Analysis of Switching Behavior for Using Digital Payment Financial Technology in Tumenggungan Market Kebumen, Central Java

Abstract

This study aims to determine the factors and switching behavior of using cash payment services to digital payment services in Tumenggungan traditional market Kebumen, Central Java Province, Indonesia. This study uses primary data with as many as 175 respondents through purposive sampling. The switching behavior is estimated by using the push-pull-mooring (PPM) framework method by using structural equation modeling (SEM) - Partial Least Square (PLS). The results show that the push effect (high price perception, security risk, privacy risk) and the mooring effect (reputation, inertia, switching cost) positively and significantly affect the switching behavior. While pull effects (ease of use, relative advantage, relative ease of processing) have a positive impact but are not significant to the potential for switching behavior. In short, visitors to the Tumenggungan market feel satisfied with cash payments. They are less motivated to use digital payment. Still, the visitors do not create resistance to making a change. The results indicate that the visitors of the Tumenggungan market view digital payment as a complementary instrument, not substitution, which means visitors accept either cash or digital payment in their transaction settlements. These findings are significant in further promoting technological literacy among people by organizing many trainings and seminars so that people are rational when switching behavior between cash and digital payments.