Does socio-demography affect preferences and concerns towards cashless payment? Evidence from the north-eastern region of India

Abstract

Using primary data from respondents in Sikkim, in the north-eastern region of India, this study investigates the relationship between the sociodemographic characteristics of consumers and their preference for cashless payment instruments. The results show that debit/credit cards, online banking and payment apps are the preferred instruments for making cashless payments, irrespective of sociodemographic category, while the least preferred instrument is the e-wallet. Study subjects reported that being motivated to adopt cashless payment for a number of reasons, including convenience, financial incentives and promotional offers, reluctance to adopt cashless payment instruments was informed by security concerns, poor internet coverage, low acceptance levels among merchants, transaction costs and lack of technical know-how. The results also suggest that while people’s preferences towards cashless payment systems are significantly associated with gender, age, education, occupation and income, reluctance to adopt is significantly associated with occupation.