Abstract:
The credit card has developed into one of the most accepted, convenient and
profitable financial products around the world. Many of consumers and
merchants in the world accept it as a routine means of payment for all
variability of products and services. This study is a quantitative research aimed
to recognize the factors affecting for usage of credit cards with special
reference to Private and Government banks in Sri Lanka. Researcher selected
200 credit card holders among selected five banks as the sample and mainly
used the primary data for this study. Primary data was gathered from structured
questionnaires. Data were evaluated through descriptive statistics, correlation
analysis and multiple regression analysis. According to the results of the study,
awareness, cost, credit limit and socio psycho attitudes was found to be
significantly influence on credit card usage. Bank functions are not
significantly influence on credit card usage. Awareness was the highly
influential factor for usage of credit cards. This research will be helpful for the
credit card issuing banks to design marketing and promotional strategies in
order to progress their credit card portfolio as well as obtaining high portion
in the credit card market.
