Challenges and Problems of Adoption of Digital Payment Systems in Sri Lanka: Special Reference to Northwestern Province in Sri Lanka

Abstract

The adoption of digital payment systems in Sri Lanka faces challenges and problems that warrant through investigation. The objective of the study is to investigate the challenges hindering the adoption of digital payment systems in Sri Lanka. A diverse range of challenges, including digital financial literacy, security and trust, technological infrastructures, regulatory framework, and socio-economic factors are considered for the study. Primary data have been collected. Online as well as the structured questionnaires were used as the method of data collection. A total of 104 respondents were selected as a sample in the North western province. The data were analyzed using descriptive statistics, correlation, and regression analysis. The study found that Digital financial literacy has a significant impact on the adoption of digital payment systems in Sri Lanka. Also indicate that the security and trust have no significant impact on adoption of digital payment systems in Sri Lanka. Further, the study found that the technological infrastructure has no significant impact on the adoption of digital payment systems in Sri Lanka and observed that both the regulatory framework and socio-economic factors have significant impact on the adoption of digital payment systems in Sri Lanka. This study would be beneficial to several stakeholders such as Government and policymakers, financial institutions, Businesses and merchants, and Consumers in Sri Lanka