Determinants of Credit Card Demand in Sri Lanka: Evidence from Bandarawela Area

Abstract

Generally, it has been accepted that credit cards grant many benefits to their users, thus most of the people in the world use credit cards for their day-today transactions. However, in Sri Lankan context there is no such huge demand for credit cards. Therefore, this quantitative research, attempts to investigate the key factors influence on demand for credit cards. The factors which are used in this study are awareness, cost, credit limit, bank functions and socio psycho attitudes. It has used 200 credit card holders in Bandarawela area to collect primary data through a structured questionnaire. Descriptive statistics, correlation and multiple regression techniques were occupied for the analysis. According to the results, it concluded that socio psycho attitudes and awareness of credit cards influences positively for the demand and cost of holding a credit card work as a hurdle for the demand as expected.