A Quantative Approach to Identifying Factors that Affect the Use of E-Wallets in Bahrain

Abstract

Bahrain is considered the regional leader in the banking and finance sector. The e-wallet is one of the successful innovative services that was launched in 2017. The stage of identifying factors of the initial adoption of new technology is essential, but not enough as the technology provider company needs to focus on and understand the factors that affect the use and the continuity of use of e-wallet in order to maintain and sustain the user in the long term. A quantitative survey approach based on a 5-point Likert scale was used in this study. The sampling tool relies on the snowball and convenience sampling technique. The sample consisted of 660 users in Bahrain. The research used SmartPLS and SPSS software to analyze the collected data from the survey. The Structural Equation Modeling (SEM) was used to master the multiple relationships that exist between the four predictor variables [ease of use, compatibility, usefulness, and security], the satisfaction with e-wallet, continuous use of e-wallet and the demographical variables. This study found that the four predictor variables are statistically significant and supportive. The compatibility variable is the leading factor in the analysis. However, the study’s results indicated that the moderating variables were also found to be statistically insignificant. The research findings contribute to the service providers and marketers with a clear understanding of the factors that affect the use of e-wallets and continuance use. Also, there was an addition to the theoretical implications indicated by the significant direct relationship between continuance use and compatibility