A comparative study of fintech payment services adoption among malaysian and indonesian fresh graduates: through the lens of UTAUT theory

Authors

DOI:

https://doi.org/10.15587/1729-4061.2022.265662

Keywords:

performance expectancy, effort expectancy, social influence, Fintech, national culture, trust

Abstract

The Covid-19 pandemic had changed the business model in various industries. Companies have switched to digital business processes in order to survive in this challenging situation. Financial Technology (Fintech), especially digital payment services, has become the most preferred solution for handling financial transactions in conditions of limited mobility and interaction. The phenomenal emergence of Fintech has captured the attention of the world and the Asian region, including Malaysia and Indonesia. Despite various benefits offered by Fintech, the adoption rate is still relatively low, especially for IT-savvy groups of fresh graduates in both countries. This comparative study aims to analyze the adoption of Fintech payment services in Malaysia and Indonesia using the UTAUT theory approach.

The research measures the relationships between performance expectancy, effort expectancy, social influence, consumers’ trust, and national culture with the adoption of Fintech. Each indicator of national culture, such as individualism, power distance, uncertainty avoidance, masculinity and long-term orientation, was measured to see its relationship with the adoption rate.

The quantitative method was employed, and the data were collected via an online survey of a total of 486 respondents. Using multivariate regression analysis, 57.9 % behavioral adoption of Fintech payment services both in Malaysia and Indonesia was explained through performance expectancy, effort expectancy, social influence, customer trust and national culture. The study revealed that performance expectancy and the cultural factor individualism had the highest effect on the decision to adopt digital payment services. This study contributes to the Fintech ecosystem in both countries by providing some recommendations to Fintech providers, financial institutions, and governments in policy making. It is also expected that the research will support the government’s goal to become a cashless society as a strategy to increase financial inclusion.

Author Biographies

Sharina Tajul Urus, Universiti Teknologi MARA

Doctor of Business Information Systems, Associate Professor

Department of Accountancy

Florentina Kurniasari, Universitas Multimedia Nusantara

Doctor of Economics, Associate Professor

Department of Technology Management

Sharifah Nazatul Faiza Syed Mustapha Nazri, Universiti Teknologi MARA

Doctor of Accounting, Associate Professor

Department of Accountancy

Prio Utomo, Universitas Multimedia Nusantara

Doctor of Research in Management, Assistant Professor, Head of Department

Department of Technology Management

Intan Waheedah Othman, Universiti Teknologi MARA

Doctor of Accounting

Department of Accountancy

So Yohanes Jimmy, Universitas Multimedia Nusantara

Doctor of Strategic Management, Assistant Professor, Lecturer

Department of Technology Management

Nadiah Abd Hamid, Universiti Teknologi MARA

Doctor of Accounting, Associate Professor

Department of Accountancy

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A comparative study of fintech payment services adoption among malaysian and indonesian fresh graduates: through the lens of UTAUT theory

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Published

2022-10-26

How to Cite

Tajul Urus, S., Kurniasari, F., Syed Mustapha Nazri, S. N. F., Utomo, P., Othman, I. W., Jimmy, S. Y., & Abd Hamid, N. (2022). A comparative study of fintech payment services adoption among malaysian and indonesian fresh graduates: through the lens of UTAUT theory . Eastern-European Journal of Enterprise Technologies, 5(13 (119), 73–88. https://doi.org/10.15587/1729-4061.2022.265662

Issue

Vol. 5 No. 13 (119) (2022): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

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Copyright (c) 2022 Sharina Tajul Urus, Florentina Kurniasari, Sharifah Nazatul Faiza Syed Mustapha Nazri, Prio Utomo, Intan Waheedah Othman, So Yohanes Jimmy, Nadiah Abd Hamid

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