What Factors Drive Cashless Payment Adoption and Satisfaction?

Khaira Amalia Fachrudin ()
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Khaira Amalia Fachrudin: Universitas Sumatera Utara, Jalan TM Hanafiah, Kampus USU, 20155, Medan, Indonesia Author-2-Name: Muhammad Faidhil Iman Author-2-Workplace-Name: Universitas Indonesia, Jalan Lingkar Kampus Raya, 16424, Depok, Indonesia Author-3-Name: Khairina Sariza Muliana Author-3-Workplace-Name: "Universitas Sumatera Utara, Jalan TM Hanafiah, Kampus USU, 20155, Medan, Indonesia " Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: " Objective - A national cashless movement is actively being promoted in Indonesia. This research aims to offer empirical insights into how practicality, lifestyle, digital financial literacy, perceived trust, and price orientation affect cashless payment adoption and whether it affects satisfaction with using these systems. This study further explores how the adoption of cashless payments functions as a mediating variable in the relationship between five key factors and user satisfaction with cashless payment usage. Methodology/Technique - The sample consisted of 400 income-earning individuals in Indonesia who had previously used cashless payment methods. Using partial least squares structural equation modeling (PLS-SEM) with a 5% significance level, the findings indicate that practicality, lifestyle, digital financial literacy, perceived trust, and price orientation all exert a significant and positive influence on the adoption of cashless payments. Satisfaction with cashless payments is positively and significantly affected by their adoption. Findings - Cashless payment adoption mediates the effects of price orientation, practicality, digital financial literacy, perceived trust, and lifestyle on satisfaction. The results suggest that companies should implement appealing or competitive pricing strategies to encourage consumers to use cashless payments. Novelty - Financial service providers should prioritize practicality and security to build trust in cashless payment systems. Finally, the government and educational institutions should provide continuous education initiatives to promote digital financial literacy among the public. Type of Paper - Empirical"

Keywords: Practicality; Lifestyle; Digital Financial Literacy; Price Orientation; Cashless Payment. (search for similar items in EconPapers)
JEL-codes: D12 E42 G21 O33 (search for similar items in EconPapers)
Pages: 17
Date: 2025-06-30
New Economics Papers: this item is included in nep-fle, nep-pay and nep-sea
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Published in Accounting and Finance Review, Volume 10, Issue

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Persistent link: https://EconPapers.repec.org/RePEc:gtr:gatrjs:afr239

DOI: 10.35609/afr.2025.10.1(1)

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