The rapid expansion of digital financial services has transformed the payment ecosystem in India, particularly among younger populations. Students represent a significant segment of digital payment users, given their technological adaptability and frequent online transactions. The present study examines digital payment adoption, usage frequency, perceived security, and behavioral intention among students in educational institutions of Shimla. Based on a structured questionnaire and an effective sample size of 350 respondents, the study investigates demographic influences, security perceptions, and trust factors affecting digital payment usage. The research adopts a quantitative research design using primary data. Reliability testing through Cronbach’s Alpha confirms high internal consistency of measurement constructs. Construct validity, convergent validity, and discriminant validity are established using factor loadings, Average Variance Extracted (AVE), and correlation analysis. Hypotheses are tested using correlation and regression analysis. The findings reveal that perceived convenience and trust significantly influence digital payment usage frequency, while security concerns negatively affect usage intensity. Two-factor authentication mechanisms enhance user confidence. The study contributes to behavioral finance literature by highlighting psychological and demographic determinants of digital payment adoption in semi-urban academic settings. Practical implications suggest strengthening cybersecurity awareness and improving user education to enhance sustained adoption.
Verma et al. (Sun,) studied this question.