The Functional and Psychological Determinants of the Adoption of Digital Payment Methods in Iraq

This study explores the factors hindering Iraqi consumers’ use of digital payment methods. The study relies on a survey methodology to collect data from 632 individuals using digital payment methods, using a random sample of digital payment service users in Iraq. The study analyzes data using SPSS to assess the direct impact of functional and psychological determinants on adopting digital payment methods. The results show that functional determinants include difficulty of use, unclear steps, complex registration procedures, and user skepticism about service quality and cost-benefit, which is disproportionately high, along with security concerns such as information theft and increased costs. Psychological determinants include a preference for traditional methods due to feelings of trust, a lack of confidence in the quality of customer service, and concerns about the perceived insecurity and complexity associated with using digital payment methods. Based on these findings, adopting digital payment methods in Iraq can be enhanced by simplifying the user experience, enhancing perceived value, improving security measures, providing more effective customer support, and reshaping perceptions through awareness campaigns. These strategies can significantly contribute to increasing the adoption of digital payments, particularly in societies that still rely primarily on traditional cash transactions.