Influence of the Banking Channels on Usage of Digital Payment Systems

The present contribution of the banking sector to Indian GDP is about 7.7% and they continuously face customer demands for improved services. Banks have responded by providing e-delivery channels, e-payment facilities and advanced banking instruments like ATMs, POS machines, debit cards, credit cards, etc. These facilities have enhanced customer satisfaction, but many are still sceptical about their safety. The present study tries to analyse the influence of the banking channels on usage of digital payment systems through a survey conducted on a representative population residing in select districts of West Bengal. It is observed that the satisfaction of customers with e-banking services is influenced by gender, with females reporting higher security satisfaction than males. Additionally, high-income users find e-payment services more convenient than low-income users. Therefore, banks and e-payment service providers should focus on raising awareness among low-income users. Strengthening the reliability and convenience factors of e-payment services could increase their acceptance.