Page 1 of 12
Archives of Business Review – Vol. 9, No.1
Publication Date: January 25, 2021
DOI: 10.14738/abr.91.9595.
Herdioko, J., Titalessy, P. B., & Krisanta, B. E. (2021). Motivation of The Use of Digital Wallets In Young Generations In The Time of The
Covid-19 Pandemic. Archives of Business Research, 9(1). 116-127.
Motivation of The Use of Digital Wallets In Young Generations In
The Time of The Covid-19 Pandemic
Jonathan Herdioko
Department of Management, Faculty of Business
Duta Wacana Christian University
Pisi Bethania Titalessy
Department of Management, Faculty of Business
Duta Wacana Christian University
Brigitta Evelyn Krisanta
Department of Management, Faculty of Business
Duta Wacana Christian University
ABSTRACT
This study aims to analyze how the Technology Acceptance Model
which consists of Percieved usefulness, Perceived Ease of use, Privacy
and Security, and additional variable "Promotion Programs" affect
behavior intention in using e-wallets or digital wallets in the current
pandemic era. A total of 394 respondents aged 16-30 years old who
use e-wallets in Yogyakarta were sampled in this study. The results
using the SEM test show that perceived usefulness and behavioral
intention have a significant effect. Meanwhile, Perceived Ease of use,
Privacy and Security, and promotional programs are not significant on
E-Wallets Usage.
Keywords: TAM, SEM, E-Wallet, Young Generation, Pandemic
INTRODUCTION
In the fast-paced and automated industrial era, the use of the internet makes life more practical.
This makes everything integrated online, including economic transactions, namely payments
using smart devices known as e-wallets. Over time, the use of e-wallets or digital wallets has
increased dramatically in recent years. It can be seen that with the change in many companies
changing to e-commerce platforms, it has become one of the considerations for the increasing use
of digital wallets. Mobile-based payment systems are widely used. Transactions and payments
are made through the use of mobile applications because consumers find this method useful
(Gokilavani et al., 2018). Payments using e-wallets not only provide a level of convenience and
speed but also give consumers a sense of comfort and security in transactions elsewhere and at
any time (Liébana-Cabanillas et al., 2014). The use of e-wallets offers small-scale transactions
that are very easy to operate (Punwatkar, et al., 2018).
The results of the Daily Social Research survey show that digital wallets are the most popular
Financial Technology (fintech) product in Indonesia with an awareness rate of 82.7%. From the
Page 2 of 12
117
Archives of Business Research (ABR) Vol 9, Issue 1, January-2021
table data below, it can be seen that there are many fintech digital wallet companies operating in
Indonesia.
Table 1.1Digital Wallet Users
Rate Company Percentage
1 Gojek 83,3%
2 Ovo 81.4%
3 Dana 68,2%
4 Link Aja 53,0%
5 Doku 19,7%
6 Jenius 13,2%
7 Paytren 13,2%
8 iSaku 12,1%
9 Sakuku 10,3%
10 Uangku 6,3%
Source: www.alenia.id, 2019
From existing data, Gojek is the digital wallet with the largest active users in Indonesia. For
information, Gojek digital wallet user data is the number of active users of Go-Pay and other services
from the Gojek application. The next ranking is achieved by Ovo with 81.4% users. and fast, payment
services using digital wallets are increasingly preferred because they can reduce the use of cash in
transactions. This is further supported by the global condition of the emergence of the Corona Virus
Disease 19 Pandemic or abbreviated as Covid-19.
As an education city in Indonesia, Yogyakarta is filled with young people from various regions in
Indonesia to study. According to Ipsos' research (2020), so far Indonesian consumers can absorb new
innovations, especially the younger generation. They are surfing in the world of smart technology they
want to explore new applications and their ease of use, as well as security and privacy (Wood, 2013).
Seeing this phenomenon, this study aims to identify the factors that influence the millennial generation
to use digital wallets in the Yogyakarta area amid the COVID-19 pandemic. Towards the new normal,
new habits to maintain non-cash payment transactions are needed to prevent the transmission of covid- 19. To fulfill the objectives of this study, the extended TAM model will be used, namely the variable
perceived usefulness (PU), perceived ease of use (PEU), privacy and security (PS) and added with
promotional programs to see the effects on behavioral intention (BI) and actual system use (ASU).
LITERATURE REVIEW
According to Mallat (2007), the adoption of mobile payment methods depends on several factors
that influence consumer choice and desire to use the latest technology in making payments.
Reviewing the literature on this topic, we have identified certain factors that influence consumer
adoption of mobile payment methods. Advantages of mobile payment systems: Previous studies
have shown that mobile payment methods provide customers with a number of advantages
including location-free access (Lauksen & Lauronen, 2005), multiple purchase possibilities, easy
alternatives to payment, and timely contact with their financial resources. This advantage has
Page 3 of 12
URL: http://dx.doi.org/10.14738/abr.91.9595. 118
Herdioko, J., Titalessy, P. B., & Krisanta, B. E. (2021). Motivation of The Use of Digital Wallets In Young Generations In The Time of The Covid-19
Pandemic. Archives of Business Research, 9(1). 116-127.
attracted consumers to make payments via mobile devices. Some of the previous literature uses
the extended TAM model to see the factors that influence the use of digital wallets.
Extended Technology Acceptance Model (TAM)
The TAM model was originally discovered by Davis (1989) who argued that perceived usefulness
and perceived ease of use were two important constructs that influenced the user's intention to
use technology. TAM is used to measure information technology adoption, is known to be very
robust theoretically and is very useful for identifying the reasons users accept new technology
(Nunes et al., 2018). Several theories have been developed to understand consumer intentions to
use IS technology. The TAM model has been studied extensively in several literatures (Davis,
1989) and in fact is an information service theory that models how users adopt and use certain
technologies (Dauda, et al., 2015) . The number of researchers has expanded the TAM model and
applied it to various technologies including e-learning (Cheung and Vogel, 2013; Al-Maroof and
Al-Emran, 2018), m-commerce (Barry, et al., 2018) and short message services ( Muk, et al.,
2015). According to Vijayasarathy (2004), the TAM variable is most suitable for the decision to
accept new technology. To study the acceptance and intention of using new technology, TAM is
considered a recognized extension in academic research (Aydin, et al., 2016). However, the
original TAM variable may not adequately capture the core beliefs that influence consumer
attitudes towards e-shopping. The model is further suggested to include several additional
variables to see the suitability of TAM (Jaradat, 2013).
Behavioral Intention
Intention can be defined as the action an individual wants to achieve (Zhao, et al., 2010).
Behavioral intention is a person's subjective probability that is intended to be achieved within a
certain period of time (Ajzen, 1988). It refers to the way a person will act in the future (Fishbein,
et al., 1975). E-wallets are a new form of payment system that is widely accepted. In the future it
is expected to have a large expansion of e-wallets in Malaysia (Nizam et al., 2018). Many
researchers have found a positive and significant relationship between behavioral intention (BI)
and the use of new technology (Barry and Jan, 2018; Faqih and Jaradat, 2015; Jaradat, 2013).
According to Mun and Hwang (2003), behavioral intention (BI) has positively and significantly
influenced actual use (AU). (Venkatesh et al., 2003) The Postulate of Technology Acceptance
Model is extended with four variables; The findings from the model reveal that behavioral
intention to use technology has a significant and positive influence on usage behavior.
E-Wallet Use
E-wallet is an application that allows someone to carry out e-commerce transactions by storing
their credit card information. Payment via e-wallet is considered to be one of the most prominent
transaction methods today because electronic transactions using digital wallets have the
advantages of convenience, flexibility and protection (Uddin, et al., 2014).
Mobile wallets are also recognized for their innovative benefits such as customization and instant
communication (Osakwe, et al., 2016). As the number of electronic payment systems has
increased, e-wallets have gained notoriety by providing a large number of services in the
equestrian sector, food delivery and bill payment (Rosnidah et al., 2019). It is not only profitable
for the buyer; merchants accept e-wallets as a payment method because of the fastest transaction
processing, efficient cash management, and lower labor costs (Hayashi, et al., 2014).