Exploring Platform Trust, Borrowing Intention, and Actual Use of PayLater Services in Indonesia and Malaysia

Tri Kartika Pertiwi (), Corina Joseph, G. Oka Warmana, Fani Khoirotunnisa and Nanik Hariyana
Additional contact information
Tri Kartika Pertiwi: Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia
Corina Joseph: Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Sarawak, Samarahan 94300, Sarawak, Malaysia
G. Oka Warmana: Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia
Fani Khoirotunnisa: Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia
Nanik Hariyana: Department of Management, Universitas Pembangunan Nasional Veteran Jawa Timur, Surabaya 60294, Indonesia

JRFM, 2025, vol. 18, issue 5, 1-23

Abstract: This study explores how system-based and cognitive-based factors affect platform trust and its role in the actual use of PayLater services (buy now, pay later or BNPL) in Indonesia and Malaysia. PayLater, a fintech innovation, provides fast and convenient payment options through online platforms. By incorporating platform trust into the technology acceptance model (TAM), the research investigates whether borrowing intention acts as a mediator between platform trust and actual usage. Utilizing a quantitative approach with purposive sampling, data were gathered from 106 respondents in Indonesia and 169 in Malaysia, with 62 and 85 respondents meeting the criteria, respectively. Partial least squares (PLS) analysis indicates notable differences in how Indonesian and Malaysian users perceive platform trust, while the effect of platform trust on borrowing intention remains consistent across both nations. Borrowing intention emerges as a crucial factor influencing the actual use of PayLater services. The results offer important insights into the adoption of fintech services in emerging markets, highlighting the significance of platform trust in shaping user behavior. This research provides practical suggestions for fintech providers to improve platform trust and user engagement in cross-country scenarios.

Keywords: system-based trust; cognitive-based trust; platform trust; borrowing intention; actual use; PayLater; fintech (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/5/255/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/5/255/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:18:y:2025:i:5:p:255-:d:1651145

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().