IMPACT OF SERVICE DESIGN ON CUSTOMER EXPERIENCE IN DIGITAL PAYMENTS: THE MEDIATING ROLE OF PERCEIVED ENJOYMENT

Digital payment service providers must consider customer experience, as it has become a key factor in how customers make payments on digital payment platforms. This study examines how Service Design influences Customer Experience and explores the role of Perceived Enjoyment among digital payment users in Chennai. Service Design is defined as an intuitive interface, a structured payment process, reliability, clear navigation, automated support, instant confirmation, and a seamless transaction workflow; Perceived Enjoyment is defined as the pleasant, engaging, satisfying, and intrinsically rewarding nature of digital payment interactions. The study is quantitative, descriptive, and cross-sectional. A purposive sampling of 400 digital payment users is chosen from the Chennai area. The study uses primary data collected through a structured questionnaire with a 5-point Likert scale. Partial Least Squares Structural Equation Modelling (PLS-SEM) is used to evaluate the measurement model, the structural model, and to observe the direct relationships between Service Design, Perceived Enjoyment and Customer Experience. The mediating effect of Perceived Enjoyment is tested through bootstrapping with 5,000 resamples, using the specific indirect effect and 95% bootstrap confidence intervals. The study is expected to give insights into the effectiveness of Service Design, both directly and indirectly via Perceived Enjoyment, in enhancing Customer Experience. The results can help payment service providers design customer-centered payment services that are not only functional and efficient but also provide positive experiential value for customers.