DRIVERS OF PASSIVE PAYMENT ADOPTION THROUGH WEARABLE DEVICES

DOI: https://doie.org/10.65985/APER.2026392112

Authors:

Dr Anita Santosh Pillai, Dr L. S. Swasthimathi

Keywords:

behavioural intention, emerging markets, passive payments, smart wearables, trust, wearable payment

Abstract:

The use of smart wearable devices offers a new dimension in digital finance providing consumers unprecedented convenience for passive contactless payments. However, despite the increasing usage of smart wearables and their integration with major financial institutions the usage of wearable payment systems is relatively limited in emerging markets like India. This disjunction between consumer adoption and technological capability emphasizes the importance of comprehending the elements that promote or impede wearable payment adoption. This study proposes an extended conceptual model that integrates Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) framework with Trust as an additional construct. Using data collected from 323 respondents in India, the proposed model was tested through Structural Equation Modeling. The findings reveal that Trust is a significant determinant in passive payments and psychological factors can surpass utilitarian factors. The findings indicate that Performance Expectancy, Price Value, and Habit positively influence behavioral intention. Results reveal that generational differences and contextual conditions moderate adoption. The finding empirically demonstrates that successful adoption of wearable payment systems is influenced by multidimensional relationship of psychological, functional, demographic and contextual factors. The study contributes to both theory and practice and offers actionable insights for fintech-developers, wearable manufacturers and policymakers aiming to improve user confidence and accelerate adoption in emerging economies.

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