Factors Affecting Millennials and Gen Z Preferences in Using Cashless Payment Systems in DKI Jakarta

Abstract

This research aims to determine the effect of perceived usefulness, perceived ease of use, perceived security, income, education level and generation on Millennials and Gen Z preferences in using cashless payment systems and to find out which factors have the most influence. This research is a quantitative research with analytical technique using linear multiple regression. The research uses primary data obtained through the distribution of questionnaires to a sample of 100 respondents. The sampling technique used is purposive sampling with the sample criteria being cashless payment users aged 15–40 years. The research shows that perceived usefulness, perceived ease of use, income, and generation have a positive and significant effect on Millennials and Gen Z preferences in using a cashless payment system. Whereas, perceived security and education level have no effect on Millennials and Gen Z preferences in using a cashless payment system. Perceived usefulness is the factor that most influences Millennials and Gen Z preferences in using a cashless payment system. To increase perceived usefulness and perceived ease of use, providers can improve the service quality of the cashless payment system so that users can access it more easily. To increase the perception of security, Bank Indonesia and the Financial Services Authority (Otoritas Jasa Keuangan) made stricter regulations related to the protection of users’ personal data. To increase the use of the cashless payment system, the providers carry out promotions more often to attract the public’s attention and also carry out socialization to increase public understanding of the cashless payment system. Keywords: preference, payment systems, cashless, millennials, gen Z