Exploring the Factors Influencing Credit Card Adoption: A Case Study of Cambodian Adults

The adoption of credit cards in Cambodia remains limited despite the country's ongoing economic development, digital transformation, and expanding financial infrastructure. This study explores the primary factors that influence credit card adoption among Cambodian adults aged 18 to 30 a demographic considered digitally literate and economically active, yet still largely underbanked. The research aims to address a significant knowledge gap by investigating the interplay between banking conditions, financial literacy, and consumer spending behavior in determining credit card uptake.

Employing a quantitative research design, data were collected through structured questionnaires from a sample of 393 participants, primarily residing in Phnom Penh. The study applied descriptive and inferential statistical techniques using SPSS to analyze patterns and correlations among variables such as income, education, trust in financial institutions, financial knowledge, and payment preferences. Results indicate that while credit card ownership is minimal (7.38%), perceived convenience is the dominant motivator for usage among current cardholders. Conversely, the most frequently cited reasons for avoiding credit cards include a lack of perceived need, stringent bank requirements, fear of debt accumulation, and distrust in digital security.

The findings highlight that financial literacy plays a critical role in shaping credit attitudes and behaviors, with over half of the respondents lacking formal exposure to credit-related education. Furthermore, entrenched cultural values that emphasize debt avoidance and reliance on cash-based or mobile payment systems significantly influence financial decision-making. Institutional trust also emerged as a pivotal factor, as apprehensions regarding fraud and transparency deter potential users (Guiso, Sapienza, & Zingales, 2008).

This study contributes to the academic discourse on financial inclusion in emerging economies by providing empirical insights into the behavioral, institutional, and cultural barriers affecting credit card adoption in Cambodia. It offers practical recommendations for banks, educators, and policymakers to promote responsible credit usage through improved product design, inclusive financial education, and enhanced regulatory oversight. Ultimately, the research underscores the need for a culturally attuned, youth-focused approach to expanding formal financial services and fostering economic resilience among Cambodia’s younger generation.