Investigating the Adoption of Digital Payment System through an Extended Technology Acceptance Model: an Insight from the Indonesian Small and Medium Enterprises

Abstract

Digitalization in the payment system has been promoted by the Indonesian government since the government is targeting to become the largest digital economy in Southeast Asia. However, not all companies can adopt digital payments quickly. Small and Medium Enterprises (SMEs) have many obstacles to adopt innovative technologies, mainly due to a lack of knowledge and resources. On the other hand, many consumers are getting used to digital payments and demanding SMEs to facilitate their transaction processes with digital payment systems. Therefore, the primary purpose of this study is to analyze factors affecting the digital payment system adoption in SMEs, particularly small and medium-sized restaurants. It used an extended Technology Acceptance Model (TAM) as a theoretical framework. Thus, 120 data were gathered using self-administered questionnaires from owners or managers of small and medium-sized restaurants in Bogor, Indonesia. Structural Equation Modeling with Partial Least Square (SEM-PLS) was employed to assess the hypotheses that were developed. The findings suggested that the intention to use digital payment was determined by the perceived ease of usage, perceived usefulness, attitude towards digital payment, and trust. This research approved that the applicability of TAM with the inclusion of additional variables in the model and the adoption of the digital payment system in small and medium-sized restaurants in developing countries like Indonesia. It offers valuable information for policymakers and financial institutions such as banks in understanding the critical variables influencing large scale implementation of the digital payment system in Indonesia.

FinTech in the Small Food Business and Its Relation with Open Innovation

“…Consumers can accept new technology if it is perceived as user-friendly and easy to use, so that they can easily adopt it quickly. Najib and Fahma [6] also found that among small business owners, the ease in using digital payment systems makes it easier for them to adopt. Several previous studies [31,45,46] have shown that when consumers choose to compare the latest technology options with the latest technology and find that the latest technology has advantages in its use, their interest in adopting the technology increases.…”

“…Then they will adopt the new technology in the future, with the hope that its performance will increase [31]. Najib and Fahma [6] also found that performance expectations were a key factor influencing small food processing businesses to adopt digital payment systems. In terms of FinTech adoption, expectations of better performance from small businesses will also affect FinTech adoption.…”

“…However, small food businesses still face unfinished obstacles to growing and expanding their roles and contributions. Several problems that still exist in small business are financial limitation, a lack of technology and human capital [6]. In addition, small business owners still have limitations to access financing from the bank or other formal financial institutions [7][8][9].…”

“…Although the existence of FinTech can be beneficial for small business owners, not all small business owners are willing to use FinTech financing [26]. The reasons for this are still controversial, such as insufficient knowledge about FinTech, miss perception and feeling insecure or having no confidence to use FinTech [6]. Overall, the barriers for small business owners to adopt FinTech are almost the same as those of other innovation adoptions, namely their resistance to change, so they are reluctant to adopt new technologies including financial innovation such as FinTech [27,28].…”

Persepsi Pelaku UMKM terhadap Penggunaan Aplikasi Akuntansi Berbasis Android

“…Hasil keterangan partisipan di atas sejalan dengan hasil penelitian Christmastuti et al (2019) yang menyatakan bahwa latar pendidikan pelaku UMKM berpengaruh terhadap penerimaan software akuntansi dan hasil penelitian Suhartanto & Leo (2018) yang menyimpulkan bahwa kurangnya persepsi pelaku UMKM terhadap kemudahan penggunaan teknologi merupakan faktor penyebab para pelaku UMKM enggan menggunakan teknologi tersebut. Secara keseluruhan, hasil penelitian menunjukkan bahwa persepsi kegunaan (perceived usefulness) dan persepsi kemudahan (perceived ease of use) para pelaku UMKM secara simultan memengaruhi sikap dan penerimaan pelaku terhadap penggunaan sistem teknologi informasi sebagaimana dinyatakan Hamid et al (2015), Al-Fahim et al (2016, Jaafreh (2019), Lanlan et al (2019), Najib & Fahma (2020), dan Istanto (2020).…”