Effects of Digital Payment Usage on Financial Performance of Small Retail Businesses in Bangladesh
DOI:
https://doi.org/10.66460/puj.v4i1.11Keywords:
Digital Payment Adoption, Financial Performance, Small Retail, Technology Acceptance Model, Resource-Based View, BangladeshAbstract
This study investigates how digital payment adoption and usage intensity influence the financial performance of small retail enterprises in Bangladesh through an integrated Technology Acceptance Model and Resource-Based View framework. A sequential mixed-method design was employed, beginning with twenty-four qualitative interviews followed by a large-scale survey of 879 retailers across Dhaka, Chattogram, and Rajshahi. Analysis using partial least squares structural equation modeling revealed that perceived usefulness (β = 0.31, p < 0.001), trust (β = 0.28, p < 0.001), and perceived ease of use (β = 0.22, p < 0.001) significantly influence usage intensity, which in turn strongly predicts financial performance (β = 0.37, p < 0.001). Information and communication technology readiness exhibits both direct effects on financial performance (β = 0.19, p < 0.001) and moderating effects that amplify the usage-performance relationship. Agent network density significantly influences usage intensity (β = 0.17, p < 0.001). The model explains 46% of the variance in usage intensity and 39% of the variance in financial performance. The findings demonstrate that digital payment systems generate meaningful financial improvements only when merchants use them intensively and possess adequate organizational capabilities.
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