Title: Financial knowledge and online payment decisions of Generation Z consumers: an empirical study using SEM approach

Authors: N. Yuvaraja; Swamy Perumandla

Addresses: VIT Business School, Vellore Institute of Technology, Vellore, Tamil Nadu, India ' VIT Business School, Vellore Institute of Technology, Vellore, Tamil Nadu, India

Abstract: Generation Z is the future work force, and their decisions will influence the future of nations. A model was developed to explore the impact of financial knowledge on the online payment decisions of Generation Z. Using a structured questionnaire, data was collected from Generation Z individuals in India. Goodness of fit is estimated by structural equation modelling using AMOS. The study hypotheses were tested by employing path analysis. Study findings indicate financial knowledge and online payment decisions have a strong association among Generation Z. Path analysis results revealed that financial knowledge dimensions such as numerical ability and return calculating ability are positively associated and interestingly, risk-taking ability is negatively associated with online payment decisions, which indicates that Generation Z considers online payments are not risky. This paper provides the novel contribution of showing the association between financial knowledge and online payment decisions of Generation Z and outlines future research directions.

Keywords: decision science; financial knowledge; online payment decision; Generation Z; financial decision; financial behaviour; behavioural finance and financial literacy.

DOI: 10.1504/IJPMB.2023.133153

International Journal of Process Management and Benchmarking, 2023 Vol.15 No.2, pp.198 - 217

Received: 04 Jun 2022
Accepted: 11 Jun 2022
Published online: 01 Sep 2023 *

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