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

Sharina Tajul Urus, Florentina Kurniasari (), Sharifah Nazatul Faiza Syed Mustapha Nazri, Prio Utomo, Intan Waheedah Othman, So Yohanes Jimmy and Nadiah Abd Hamid
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Sharina Tajul Urus: Universiti Teknologi MARA
Florentina Kurniasari: Universitas Multimedia Nusantara
Sharifah Nazatul Faiza Syed Mustapha Nazri: Universiti Teknologi MARA
Prio Utomo: Universitas Multimedia Nusantara
Intan Waheedah Othman: Universiti Teknologi MARA
So Yohanes Jimmy: Universitas Multimedia Nusantara
Nadiah Abd Hamid: Universiti Teknologi MARA

Eastern-European Journal of Enterprise Technologies, 2022, vol. 5, issue 13(119), 73-88

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.

Keywords: performance expectancy; effort expectancy; social influence; Fintech; national culture; trust (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:baq:jetart:v:5:y:2022:i:13:p:73-88

DOI: 10.15587/1729-4061.2022.265662

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