Building Consumer Trust in Digital Payment Systems: Key Drivers and Outcomes in Emerging Economies

Abstract

This study investigates the determinants and outcomes of consumer trust in digital payment systems within emerging economies, addressing a critical gap in understanding financial technology adoption in developing markets. We employed a quantitative cross-sectional design across five emerging economies, collecting primary data from 1,182 regular digital payment users through structured questionnaires, supplemented by secondary sources. We then applied multiple linear regression, Pearson correlation analysis, and Structural Equation Modeling (SEM) to examine the relationships among perceived security, privacy protection, ease of use, service quality, financial literacy, technology acceptance, consumer trust, and continued usage intention. Our analysis revealed that perceived security (standardized , ), service quality (, ), ease of use (, ), and financial literacy (, ) emerged as significant predictors of consumer trust, collectively explaining 74.6% of variance (). The SEM demonstrated good model fit indices (Chi-square/df = 2.08, CFI = 0.97, TLI = 0.96, RMSEA = 0.044). Moreover, high-trust consumers showed 27.9% greater digital payment usage and 29.1% stronger perceptions of transaction security compared to low-trust counterparts. The primary contribution of this work is the empirical validation of a comprehensive trust framework that integrates technological, behavioral, and financial literacy dimensions for emerging markets. These findings provide actionable guidance for policymakers and fintech stakeholders, suggesting that strengthening cybersecurity measures, improving user experience design, and promoting financial literacy programs are essential strategies to accelerate financial inclusion and digital payment adoption in developing economies