Published Online:May 2026
Product Name:The IUP Journal of Bank Management
Product Type:Article
Product Code:IJBM020526
DOI:10.71329/IUPJBM/2026.25.2.31-53
Author Name:Aparna Bhatia and Megha Mahendru
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:31-53
The study identifies the factors that influence customers to prefer payment bank services and assesses their influence on the overall satisfaction level of customers. Data was collected through a questionnaire from 744 respondents using payment bank services. Exploratory factor analysis was employed to explore the significant factors. Regression analysis was used to know the impact of these factors on the satisfaction level of customers. The findings show that ‘user awareness and perceived benefits’, ‘accessibility and digital convenience’, ‘technological robustness’, ‘security and trustworthiness’, ‘complaint and customer service management’, and ‘government regulations and financial inclusion’ are the factors that influence customers to prefer the services of payment banks. These factors have a significant positive impact on the satisfaction level of customers. The study provides insights to the regulators and the managers of payment banks on the deficiencies in payment banking services and suggestions to address them.
India stands at the second position, just after China, in terms of financial exclusion with a significant unbanked population of 190 million (World Bank, 2021). To increase the penetration level of financial services, the Reserve Bank of India (RBI) launched the payment banks in 2015, to provide greater access to payment and remittance services to small businesses, lowincome households, migrant laborers/workforces and other entities in the unorganized sector in a secure and technologically-enhanced manner. Payment banks have brought a revolutionary change in the Indian banking system.