Assessing the factors affecting the adoption of cashless payments by small-scale traders: a case study on Sri Lanka

Abstract

This study investigates cashless payment adoption among small-scale traders in Sri Lanka, emphasizing those with capital investments below Rs. 4 million and workforces of 50 or fewer. Employing a positivist paradigm and a deductive approach based on the extended Technology Acceptance Model (TAM), the research challenges prevailing assumptions. Findings, derived from multiple regression analysis on an 80-trader sample in the Kurunegala district, reveal that associated costs and past exposure insignificantly impact acceptance. In contrast, trust and customer demand emerge as pivotal factors, offering nuanced insights into Sri Lanka's societal shift towards cashless systems. While the study provides practical guidance for policymakers, limitations, such as modest sample size and geographic specificity, warrant cautious interpretation. Future research should diversify samples, adopt mixed methods, and explore emerging technologies for a comprehensive understanding. The study contributes substantively to practical and theoretical realms, challenging conventional assumptions and emphasizing regional variations in small-scale traders' attitudes toward cashless methods.