User Behavioral Intention Model of E-Wallet

Abstract

The adoption of fintech products has grown rapidly not only driven by the internet and technology nowadays but also reinforced by policies regarding the encouragement of non-cash payment movements. The strategy of cash-burning has been widely practiced by FinTech companies since the beginning to attract the users' interest. Nevertheless, this kind of promotion strategy is now starting to be abandoned. Not only reduced promotions but also the high risk of using fintech has the potential to hinder user intentions. This research seeks to discover the influence of promotion and perceived risk on user intention. An online survey was conducted on 120 e-wallet users in Bandung. The research model was built based on theories and literature review on related studies, which was then tested using SEM-PLS. The results showed that promotion and perceived risk had a significant influence on user intention. This study revealed that sales promotion had the strongest impact among all types of promotions. It was also discovered that in the context of perceived risk, the privacy risk was considered more of a concern than a security risk. The findings in this study are expected to help ewallet companies to increase user intentions, which can have a good impact on the number of users in the future.