Modelling the intention and adoption of cashless payment methods among the young adults in Malaysia

Abstract

Purpose Cashless payment is gradually replacing physical currency in almost every financial transaction across the world. Even though cashless payment methods have been available in Malaysia since a decade ago, their usage has remained relatively low in comparison to other countries. This study aims to analyse the elements that affect the Malaysian youth’s adoption intention and actual use of cashless payment by extending the unified theory of acceptance and use of technology (UTAUT) model with two key factors (perceived security [PS] and lifestyle compatibility [LC]). Design/methodology/approach Data were gathered online from 364 Malaysian youths and processed using partial least squares structural equation modelling. Findings The findings revealed that performance expectancy (PE), LC and PS had a positive and substantial effect on the intention to use cashless payment (ICP). In contrast, effort expectancy (EE) and social influence did not have any considerable influence on ICP. Furthermore, ICP had substantial mediating effects between the adoption of cashless payment (ACP) and PE, LC and PS. In the analysis of the moderating effect of age, gender, experience and voluntariness, only experience had moderating effects on the associations between PE and ICP and between FC and ACP. Research limitations/implications This study’s findings will be highly useful for marketers and the management as they plan their promotional and marketing tactics, with a focus on the factors that inspire customers to adopt cashless payments. Besides, architects and designers can benefit from the study results while designing and updating their services by consolidating consumers’ lifestyle standards as well as enhancing security features. Finally, governments may support service providers with security building through legislative measures and policy campaigns to strengthen the trustworthiness and mass adoption of contactless payment. Originality/value This study extended the UTAUT model with two new variables, i.e. PS and LC.

Sustained Interest in E-Wallet Adoption among Malaysian Consumers

“…In this study, a positive relationship was observed between performance expectancy, satisfaction, and the continued intention to adopt e-wallets, aligning with findings by (Oliveira et al, 2016;Munikrishnan et al, 2022). This reinforces the understanding of performance expectancy as a key driver of e-wallet adoption, thus contributing to the refinement of ewallet adoption models.…”

“…Effort expectancy is crucial to shaping satisfaction and continued e-wallet adoption, validating hypothesis H2. Perceived security profoundly affects satisfaction and the continuous intention to adopt ewallets, mirroring results from prior studies (Munikrishnan et al, 2022;Oliveira et al, 2016). This study extends the understanding of the critical role of security in sustaining e-wallet usage, a vital aspect in the current digital age.…”

“…Such conditions can range from training sessions on mobile banking usage to an individual's inherent capability and resources. Mastery of certain skills, such as employing payment applications via e-wallets and text messaging, is pivotal and is typically encapsulated under the term "facilitating conditions" to make seamless cashless transactions feasible (Munikrishnan et al, 2022). Prior research, including the study by Khechine et al (2020), suggests that these facilitating conditions profoundly impact the technology adoption rate.…”

Going Cashless? Elucidating Predictors for Mobile Payment Users’ Readiness and Intention to Adopt

“…To the best of our knowledge, studies on mobile payments have examined users’ intention to adopt the said technology or their readiness levels in silo (Alalwan et al, 2017; Oliveira et al, 2016; Singh et al, 2020; Trinugroho et al, 2017). Malaysian-based studies have focused on various factors related to mobile payments, mainly based on UTAUT (Munikrishnan et al, 2022) and UTAUT2 (Suo et al, 2021). There is a need to explore the predictors for mobile payment readiness and acceptance in the country considering the uptake of mobile payment services is still low (Malaysian Communication and Multimedia Commission, 2021).…”

Predicting the intention and adoption of wearable payment devices using hybrid SEM-neural network analysis

“…As a result, youths are the ideal population for all studies that employ new technical advancements 27 . Likewise, age and gender as moderators are two key variables in diverse research, such as mobile payment 18 , cashless payment 28 , and gamification 29 . These studies have shown gender and age-based differences in technology acceptance, making it important to investigate their role in shaping the relationships between the key variables 16 .…”