essential for accelerating digital payment integration in e-commerce ecosystems.