Identifying Customer Segmentation Models for FinTech & Finding the Consumer Behavioral Difference through a Study of Payment Instruments & E-commerce in Indian Market


  • Vivek Agrawal


The Advent of Fintech payment instruments has led to significant discussions around customer shifts
from Credit cards to Fintech products especially BNPL and UPI, both for E-commerce & POS. This
discussion has been the focus point of various industry reports considering the meteoric increase in
payment methods innovations, investments, and number of companies. With limited academic
research to fully understand this difference across the world, there exists a gap in defining the finite
customer segmentation for various payment instruments. As per the extensive research done by the
author, this study is one of the first such research in Indian geographical limits. Additionally, the
impact of these fintech products on E-commerce consumer behaviour and an understanding of
differentiated customer segmentation for E-commerce with an absolute vacuum for Indian territory.
This research has used K-Means Clustering & Hierarchical Clustering for the identification &
classification of principle variables for the payment Instruments & E-commerce. PLS-SEM is used
to understand the relationship strength between these variables and validate the model proposed.
Trust, Performance Expectancy, Effort Expectancy, Social Influence, and Facilitating Conditions are
found to have strong impact on the customer purchase intentions using all digital payment mode.
Payment Preference of a customer strongly affect all the above parameters in addition to having a
strong impact on customer purchase behaviour. The study found a strong impact of rewards and
discounts on customer Purchase intentions and choice of payment methods. Tech attributes like
widespread availability, UI/CX, merchant acceptance, 1-click payment, ease of payment, and high
security features have a strong impact on customer payment preference and indirect effect on
customer purchase intentions. Payment Preference is also affected by government policies and
geopolitical factors who have significant indirect effect on customer purchase intention. Demographic
factors Age, Gender, and Income, along with Type and value of purchase also impacts choice of
payment method differently. While Credit Card and Digital Wallet uptake increases with increase in
Age and Income, there exist a negative relationship between BNPL and Debit Card / Internet banking
with Age and Income.
Discussion and Conclusion
During the process, the research also creates the first true academic framework for Payment method
customer segmentation from an Indian perspective which can also be replicated across other
geographies. The author proposes a STATE model for gauging the impact of payment methods on Ecommerce
comprising of Service Benefit Expectations, Type of Customer, Attributes of Tech, Type
of Purchases, and External Factors and communication.




How to Cite

Agrawal, V. (2024). Identifying Customer Segmentation Models for FinTech & Finding the Consumer Behavioral Difference through a Study of Payment Instruments & E-commerce in Indian Market. Global Journal of Business and Integral Security. Retrieved from