Studying the impact of system quality and procedural efficiency on sustained use of digital payment systems

Amit Kumar Agrawal,  Anshu Dutta

Commerce Department, Agrasen Mahavidyalaya, Purani Basti, Raipur, Chhattisgarh, India

Abstract

This study examines the impact of system quality and procedural efficiency on the sustained use of digital payment systems. System quality includes stability, accuracy, reliability, and clear transaction display, while procedural efficiency refers to simple payment processes. Sustained use refers to continued use of digital payment systems for transactions. The study is required to understand how system quality and procedural efficiency influence continued usage behavior in digital payment platforms. A quantitative and explanatory research design was used. Data were collected through a structured questionnaire using a five-point Likert scale. Out of 150 distributed questionnaires, 102 valid responses were collected through Google Forms and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The measurement model confirmed reliability and validity through Cronbach’s alpha, composite reliability, Average Variance Extracted (AVE), and HTMT ratio. Hypothesis testing results show that system quality has a significant positive effect on sustained use, and procedural efficiency also has a significant positive effect, with procedural efficiency showing a stronger impact. The combined effect is reflected through the R-square value of 0.586, explaining 58.6% variance in sustained use. The effect size (f-square) shows procedural efficiency has a large effect and system quality a moderate effect. The study is limited by sample size, cross-sectional design, and scope. Future research may explore usability, transaction speed, emerging technologies, and system performance under peak load conditions. Based on findings, improving system reliability and simplifying processes can enhance user experience and continued usage.

Keywords : Digital Payment Systems, System Quality, Procedural Efficiency, Sustained Use, and Structural Equation Modeling (SEM-PLS).

Introduction

The rapid advancement of financial technology has significantly reshaped the structure of financial transactions in the modern digital economy. Digital payment systems, supported by mobile technologies, internet connectivity, and integrated financial infrastructures, have accelerated the shift from traditional cash-based transactions to electronic and mobile payment platforms. These technologies enable faster, more convenient, and secure financial transactions, thereby improving financial accessibility and operational efficiency across financial systems.

A substantial body of literature has explored the determinants influencing the adoption and usage of digital payment technologies. Previous studies suggest that technological convenience and economic value significantly influence users’ behavioral engagement with digital payment platforms. For example, Nguyen and Ha (2025) reported that effort expectancy, price value, and perceived time–cost savings significantly strengthen digital payment usage behavior. Similarly, Indrijawati et al. (2024) emphasized that perceived usefulness and perceived ease of use improve operational efficiency and enhance user engagement with digital payment systems. These findings indicate that technological and operational characteristics of payment platforms play a crucial role in shaping users’ behavioral responses.

Technological reliability and security have also been identified as critical factors influencing the continuous use of digital payment systems. Zhang et al. (2019) demonstrated that perceived security significantly affects users’ intention to continue using mobile payment services, while interface design and perceived user control strengthen security perceptions. Likewise, Fakriah et al. (2025) found that perceived ease of use and perceived security are important determinants of digital payment adoption, with trust acting as a mediating factor. Khairunnisa et al. (2025) further highlighted that perceived security strengthens the relationship between trust and digital payment usage. From a broader perspective, Khanin et al. (2022) emphasized that innovation development, risk management improvement, and ecosystem strengthening are fundamental for enhancing the efficiency and sustainable operation of electronic payment systems.

In addition to technological reliability, the efficiency of transaction procedures plays an important role in shaping users’ engagement with digital payment platforms. Previous research indicates that ease of use, self-efficacy, and operational simplicity significantly influence users’ perceptions toward digital payment technologies Adhikari et al. (2025). Similarly, Song et al. (2023) reported that perceived usefulness and perceived ease of use positively influence behavioral outcomes related to mobile payment usage and sustainable consumption behavior. These findings suggest that efficient and user-friendly transaction procedures encourage repeated engagement and long-term usage of digital payment services.

Despite the growing body of research on digital payment adoption and usage, existing studies have primarily examined individual determinants such as perceived security, trust, ease of use, and technological infrastructure. However, the combined influence of system quality and procedural efficiency on the sustained usage of digital payment systems remains relatively underexplored in the existing literature. In rapidly expanding digital financial environments, sustained usage is not determined solely by technological reliability or operational convenience in isolation; rather, it emerges from the interaction between the structural quality of digital payment systems and the efficiency of transaction procedures.

Addressing this gap, the present study investigates the influence of system quality and procedural efficiency on the sustained usage of digital payment systems. By examining these factors simultaneously, this study contributes to the existing literature by providing a deeper understanding of how technological reliability and procedural effectiveness jointly shape long-term digital payment engagement. The findings of this research may assist policymakers, financial institutions, and digital service providers in developing more reliable, efficient, and sustainable digital payment infrastructures that support the continued growth of digital financial ecosystems.

Rationale of the Study

The increasing adoption of digital payment systems has transformed daily financial transactions, but sustained use is still influenced by system performance and ease of use. Users often face issues related to reliability and complexity, which may reduce continued usage. System quality ensures stable, accurate, and reliable transactions, while procedural efficiency simplifies the payment process and improves convenience. Understanding these aspects is important to examine their impact on continued usage behavior. Therefore, this study is significant as it provides empirical evidence on the relationship between system quality, procedural efficiency, and sustained use of digital payment systems. The findings are expected to support improvements in system design, enhance user experience, and promote long-term adoption of digital payment technologies.

Review of Literature

1. System Quality and Sustained Use

System quality in digital payment systems reflects technological reliability, security strength, interface design effectiveness, infrastructural robustness, and risk management capability. A high-quality system reduces perceived uncertainty, strengthens user confidence, and supports long-term engagement behavior.

Jiaxin Zhang, Yan Luximon, and Yao Song (2019) demonstrated that perceived security plays a decisive role in shaping users’ sustained intention to use mobile payment services. Their findings further indicate that interface design and perceived control significantly enhance perceived security, confirming that structural and technical attributes of the system are essential for maintaining sustained usage behavior. Similarly, Fakriah R. A., Alfhito M. D., and Mardiyani (2025) identified perceived security and perceived ease of use as critical determinants of digital payment adoption, with trust functioning as a mediating mechanism. This suggests that secure and well-designed systems foster stable user engagement.

Khairunnisa F., Ramadhani E., and Alfi Ningtyas F. (2025) further emphasized that perceived security strengthens the relationship between trust and digital payment usage, underscoring the structural importance of secure system architecture. From a broader infrastructure perspective, Khanin I., Bilozubenko V., and Sopin Y. (2022) highlighted that innovation development, risk management improvement, and ecosystem strengthening are fundamental for enhancing the quality and sustainable operation of electronic payment systems. Supporting this view, Asrihapsari, A., Putri, I. S., and Anaege, A. E. (2025) stressed that secure governance mechanisms and reliable QR-based infrastructures are necessary to sustain national digital payment ecosystems.

Collectively, these empirical findings indicate that strong system quality enhances reliability, reduces risk perceptions, and promotes long-term engagement with digital payment platforms.

2. Procedural Efficiency and Sustained Use

Procedural efficiency refers to the extent to which digital payment systems provide speed, simplicity, cost-effectiveness, operational clarity, and ease of transaction completion. Efficient procedures reduce user effort and enhance perceived usefulness, thereby encouraging repeated behavioral engagement.

Nguyen T. T. and Ha V. D. (2025) found that effort expectancy, price value, and perceived time–cost savings significantly strengthen digital payment usage behavior. Their findings indicate that transactional efficiency directly contributes to actual usage outcomes. Likewise, Aini Indrijawati, Mediaty, Arham, Sri Damayanti, and Muhammad Zulfadli Wahid (2024) identified perceived usefulness and perceived ease of use as dominant determinants of digital payment adoption, emphasizing efficiency, cost savings, and user-centric design as drivers of engagement.

Adhikari G. M., Rai B., and Bhattarai G. (2025) reported that ease of use and self-efficacy significantly shape positive perceptions toward digital payment systems, confirming that functional simplicity reinforces usage behavior. Furthermore, Jing Yuan, Songyu Jiang, and Bethzaida Mary Joy Dela Cruz (2023) demonstrated that perceived usefulness and perceived ease of use positively influence behavioral outcomes, reinforcing the importance of operational efficiency in shaping payment-related actions. At the sectoral level, Inese Mavlutova, Aivars Spilbergs, Atis Verdenhofs, Andris Natrins, Ilja Arefjevs, and Tatjana Volkova (2023) established that digital payments enhance operational efficiency within the financial sector, contributing to sustainable financial development.

Together, these findings consistently show that efficient and user-friendly transaction processes strengthen behavioral engagement with digital payment platforms.

3. Combined Impact of System Quality and Procedural Efficiency on Sustained Use

Sustained use of digital payments is not shaped by isolated technological attributes alone; rather, it emerges from the interaction between system robustness and procedural efficiency. While system quality ensures reliability, security, and infrastructural strength, procedural efficiency enhances usability, speed, and transactional convenience.

Khanin I., Bilozubenko V., and Sopin Y. (2022) emphasized that innovation, ecosystem development, and risk management collectively improve the effectiveness and sustainable functioning of electronic payment systems, suggesting that structural and operational dimensions are interdependent. Purnawan S. O., Hermawan S., and Alabdullah T. T. Y. (2025) demonstrated that digital payment methods and accessibility improvements jointly enhance service quality and user satisfaction, indicating that system infrastructure and procedural accessibility operate together to strengthen engagement.

These empirical insights suggest that system quality and procedural efficiency function synergistically in influencing sustained digital payment behavior.

Objectives of the study

1.     To study the influence of system quality of digital payments on sustained use.

2.     To study the impact of procedural efficiency of digital payments on sustained use.

3.     To study the combined impact of system quality and procedural efficiency of digital payments on sustained use.

Hypothesis

Research Methodology

This study adopts a quantitative and explanatory research design to investigate the relationships among the selected constructs, with Structural Equation Modeling–Partial Least Squares (SEM-PLS) used as the primary analytical technique. The research is based on primary data collected through a structured and standardized questionnaire developed using a five-point Likert scale, anchored from “strongly disagree” to “strongly agree.” The survey instrument was administered through Google Forms to a sample of respondents, where 150 questionnaires were distributed and 102 valid responses were obtained. A random sampling technique was adopted for data collection. The study incorporates System Quality and Procedural Efficiency as independent variables, while Sustained Use is treated as the dependent variable.

The data analysis procedure follows a two-stage approach consistent with SEM-PLS methodology. In the first stage, the measurement model is assessed to evaluate the reliability and validity of the constructs using Cronbach’s Alpha, Composite Reliability, and Average Variance Extracted (AVE), along with discriminant validity measures such as the HTMT ratio and the Fornell–Larcker criterion. In the second stage, the structural model is analyzed to examine the hypothesized relationships among the variables using path coefficients, t-statistics, p-values, and the coefficient of determination (R²). This approach ensures a systematic and rigorous assessment of the proposed research model.

Result and Discussion

This section reports the findings derived from the application of Structural Equation Modeling–Partial Least Squares (SEM-PLS) technique. The analysis is conducted in two sequential stages: first, the evaluation of the measurement model, and second, the assessment of the structural model. The purpose of this analysis is to examine the relationships among system quality, procedural efficiency, and sustained use of digital payments, and to interpret the results in line with the study’s objectives and proposed hypotheses. This analysis is based on respondents’ evaluation of the measurement items included in the questionnaire.

Analysis of data

The analysis of data is based on the responses collected for system quality, procedural efficiency, and sustained use of digital payment systems. It helps in understanding how users perceive and evaluate digital payment usage.

Table No. - 1 Respondents Perceptions of System Quality of Digital Payment System

The findings for System Quality suggest a moderately positive perception among users, where most respondents show agreement, but certain concerns are still visible.

For the first statement, “The digital payment system remains technically stable during transactions,” a majority of respondents (57.84%) agreed and 31.37% strongly agreed. This indicates that the system is generally stable during transactions. However, the presence of a small percentage of disagreement and neutral responses shows that technical stability is not experienced equally by all users.

In the second statement, “The system operates accurately and reliably during the payment process,” most respondents expressed agreement (71.57%), while 16.67% strongly agreed. This reflects a good level of trust in the system’s accuracy and reliability. At the same time, a small share of negative responses suggests that occasional errors or reliability issues may still occur.

For the third statement, “The system displays transaction information clearly and accurately,” a strong proportion of respondents agreed (61.76%) and strongly agreed (34.32%). This shows that the system is generally effective in presenting transaction details. However, the slight presence of neutral responses indicates that clarity may not be perfect in all situations.

The fourth statement, “The system maintains efficient and fast performance even under high transaction volumes,” shows comparatively lower agreement. While 49.03% agreed and 26.47% strongly agreed, a noticeable number of respondents were neutral (10.78%) or disagreed (10.78%). This suggests that system speed and efficiency may decline during peak usage for some users.

Overall, the results indicate that system quality is at a moderate level, with users generally satisfied but not completely convinced. Stability, accuracy, and clarity are relatively strong, whereas performance under heavy load remains an area that requires improvement.

Table No. - 2 Respondents Perceptions of Procedural Efficiency of Digital Payment System

The analysis of Procedural Efficiency shows that a large proportion of respondents have expressed agreement with all the given statements, indicating a positive perception of the payment process.

For the first statement, “The payment process can be completed in a few simple steps,” 54.90% of respondents agreed and 33.34% strongly agreed. Only a small percentage expressed disagreement (5.88%) or remained neutral (3.92%), while very few strongly disagreed (1.96%). This indicates that most users find the payment process simple and manageable.

For the second statement, “The payment process requires minimal effort,” 66.67% of respondents agreed and 26.47% strongly agreed. Very few respondents showed disagreement (0.98%) or strong disagreement (1.96%), and only 3.92% remained neutral. This suggests that users generally perceive the payment process as requiring very little effort.

For the third statement, “The payment process is clear and easy to understand,” 64.71% of respondents agreed and 24.51% strongly agreed. A small proportion of respondents were neutral (4.90%) or disagreed (3.92%), while 1.96% strongly disagreed. This indicates that the payment process is considered clear and understandable by most users.

Overall, the results show that the majority of respondents fall under the “agree” and “strongly agree” categories for all statements, while only a small percentage fall under neutral or disagreement categories. This reflects a generally positive perception of procedural efficiency among users.

Table No. - 3 Respondents Perceptions of Sustained Use of Digital Payment System

The analysis of Sustained Use indicates that most respondents report frequent and continuous use of digital payment systems across different situations.

For the first statement, “Digital payments are consistently used for day-to-day transactions,” 52.94% of respondents selected “agree” and 34.32% selected “strongly agree.” Only a small share chose neutral (6.86%), disagree (3.92%), or strongly disagree (1.96%). This pattern shows that regular use in everyday transactions is common among users.

For the second statement, “Digital payments currently serve as the primary mode for most transactions,” 56.86% agreed and 33.34% strongly agreed. A limited proportion of respondents expressed disagreement (3.92%) or strong disagreement (3.92%), while 1.96% remained neutral. These responses suggest that digital payments are widely used as the main transaction method.

For the third statement, “Despite the availability of alternative payment options, digital payments are used more frequently,” 58.82% agreed and 33.34% strongly agreed. Only 2.94% disagreed, 2.94% strongly disagreed, and 1.96% selected neutral. This indicates that users tend to prefer digital payments even when other options are available.

For the fourth statement, “Digital payments have become the dominant method for conducting transactions,” 58.82% agreed and 33.34% strongly agreed. A small percentage reported disagreement (3.92%) or strong disagreement (1.96%), and 1.96% remained neutral. This reflects a general view that digital payments are the leading mode of transaction.

Overall, the distribution of responses shows that most participants fall within the “agree” and “strongly agree” categories for all items, while only a small proportion selected neutral or negative options. This demonstrates a consistent and widespread use of digital payment systems among respondents.

Measurement Model

The measurement model was evaluated to examine the reliability and validity of the constructs used in the study. This assessment focuses on internal consistency, convergent validity, and discriminant validity to ensure that the measurement items appropriately represent their respective constructs.

Reliability and Convergent Validity

Table No. - 4 Construct reliability and validity - Overview

Reliability was assessed using Cronbach’s alpha, composite reliability (rho_a and rho_c), and internal consistency measures. The values of Cronbach’s alpha for all constructs were found to be above the acceptable threshold, indicating satisfactory internal consistency. Similarly, the composite reliability values (rho_a and rho_c) exceeded the recommended level of 0.70, demonstrating strong reliability of the constructs.

Convergent validity was examined using the Average Variance Extracted (AVE). The AVE values for all constructs were greater than the threshold value of 0.50, which indicates that the indicators share a high proportion of variance with their respective constructs. This confirms that the measurement items adequately represent the intended constructs.

Table No. - 5 Discriminant validity - Fornell - Laraker criterion

Discriminant validity was assessed using the Fornell–Larcker criterion. The findings show that the square root of the Average Variance Extracted (AVE) for each construct is greater than its correlation with other constructs. This indicates that the constructs are clearly distinct from one another and represent separate concepts within the model.

Table  No. – 6 Discriminant Validity (HTMT Ratio)

Discriminant validity - Heterotrait - monorate ratio (HTMT)- Matrix

Discriminant validity was further evaluated using the Heterotrait–Monotrait (HTMT) ratio. As per the standard criterion, HTMT values should be below 0.90 to establish acceptable discriminant validity. The results show that all HTMT values fall within this recommended limit, indicating that the constructs are sufficiently distinct and there is no significant overlap among them.

Structural Model

The structural model was developed to examine the relationships among the constructs and to evaluate the proposed hypotheses

Structural Model Representation

The structural model is presented to show the relationships among system quality, procedural efficiency, and sustained use. It illustrates the direction and strength of the relationships and forms the basis for hypothesis testing.

Hypothesis Testing

The hypotheses were tested using SEM-PLS results based on path coefficients, t-values, and p-values. This section presents the significance of relationships among the constructs in the model.

Table No. – 7 Path Coefficients for System Quality → Sustained Use

System quality shows a significant positive effect on sustained use with a standardized path coefficient (β = 0.357), indicating that an increase in system quality leads to a corresponding increase in sustained use. The t-value of 3.006 is greater than the critical value of 1.96, which confirms that the effect is statistically significant, while the p-value of 0.003 is below the 0.05 significance level, further supporting the reliability of the result. Therefore, the relationship is statistically significant, and the alternative hypothesis is accepted.

Table No. – 8 Path Coefficients for Procedural Efficiency → Sustained Use

Procedural efficiency shows a significant positive effect on sustained use with a standardized path coefficient (β = 0.512), indicating that higher procedural efficiency leads to an increase in sustained use. The t-value of 3.689 is greater than the critical value of 1.96, confirming that the relationship is statistically significant, while the p-value of 0.000 is below the 0.05 level of significance, further strengthening the result. Therefore, the relationship is statistically significant, and the alternative hypothesis is accepted.

Table No. – 9 Combined Effect (System Quality and Procedural Efficiency → Sustained Use)

The R-square value of 0.586 indicates that system quality and procedural efficiency together explain 58.6% of the variance in sustained use. The adjusted R-square value of 0.578 shows a stable explanatory capacity of the model after adjustment for the number of predictors.

Table No. – 10 f-square

The effect size (f²) was examined to assess the individual contribution of each predictor to sustained use. The results indicate that procedural efficiency exhibits a large effect size (f² = 0.453), suggesting a strong influence on sustained use. System quality shows a medium effect size (f² = 0.221), indicating a moderate contribution. These findings suggest that both constructs contribute meaningfully to sustained use, with procedural efficiency demonstrating a relatively stronger impact compared to system quality.

Conclusion

The present study highlights that both system quality and procedural efficiency play an important role in encouraging the continued use of digital payment systems. System quality ensures that the platform remains reliable, secure, and technically stable during transactions, which builds user confidence. On the other hand, procedural efficiency makes the payment process simple, fast, and easy to understand, which reduces user effort and improves convenience. The empirical findings confirm that both factors significantly and positively influence sustained use. However, procedural efficiency shows a comparatively stronger impact, indicating that users give more importance to ease and speed of transactions in their daily payment activities.

Overall, it can be concluded that sustained use of digital payment systems depends on the combined effect of strong system performance and smooth transaction processes. When both aspects are effectively improved, users are more likely to trust the system, feel satisfied, and continue using digital payment platforms in the long run.

Suggestions

1. Improve system reliability, data protection, and stability to enhance user trust in digital payment systems.

2. Simplify the transaction process to make digital payments faster and easier to use.

3. Ensure regular system updates and maintenance to reduce technical errors.

4. Provide clear instructions and user-friendly interfaces for better understanding.

5. Promote user awareness programs to improve digital payment literacy.

6. Integrate advanced technologies to enhance efficiency and user experience.

Limitations

1. The study is based on a limited sample size of 102 valid responses.

2. Data were collected through a structured questionnaire using Google Forms, which may involve response bias.

3. The study includes only selected indicators of system quality and procedural efficiency, which may not represent all aspects influencing sustained use of digital payment systems.

4. This study is cross-sectional in nature and does not capture changes in user behavior over time.

5. The findings may not be fully generalizable to all digital payment users due to the limited sample size and study scope.

Directions for Future Research

1. Further research can focus on system usability, interface design, and user experience as key determinants of sustained use of digital payment systems.

2. Additional investigations may examine the role of service efficiency, transaction speed, and perceived convenience in influencing digital payment adoption.

3. The influence of emerging technologies and advanced security mechanisms on digital payment usage can be explored in future studies.

4. Future research may examine how payment reliability during peak transaction periods affects user continuity and system preference.

5. Further studies can investigate the role of system errors and technical glitches in affecting user trust and continued usage of digital payment systems.

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