Research Report on Online Payment Usage based on Behavioral Analysis and Influencing Factors

Abstract

This study explores the usage patterns and influencing factors of online payment systems across various demographic groups. It highlights the exponential growth of online payments over the past decade, driven by technological advancements and the widespread adoption of smartphones. The COVID-19 pandemic further accelerated this trend by pushing consumers and businesses towards digital alternatives due to lockdowns and social distancing measures. The research aims to understand the behaviors and attitudes of different populations, considering factors like age, occupation, and education. Key findings indicate that younger individuals and those with higher education levels are more likely to adopt online payment systems. The study also identifies convenience, security, and trust as primary factors influencing the choice of payment methods. For low-value transactions, convenience is the main driver, whereas security concerns become more significant for high-value transactions. By addressing existing research limitations, such as the over-reliance on quantitative data and the narrow focus on specific demographic groups, this study incorporates qualitative data to gain deeper insights. It adopts a holistic approach to examine the interplay of demographic, psychological, and socio-economic factors. The findings underscore the importance of improving security measures and effectively communicating these to users to build trust and encourage the broader adoption of online payments. Recommendations include implementing advanced security features, enhancing user-friendly interfaces, and conducting educational campaigns to increase digital financial literacy.