Use Intention of Fintech Services for E-Wallet Users: An Examination With an Extended Technology Acceptance Model

Abstract

<p><em>Financial Technology (Fintech) has increased, follows by various innovations that lead to efficient, safe, fast, and convenience. One type of Fintech in Indonesia is a non-cash payment using an electronic wallet (e-wallet). People started to do the transaction through their mobile using electronic wallet (e-wallet) in daily life. However, people still prefer to use cash transaction caused by the security concern also e-wallet application often experiences an error during transaction. Thus, there is a need to investigate the people's acceptance of using this e-wallet to make a transaction. This study aims to evaluate one of Indonesia's e-wallet services using the Technology Acceptance Model (TAM). TAM emphasizes perceived usefulness and perceived ease of use and behaviour intention to use. It also investigates the perceived risk and Trust as TAM's external variables to test the technology's acceptance. A quantitative research method was employed utilizing the survey method. Data was collected from a sample of 113 e-wallet users in the Jabodetabek area. This study used The Partial Least Square (PLS) analysis method. From this study was discovered that the Perceived Ease of Use, Perceived Usefulness, Perceived Risk, and Trust are essential factors for predicting the user's intention to use an e-wallet as a mobile payment application. This study's recommendation reduces the potential risk of the e-wallet application, provides training, and socialization about e-wallet transactions. Additionally, the government may provide regulation or a system that can guarantee users' security of transactions.</em></p><p> </p><p><strong><em>Keywords: </em></strong><em>e-</em><em>wallet, Fintech, perceived risk, Trust, TAM</em></p>

Perceived Trust, Convenience and Promotion For the Adoption of e-Wallet

“…Perceived trust is also important for the users to reduce their concern on the cyber risk. The finding is in line with the findings of (Satyagraha, 2021;Armanditya & Rahmiati, 2020;Ridaryanto et al, 2020).…”

“…In some previous studies, trust had been proven as an important factor affecting the adoption of online payment technologies (Chatterjee & Bolar, 2018;Sharma et al, 2018). Trust has significant positive relationship towards the use of ewallet (Armanditya & Rahmiati, 2020;Ridaryanto et al, 2020). Sharma et al (2018) found low level of trust will obstruct the technology adoption among mobile banking while Kumar et al (2018) showed positive effect of trust on the e-wallet adoption in developing countries.…”

Behavioral Intention to Use FinTech in Millennial Generation (Extension of TAM Model)

“…If FinTech users perceive its usefulness, it will positively impact their attitudes. This concept is supported by the findings of Armanditya & Rahmiati (2020) and Alkhowaiter (2022). Similarly, if the use of FinTech is perceived as beneficial for system users, they will be inclined to use FinTech.…”

“…Moreover, studies have indicated that attitude is positively impacted by perceived ease of use (Armanditya & Rahmiati, 2020;Yuhelmi et al, 2019;Wallace & Sheetz, 2014;Bashir & Madhavaiah, 2015a). According to research findings by Hafifah et al (2022), Audina et al (2021), and Damayanti et al (2022), The perception of FinTech's ease of use affects behavioral intention.…”

“…If there is a positive attitude towards the use of FinTech, it will increase users' interest in continuing to use FinTech. A study by Armanditya & Rahmiati (2020) and (Alkhowaiter, 2022) found that attitude improves on behavioral intention. Based on these explanations, the hypotheses can be formulated as follows: H18: A positive attitude toward using FinTech services can increase behavioral intentions..…”