Abstract:
In recent years, the tourism industry in Sri Lanka has witnessed a rapid digital
transformation, mirroring global shifts toward cashless economies. The rise of digital
payment methods has begun reshaping financial interactions between travellers and
service providers. This transition is especially important for Sri Lanka, where tourism
drives the economy, and visitors now expect convenience and secure transactions in
line with global standards. However, the move away from traditional cash dealings
presents distinct opportunities and challenges, given the socio-economic diversity of
tourism stakeholders across the country. This qualitative study explores the
perceptions and experiences of key tourism stakeholders regarding digital payment
methods in Sri Lanka, guided by the Unified Theory of Acceptance and Use of
Technology 3 (UTAUT3). The research specifically investigates perceived benefits,
barriers, and motivations underlying the adoption of digital payments. Data were
collected through semi-structured interviews, a focus group discussion, and relevant
secondary sources with a sample of 23 participants, including hoteliers, travel agents,
tourism operators, and both local and foreign tourists. Thematic analysis highlighted
that digital payments are widely valued for their convenience, operational efficiency,
and positive impact on guest satisfaction. Nevertheless, notable obstacles remain,
including limited digital literacy, infrastructural constraints, trust and security
concerns, and deeply rooted cultural preferences for cash transactions, challenges
most frequent among older or rural participants. The study identifies generational,
regional, and professional variances in acceptance, with younger and digitally literate
stakeholders demonstrating greater willingness to adopt these methods. The findings
stress the necessity for robust policy initiatives, targeted digital literacy programmes,
and stronger regulatory frameworks to foster trust and broaden inclusivity. Overall,
this study enhances the qualitative application of UTAUT3 and offers actionable
insights for advancing digital transformation and competitiveness within Sri Lanka’s
tourism sector.
