Determinants of Diffusion and Adoption of ATM cum Debit Cards in Indian Banking Sector

Plastic cards are the neglected innovation as far as its research on diffusion and adoption from bankers’ perspective is concerned. The study emphasizes on the identification of factors which may have influenced the banks to adopt Automated Teller Machine (ATM) cum debit cards along with their traditional banking services. Bank-specific variables were investigated to deepen the understanding of the diffusion and adoption of ATM cum debit cards. The sample of the study is confined to 50 commercial banks, out of which 23 are private and 27 are public sector banks. The empirical findings reveal that size, non-interest income, non-performing assets, profitability, age and market share of the bank are the variables which have contributed significantly in the diffusion and adoption of ATM cum debit cards. The present study would serve as the roadmap for the regulators to frame policies and guidelines while introducing new technology in the industry, which are best suited to customers as well as bankers.