Digital Payment Systems and Employee Productivity in banking sector of Kathmandu Valley: The Role of Techno-Complexity and Techno-Competence

Digital payment systems transform organizational practices by fostering efficiency and enhancing performance. These advancements, though, introduce complexities in adopting and mastering associated technologies, creating a demand for techno-competence among employees. In this context, this study investigates the mediating roles of techno-complexity and techno-competence in the relationship between digital payment systems and employee performance, focusing on state-owned banks in Kathmandu Valley. A Causal-Comparative Research Design was employed to explore the cause-and-effect relationships between the variables without manipulating the digital payment systems. Data were collected from 395 employees representing major state-owned banks using a structured questionnaire based on a 5-point Likert scale. The inferential statistical tool SPSS PROCESS v4.2 was used to analyse the data. The findings reveal that Digital payment systems show significant positive correlations with both techno-competence and employee performance but exacerbate techno-complexity. Mediation analysis highlights that techno-competence significantly mediates the relationship between digital payment systems and performance, while techno-complexity partially mediates this relationship. A substantial portion (39.4%) of performance variability is explained by the independent and mediating variables. Digital payment systems improve performance through enhanced techno-competence, yet are hindered by increased complexity. Strategies to balance technology implementation with skill development and complexity management are crucial for optimizing employee productivity. This study introduces a unique perspective on the dual roles of techno-complexity and techno-competence in mediating technology's impact on performance, providing actionable insights for the banking sector's digital transition.