A mixed methods UTAUT2-based approach to understanding unified payments interface adoption among low-income users

The Unified Payments Interface (UPI) represents a revolutionary advancement in mobile payment systems and has been primarily embraced by the middle and high-income segments of the Indian population. Its uptake among the low-income or those at the bottom-of-the-pyramid (BOP), characterized by individuals with an annual income less than USD 3,175, remains notably low, necessitating prompt investigation. This study endeavors to explore and validate contextual determinants influencing the development of behavioral intention to use UPI among BOP users. Under the mixed method approach, 26 interviews with active UPI users were conducted in the first phase. The collected data were subjected to deductive thematic analysis and the resulting factors were fused with the Extended Unified Theory of Acceptance and Use of Technology (UTAUT2) model to adapt it to the BOP requirements. In the second phase, responses from 423 potential UPI users were collected and scrutinized using structural equation modelling. The data analysis unveiled that the path coefficients for social influence (0.527), performance expectancy (0.242), perceived security risk (-0.166), knowledge (0.138), price value (0.123), facilitating conditions (0.119), and social benefits (0.096) were statistically significant in impacting user intentions. The model fit measures of the structural model fell within an acceptable range, and collectively, these factors elucidated 52% of the variance in behavioral intentions. It is recommended that marketers should leverage the interconnected nature of BOP communities to enhance awareness on functionality, subjective utility, social benefits, word-of-mouth, and security issues. This strategy aims to overcome barriers and boost UPI adoption among the BOP.