Preference Digital Wallet by Generation Z with the Unified Theory of Acceptance and Use of Technology 2 (UTAUT 2) Model Approach and Perceived Risk

Abstract

Purpose: This empirical study explores the use of digital wallets by Gen Z in Indonesia. This study uses a quantitative approach and collects data through distributing questionnaires to respondents online. The instrument in the questionnaire includes questions related to the effect of performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value, habit, and perceived risk on behavioral intention, habit and behavioral intention on use behavior, and perceived risk on financial risk, performance risk, and privacy risk.
 Design/Method/Approach: This research uses primary data with a sample of generation Z in Indonesia as digital wallet users. The total observations amounted to 742 respondents, and used quantitative methods with PLS-SEM statistical analysis tools to test the hypothesis.
 Findings: This research shows that the variables of behavioral Intention and habit have a significant effect on use behavior, the variables of hedonic motivation, habit, and perceived risk have a significant effect on behavioral intention, the variable perceived risk has a significant effect on financial risk, performance risk and privacy risk in using digital wallets.
 Theoretical Implications: This research provides empirical evidence for theory development, as it contributes to empirically applying the UTAUT 2 model as a theoretical framework and applying the concept of risk perception as a complement to the theoretical model, to analyze the factors that influence digital wallet adoption.
 Practical Implications: Practically, this research provide precious knowledge for digital wallet managers. Digital wallet managers are supposed to develop features that can provide additional convenience for digital wallet usage, and can take concrete measures to address the risks encountered by users.
 Originality/Value: The first research to explore digital wallet preferences with the UTAUT 2 model approach and perceived risk. This paper provides valuable knowledge for researchers interested in understanding digital wallet usage intentions.
 Research Limitations/Future Research: Future research is expected to involve multiple countries to contribute to a deeper understanding, and may consider using multiple technology measurement models simultaneously.
 Paper Type: Empirical
 JEL Classification: C12, E42, F65, G41

Investigating the Components of Perceived Risk Factors Affecting Mobile Payment Adoption

“…Additionally, consistent results were noted in the studies by Yang et al (2015) on mobile payment intention, Damghanian et al (2016) on online banking, and Almousa (2011) on online shopping intentions, all reporting significant negative impacts. Conversely, Piarna et al (2020) and Elasaria (2024) found that performance risk could positively influence intentions, mediated by perceived risk. In contrast, Zhu et al (2022) reported no significant relationship among Thai consumers.…”