Analysis of the Effect of Financial Literacy, Practicality, and Consumer Lifestyle on the Use of Chip-Based Electronic Money Using SEM

Bob Foster, Sukono and Muhamad Deni Johansyah
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Bob Foster: Faculty of Economics and Business, Universitas Informatika dan Bisnis Indonesia, Bandung 40285, Indonesia
Sukono: Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia
Muhamad Deni Johansyah: Department of Mathematics, Faculty of Mathematics and Natural Sciences, Universitas Padjadjaran, Sumedang 45363, Indonesia

Sustainability, 2021, vol. 14, issue 1, 1-17

Abstract: Industry 4.0 trends have a significant influence on the acceleration of technology in Indonesia. The development of financial technology has shifted conventional transactions to electronic money as a means of payment with a digital system. Electronic money users in Indonesia continue to grow, while several factors affect consumer decision making to use electronic money. This study aims to analyze the effect of financial literacy, practicality, and consumer lifestyle on consumer interest in using chip-based electronic money. This research uses a quantitative approach with primary data obtained through questionnaires to chip-based electronic money users. The analytical method used is Structural Equation Modeling (SEM) to verify the factors that determine the indicators of the findings of interest in the use of chip-based electronic money. The study results indicate that: (a) Financial literacy has a significant positive effect on interest in using chip-based electronic money by 14.6%; (b) Financial literacy has a significant positive effect on practicality in the use of chip-based electronic money by 51.8%; (c) Practicality in the use of chip-based electronic money has a significant positive effect on consumer lifestyles by 71.3%; (d) Practicality has a significant positive effect on the use of chip-based electronic money by 25%; and (e) Consumer lifestyle has a significant positive effect on the use of chip-based electronic money by 52.8%. The study results imply that it can be used as a consideration for making monetary policy in Indonesia, dealing with the rapid growth in the use of chip-based electronic money.

Keywords: electronic money; financial literacy; practicality; lifestyle; consumer interest; SEM (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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