Factors Affecting Continuance Intention of FinTech Payment among Millennials in Jakarta

Abstract

The background of this research is related to a phenomenon of millennials who prefer to change their financial behavior into cashless transactions from cash-based transactions. Factors of benefits (economic benefits, seamless transactions, and convenience) and risks (financial risks, legal risks, security risks, and operational risks) experienced by millennials are examined to observe their effects on the continuance intention of financial technology (FinTech) payment. FinTech users are classified into two types, namely early adopters and late adopters. This study examines the variables of continuance intention of FinTech payment, economic benefits, seamless transactions, convenience, financial risks, legal risks, security risks, operational risks, perceived benefits, and perceived risks simultaneously and is the first to be conducted on millennials in Jakarta. The methodology used was the Structural Equation Modeling-Partial Least Square. The data were collected through questionnaires distributed to 313 respondents. The results of this research show that convenience is the most influential benefit factor towards the continuance intention of FinTech payment. Operational risks are the only factor that do not significantly affect the continuance intention of FinTech payment. The differences between the effects of benefits and risks are found in both of the user types. The implication of this research is to further understand influential factors in millennials’ decisions to use FinTech payment services.

Exploring biometric identification in FinTech applications based on the modified TAM

“…Hu et al (2019) employed the extended TAM to investigate the influence mechanism behind the adoption of Fin-Tech services and attempted to provide comprehensive determinants. Norma and Farah (2020) examined the variables of continuance intention of FinTech payments to further understand the influential factors in users' decisions to use FinTech payment services.…”

“…In addition, we considered "perceived privacy" with the TAM, as many scholars have highlighted that this factor could indicate a deeper and more predictable intention to adopt new technologies in financial services industries (Norma and Farah 2020). Considering the sensitivity of FinTech applications, the digitization and virtualization of financial services has frequently been met with privacy concerns (Merhi et al 2020).…”

“…of all parties was derived from financial services providers, who attempt to moderate the relationship among privacy, convenience, and security or other latent concerns, and showed that the opinions of financial services providers about security issues had to change (Liébana-Cabanillas and Lara-Rubio 2017; Alhassany and Faisal 2018;Hu et al 2019;Norma and Farah 2020).…”

“…The TAM can adjust the variables with the research object to further and effectively explain and predict (Wu et al 2017;Chopdar and Sivakumar 2019). In FinTech, the TAM has been applied to investigate mobile payment (Norma and Farah 2020), cryptocurrency (Singh et al 2020), and financial service innovations (Hu et al 2019). Many sophisticated analytical methods identify the best solution for a multi-objective problem, and these methods can also be used for exploratory research.…”

Persepsi Generasi Milenial Terhadap Platform Peer-To-Peer Lending Berdasarkan Karakteristik Demografi

“…Hal tersebut menunjukkan bahwa seiring dengan berkembangnya teknologi informasi milenial melakukan investasi melalui platform digital atau fintech. Disamping itu generasi milenial sering dicirikan sebagai generasi yang nyaman, percaya diri, optimis, dan ada kemauan untuk mengambil resiko terhadap penggunaan teknologi (Leon, 2018;Ichwan & Kasri, 2019;Diana & Leon, 2020).…”