Perceived Risk, Trust, and Intention to Use Fintech Service During the Covid-19 Pandemic

Abstract

The COVID-19 pandemic has changed everything. One prime example is in payment innovations, particularly the rapid transition towards cashless societies. Cashless payment has become people's preferred method to conduct transactions. The use of cash is significantly reduced as it poses a serious health risk of COVID-19 transmission in society. The purpose of this research is to know people perceived risk, trust, and intention to use fintech services during the COVID-19 pandemic in 2021. From its rapid development, fintech has contributed greatly to the development of the business industry. Integrating fintech into businesses can provide competitive advantages such as speed and flexibility. One of the most popular types of fintech today is the type of payment service, where users can make payments without having to carry cash (cashless). During the COVID-19 pandemic, non-cash transactions have experienced a significant increase. One, in particular, is GoPay from the Gojek application, which is currently ranked first as the most popular digital payment in Indonesia. This study took a quantitative approach and collected data via a Google Forms questionnaire. The research subjects included 106 GoPay users in Bandung. Multiple linear regression analysis was used to analyze the data. According to the findings, perceived risk has a negative impact on actual use, although trust and intention to use have a positive impact. It is deducible that respondents trust and intend to use Fintech Service during the pandemic time but still consider the risk of utilizing the new service. Since Cashless fintech has several benefits like eliminating theft of cash, reducing cost, giving a speed of transaction, and increasing efficiency, improving the technology and service will give a secure feeling for customers to use fintech.

Using an extended post-acceptance framework to examine consumer adoption of fintech

“…Another study using an Asian sample illustrated that security concerns substantially impacted the intention to use fintech services (Tun-Pin et al, 2019). Similar studies with Indian samples (Gupta et al, 2023) and Indonesia samples (Hutapea and Wijaya, 2021) Consumer adoption of fintech illustrated that consumers' intention to adopt online services is negatively affected by security risks. However, some previous studies hold that perceived security is not associated with fintech acceptance.…”