STUDY ON PERCEIVED SECURITY AND PRIVACY CONCERNS IN DIGITAL PAYMENTS (COIMBATORE REGION)

Authors:

Mr. LOGESH C

Student of II MBA, Department of Management Studies, Nehru Institute of Technology, Coimbatore, Tamil Nadu

Dr. GOWRISHANKKAR V,

Associate Professor, Department of Management Studies, Nehru Institute of Technology, Coimbatore, Tamil Nadu

ABSTRACT: 

The rapid advancement of digital technologies has significantly transformed the financial landscape, leading to the widespread adoption of digital payment systems such as mobile wallets, UPI, debit/credit cards, and internet banking. These platforms offer convenience, speed, and accessibility, making financial transactions easier for users. However, despite these benefits, concerns related to security and privacy continue to act as major barriers to the adoption and continued usage of digital payment systems.

This study focuses on analyzing the perceived security and privacy concerns among users of digital payments and examining their impact on user trust and adoption behavior. The research highlights that users are often worried about risks such as data breaches, identity theft, unauthorized transactions, and misuse of personal and financial information. These perceived risks influence their confidence and willingness to use digital payment platforms.

The study is based on primary data collected from respondents and uses statistical tools to analyze the relationship between perceived security, privacy concerns, and user adoption. The findings indicate that higher levels of perceived security and better privacy protection positively influence user trust and encourage the use of digital payment systems.

Conversely, increased concerns regarding security and privacy reduce user confidence and limit adoption. The research concludes that enhancing security measures, improving transparency in data handling, and increasing user awareness are essential to building trust and promoting the growth of digital payments. The study provides valuable insights for financial institutions, fintech companies, and policymakers to develop strategies that ensure a safe and reliable digital payment environment

Keywords: Digital Payments, Perceived Security, Privacy Concerns, User Trust, Adoption Behavior