The Acceptance of Pay Later Payment Usage on Business-To-Consumer Online Marketplace in Indonesia

Abstract

Pay Later is a new payment method that allows consumers to buy products using installments with a certain deadline. Pay Later have been adopted by various online marketplaces and increased during the COVID-19. This study aims to seek light on Pay Later payment method adoption on business-to-consumer (B2C) online marketplace in Indonesia using the modification of the Technology Acceptance Model (TAM). This study uses the Partial Least Square Structural Equation Modelling (PLS-SEM) analysis method with the help of SmartPLS 3.0 and a survey filled out by 1,141 respondents. The results showed that perceived usefulness, perceived ease of use, social influence, lifestyle compatibility, consumer trust, perceived risk, and debt attitude influence the users' intention to adopt/use Pay Later, and the intention is proven to influence the actual use of Pay Later in B2C online marketplace in Indonesia.