Exploring the Impact of Confirmation, Perceived Usefulness, and Perceived Risk on User Satisfaction and Continuance Intention of Paylater Users

Abstract

Financial service innovation is increasingly developing with the massive growth in the use of Information andCommunication Technology (ICT). Paylater is a digital financial service product that has recently developedrapidly. Even though many people view paylater negatively, its presence is well-received, especially by youngpeople. Paylater is a new trend in digital payment services, so there is still limited research that discusses thecontinuance intention of e-commerce users. The research aimed to determine the effect of confirmation, perceivedusefulness, satisfaction, and perceived risk on continuance intention. The research, using a questionnaire and aquantitative approach, involved a sample of 209 users of paylater in Jakarta, which was taken through purposivesampling. The research tested hypotheses using the Structure Equation Modelling (SEM) model with the PartialLeast Square (SEM-PLS). Research findings show that satisfaction and risk perception have a positive andsignificant effect on the intention to continue using paylater services. Confirmation and perceived usefulness arealso found to positively and significantly influence satisfaction. Therefore, paylater service providers should bemore innovative in providing attractive features. Then, paylater users need to improve their financial literacyto be wiser when using it. Last, service providers need a deep understanding to become leaders in providingpaylater services, so conducting studies related to continuance intention is essential.