Exploring the Economic Impact of Digital Payments: An SEM Analysis of the CHIPS Framework, Access to Economic Opportunities, and Sustainability

Abstract

This research examines the economic outcomes of digital payments, focusing on the CHIPS framework (Connect, Harness, Innovate, Protect, Sustain) and its impact on access to economic opportunities, including online shopping, financial services, and cost savings. Using Structural Equation Modeling (SEM), the study analyzes the relationships between CHIPS, economic outcomes, and moderating variables such as trust and demographics. The model framework highlights how CHIPS positively influences economic outcomes by improving transaction volume and efficiency. The SEM analysis shows that CHIPS has a significant effect on economic outcomes, while the moderating variables exhibit limited influence on the relationship. This study emphasizes the importance of refining the moderating constructs to enhance the understanding of digital payment adoption. The findings contribute to policy- making, business strategy, and financial inclusion, offering practical insights for improving digital payment systems and fostering greater economic accessibility.