Determinants of Digital Payment Usage in Serbia

Abstract

This paper aims to identify the key drivers of digital payment (DP) usage in Serbia by examining the impact of socio-demographic characteristics. The data were obtained from the latest Global Findex database (2025), with a sample of 974 respondents. Binary logistic regression was employed to determine the influence of gender, age, education, labor force status, income, and urbanicity on the likelihood of conducting DP. The results indicate that age, education, labor force status, and income are statistically significant predictors, while gender and urbanicity are not significant variables. The key findings suggest that those with completed primary school or less experience 90% lower odds compared to those with a tertiary education or more. Also, individuals aged 18-24 have twice the odds of paying digitally compared to those aged 55+. Moreover, the 20% of the poorest respondents have 64% lower odds compared to the the 20% richest. Additionally, those in the workforce have four times higher odds compared to those out of the workforce to use digital payment methods. These insights contribute to a better understanding of individuals’ profiles and behaviour, thereby providing a basis for the formulation of strategies aimed at increasing the use of digital channels for payment.