Digital Wallet Users in Indonesia: Factors Affecting Consumer Satisfaction and Consumer Loyalty

Abstract

The digital revolution has changed the face of the financial industry. One of the adoptions of digital technology in the financial industry is the presence of digital wallet. Digital wallet application is currently very popular and rapidly adopted by the mobile users due to the growth of use of the internet. The purpose of this study is to investigate the effect of perceived value, ease of use, trust, perceived security, self-efficacy, and sales promotion on consumer satisfaction and consumer loyalty to the use of digital wallets in Indonesia. This research is a confirmatory study. The conceptual framework has been formulated based on the conclusions from the previous studies on factors that influence consumer satisfaction and consumer loyalty, both in the use of digital wallets, and in other industries. The framework is then analyzed empirically using covariance-based Structural Equation Modeling. The primary data used in this study consists of 443 respondents, who are consumers (users) of digital wallets in Indonesia. The analysis reveals that: (i) the factors that influence consumer satisfaction are perceived value, ease of use, self-efficacy, and sales promotion; (ii) the factors that influence consumer loyalty are perceived value, ease of use, trust, perceived security, sales promotion, and consumer satisfaction; (iii) consumer satisfaction factor can not mediate other factors to consumer loyalty.