Determinant Factors of Adoption of Fintech Payment Services in Indonesia Using The UTAUT Approach

Abstract

The advancement of digital technology has affected many industries, including digital payment services. The objective of this study was to analyze the adoption of Fintech payment services in Indonesia using the UTAUT theory approach. This study also considered the important role of national culture in strengthening the effect of the social influence variable in creating trust. The study added the government policy variable in strengthening the effect of facilitating a condition in creating trust. The study was conducted by distributing 310 questionnaires to freshly employed graduates who were digital payment services users. Further analysis was conducted with linear multiple regression using IBM SPSS 26. The study found that trust had the highest effect in creating the adoption decision in digital payment services, followed by government policies in strengthening the facilitating conditions. Meanwhile, performance and effort expectancy, social influence and facilitating condition did not have a direct influence on customer trust. Uncertainty avoidance, masculinity and long-term orientation also did not have a strengthening effect of social influence in gaining trust. Keywords: UTAUT, national culture, government policy, trust, adoption in digital payment

A comparative study of fintech payment services adoption among malaysian and indonesian fresh graduates: through the lens of UTAUT theory

“…It is evidenced that Indonesian fresh graduates emphasize more on trust rather than social influence as a factor determining the adoption of Fintech payment services. The comparative findings are also consistent with previous studies by [15,[42][43][44]48] that reported similar results on the social influence aspect. This shows that fresh graduates are not pressured by their social environment to adopt the use of Fintech payment services.…”

Fintech Payment Services among Fresh Graduates: The UTAUT Model Perspective

“…According to Hofstede-Insights (2021), Malaysia obtains a low score, indicating that Malaysians are a normative society that values norms and traditions, and emphasizes on attaining speedy results. Nonetheless, from the perspective of Fintech payment adoption, the long-term orientation demonstrated an insignificant impact, contradicting prior studies such as Kurniasari et al (2020), which suggested that long-term orientation could affect mobile payment adoption via privacy concerns and performance expectations…”

“…The adoption of Fintech is also influenced by social networking and capital, since, in the collectivism culture, the major decision in adopting the technology usually refers to inner networking advice and suggestions. This is corroborated by the findings in prior research which revealed that social influence has a significant impact on the use of e-government services (Kurniasari et al, 2020).…”

“…The result revealed that consumers' trust has no significant influence over the adoption of Fintech payment services. This is interesting as many previous studies show a significant influence of consumers' trust toward the adoption of Fintech payment services (Ahmad et al,2021;Gunadil et al, 2020;Kurniasari et al, 2020). Findings show that Malaysian fresh graduates do not consider their trust toward a particular product or services would influence their adoption of Fintech payment services, and this is corroborated by the findings of Tohang et al (2021) who discovered that when dealing with Fintech payment services, fresh graduates face volatility, uncertainty, complexity, and ambiguity.…”

“…This indicates that whether a working fresh graduate is long-term or short-term oriented has little bearing on whether they use Fintech payment services. Kurniasari et al (2020) define longterm orientation as "the fostering of virtues oriented towards future rewards" where shortterm orientation is "the fostering of virtues related to the past and present." In short, the score for the long-term orientation dimension determines how a society maintains its link with the past, norms and traditions while facing present and future challenges.…”