Factors influencing the use of digital payment services and customer satisfaction in banking sector: An implication for technological innovation

Type of the article: Research ArticleAbstractThe purpose of this study is to investigate how digital payment services affect customer satisfaction in commercial banks of Nepal. Employing a quantitative design, it evaluates crucial determinants such as perceived usefulness, security, privacy, trust, and ease of use to understand their role in shaping consumers’ satisfaction with digital payment services. A structured online questionnaire was distributed in 2025 to users of digital banking services. Out of 460 questionnaires, 386 valid responses were collected, giving a response rate of 83.91%. The dataset was analyzed using descriptive statistics to outline respondent characteristics, while Pearson correlation and multiple linear regression were employed to identify significant relationships among the study variables. To ensure the reliability and validity of the measurements, reliability tests were conducted, and the Shapiro-Wilk normality test was applied to assess data distribution. The respondent demographics show that 53.63% of participants were female, whereas 46.37% were male. The finding shows that perceived usefulness (p = 0.001), privacy (p = 0.000), trust (p = 0.000) and ease of use (p = 0.000) were found through multiple regression analysis to have statistically significant positive effects on customer satisfaction, while security had no significant effect (p = 0.713). A strong overall fit was indicated by the model’s ability to explain 56.2% of the variance in customer satisfaction (R2 = 0.562). This emphasizes the crucial role digital payment services play in boosting customer satisfaction in banking sector of Nepal.