Generation Z’s mobile payment adoption: integrating UTAUT model and government initiative impacts

As digital natives, Generation Z holds the key to the future of Mobile Payment (M-Payment) systems, yet understanding what truly drives their adoption remains a complex puzzle shaped by both technology acceptance and evolving governmental influences. The study investigates the determinants of mobile payments adoption among Generation Z, with a special focus on integrating government initiatives into the traditional UTAUT framework. A structured questionnaire is used to collect the data from the respondents through convenience sampling from private universities in Rajasthan (State of India), from which 278 valid responses were utilized. The data revealed that 72.2% of respondents use mobile payments almost daily, highlighting a strong habitual behaviour among Generation Z. For testing the proposed hypotheses, the study employed variance-based Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS 4. The results indicates that the strongest determinant of mobile payment adoption among Gen Z is Price Value, followed by effort expectancy, social influence, government initiatives and habit. This study introduces the novel concept of government initiatives as a key driver of Generation Z’s adoption behaviour, bridging a gap in existing literature. It also offers practical strategies, enhanced usability, social influence, competitive pricing, and policy alignment for service providers to effectively engage Gen Z users.