Evaluating the Impact of Trust, User Experience, and Cash Back Incentives on Consumer Preference for Digital Wallets in Urban India

Abstract

Digital wallets have become an essential part of India fast changing financial system, which now serves most people who live in the cities. Different digital wallet platforms provide identical features, yet the users exhibit distinct preferences that lead them to favor a particular digital wallet. The question exists about which factors need to be considered because they determine how people choose their preferred payment items. The study investigates three main factors, which include trust, user experience, and cashback incentives, to determine their effect on the digital wallet usage by urban Indian consumers. The research used the quantitative method to gather primary data through a structured questionnaire, which 203 participants completed, and 181 valid responses were used to perform the statistical analysis through descriptive analysis, and cronbach’s alpha reliability testing, and Spearman’s rank correlation. The study found that the user experience serves as the ultimate driver for the consumer choice, while trust functions as the second most important factor that enhances digital wallet adoption, together with customer loyalty. Cashback incentives produced minimal effects, while researchers deemed them statistically significant because they failed to sustain user engagement beyond the initial acceptance. The study establishes that the usability and reliability function as critical elements which detemrine consumer interaction while showing that the digital wallet providers should focus on creating a better user experience and a trust system instead of excessive marketing promotion. The research provides an integrated analysis of the behavioral factors and practical insights for the finch companies, which contributes to the current literature.