Abstract:
This study investigates the impact of electronic money (e-money) on consumer
spending behavior in Sri Lanka’s online retail platforms. Although e-money adoption
has been rising rapidly, especially post-pandemic, limited studies have explored its
effect on consumer spending in the Sri Lankan context. Guided by the Technology
Acceptance Model (TAM) and the Theory of Planned Behavior (TPB), this research
examines how perceived usefulness, perceived ease of use, and perceived security &
risk influence spending behavior. A quantitative, explanatory study design was
employed, using a structured online questionnaire distributed via convenience
sampling to 200 Sri Lankan consumers aged 18–35, a demographic chosen because
of its high digital adoption rate and familiarity with online transactions. Data were
analyzed using SPSS through descriptive statistics, correlation, and regression
analysis. Results revealed that all three independent variables had a significant and
positive effect on consumer spending behavior, with Cronbach’s alpha values
indicating acceptable reliability (PU = 0.684, PEOU = 0.719, PSR = 0.705, Spending
Behavior = 0.733). Findings confirm that e-money encourages higher willingness to
spend by offering convenience, trust, and reduced transaction friction. The study
highlights behavioral factors such as impulsive purchasing and reduced mental
accounting, while acknowledging risks such as overspending and digital exclusion
among rural populations. Practical recommendations include enhancing security
features of e-money platforms, promoting digital financial literacy, and developing
inclusive policies to ensure safe and equitable participation in the digital economy.
These insights contribute to filling the regional research gap and provide actionable
implications for online retailers, marketers, and policymakers.
