Customer Service Quality and User Acceptance in India’s Four-Party Payment System: The Mediating Role of Technical Advancement

This study examines how customer service quality (CSQ) influences user acceptance of India’s four-party digital payment model, with a focus on the mediating role of technical advancement (TA). Grounded in the Technology Acceptance Model (TAM) and SERVQUAL, this research evaluates how experiential service cues shape perceptions of technological sophistication and subsequently drive adoption behavior. Data were collected from users of digital and card-based payment systems and analyzed via partial least squares structural equation modeling (PLS-SEM). The results indicate that CSQ has a strong positive effect on TA (β = 0.700, p < 0.001) and that TA significantly contributes to overall acceptance (OV) (β = 0.388, p < 0.001). The indirect effect of CSQ on OV through TA is significant (β = 0.204, p < 0.001), confirming partial mediation. The model demonstrates high explanatory power, accounting for 74.7% of the variance in OV. The findings provide empirical evidence that responsive and reliable service interactions enhance perceived technological advancement, thereby strengthening digital payment acceptance. The study offers theoretical contributions to technology adoption research and practical implications for fintech providers and policy stakeholders aiming to promote secure and efficient digital payment adoption through service-driven innovation.