1. Introduction
International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 [Vol. 3 No. 1 March 2021]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
INTENTION TO USE E-WALLET AMONGST THE UNIVERSITY STUDENTS IN KLANG VALLEY
Annie Yong Ing Ing1*, Wong Teck Keong2 and Lim Ping Yuh3
1 2 Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Kajang, MALAYSIA
3 Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kajang, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 20 February 2021 Revised date : 23 February 2021 Accepted date : 11 March 2021 Published date : 14 March 2021
To cite this document:
Yong, I., Wong, T., & Lim, P. (2021).
INTENTION TO USE E-WALLET AMONGST THE UNIVERSITY STUDENTS IN KLANG
VALLEY. International Journal Of Business And Economy, 3(1), 75-84.
Abstract: Mobile payment or electronic wallet plays a significant role in accelerating online transaction.
Mobile payment or electronic wallet system is not only a mechanism for business to acquire profit, but also helped the government, internet service provider, the consumers, the e-commerce merchants and the financial institutions in their business activities. Mobile payment in Malaysia is becoming popular in recent years and the Klang Valley has the highest internet penetration rate among the young adults. However, the e-wallet adoption rate is low. This study attempts to investigate and to analyse the factors that influence the intention to use e- wallet amongst the university students in Klang Valley.
The outcome of this study suggested that the values (usefulness, ease of use and trust) and the risks (economic risk and privacy risk) contributed to the intention behavior to adopt e-wallet amongst the university students in the Klang Valley.
Keywords: E-wallet, Mobile payment.
A digital wallet is similar to a real wallet, is also known as “E-wallet (electronic-wallet)” or mobile wallet. It uses an electronic card to allow an individual to make online transactions by using a smartphone or a computer. All e-wallets are password protected and they are linked to a person’s bank account for online payment transactions. It operates like a convenient wallet to carry around and make payment for retail, groceries and entertainment, among others an easy online activity. E-wallet is equipped with two parts, the information and software. The former consists of users’ database details such as the users’ name, shipping address, amount to be paid, payment method, credit card or debit card details, and other relevant information. The latter stores personal details, provides data encryption and data security.
E-Commerce Consumers Survey 2018 said that, Malaysians in the past twelve months would spend nearly RM470 per transaction and found that smartphone is the most favourite device for online shopping. Furthermore, PricewaterhouseCoopers (PwC) Oct2018 survey showed that the e-wallet payment activities have expanded. The core activities are retail, food and beverages, e-commerce, transportation, prepaid top up, peer-to-peer transfers and bill payment.
According to MCMC (2018), Kuala Lumpur and Selangor have the highest usage rate in Malaysia. Both usage rates registered at 235.3percent and, 124.1percent respectively as reflected in the mobile penetration rate per 100 inhabitants by state 2018 report. The department of statistics Malaysia 2018 annual report showed that there are 32.3million people living in this country, of which 29million are citizens and the remaining 3.3million are non-citizens.
There is a total of 7.4million citizens living in Klang Valley (Selangor, Wilayah Persekutuan and Wilayah Persekutuan Putrajaya), of which 2.5million citizens belong to 15 to 34 years old.
They constituted a quarter of the population of Klang Valley. The report also showed that there are 1.2million university students’ study in the Peninsular Malaysia and Sabah and Sarawak.
The combined population score came from public university students of 552,702 and private higher education students of 668,689.
2. Literature Review
2.1 Dependant Variable: Intention to Use E-wallet
Fishbein (1967b) suggested that there are two basic determinants to a person’s intention to carry out a given behaviour, they are attitudinal component and subjective norm. Fishbein &
Ajzen, (1975, p.332) said attitudinal component refers to the persons’s attitude in projecting and performing the behaviour and subjective norm is related to one’s belief that the social pressure from others dictate his engagement in a certain manner or not, and his motivation to satisfy others. Thus, the construction of an intention depends on a certain attitude and of a certain belief formed in the early stage.
Fishbein and Ajzen (1975) postulate attitude towards behavior and subjective norm affected one’s behavior in adopting mobile payment in the Theory Reason Action (TRA) model. This theory further is supported by Venkatesh & Davis (2000) and Hung et al. (2003). However, it received some criticism from former reseachers due to the lack of constructs that needed to be extended to satisfy the theory. The TRA limitations are improved by Theory of Planned Behavior (TPB) model years later. Additionally, Technology Acceptance Model Theory (TAM) was introduced in 1989. Many past research on consumer behaviour towards mobile payment were based on the Technology Acceptance Model (TAM) (Davis, 1989). This model concluded that perceived usefulness and perceived ease of use are the two factors influencing consumers’ intention to embrace new technology. This model has extended further as the literature evolves.
In the twenty-first century, Venkatesh, Morris, Davis & Davis (2003) integrated past theory and established the model-Unified Theory of Acceptance and Use of Technology (UTAUT). It is used to predict the organanisations’ behavioural intention to use new technology. The proposed four main constructs in UTAUT are social influence, facilitating consitions, effort expectancy, and performance expectancy. Additional constructs relating to demographics such as gender, age were included. The willingness to use and experience in UTAUT are applied to regulate the impact of the four main constructs on intention and behaviour to use.Venkatesh further extended UTAUT theory to UTAT2 by including hedonistic motivation (HM), habit (HA) and perceived price value (PV). Venkatesh (2012) posit that the improved UTAUT2 has shown higher percentage in variance for both behavioral intention (BI) and technology as compare to UTAUT. Given various factors were examined, this paper focuses on the following determinants.
2.2 Independent Variable: Perceived Usefulness
Perceived usefulness, based on expectancy theory is interpreted as the extent a person believes in using a system will improve his job in an organisation. (Davis, et al., 1989). In TAM model which was adapted from TRA, explain an individual exhibit a positive association towards perceived usedfulness and behavioural intention (BI) in using mobile payment. (Venkatesh et al., 2000). Perceived usefulness is also incorporated in a study on public transport rechargeable card called Suica Japan. The sole purpose of the card is to solve the fare calculation for each journey. A later improvement named Mobile Suica, provides mobile payment functionality to allow users to purchase goods and services within or near the train stations. Users perceived the new payment system as useful as it makes their lives easier by not carrying a card.
(Amoroso & Wantabe, 2011).
Phuah, Ting & Wong (2018) posit that m-payment services is viewed to be a useful tool as it brings convenience to the user as oppose to the traditional payment methods. According to
2.3 Independent Variable: Perceived Ease of Use
Davis et al., (1989) mentioned that perceived ease of use is the rate an individual believe to be free from great effort or difficulty when using a system and not relied on performance benefits (perceived usefulness). Consumers desire to use the m-payment services as long as the services are convenient to use. (Davis, Bagozzi & Warshaw, 1992).
Mobile Suica is an extension of Suica Japan public transport card system. Passengers are allowed to top-up their transport fare on their card with the mobile payment system. They need not have to wait in line to buy a ticket at a ticket machine or to worry about loose change problems. They can go through the automatic fare-collecting gate immediately with the topped up touch-and-go card. The Mobile Suica is a free application and payment is made through Google Pay or Apple Pay. Passengers using Mobile Suica can top-up the desire amount from a bank account or through a credit card when the balance is running low. Thus, these mobile payment facilities ease the passengers from mental or physical efforts. (Amoroso et al., 2011;
JR East, 2018).
Hiyashi (2012) concluded that perceived ease of use is the benefit of not carrying multiple cards in a physical wallet. Instead, linking those cards to the e-wallet will do. Furthermore, consumers can choose the best payment instruments that are made available on the mobile devices. These attributes are highly favour by the consumers to accept mobile payment.
2.4 Independent Variable: Perceived Economic Risk
financial risk or economic risk connote as the loss of money caused by identity theft or fraud.
Consumers making financial transaction through online banking or e-commerce are facing higher risks due to the exposure of virtual environment as compared to the traditional way of transaction. (Grabner-Krautera & Kaluscha, 2003). According to Yang, Liu, Li & Yu, (2015) mobile payment operate with wireless communication technologies is easily expose its financial information to cyber hackers. In addition, mobile payment with embedded 2D code (two-dimension code) scanning may contain malicious software that can collect password and payment account illegally. Consumers’ uncertainty about the mobile payment authentication and information encryption and subsequently may increase their worries on economic risk.
Consumers found there were perceived risk in handling personal information and financial assets under the mobile payment environment via e-banking. Their concerns are the system’s safety/security in information, money transmission and trustworthiness (Lee, Kwon, &
Schumann, 2005). According Yang, Qian, Pang & An, (2014) perceived economic risk is the consumers economic losses caused by dishonest of sellers or the insecure internet environment.
As a consequence, there is a high negative significance on consumers’ intent to use online payment.
2.5 Independent Variable: Perceived Privacy Risk
Westin (1967) explained information privacy is the individuals’ ability to monitor and manage their personal information. Consumers are often reluctant to use the mobile payment service due to identity theft, security breaches and passive confidentiallity (Yang, Lu, Gupta, Cao &
Zhang, 2012). Other study concluded that nearly half of the respodents viewed mobile payment as not safe to use and worried that their personal information is compromised (Dewan and Chen, 2005). "The more risk adverse a subject is, the lower its acceptance and longer the diffusion will take" (Dunphy & Herbig, 1995, p203). Therefore, when consumers viewed there is a low risk in using m-payment services, it is more likely they will use it. (Hampshire, 2017)
2.6 Independent Variable: Perceived Trust
Perceived trust is defined as a type of technology solution that can be or cannot be trustworthy and secure. (Dahlberg et al. 2003). The term “mobile payment” explained it is the users’ wish to use the mobile network to make payment transaction and hoping that the payment platform will honour its duty without users’ monitoring and controlling the activities.
Money is an economic unit and a current medium of exchange for goods and services.
Arvidsson (2014) posit that consumers generally trust in banks, card companies and operators as they are seen to be the economic players who have “in money”, the expertise to determine the value of money and to provide payment services.
There were several qualitative studies postulate that consumers are more incline to use m- payment services offered by reliable providers. Thus, the importance of trust in these actors affects the consumers’ intention to use m-payment services. Historical studies agreed that perceived trust (PT) have positive impact on intention to use. (Gefen et al. 2003; Wijayanthi Isnawatie Mahwadha, 2019).
2.1 Problem Statement
According to We Are Social, The Malaysia digital 2019 report the 32.5million population in 2018, there are 125 percent mobile subscriptions in Malaysia. The high percentage indicated many Malaysians own more than one mobile phone. However, only 11percent has a mobile money account and 42percent make mobile payments. The low percentage denote m-payments have not yet experienced widespread adoption.
In PricewaterhouseCoopers quarter 2, 2018 “Banking on the E-wallet in Malaysia” survey, it says that the prime group for e-wallet adoption belongs to the 59percent who are young (aged below 35years old) and tech savvy. Majority of them are expected to use their e-wallet between 1-5times a week and their main purpose of using e-wallet is for food and beverages, retail and
Ting, Yacob, Liew, and Lau (2015) applied the theory of planned behaviour (TPB) model to assess the differences between races (Malay and Chinese) on the effects of m-payment system adoption intention. Different user group groups may have different views on the advantages of m-payment and the adoption of new payment technologies. Both studies emphasised on understanding the users’ behaviour on group level, but little affort to discuss the e-wallet research. (Kim, Mirusmonov & Lee, 2009).
The younger generation grow up with the exposure of digital technology. Essential tools such as computers, internet and mobile phones have become in integral part of their lives. Dietz, (2003) said that the younger generation were born into a society of eletronic, technological and wireless environment. The crossing of the global boundaries are becoming more easy and transparent, and they embrace living in a diverse world with anything is possbile. HPUS 2018 reported there is a high adoption of smartphone ownership especially among younger people with higher education levels.
3. Method
Quantitiative research is conducted to investigate the factors such as perceived usefulness, perceived ease of use, perceived economic risk, perceived privacy risk and perceived trust that influence the intention to use e-wallet amongst the university students in the Klang Valley.
Two data collection methods are deploy for this study. Namely, primary and secondary data.
Primary data is collected through online questionnaire survey while secondary data is obtained by reading journals, articles and library online database.
3.1 Materials
Non-probability sampling method is administered through online survey.
3.1.1 Samples
It is targeted to administered the questionnaires to 250 respondents. The 250 questionnaires will be distributed through the internet via Google form to the university students in the Klang Valley with the intention to prevent deforestation and at the same time to save time from collecting the questionnaires personally. It is also taking into conesideration that the students are hard to reach by post or to meet in person.
3.1.2 Site
The target audience comprised of university students in the Klang valley. They are more qualified to be included in this study as compared to the generation before them due to their high mobile usage rate and their high exposure to digital technology.
3.1.3 Procedures
Convenience sampling is administered in this study by obtaning voluntary respondents that are conveniently available as well as it is an economical and a quick way to collect completed questionnaires. Cluster sampling is also used to collect data from a group of individuals residing in one geographical area (Kuala Lumpur and Selangor). These two states are chosen for the high university students population rate and the high mobile internet usage rate.
Furthermore, it saves time to send online questionnaire in these two states than through out the whole nation.
In this study, information and data is expected to be collected after the questionnaires are sent to the respondents. It is a self-administered questionnaire and each question is in close-ended format.The benefits of online qusetionnaire are, respondents have the flexibility to answer the questionnaires at anywhere and anytime, it is cost saving as it is paperless and it can be widely distributed at a click of a button as compare to by post.
The respondents are required to answer the questionnaire which mentioned the causal factors that influence the intention to use mobile payment amongst the university students in the Klang valley. The questionnaire is written in english and is comprised of two parts. They are section A and section B. Section A was constructed to include respondents personal profile such as gender, race, age, location of living in and or study, marital status, monthly personal income, education level, mobile phone ownership and mobile phone payment. Section B questions are related to the independent variables and the dependent variable.
3.2 Measurement
There are 30 questions in total. 9 being demographics questions while each indepedant variable (6 questions) are assigned with 4 to 6 sub-questions. The questionnaire is tested based on 7 point likert scale of ‘1’ to ‘7’. ‘1’ represents strongly disagree and ‘7’ strongly agree. Nominal, ordinal, interval, and ratio are the four types of measurement scale commonly used to achieve a decent representation of the data.
3.3 Data Analysis
Data collected from the online survey will be imported into Software Package for Social Science (SPSS) software version 21 for data analysis process to analyse the data and draw insights for the hypotheses.
3.3.1 Validity and Reliability
Descriptive analysis is used to explain the respondents’ personal details. Scale measurement such as Cronbach’s Alpha was conducted to find out the 6 constructs internal reliability,
4. Results and Discussion
Table 1: Summary of the hypotheses testing results
No. Hypotheses Significant
Level
Supported / Rejected
H1
There is a significant relationship between perceived usefulness and the intention to use e-wallet amongst the university students in the Klang Valley.
Sig= 0.005
P< 0.05 Supported
H2
There is a significant relationship between perceived ease of use and the intention to use e-wallet amongst the students in the Klang Valley.
Sig= 0.011
P< 0.05 Supported
H3
There is a significant relationship between perceived economic risk and the intention to use e-wallet amongst the university students in the Klang Valley.
Sig= 0.088
P> 0.05 Rejected
H4
There is a significant relationship between perceived privacy risk and the intention to use mobile payments amongst the university students in the Klang Valley.
Sig= 0.004
P< 0.05 Supported
H5
There is a significant relationship between perceived trust and the intention to use e-wallet amongst the university students in the Klang Valley.
Sig= 0.000
P< 0.05 Supported
The design of this research is to determine the intention to use e-wallet amongst the university students in Klang Valley. The research objectives of this study are identified as perceived usefulness, perceived ease of use, perceived economic risk, perceived privacy risk and perceived trust towards intention to use e-wallet. A total of 250 samples were collected via online survey and was analysed using SPSS version 21. The statistical analysis includes descriptive analysis, scale measurement and inferential analysis. The result indicated that all the hypotheses were supported and only H3, perceived economic risk was rejected due to its non-significant relationship to the dependent variable.
5. Conclusion
However, there were a few constrains in this study. For example, the age of the respondents was limited to the younger generation, all the target audience were mainly university students and the integrity of online survey is in question. All these limitations were recommended in details. For instance, to widen the age group by including older generation, to include other participants from different walks of life and to conduct face-to-face interview.
The findings were contributed in the literature and perspectives were presented on the factors that influence the use of e-wallet among the university students in Klang Valley. Additionally, the values and risks of using e-wallet were explained to all parties involved to help them understand the consumers behaviour pattern and to improve on their products and services.
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