Post-COVID Digital Banking Adoption in Kosovo: The Roles of Trust, Utility, and Physical Channels

Abstract

Background: This study examines post-COVID digital payment adoption in Kosovo, following banks’ expansion of digital channels and the temporary loan moratoria introduced during the pandemic. Objectives: It analyses how trust and perceived utility influence digital payment usage, how reliance on ATMs and bank branches shapes these perceptions, and whether these relationships differ by gender. Methods/Approach: The study uses 673 survey responses collected between June 2023 and February 2024. CFA was applied to validate the constructs, SEM to estimate the proposed relationships, and multi-group SEM to test gender moderation. Results: Trust is the strongest predictor of digital payment usage, while perceived utility has only a marginal effect. Trust also increases perceived utility. Reliance on physical channels shows a substitution pattern: greater ATM use is associated with lower perceived utility, and more frequent branch visits are associated with lower trust. Utility–trust and ATM–branch reliance covary positively. Gender moderation is limited, although substitution effects are stronger among men. Conclusions: Post-pandemic digital payment adoption depends mainly on trust, supported by perceived utility. Banks should strengthen the visibility of security, reliability, and user value, while gradually nudging heavy ATM and branch users toward digital channels through targeted training.