The Adoption and use of Electronic Wallets: A user perspective using the Unified Theory of Acceptance and use of Technology 2

This study explores the expansion of digital payment systems that have transformed the financial behavior of users in the emerging economy like Nepal. This study examines the factors influencing the adoption and use of electronic wallets in Nepal. The study used the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) as its theoretical foundation. The study examined seven core constructs: performance expectancy, effort expectancy, social influence, hedonic motivation, price value, habit, and facilitating conditions. Among them, habit and facilitating conditions demonstrate significant relationships, while others do not demonstrate significant relationships with the adoption and use of electronic wallets within the context of Nepal. This study employed a quantitative design and collected data from 258 active electronic wallet users through simple random sampling to explore how behavioral, infrastructural, and contextual factors shape digital payment engagement. Descriptive and inferential analyses showed that habitual and facilitating conditions, such as the availability of supportive technological and institutional infrastructure plays vital role in the regular use of e-wallets. The limited influence of performance expectancy and effort expectancy suggests that users may already perceive e-wallets as sufficiently functional and easy to use, reducing their explanatory power. Similarly, the poor effects of social influence and hedonic motivation indicate that e-wallet adoption in Nepal is less socially driven and less associated with enjoyment than in other regions. These findings point out the unique behavioral dynamics of emerging digital ecosystems, whereas infrastructural readiness and routine usage patterns outweigh attitudinal or motivational factors. The study contributes to the UTAUT2 literature by demonstrating how its constructs operate differently in developing economies with evolving digital infrastructures. Practically, the results underscore the need for policymakers and financial institutions to strengthen digital infrastructure and promote awareness initiatives to accelerate digital financial inclusion. Recommendations for future research include expanding sample diversity by incorporating non-users, and examining trust and security perceptions more deeply.