Abstract:
Digital payment is a method of conducting financial transactions using digital devices
rather than traditional cash or physical cards. The main objective of this study was to
examine the effect of digital payments on consumer purchasing behavior in the case of
Ethiotelecom North North West Region in Gondar city. This study helps to examine the
effect of digital payments on consumer purchasing behavior and to show the relationship
that exists between digital payments and consumer purchasing behavior at Ethiotelecom.
The study used a quantitative research approach, descriptive and an explanatory research
design, judgmental sampling techniques, and primary sources of data. The target
populations were Ethiotelecom digital payment customers who live in Gondar city, and the
sample size was 384 respondents. The data were collected through administration
questionnaires and analyzed using the Statistical Package for Social Sciences (SPSS)
version 27. Based on the objective of the study, the researcher found trust and security of
the system, perceived risks, perceived ease of use and social influence had a significant
effect on the consumer purchasing behavior. Trust and security of the system had the most
significant effect on the consumer purchasing behavior. The researcher recommended to
the Ethiotelecom organization to consider the Strengthen Cybersecurity Infrastructure,
ensure regulatory compliance, and Clearly communicate security measures and data
protection policies to customers, fostering trust and confidence, upgrade the system
performance, avoid transaction errors, implement robust security measures to protect
customer privacy, maintain reasonable transaction costs, and expand various
communication channels to educate customers about usage of digital payment systems,
and the researcher also suggests that future researchers consider other variables, several
districts and organizations for expanding data sources to get a large sample size.
