Financial Technology Adoption on Payment Systems and Financial Transactions Among Millenials in Indonesia
Keywords:
Digital Payment Systems, Theory Of Acceptance Model, SEM-PLS
Abstract
This research aims to see how far the adoption of digital payment systems and electronic financial transactions in Indonesia is based on the factors used in the theory acceptance model (TAM) method, such as perceived usefulness and perceived ease of use. Several factors, such as social influences, financial literacy, security and privacy, and government support, are added to the effects of the intention to adopt digital payments, especially after the COVID-19 pandemic. Data processes with SmartPLS 3 and uses SEM-PLS method to see that all the factors are supported to adopt digital payment systems in Indonesia. Results show that perceived usefulness and ease of use are the factors that drive the intention to adopt digital payment systems. Besides that, government support drives the intention to adopt digital payment systems by regulations to develop digital payment ecosystems. Others such as social influences, financial literacy, and security-privacy aren’t influenced on intention to adopt digital payment systems in Indonesia.
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References
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Yan, C., Siddik, A. B., Akter, N., & Dong, Q. (2021). Factors influencing the adoption intention of using mobile financial service during the COVID-19 pandemic: the role of FinTech. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-021-17437-y
Al Nawayseh, M. K. (2020). Fintech in COVID-19 and beyond: What factors are affecting customers’ choice of fintech applications? Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–15. https://doi.org/10.3390/joitmc6040153
Bajunaied, K., Hussin, N., & Kamarudin, S. (2023). Behavioral intention to adopt FinTech services: An extension of unified theory of acceptance and use of technology. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100010. https://doi.org/10.1016/j.joitmc.2023.100010
Balakrishnan, V., & Shuib, N. L. M. (2021). Drivers and inhibitors for digital payment adoption using the Cashless Society Readiness-Adoption model in Malaysia. Technology in Society, 65. https://doi.org/10.1016/j.techsoc.2021.101554
Bank Indonesia. (2023). Statistik Sistem Pembayaran dan Infrastruktur Pasar Keuangan Juli 2023. August 30, 2023. https://www.bi.go.id/id/statistik/ekonomi-keuangan/spip/Pages/SPIP-Juli-2023.aspx
Bollaert, H., Lopez-de-silanes, F., & Schwienbacher, A. (2021). Fintech and access to finance. Journal of Corporate Finance, 68(December 2020), 101941. https://doi.org/10.1016/j.jcorpfin.2021.101941
Daragmeh, A., Lentner, C., & Sági, J. (2021). Journal of Behavioral and Experimental Finance FinTech payments in the era of COVID-19 : Factors influencing behavioral intentions of ‘“ Generation X â€â€™ in Hungary to use mobile payment. Journal of Behavioral and Experimental Finance, 32, 100574. https://doi.org/10.1016/j.jbef.2021.100574
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. In Quarterly (Vol. 13, Issue 3).
East Ventures. (2023). Digital Competitiveness Index 2023. October 31, 2023. https://east.vc/reports/east-ventures-digital-competitiveness-index-2023/#report_download
Estisia Pratiwi, R., & Saefullah, K. (2022). The Use of Payment Technology Through Financial Literacy. Journal of Digital Innovation Studies, 42–51. https://doi.org/10.24198/digits.v1i1.38516
Gai, K., Qiu, M., & Sun, X. (2018). A survey on FinTech. Journal of Network and Computer Applications, 103, 262–273. https://doi.org/10.1016/j.jnca.2017.10.011
Gupta, K., Wajid, A., & Gaur, D. (2023). Determinants of continuous intention to use FinTech services: the moderating role of COVID-19. Journal of Financial Services Marketing. https://doi.org/10.1057/s41264-023-00221-z
Hair, J., Hult, T., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) Second Edition (2e ed.).
Hu, Z., Ding, S., Li, S., Chen, L., & Yang, S. (2019). Adoption intention of fintech services for bank users: An empirical examination with an extended technology acceptance model. Symmetry, 11(3). https://doi.org/10.3390/sym11030340
IPSOS. (2022). Evolusi Industri Dompet Digital: Strategi Menang Tanpa Bakar Uang. October 23, 2023. https://www.ipsos.com/sites/default/files/ct/news/documents/2020-02/ipsos_media_conferennce_-_e-wallet_-_id_0.pdf
Johnson, V. L., Kiser, A., Washington, R., & Torres, R. (2018). Computers in Human Behavior Limitations to the rapid adoption of M-payment services : Understanding the impact of privacy risk on M-Payment services. Computers in Human Behavior, 79, 111–122. https://doi.org/10.1016/j.chb.2017.10.035
Kadence International. (2021). Digital Payment and Financial Services Usage and Behavior in Indonesia. October 31, 2023. https://kadence.com/office/indonesia/
Kang, J. (2018). Mobile payment in Fintech environment: trends, security challenges, and services. Human-Centric Computing and Information Sciences, 8(1). https://doi.org/10.1186/s13673-018-0155-4
Kurniasari, F., Tajul Urus, S., Utomo, P., Abd Hamid, N., Jimmy, S. Y., & Othman, I. W. (2022). Determinant Factors of Adoption of Fintech Payment Services in Indonesia using the UTAUT Approach. Asia-Pacific Management Accounting Journal, 17(1).
Le, M. T. H. (2021). Examining factors that boost intention and loyalty to use Fintech post-COVID-19 lockdown as a new normal behavior. Heliyon, 7(8). https://doi.org/10.1016/j.heliyon.2021.e07821
Lestari, D. (2019). Measuring e-commerce adoption behaviour among gen-Z in Jakarta, Indonesia. Economic Analysis and Policy, 64, 103–115. https://doi.org/10.1016/j.eap.2019.08.004
Lu, J., Yao, J. E., & Yu, C. S. (2005). Personal innovativeness, social influences and adoption of wireless Internet services via mobile technology. Journal of Strategic Information Systems, 14(3), 245–268. https://doi.org/10.1016/j.jsis.2005.07.003
Muthukannan, P., Tan, B., Ter, F., Tan, C., & Leong, C. (2021). International Journal of Information Management Novel mechanisms of scalability of financial services in an emerging market context : Insights from Indonesian Fintech Ecosystem. International Journal of Information Management, 61(June 2020), 102403. https://doi.org/10.1016/j.ijinfomgt.2021.102403
Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech Adoption Drivers for Innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4). https://doi.org/10.3390/joitmc8040208
OECD. (2018). G20/OECD INFE Policy Guidance Digitalisation and Financial Literacy. www.oecd.org/going-digital.
Ozili, P. K. (2018). Borsa _ Istanbul Review Impact of digital finance on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003
Ozili, P. K. (2021). Financial inclusion research around the world: A review. Forum for Social Economics, 50(4), 457–479. https://doi.org/10.1080/07360932.2020.1715238
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User innovativeness and fintech adoption in indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030188
Susilo, A. Z., Prabowo, M. I., Taman, A., Pustikaningsih, A., Susilo, A. Z., Ahmad, M. I., Taman, A., Pustikaningsih, A., & Samlawi, A. (2019). ScienceDirect ScienceDirect A Comparative Study of Factors Affecting User Acceptance of GO- A Comparative Study of Factors Affecting User Acceptance of GO- PAY and OVO As a Feature of Fintech Application PAY and OVO As a Feature of Fintech Application. Procedia Computer Science, 161, 876–884. https://doi.org/10.1016/j.procs.2019.11.195
Venkatesh, V., Morris, M. G., Davis, G. B., Davis, F. D., Smith, R. H., & Walton, S. M. (2003a). User Acceptance of Information Technology: Toward a Unified View Quarterly USER ACCEPTANCE OF INFORMATION TECHNOLOGY: TOWARD A UNIFIED VIEW1. Quarterly, 27(3), 425.
Venkatesh, V., Morris, M. G., Davis, G. B., Davis, F. D., Smith, R. H., & Walton, S. M. (2003b). User Acceptance of Information Technology: Toward a Unified View Quarterly USER ACCEPTANCE OF INFORMATION TECHNOLOGY: TOWARD A UNIFIED VIEW1. In Quarterly (Vol. 27, Issue 3).
Villanthenkodath, M. A., Ansari, M. A., Kumar, P., & Raju, Y. N. (2022). Effect of information and communication technology on the environmental sustainability: An empirical assessment for South Africa. Telematics and Informatics Reports, 7, 100013. https://doi.org/10.1016/j.teler.2022.100013
Yan, C., Siddik, A. B., Akter, N., & Dong, Q. (2021). Factors influencing the adoption intention of using mobile financial service during the COVID-19 pandemic: the role of FinTech. Environmental Science and Pollution Research. https://doi.org/10.1007/s11356-021-17437-y
Published
2024-03-11
Section
Original Articles
Copyright (c) 2024 Adiyaksa Pratama, Eka Pria Anas
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