Digital Payments in Indonesia

Various theories and models exist on new technology and digital payment adoption and explain the phenomenon. Digital payments acceptance depends on various factors that differentiate among different groups, particularly regarding expectations, ease to learn, understandability, benefits, the level of use and interaction, commitment to digital payments. This research aims to contribute to the understanding of the user’s intention factors and use behaviour in Indonesia. Extending the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model and proposing a validation research framework. The enhanced model incorporates security and motivation as additional factors. Τhe model is using Structural Equation Modelling (SEM). The data (354 participants) gathered from respondents. An initial research model was first developed based on an extensive literature review. Then the model is being refined by conducting a pilot study. Eight factors hypotheses and 30 item questionnaire were developed. A total of 354 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the digital payments model. The major findings of this study have confirmed that performance expectation has the strongest contribution to behavioural intention. In addition, motivation affects digital payment use behaviour both directly and indirectly through intention-to-use. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts