Factors Contributing to the Adoption of Fintech in Indonesia

Abstract

The technology acceptance model (TAM) proposes that perceived ease of use and usefulness predict technology usage. This model, however, may not fully explain user behavior in ‘fintech’ (financial technology), one of the fastest-growing global businesses, especially the payment-type fintech services in Indonesia. This paper explores the supplementary factors of consumers’ adoption of fintech such as trust, credibility, perceived benefit, and perceived risk. By using convenience sampling, we collected 166 cases from the users of OVO, Indonesia’s fastest-growing fintech platform, to survey their adoption of fintech. The results of statistical analysis using PLS-SEM demonstrated that trust and perceived ease of use had significant impact on attitude towards the use technology, which also determined behavioral intention and drove actual use. This study provides guidance for decision-makers to increase market penetration of fintech in Indonesia.