Does Discount Matter in Indonesia e-Wallet Race? A Qualitative Study on Generation Z e-Wallet Preferences During Pandemics

Abstract

The research aimed to examine the intention of Generation Z when using e-wallet for payments and the influence of discounts towards using e-wallet in the time of pandemics. The research used the qualitative method with total data of 22 students, collected using in-depth interviews through WhatsApp free call. The result shows that discount gives an impact on Generation Z in choosing the e-wallet, but a long-term loyalty is not guaranteed. The finding demonstrates that there are other influential factors for Generation Z to choose e-Wallet, namely ease of use, interrelated apps with the e-wallet, the security system, and cashless society. The limitations of the research lie in the relatively small numbers of respondents. Due to pandemics with physical distancing requirements, the research only carries out on data collected from 22 students from Economics Faculty in the State University of Malang, Indonesia. However, the research provides an insightful analysis for digital payments industry as a reference. It is expected that fellow researchers and academicians use the research as a fundamental to further investigate digital payments, especially amongst Generation Z in Indonesia or other parts of the world.

e-Wallet usage intensity and the determining factors during pandemics

“…(Interview 27,Zain) In line with the previous research, e-wallet is being used as a mode of transactions amongst youngsters, millennials, and generation Z altogether (Monilakshmane, 2019) (Daqar, 2020) (Persada, 2021). The main factors in using e-Wallet, namely discount (Prasasti, 2021); ease-of-use (Daqar, 2020); seemingly good idea (Persada, 2021); and the quality of mobile application (Phuong, 2020). In this study, the author found three striking answers from the interviewee.…”

“…While there are a few articles on generation Z or undergraduate students, the finding discussed addressed several main topics using the theory of planned behavior (Persada, 2021), and strategically focused on customer satisfaction in certain regions such as India (Dhanda, 2018). Author has also conducted preliminary research that found out that e-wallet usage in Indonesia is widespread amongst generation Z, with discounts as the underlying factors of choosing the ewallet (Prasasti, 2021). Indonesia also has key players in an e-wallet, namely OVO, GoPay, ShopeePay, Dana, and Link Aja (Daily Social, 2020), with the total monthly active users combined accounting for To reduce the gap in the literature and see the massive number of users in Indonesia, it aims to dig deeper into the phenomenon happening in Indonesia where undergraduate students (under 25 years old) are easily and conveniently use e-wallet as one of their transaction methods.…”

Integrasi Perceived Security dan Promosi dalam Mendeteksi Perilaku Konsumsi Milenial Sorong di Era Digital: Sebuah Analisis Model UTAUT2

“…Variabel prediktor lainnya yang kuat mempengaruhi minat milenial sorong menggunakan dompet digital adalah promosi. Penelitan ini menguatkan hasil penelitian sebelumnya yang menunjukkan bahwa promosi berpengaruh secara signifikan terhadap penggunaan dompet digital (Fikri et al, 2020;Acelian et al, 2021;Pham et al, 2021;Prasasti, 2021).…”

Touch n Go e-Wallet: The New Payment Style Existed when COVID-19 Hits

“…Moreover, promoting customers' familiarity also will increase the perceived use and perceived usefulness of the e-wallet (Phuong et al, 2020). According to Prasasti, Aulisaina, and Hakim (2021), familiarity with the platform and features of an e-wallet can strengthen the users' loyalty to their favorite platform. Nevertheless, the outlook for familiarity with e-wallet remains strong because of the increased e-commerce popularity in recent years (Alam, Awawdeh, & Muhamad, 2021).…”