Determinants of Digital Payment Adoption Among Generation Z: An Empirical Study

Anas Ali Al-Qudah, Manaf Al-Okaily (), Fadi Shehab Shiyyab, Alaa A. D. Taha, Dmaithan A. Almajali (), Ra’ed Masa’deh and Lina H. Warrad
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Anas Ali Al-Qudah: Faculty of Business, Liwa College, Abu Dhabi 2 626-010, United Arab Emirates
Manaf Al-Okaily: School of Business, University of Jordan, Amman 11942, Jordan
Fadi Shehab Shiyyab: Department of Accounting, School of Business, The Hashemite University, Zarqa 13133, Jordan
Alaa A. D. Taha: Department of Accounting, College of Administration and Economics, University of Mosul, Mosul 41002, Iraq
Dmaithan A. Almajali: School of Business, University of Jordan, Amman 11942, Jordan
Ra’ed Masa’deh: School of Business, University of Jordan, Amman 11942, Jordan
Lina H. Warrad: School of Business, Applied Science Private University, Amman 11937, Jordan

JRFM, 2024, vol. 17, issue 11, 1-18

Abstract: The main goal of the current paper is to investigate the factors that influence Millennials’ adoption of digital payments among Generation Z by analyzing the potential effects of perceived convenience, perceived cost, perceived security, perceived convenience, innovativeness, and social influence on the adoption of digital payments. A total of 258 individuals in Malaysia were asked to complete a questionnaire to gather statistics. To assess the research model and test the hypotheses, structural equation modeling with partial least squares (SEM-PLS) was utilized. Smart PLS path analysis results revealed that perceived convenience, perceived security, perceived cost social influence, and innovativeness were positively significant determinants of digital payment adoption. This study offers fresh theoretical perspectives for identifying potential adoption barriers that need to be addressed. Concerns about privacy and security, a lack of information or comprehension, and aversion to change are all prevalent challenges among Millennials. Recognizing these limitations allows service providers to incorporate measures such as better security features, educational campaigns, and user-friendly interfaces to alleviate these concerns and boost adoption.

Keywords: digital payment; mobile payment; Generation Z; perceived convenience; perceived cost; social influence; innovativeness (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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