Indonesia Digital Native Business Co-Branded Credit Card: Perceived Benefits Roles in the Formation of Continuous Intention-to-use

Abstract

Credit card business is one of the biggest contributors to the fee and commission income of the bank in Indonesia. Cobranded credit cards have become one of the popular strategies in the banking industry. The digital industry in Indonesia is rapidly growing and it is making Indonesian people change their consumption behavior using the Digital Native Business (DNB) platform. COVID-19 pandemic also influences people to use and increase their spending on the DNB platform. DNB companies also do many discount events and promotions to attract people using their platform. A lot of DNB platforms make it difficult for people to decide which DNB platform to use in every transaction. This phenomenon encourages banks to collaborate with DNB companies to launch co-branding credit cards. Benefits are one of the cores of DNB co-branded credit cards. This research aims to investigate whether the benefits of DNB credit cards affect the formation of attitude, co-brand equity, and its effect on continuous intentionto-use. Partial Least Square -Structural Equation Modeling (PLS-SEM) is used in this research. The data collection method in this research uses Judgmental sampling of 150 DNB co-branded credit cardholders in Greater Jakarta and fills the questionnaire using an online form. The results showed that perceived benefit influences the formation of attitude toward co-branded credit card. A positive attitude toward co-branded credit cards influenced continuous intention to use both direct and through co-brand equity.