The technological shift towards embedded payments: an examination of young consumers’ intention

Abstract The surge in digital payment technologies and the swift transition to a cashless society have propelled the adoption of embedded payment systems, marking a significant shift in the payments landscape. Despite its increasing prevalence, the factors influencing the intention to use embedded payment systems remain underexplored in the academic literature. This study addresses this gap by analyzing the factors affecting young people’s intention to use embedded payment systems in Türkiye. Through a questionnaire survey of 807 respondents, the data was analyzed using Structural Equation Modeling. The findings reveal that lifestyle compatibility, social influence, personal innovativeness, hedonic motivation, and perceived trust collectively account for 72.6% of the variation in the intention to use embedded payment systems. However, the statistical insignificance of perceived ease of use and facilitating conditions suggests that other factors may significantly influence the intention to use these systems. This empirical study is the first of its kind on embedded payment systems, providing valuable insights into digital payments literature and guiding private sector professionals in devising effective strategies to promote widespread adoption of this payment method in Türkiye.