Cashless payments in India : an empirical study on credit card selection and usage preferences

RBI and GoI have put combined efforts through various policymeasures like Aadhar enabled payments, UPI-based payments, financialinclusion, demonetisation, improved digital infrastructure, etc. to progressIndian economy towards cashless payments. Credit cards are one of the widelyaccepted out of many cashless payment methods. Credit cards are innovativefinancial instruments which provide multiple benefits to consumers includingcashless payment facility, short term borrowing and access to reward program,lounges, memberships which make them unique. The present study aims toempirically test the credit card selection scale and credit card usage preferencesof Indian consumers through structured equation modelling. This study aims tocontribute to the literature by modifying the credit card selection criteria scaledeveloped by Gan and Maysami in 2006. The findings suggest that scale mustbe modified for Indian consumer. Economics, flexibility, promotion, reputationand convenience emerged as important factors that influenced credit cardselection, and demographic variables age and income influenced credit cardusage preferences