Extending UTAUT2 to explore digital wallet adoption in Indonesia

Muhtarom Widodo, Mohammad Isa Irawan, Rita Ambarwati Sukmono

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

43 Citations (Scopus)

Abstract

In recent years, digital wallets (e-wallet) has taken public attention as an alternative payment system in Indonesia. However, based on data from the World Bank, only 3% of the Indonesian population aged over 15 years old used digital wallet service in 2017. Therefore, to create a cashless society, efforts are needed to expand the use of digital wallet in the community. This research aims to identify the factors that influence the adoption of the digital wallet in Indonesia. We collected the data from 345 respondents that already use an e-wallet via an online survey. Then, we analyzed the data using partial least square - structural equation modeling (PLS-SEM) based on UTAUT2 model with the addition of perceived risk and trust factor. This research supports that habit has the most substantial factor that influences the behavioral intention to adopt the digital wallet in Indonesia, followed by performance expectancy, trust, and facilitating conditions. However, effort expectancy, social influence, hedonic motivation, and perceived risk in the digital wallet adoption does not significantly affect the behavioral intention to adopt the digital wallet. The digital wallet stakeholder can use the result of this research as a suggestion to make a strategic decision related to digital wallet ecosystem.

Original languageEnglish
Title of host publication2019 International Conference on Information and Communications Technology, ICOIACT 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages878-883
Number of pages6
ISBN (Electronic)9781728116556
DOIs
Publication statusPublished - Jul 2019
Event2nd International Conference on Information and Communications Technology, ICOIACT 2019 - Yogyakarta, Indonesia
Duration: 24 Jul 201925 Jul 2019

Publication series

Name2019 International Conference on Information and Communications Technology, ICOIACT 2019

Conference

Conference2nd International Conference on Information and Communications Technology, ICOIACT 2019
Country/TerritoryIndonesia
CityYogyakarta
Period24/07/1925/07/19

Keywords

  • E-Wallet
  • Partial least square
  • Structural equation modeling
  • UTAUT2

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