Search

Digitalization has brought a revolutionary change in every walk of human life, giving the average person many digital options for payment and settlement. Information communication technology enabled the transformation of our banking system from paper to virtual mode, facilitating speedy and secure fund transfers. Post-demonetization (8 November 2016), the cashless economy got a boost, and about 98% of transactions have become cashless. A cashless policy empowers industries, leading to an increase in employment opportunities and reducing cash-oriented fraud. The Reserve Bank of India- Digital Payments Index was recorded at 349.30 as of March 2022 against 304.06 for September 2021, indicating significant growth, rapid adoption and deepening of digital payment across the nation. During the financial year 2021–22, digital transactions surged to 7195 crores, with the value increasing to Rs 17.44 billion. There is a strong need to make policies for protection against cyberattacks, encourage digital literacy, and ensure adequate rural penetration of internet connectivity and banking infrastructure, with awareness among rural masses to strengthen organized indigenous markets. This article provides an insight into the cashless economy and the impact of digital innovation on India’s financial system. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to empirically examine how consumer privacy concerns (CPC) impact smartphone usage for financial transactions. The study also investigates the moderating impact of regulations on this action. Design/methodology/approach: With the inputs from literature and related privacy theories, a theoretical model was developed. The model was later empirically validated using the partial least squares structural equation modeling technique with 367 respondents from India. Findings: The study finds that CPC significantly impacts on consumer behavior in using smartphones for financial transactions. The study also highlights that regulation has a moderating impact on consumer usage of smartphones for financial transactions. Research limitations/implications: This study provides valuable inputs to smartphone service providers, practitioners, regulatory authorities and policymakers on appropriate and secure usage of smartphones by consumers, ensuring privacy protection while making financial transactions. Originality/value: This study provides a unique model showing the antecedents of CPC to impact the behavioral reaction of smartphone users mediated through the ingredients of privacy calculus theory. Besides, this study analyzes the moderating effects of regulation on the use of smartphones for financial transactions. This is also a novel approach of this study. [ABSTRACT FROM AUTHOR]