Factor Influencing Consumer’s Intention to Use E-wallets
Tan Kock Lim1*, Lim Zhi Xin1, Kong Yin Mei2
1 UOW Malaysia KDU Penang University College, Malaysia
3 Universiti Tunku Abdul Rahman, Malaysia
* Corresponding Author: [email protected]
Accepted: 15 July 2021 | Published: 1 August 2021
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Abstract: Nowadays, e-wallet is used globally. Using e-wallet actually improves our quality of life and enhance productivity of users. People use e-wallet to pay utility bills, book ticket, financial transaction and so on. E- wallet makes payment more efficient and convenient. In Malaysia, government has come out with several strategies to encourage people to use cashless payment method. For instance, government is spending RM 1.2 billion in promoting e-wallet, by introducing several programs such as e-Tunai, PEJANA and so on. In this research, it is to investigate the factor that influences consumers’ intention to use e-wallet. Social influence, perceived usefulness, perceived ease of use and attitude toward using are studied as the factor influencing consumer intention to use and Technology Acceptance Model (TAM) model.
Judgment sampling techniques is applied to collect data from respondents who have used e- wallet before. The 211 sample size will be collected via online and physical questionnaire.
Data will be analysed through SPSS software. The result of this study indicates that perceived usefulness, perceived ease of use and attitude toward using have a positive relationship toward consumer intention to use e-wallet except social influence. The outcome of this study should take in to consideration for e-wallet company, merchants, IT field and government in order to influence consumer intention to use e-wallet. Consumer behavior intention to use e-wallet is very important in order to develop Malaysia as a cashless and advanced country and improve people’s life to become more convenient and make payment efficiently. In addition, behavior intention is important to let those parties to improve the current situation in order to influence consumer intention to use e-wallet.
Keywords: E-wallet, Statistical Package for Social Sciences, Technology Acceptance Model ___________________________________________________________________________
1. Introduction
Nowadays, the emergence of internet makes life more convenient. In 2019, 28.4 million Malaysians use mobile internet and the number is assumed to continue to increase (Statista, 2020). Since the emergence of internet, people are allowed to make mobile payment. A unique payment method is invented which is electronic wallet (e-wallet) (Karim et al,2020). E-wallet is an electronic wallet which allows people to use online and mobile phone, and it securely stores the user's payment information and password, and it is linked to bank account (Capital,2020).
Besides, the e-wallets are widely used in various areas and businesses. E-wallet can be used for online shopping, paying utility fees (water, electricity, Wi-Fi), buying flight ticket and so on. E-wallet also reduced the complexity of carrying cash and facilitate cashless transactions (Tiwari et al, 2019).
Moreover, e-wallet is attracting consumers and changing the traditional banking, since, e- wallet allows consumers to transfer money among various parties faster, free of charge, convenient and flexible payment method. According to Blockchains (2018), 61% of the people are using e wallet in USA and 34% user are using e- wallet in Malaysia. In 2016 the e wallet transaction is $594 billion and are expected to reach $3.1 trillion by 2022 in Asia (Blockchains, 2018). This statistic proves that people are adapting with the cashless payment and Malaysia is expected to become a cashless society in 2050.
Figure 1.1 show the amount of global e-wallet transaction from 2018 to 2021.The global payment transaction of 2018 fetched $4.296 trillion, and increase 38.4% year by year. The high grow rate of e wallet transaction is expected in the next few year (Reportlinker, 2020).
From the past literature review, some researchers stated that there is no relationship between attitude toward using and consumer’s behavior intention to use e-wallet (Karim et al, 2020;
Wang et al, 2006; Shaw, 2014), while other researchers stated that attitude toward using is correlated to behavior intention to use (Hsu and Chang, 2013). According to Amoroso and Magnier-Watanabe (2012), the actual behavior of an individual depended on the attitude of that individual towards that particular behavior in the context of the theory of reasoned action.
Moreover, Davis (1989), stated perceived usefulness and perceived ease of use were significant determinants of the attitude of a person towards the use of technology. In online environment attitude is expect to reduce the hedge of adoption in using e-wallet and facilitate transaction (De Luna et al, 2018). Furthermore, some researchers argue over the other external variable that will also affect consumer intention to use e-wallet. Several studies stated that security and privacy is the variable affect user start using e-wallet (Karim et al, 2020; De Luna et al, 2018), yet some of the researchers stated that consumer is using e-wallet because of social influence (Amoroso and Magnier-Watanabe, 2012; Lai, 2017). Thus, further study on this topic is required in order to obtain a consensus result on whether perceived usefulness, perceived ease of use, social influence and attitude toward using is influencing the consumer behavior intention to use e-wallet and whether attitude toward using is impact on behavior intention.
4.296
5.946
8.229
11.389
0 2 4 6 8 10 12
2018 2019 2020 2021
$
Year
Figure 1.1: Global Mobile Payment Transaction (Reportlinker, 2020)
Trillion dollar
The research objectives address the problem statement are :
• To examine the relationship between social influence and consumer’s behavior intention to use e-wallet in Malaysia.
• To examine how the perceived usefulness of e-wallet affects consumer’s behavior use intention in Malaysia
• To examine how the perceived ease to use of e-wallet impact consumer’s behavior intention to use e-wallet in Malaysia.
• To examine the effect of attitude toward using toward consumer’s behavior intention of use e-wallet.
2. Literature Review
2.1 Behavior Intention
Behavior intention is defined as a person’s willingness to use a new technology (Hsu and Chang, 2013), it also refers to the person’s future behavior (Karim et al, 2020). There are many studies which have stated that behavior intention has an important relationship with social influence. According to Chen and Chen (2011) behavior intention has a direct relationship between perceived usefulness and attitude. When the user has a positive feeling toward using e-wallet, then the intention to use may generate.
2.2 Social Influence
Social influence is referring to the degree to which people understand what is important to them as to whether they should follow a method or perform a certain action (De Luna et al, 2018).
Social influence may divide to 2 parts which is external and interpersonal such as word of mouth and expert opinion. Moreover, people can be impacted via attitudes, behavior, and perceptions of the information he receives from the social environment. Social influence may enhance behaviors intention to use e-wallet when the other form the social environment agree that particular system is ease to use and useful (Bouwman et al, 2008).
The previous study showed social influence coincides with the positive relationship between consumer behavior intention and social influence.
2.3 Perceived Usefulness
Perceived usefulness is using a particular system would enhance ones job performance and increase ones productivity (Rantung et al, 2020). A system which is high level of perceived usefulness mean user believes that using this particular system may enhance job performance.
According to Karim et al (2020), it is hypothesized that perceived usefulness predicts the direct relationship with the behavioral intention to use the technology and perceives usefulness is a key element of TAM that has a major effect on behavioral intention. Moreover, perceived usefulness has a direct impact on intention to use over and above its influence through attitudes (Goh et al,1970). According to Al-Maroof and Al-Emran (2018), there is a major relationship between perceived usefulness and behavior intention to use particular technology. Perceived usefulness measures how people increase their job efficiency through using e-wallet. The previous findings agreed positive relationship between this variable.
2.4 Perceived Ease to Use
Perceived ease of use is defined as the degree to which a person believes that using a particular system would be easy to use and not a burden for user (Rantung et al, 2020). According to Wallace and Sheetz (2014) it is innovations that are less complicated, easy to understand and
execute and less frustrating to use. User will adopt a new system well when it is low complexity. Perceived ease of use is also an important determinant of people to use particular system (Amoroso and Magnier-Watanabe, 2012). Several studies have indicated that perceived ease to use has positive effect on intention to use.
2.5 Attitude Toward Using
Attitude toward using is defined as the positive or negative feeling or perceptions that are produced when new technologies are used by a person. When users have a high positive attitude in using new technology then the behavior intention of using will be high (Chuang et al,2016).
According to Chua and Hu (2002), attitude is determined by perceived usefulness and perceived ease of use and it promote user’s willingness to use particular technology. Attitude promote potential user trust that the new technology is simple to use and that it can be used to help them. The usefulness and ease to use of the technology have a positive relationship. If the user believe that e-wallet is easy to use and useful, user attitude toward e-wallet will be high.
Therefore, perceive ease of use and perceived usefulness is an important factor that user accept e-wallet. Several significant studies present that they is a positive influence on behavior intention toward using.
2.6 Theoretical Framework
Below is the theoretical framework proposed for this study.
Figure 2.1: Proposed Theoretical Framework
3. Methodology
The questionnaire is distributed to sample size 211 respondent who is Malaysian regardless of age, gender and race who have the intention or experience in using e-wallet. The questionnaires are distributed through online. Through online, respondents can decide whether to respond to the questionnaire or not. The research design comprised of research population and sample size, sampling method, unit analysis together with data collection mated and questionnaire design whereas the data analysis includes the five analysis which descriptive analysis, validity analysis, reliability analysis, correlation analysis and regression analysis.
Perceived usefulness
Perceived ease of use
Attitude toward using
Behaviour intention
H4 H1 Social
influence
H2
H3
4. Discussion and Conclusion
In this study the result of KMO test is 0.940 which means that sampling is adequate and the result of Bartlett’s Test of Sphericity is 3837.841which achieved significant value 0.000 (p<0.05), which means that data is suitable for further analysis.
According to Gottems et al., (2018) the lower accept limit of reliability is 0.7 and the Cronbach’s Alpha Reliability classification as extremely low (α ≤0.3), Low (0.30 <α ≤ 0.60), Moderate (0.60 <α ≤ 0.75), High (0.75 0.90), and extremely high (α > 0.90). In this study 5 of the variable is exceed 0.7 which is correlated and none of the item is abandoned.
In this study, the correlation analysis is applied to test the importance of relationship between variables. Correlation value is obtained by using Pearson Correlation, all of the variable is significant and positive which is (p<0.01). The result shows that the highest Pearson Correlation is 0.849 whereas perceived usefulness is 0.790, perceived ease of use is 0.778 and social influence is 0.695.
The result of regression analysis show that the value of adjusted R2 is 0.762 that means that 76.2% of the factor of behavior intention to use e-wallet can be concerning to the 4 independent variables which are social influence, perceived usefulness, perceived ease of use and attitude toward using. While the value of Durbin Watson is 1.727, it is acceptable because it is within 1.5 to 2.6 and no error of auto-correlation.
In this research, consumer agree that perceived usefulness, perceived ease of use, attitude toward using is positively correlated to consumer behavior intention to use e-wallet. To increase the consumer intention to use e-wallet, e-wallet company should develop a system which is useful and ease of use. The e-wallet system should be easy to use and consist of several functions which give convenience to consumers. The positive attitude toward using e-wallet will influence and encourage consumers to use e-wallet. The e-wallet which is interesting, beneficial and convenient may attract consumer intention to use.
Nevertheless, social influence is not influencing consumer intention to use e-wallet. This is because the environment and the people that consumer interact with is not strong enough to influence intention to use e-wallet. The environment and people might not be using e-wallet, therefore, social influence has no relationship with consumer intention.
Lastly, to achieve the goal of cashless country, government, e-wallet company, merchants, IT field and consumers have a responsibility to promote and to encourage people to use e-wallet in order to be an advanced country and improve people’s life.
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