Adoption Model of Mobile Payment Use in Non-Metro Area

DOI

10.2991/aebmr.k.211119.032How to use a DOI?

Keywords

behavioral intention; mobile payment; non-metro; PLS-SEM; UTAUT2

Abstract

Until 2020, mobile payments in Indonesia, especially m-wallet, are growing, with the frequency of m-Wallet transactions increasing from 18% before COVID-19 to 25% after COVID-19. Supported by the growth in the number of new digital consumers in Indonesia with an increase of 37%, 56% of the number came from non-metro areas, penetration opportunities in non-metro areas are highly increasing. Despite this development, research on the behavior of mobile payment users in the non-metro area is still minimal. Therefore, this research aims at studying the behavior of mobile payments usage, especially m-wallet in the non-metro area. The variables studied will be based on the UTAUT2 model. This study uses a mix-method method where qualitative data is processed and analyzed using content analysis, and quantitative data from the model will be tested using PLS-SEM in order to explain the relationship between variables. The results obtained indicate that facilitating conditions, habit, and price value significantly and positively affect behavioral intention. Meanwhile, the variable that influences usage behavior with a positive significance is only the facilitating condition variable. Therefore, it can be concluded that facilitating conditions or the availability of facilities and knowledge are significant factors to predict the behavior of using m-wallet in non-metro areas.

Research purpose:

This research aims at studying the behavior of mobile payments usage, especially m-wallet in the non-metro area focusing on the factors that influence consumer intentions to use mobile payments in non-metro areas, factors that influence the use of mobile payments in non-metro areas and the influence of these factors on consumer intentions to use mobile payments and the behavior of using mobile payments in non-metro areas.

Research motivation:

Most of the previous studies on mobile payment usage in Indonesia are limited to metropolitan areas or core cities and their supporting cities. Meanwhile, with the rapid growth of the mobile payment sub-sector in Indonesia and with the government’s efforts to create a cashless society, there has not been much research on the behavior of mobile payment adoption in non-metro areas.

Research design, approach and method:

This research is mix-method research consisting of two stages: the first stage is a quantitative research that aims to test the UTAUT2 model on a sample of consumers from non-metro areas. At this stage, a model test will be conducted using PLS-SEM and MRA to test the proposed hypothesis. The second stage was followed by qualitative analysis by content analysis. The results of the qualitative study will then be used to support the results of the model test carried out since there is only limited literature discussing the mobile payment usage behavior of consumers in non-metro areas

Main findings:

The results obtained indicate that facilitating conditions, habit, and price value significantly and positively affect behavioral intention. Meanwhile, the variable that influences usage behavior with a positive significance is only the facilitating condition variable. Therefore, it can be concluded that facilitating conditions or the availability of facilities and knowledge are significant factors to predict the behavior of using m-wallet in non-metro areas.

Practical/managerial implications:

It is important for companies to develop applications that are easy to learn and use by consumers if they want to penetrate the market of the non-metro area. Companies can develop applications that are compatible with most devices used by consumers in non-metro areas since sophistication and value of the application will not affect consumer interest or decisions in using m-wallet when the existing application is not compatible with the device used.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - S. Rasyidatushshalihah
AU  - A. Hidayati
PY  - 2021
DA  - 2021/12/07
TI  - Adoption Model of Mobile Payment Use in Non-Metro Area
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 331
EP  - 339
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.032
DO  - 10.2991/aebmr.k.211119.032
ID  - Rasyidatushshalihah2021
ER  -