IMPACT OF SERVICE DESIGN ON CUSTOMER EXPERIENCE IN DIGITAL

Digital payment service providers must consider customer experience, as it has become a key factor in how
customers make payments on digital payment platforms. This study examines how Service Design influences
Customer Experience and explores the role of Perceived Enjoyment among digital payment users in Chennai.
Service Design is defined as an intuitive interface, a structured payment process, reliability, clear navigation,
automated support, instant confirmation, and a seamless transaction workflow; Perceived Enjoyment is defined as
the pleasant, engaging, satisfying, and intrinsically rewarding nature of digital payment interactions. The study is
quantitative, descriptive, and cross-sectional. A purposive sampling of 400 digital payment users is chosen from the
Chennai area. The study uses primary data collected through a structured questionnaire with a 5-point Likert scale.
Partial Least Squares Structural Equation Modelling (PLS-SEM) is used to evaluate the measurement model, the
structural model, and to observe the direct relationships between Service Design, Perceived Enjoyment and
Customer Experience. The mediating effect of Perceived Enjoyment is tested through bootstrapping with 5,000
resamples, using the specific indirect effect and 95% bootstrap confidence intervals. The study is expected to give
insights into the effectiveness of Service Design, both directly and indirectly via Perceived Enjoyment, in enhancing
Customer Experience. The results can help payment service providers design customer-centered payment services
that are not only functional and efficient but also provide positive experiential value for customers.