FACTORS INFLUENCING THE CREDIT CARDS USAGE OF NORTH CENTRAL PROVINCE IN SRI LANKA

Abstract

The adoption of credit cards is becoming increasingly integral to managing individuals’ fast-paced lifestyles, especially in emerging markets. Therefore, this study reviews the literature on the factors influencing credit card usage that result in the intention to use credit cards. This study investigated how age, gender, income, financial knowledge, attitudes, and education influence the intention to use credit cards. The factors were constructed based on the Technology Acceptance Model, the Theory of Planned Behavior, and several other factors from the literature. An online survey was used to ensure broad accessibility, and a sample size of 384 participants was used to ensure statistical validity. This study analyzes various factors influencing credit card usage, including demographic characteristics, personal financial knowledge, attitudes towards credit cards, and the intention to use them. To analyze the collected data, the study employed the Statistical Package for Social Science (SPSS 25), utilizing descriptive statistics to summarize the demographic profiles and responses of the participants. This rigorous statistical approach aims to identify the most significant factors influencing credit card adoption in the target population. By identifying the key factors that influence card users’ decisions to adopt credit cards, this study aims to provide valuable insights for financial institutions and policymakers. These findings can help financial institutions design targeted marketing campaigns and educational programs to promote responsible credit card use. This study extends the Technology Acceptance Model by integrating demographic and financial knowledge factors, providing a localized understanding of credit card usage behavior. In conclusion, this study sheds light on the current state of credit card usage in Sri Lanka and lays the groundwork for future studies and interventions to increase credit card adoption.