The Impact of Perceived Risk and Trust on Consumer Intention to Use FinTech Payment in Indonesia

Abstract

FinTech rises as a faster, easier, and cheaper alternative to conventional financial products and services in Indonesia. The largest FinTech sub-segment in Indonesia is payment systems, representing over 30% of overall FinTech startup community. Consumer confidence and trust are essential to acquire and retain users and increase transaction volumes for FinTech companies. Therefore, in the expectation that a better understanding of factors that shape consumer behavior can promote the development of FinTech payment system, the goal of this research was to examine consumer perceived risks and trust in FinTech payment systems in Indonesia. The data generated from 175 respondents were analyzed using the Structural Equation Modeling (SEM). Using trust as the mediating variable, this research concludes that there is a significant relationship between perceived risk and intention to use Fintech payments. Perceived ease of use is also found to be the antecedent of trust. In addition to that, this study also suggests that consumer trust and intention have positive impacts on a good evaluation of FinTech payment with objective opinions on the future of FinTech payment.

The Role of Brand Image and Trust in the Adoption of FinTech Digital Payment for Online Transportation

“…Trust factors play a significant role in shaping user decision and willingness to use a service [31], [32]. In other words, when user trust in service is high, there is a higher possibility to use FinTech services [15], [31], [33]. This trust level arises from users evaluating situations, such as reading recommendations in app reviews or observing others' opinions.…”

“…The level of trust in new technology directly influences FinTech usage, with greater trust correlating to increased adoption. Consequently, promoting trust among users is essential for the continued growth of FinTech and the effectiveness in facilitating financial transactions [15].…”

“…This study focuses on factors such as perceived usefulness [11]- [13] and perceived ease of use [11], [12] in FinTech domain, explicitly excluding online transportation sector. The analysis comprises considerations of brand image [14] and trust factors [15], [16] from the respective perspectives. Existing literature [3] implies a substantial relationship between trust factors, brand image, and user intention.…”

“…Therefore, the objective of the study is to investigate the impact of brand image and trust in conjunction with perceived ease of use and perceived usefulness, aiming to strengthen user intention. Previous investigations explored trust factors [15], [16], perceived ease of use [11], [12], perceived usefulness [11]- [13], and brand image [14] in the payment context. This current study is limited to exploring direct correlations between factors influencing user intention.…”