CASHLESS SOCIETY: THE MAIN PSYCHOLOGICAL FEATURES

Abstract

Banks worldwide provide applications that help customers manage money transfers and their financial affairs as cashless payment methods become more common. ArCa serves as the Republic of Armenia's unified payment system which enables most markets to accept non-cash transactions. Even though there is a worldwide movement to minimize cash transactions financial systems continue to heavily rely on cash.

The research examines how age and employment status affect Armenians' payment practices and cash usage patterns. While earlier studies found no gender-based differences in payment preferences they showed older generations and specific demographics like rural inhabitants prefer cash payments. The study employed a questionnaire administered to roughly 300 participants who ranged in age from 18 to 58 and included both employed and unemployed individuals. The study results were evaluated against existing surveys that document payment behavior patterns. The research shows electronic payment methods are preferred to cash mainly by younger demographics which supports Rogers' innovation diffusion theory emphasizing attributes such as relative advantage and technological compatibility. Respondents aged 41 on average preferred cash payments while the youngest group with an average age between 26 to 30 opted for mobile payment apps for tasks like utility bill payments and phone charging because these payment systems seamlessly integrated with their smartphone usage. Employment status also influenced preferences: People without jobs who receive cash-based benefits like pensions tended to use cash whereas working people chose card payments. Respondents who preferred cash transactions demonstrated confidence in digital payment systems through their use of applications for paying utilities. The research illustrates Armenia's progress toward a cashless economy as payment behaviors evolve with age and employment alongside technology adoption provides valuable predictions about future payment system choices.