A Study on factors affecting customers intention to use credit card in India.

Abstract

This study aims to develop a theoretical model of consumer behavioral intention by integrating the Technology Acceptance Model (TAM) with the Theory of Perceived Risk, focusing on the intention to use credit cards in India. Data were collected from 250 bank customers through a nationwide online survey. The results indicate that perceived risk, perceived usefulness, social influence, and perceived ease of use significantly influence consumers’ intention to use credit cards. Among these factors, only perceived risk negatively affected the intention to use, encompassing psychological, financial, performance, privacy, time, social, and security risk. The study assessed first-order dimensions of perceived risk based solely on the payment function of credit cards, overlooking potential risks associated with their credit function. The findings can assist banks in formulating strategies to attract new customers and allocate resources effectively for customer retention and expansion.