Impact of External Regulator on Digital Payments

Abstract

This article examines the role of external regulators in customer acceptance of electronic payment systems (e-payments). It presents a study of four specific independent variables that impact customer perceptions of external regulators and e-payments: funds transfer, customer benefits, transaction safety, and external regulator. The study is based on a literature survey of around 100 articles, mostly published between 2015 and 2024.

The article highlights the importance of digital technology in the banking industry, particularly in the context of e-payments. It then discusses the role of external regulators in ensuring the safety and security of e-payment systems. It is argued that external regulators play a critical role in building customer trust and confidence in e-payments, which is essential for their adoption. The study's findings suggest that all four independent variables have a significant impact on customer perceptions of external regulators and e-payments. Customers are more likely to trust external regulators and adopt e-payments if they believe that funds transfer is efficient, assured transactions safety and customer benefit from using e-payments, and that external regulators are effective in protecting their interests.

The article concludes by discussing the implications of the findings for policymakers and practitioners. The authors recommend that policymakers and practitioners should focus on developing and implementing policies and regulations that promote customer trust and confidence in external regulators and e-payments. This can be done by investing in efficient and secure funds transfer systems, educating customers about the benefits of using e-payments, and strengthening the oversight of e-payment systems by external regulators. A sample size of 444 responses received out of 1200 questionnaires sent to Customers of Banks and Financial Institutions, Bankers, MSME companies, Professionals, and Corporate Companies.