The Acceptance of Electronic Payment Among Urban People: An Empirical Study of the C-Utaut-Irt Model

Abstract

Purpose: This research focuses on adopting and using smartphone-based digital payment systems among Generation X and millennials in Jakarta, Tangerang, and South Tangerang, Indonesia. Combining UTAUT-IRT was used to investigate digital payment acceptance. Theoretical framework: This study examines the effect of the UTAUT and IRT factors on the behavior intention to use e-money and actual usage of e-money. Design/methodology/approach: The study utilizes a non-probability convenience sampling technique, with a sample size of 268 respondents. Data collection is conducted online through Google Forms. Structural Equation Modeling (SEM-PLS) using SmartPLS software is employed for data analysis. Findings: The research findings indicate that performance and effort expectancy do not significantly influence behavior intention among Generation X and millennials. However, social influence and facilitating conditions drive behavior intention among Generation X and millennials. Technology usage significantly influences behavior intention among millennials. In contrast, technology value influences behavior intention among Generation X. Traditional payment methods significantly impact behavior intention among Generation X but not among millennials. Technology risk and technology image do not significantly influence behavior intention in both groups. Behavior intention positively impacts actual usage among both Generation X and millennials. Research, Practical & Social implications: This research provides insights for policymakers, financial institutions, and e-money providers to understand the factors driving behavior intention towards e-money adoption among Generation X and millennials, suggesting targeted strategies to promote adoption and enhance the convenience and facilitating conditions for digital transactions, leading to increased financial inclusion and efficiency. Originality/value: This study contributes to the existing literature by examining the influence of factors on behavior intention toward e-money adoption among Generation X and Generation Y in Indonesia. It fills a gap by analyzing generational differences and motivations for adopting e-money, considering the specific context of personal payment needs.