Customer Adoption of Contactless Payments: Convenience and Security

Author

Ms. Chevuri Deva Harshini, Dr. Mohan G


Abstract

 Contactless payments (contactless cards, NFC-enabled mobile wallets and UPI/QR-based tap-and-pay services) are reshaping how consumers pay, yet customers may hesitate to adopt them because of security and privacy concerns. This study examines how perceived convenience and perceived security influence customer adoption of contactless payments. A descriptive and analytical, quantitative design was used. Primary data were collected through a structured five-point Likert-scale questionnaire administered to 126 respondents selected by convenience sampling. The data were analysed in Microsoft Excel using descriptive statistics, Cronbach’s alpha, chi-square tests of independence, one-way ANOVA, Pearson correlation and simple and multiple linear regression. All three constructs were highly reliable (α = 0.919–0.956). Respondents reported favourable perceptions of convenience (M = 3.96), security (M = 3.95) and adoption (M = 3.97). Convenience (β = 0.93, R² = 0.858) and perceived security (β = 0.95, R² = 0.901) each significantly predicted adoption; jointly they explained 92.7% of its variance (F(2,123) = 776.78, p < 0.001), with security carrying the larger standardised weight (β = 0.613 versus 0.372). Mean adoption differed significantly across low, moderate and high convenience groups (F(2,123) = 101.49, p < 0.001, η² = 0.623) and security groups (F(2,123) = 99.93, p < 0.001, η² = 0.619), and chi-square tests showed strong associations between perception levels and adoption levels (Cramér’s V = 0.756 and 0.781). All null hypotheses were rejected. The findings suggest that providers should invest simultaneously in faster, easier payment experiences and in visible, trust-building security features and communication. The results should be read with caution because the sample is small, convenience-based and dominated by young male students.



Keywords

contactless payments; customer adoption; convenience; perceived security; chi-square; ANOVA; regression; India



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