Understanding the key drivers in using mobile payment among Generation Z

Abstract

Purpose This quantitative study aims to examine the determinants that impact the behavioral intention to use mobile payment (m-payment) among Generation Z (Gen Z) customers in Indonesia. Design/methodology/approach The theoretical model comprises seven latent variables: effort expectancy, performance expectancy, social influence, facilitating conditions, promotional activities, perceived security and behavioral intention. In addition, the two moderating factors of education and gender are used to investigate the significant effect of the determinants on intention to adopt m-payment. This study obtained the final data size of 430 respondents. The data analysis is conducted using structural equation modeling. Findings The results substantiate the significance of promotional activities, perceived security, performance expectancy, effort expectancy and social influence, on the behavioral intention to accept m-payment systems. Gender is revealed to significantly moderate two constructs: social influence and promotional activities, on the m-payment usage intention. Meanwhile, education moderates the effect of perceived security on behavioral intention. Originality/value This research is expected to fill the gap because only a few studies discuss the determinants affecting m-payment usage in Indonesia, especially among Gen Z-ers. Furthermore, the new findings associated with the role of two moderating factors become important practical implications because most of the prior studies often ignore the moderating factors.

Bridging the Generation Gap

“…These factors include economic value, perceived ease of use, social influence, firm reputation, product features, and rewards. Lisana (2024) investigated the determinants influencing Generation Z's behavioral intention to use mobile payment in Indonesia. The theoretical model includes seven latent variables: effort expectancy, performance expectancy, social influence, facilitating conditions, promotional activities, perceived security, and behavioral intention.…”

“…Considering the Generation Z's willingness to try new technologies, Zmoginsk (2019) points out that 72% of young people in this generation are willing to install new apps or add new hardware to their daily lives. However, only a third of them have a bank account and think they can "manage" their financial life using only services like Google Wallet or Apple Pay (Lisana, 2024;Srivastava et al, 2024).…”

Exploring digital banking adoption in developing Asian economies: Systematic literature review and bibliometric analysis

“…Santosa et al. (2021) targeted analyses of usage continuation of the X generation and baby boomers towards the use of digital payments, whereas Lisana (2022) focused on Generation Z (Gen Z) customers with a data size of 430 respondents.…”

“…Numerous research studies have examined what motivates and discourages people from online banking and payment methods (Le et al., 2020; Lew et al., 2020; Lisana, 2022; Nguyen et al., 2020). Perceived risk theory, flow theory, self‐efficacy theory, critical mass theory, hierarchy of effects (HOE) model, diffusion of innovation (DOI) theory, transaction cost economics (TCE) theory and the technology acceptance model are just a few of the theories and models used in the many studies on digital payments and digital banking (Chaveesuk et al., 2021; George & Sunny, 2022; Lew et al., 2020; Nguyen et al., 2021; Talwar et al., 2020; Trinh et al., 2020).…”