International Journal of Business and Economy (IJBEC) eISSN: 2682-8359 | Vol. 4 No. 3 [September 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
THE RELATIONSHIP BETWEEN FINANCIAL LITERACY, PERCEIVED USEFULNESS, AND PERCEIVED EASE OF
USE ON PAYLATER USAGE
Jeremy Mikael1 and Raden Aswin Rahadi2*
1 2 School of Business and Management, Bandung Institute of Technology, Bandung, INDONESIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 22 July 2022 Revised date : 25 August 2022 Accepted date : 1 September 2022 Published date : 10 September 2022
To cite this document:
Mikael, J., & Rahadi, R. A. (2022).
THE RELATIONSHIP BETWEEN FINANCIAL LITERACY,
PERCEIVED USEFULNESS, AND PERCEIVED EASE OF USE ON PAYLATER USAGE. International Journal of Business and Economy, 4(3), 276-289.
Abstract: The mass adoption of paylater is a result of more accessibility and an easier requirement to request consumer loans compared to credit cards. In addition, paylater allows users to take credit or pay installments, which is useful for fulfilling needs. However, the ease and usefulness provided by paylater may lead to potential problems related to excessive loan bills and debt which damages the user’s credit score. Personal financial well-being may also be damaged as paylater usage tends to trigger impulsive buying behavior.
Therefore, improving financial literacy to make a well- informed financial decision is essential. This research is aimed to identify the relationship between financial literacy, perceived usefulness, and perceived ease of use on paylater usage and how it further relates to impulsive buying behavior. Using quantitative methods, the researcher studies a sample of 341 respondents. This research uses Pearson’s Correlation Coefficient to identify the relationship between variables. The results show no significant correlation between financial literacy and paylater usage. On the other hand, the result indicates a significant positive correlation between perceived usefulness and paylater as well as between perceived ease of use and paylater. There is also a significant positive correlation between paylater usage and impulsive buying.
Keywords: financial literacy; perceived usefulness;
perceived ease of use; paylater usage; impulsive buying.
1. Introduction
Nowadays technological development and digital transformation is inevitable in almost every aspect of our daily life as a result from the fourth industrial revolution. This also involves traditional industry which undergo a vast change due to digital transformation with continuously evolving technology. The rapid technological developments emerge as both businesses and customers demand an easier and more efficient business processes that are made possible by the existence of an online system and digitalization in a daily basis (Muljani &
Ellitan, 2019).
Research conducted by Google, Temasek, & Bain shows mass adaptation of 4 digital services in Indonesia with $44 billion gross merchandise value (GMV) and expected to grow 23%
annually until it reaches $123 billion in 2025. One of the biggest and fastest-growing digital industries is e-commerce with more than 50% annual GMV growth in 2019-2020 and contributing 72% of the total GMV of digital services mentioned before (Google et al., 2020).
The vast growth of e-commerce in Indonesia can be a catalyst for other industry, notably financial technology or known as fintech.
Fintech consists of many business models but the most common one when speaking of e- commerce is digital wallet for payment. To attract more customer, many e-commerce platforms adapt innovative features to provide more seamless and convenient business process to its customer, two most recognized fintech products are digital payment alternatives which are digital wallet and paylater (DailySocial.id, 2020). Research by J.P Morgan shows digital wallet usage will continue to grow from 16% in 2019 to 22% of total e-commerce payment method in 2023 while cash payment declines (J.P. Morgan, 2021). Better than digital wallet, paylater has a decent annual GMV growth rate of 27% from 2021 to 2028 (Research & Markets, 2021).
There is no denying that fintech give its user more accessibility to financial services, with paylater being one of it. The main reason why users decide to use paylater instead of credit card in doing e-commerce transaction is because of the accessibility followed by relatively easier requirement to request consumer loan (Rumayya et al., 2020). Paylater provides its user a more seamless and convenient transaction process. These eases of use are the reasons behind the mass adoption of paylater in Indonesia.
Paylater is like credit card in term of giving its user to take credit or pay instalment, which lessen the pain and can be considered as solution to fulfil their needs. Paylater does not involve with bank as the creditor which means that consumers can still use this payment method even if they are not financially prepared to take out a loan (Shahid & Razaq, 2017). Therefore, there is a perceived usefulness aspect when speaking about paylater service.
Alongside with the significant growth of paylater, customers have to improve their financial literacy to make effective financial decisions since informed financial decision have been proven as a key factor in making effective financial judgement (Lusardi et al., 2017). Ease of access and user-friendliness of a financial product is important for financial inclusion while at the same time having an impact on the decisions made by those who have a low level of financial literacy (Panos & Wilson, 2020).
Financial literacy is directly related to the ability to managing money (Laily, 2016). It means the higher the financial literacy, the better its ability to manage money. This money management includes allocating expenditure efficiently and evaluate if the usage of money is according to plan or not. Beside money management, financial literacy also affect financial decision making which involves how much money to consume, what to do with excessive money after the consumption, and saving or investing decision (Widyawati, 2012). Thus, higher financial literacy indicates better decision making regarding financial decision.
In contrary, lower financial literacy indicates worse financial decision making. Low level of financial literacy may result in unwise financial decision since financial literacy can help people in making financial decision that prioritize prudence (Yuesti et al., 2020). People with low financial literacy are unable to assess and make informed decisions about their personal finance.
2. Literature Review Financial Literacy
Financial literacy is the knowledge of basic economic and financial concepts, as well as the ability to use that knowledge and other financial skills to manage financial resources effectively for a lifetime of financial well-being (Hung et al., 2009). Stolper & Walter (2017) defined as the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.
A more recent definition of financial literacy is provided by Organization for Economic Cooperation and Development (OECD) which states financial literacy as the knowledge and understanding of financial concepts and risks, and the skills, motivation, and confidence to apply such knowledge and understanding in order to make effective decisions across a range of financial contexts, to improve the financial well-being of individuals and society and to enable participation in economic life (OECD, 2016). The definition provided by OECD has two parts. The first part refers to the kind of thinking and behaviour while the second part refers to the purposes for developing financial literacy. To be more specific about the scope of financial literacy, a matrix based on OECD Core Competencies Framework is developed involving 4 main components of financial literacy which are money & transactions, planning
& managing finances, risk & reward, and financial landscape (Otoritas Jasa Keuangan, 2015).
Paylater
Paylater is the latest digital payment methods in Indonesia which offers opportunity for consumers to buy products or service and pay it later (Pratika et al., 2021). It has similar function with credit card since the user can make a purchase to fulfil their needs or wants and pay it later on a designated due date. Sari (2021) stated that paylater has advantages compared to credit card in term of easiness to register since it doesn’t require as many requisitions as credit card.
Perceived Usefulness
Davis defined perceived usefulness as the extent to which a person believes that using a specific system or technology would improve his or her work performance (Davis, 1989). It is based on the word useful that depicts the capability of being use advantageously. Based on these statements, it can be concluded that perceived usefulness indicates a person’s belief in using a particular technology to be beneficial for him or her. The perceived usefulness can be referred to both direct and indirect benefit (Satoto et al., 2021). Direct benefits means that the benefits that customer enjoy is tangible while indirect benefits are less tangible and more difficult to be assessed.
Perceived Ease of Use
Perceived ease of use indicates a person’s belief in using a specific product or technology to lessen the required effort or as a belief that a technological system is available be used straightforwardly. It derived from the definition of the word ‘ease’ which means freedom from difficulty or great effort. Thus, a technology or product that is perceived to be easier to use or require less effort is more likely to be accepted. Speaking of effort, it can be defined as a finite resource that are necessary to be allocated for a certain activity (Davis, 1989).
Impulsive Buying Behavior
Impulsive buying is a tendency that happen to a consumer to buy a product spontaneously without careful consideration. Impulsive buying is a sudden urge to buy a product which never be planned before or buy a product with no initial intention to bought at the first place (Sari, 2021). Impulsive buying is the urge to engage in unplanned purchasing behavior, as opposed to planned purchasing behavior, which is characterized by quick and instantaneous decision making (Lee & Kacen, 2002).
2.1 Problem Statement
The extensive development of financial technologies that is revolutionising the financial services may damage financial well-being by triggering impulsive buying behavior when dealing with financial technologies and platforms such as paylater. A high probability of impulse buying happened to paylater users, or in other words, paylater usage positively related with impulse buying behavior. Research also provides information about paylater feature as an impulsive buying drive in e-commerce. It states that paylater has a direct significant effect when it comes to impulsive buying due to its easiness, speediness, and relatively low interest rates that may encourage customers to buy impulsively.
Laily (2016) states financial literacy includes knowledge of allocating expenditure efficiently and evaluate if the usage of money is according to plan or not. Since impulsive buying behavior considered as unplanned expense without careful consideration, it is closely related with low level of financial literacy. In conclusion, impulsive buying behavior is considered unproper financial decision and can affect financial well-being negatively without a proper financial literacy.
With vast paylater adoption, it is possible that people with low financial literacy is already using the product. Several financial related risks may be expected such as excessive loan bill and debts, unclear information about product, loan requirements, and additional fee, failure to pay loan and affecting overall credit scoring (Rumayya et al., 2020). When customer fail to pay their loan within the given period, it will affect the merchant financial performance similar as non-performing loan in bank credit.
Figure 1: Research Framework
3. Method
3.1 Research Method
This research collects primary data by distributing online questionnaire to 341 respondents which use 24 different indicators (see Appendix 1) with 5 Likert-scale options to measure each variable. This research uses one method of non-probability sampling which is purposive sampling technique. Purposive sampling is based on the researcher’s judgement of who will gives the best information to meet the research objective.
Before distributing the online questionnaire to bigger audiences to achieve the desired sampling size, the researcher conducts a pilot study or pilot test to 30 samples. The ideal number of samples for pilot study is 10% of total sample. Pilot study is necessary to minimize or eliminate problem when answering the questionnaire and recording the data (Saunders et al., 2012). Pilot study is a small-scale research critical in refining the questions contained and reducing the risk of fatal flaw on the full study, or in other words pilot test serve as a fine tuner for the study (Zikmund et al., 2012).
The data gathered from these respondents is tested using validity and reliability test to figure out is the questionnaire already appropriate or not and to indicate potential flaw on the questionnaire. Validity refers to the accuracy of the questionnaire to measure the intended variable while reliability indicates whether the questionnaire gives the same results if applied repeatedly to the same object each time or measure the precision of the questionnaire (Babbie, 2014). Validity test use Pearson’s Correlation method to analyze the correlation between each indicators with the measured variable (Ahrens et al., 2020). Reliability test use Cronbach’s alpha and the acceptable value must be at least 0.6.
Since the research objective is to find the relationship between financial literacy, perceived ease of use, and perceived usefulness on paylater usage as well as impulsive buying behavior when using paylater, a clear characteristic of respondent is needed. These characteristics are Indonesia citizen between 18-25 years old to fit the young adult category of OECD/INFE framework and have used paylater at least once.
Researcher decided to use Pearson’s Correlation Coefficient method to analyze the relationship between variables. Pearson’s Correlation Coefficient is used to measure a monotonic relationship between 2 variable which either the value of one variable increase with the other variable, known as positive correlation, or the value of one variable increase while the other decreases, known as negative correlation (Schober & Schwarte, 2018).
This method is chosen since researcher wants identify the relationship of each independent variable with a dependent variable, which can be clearly identified with a correlation commonly abbreviated as “r”, which measured in a scale of -1 to 1 (Levine et al., 2016). One important note as stated by Zikmund et al. (2012) is Pearson’s Correlation Coefficient doesn’t imply a causation effect between variables, only the relationship between them.
Method to test hypothesis used in this research is t test for correlation coefficient. As stated in Zikmund et al. (2012), correlation between variables is statistically significant if at least one of these conditions is met. The first condition is if the tSTAT is more than the t from the critical value table with a degree of freedom of n-2 and a level of significance (α) of 0.05. The second condition is if the p-value is less than 0.05.
3.3.1 Validity and Reliability
To make sure the questionnaire accurately measures the desired variables, a pilot test involving validity and reliability test is conducted with a sample size of 30. The question is valid if the r value is higher than the r value from the table (r = 0.304) and considered reliable if the Cronbach’s alpha is higher than 0.6. All indicators used to measure variables are valid since the r is more than 0.304 (see Appendix 2). In addition, all variables have more than 0.6 Cronbach’s alpha (see Appendix 3). Based on the pilot test results, all questions used in the questionnaire are valid and reliable according to the chosen methods. Thus, there will not be any question removed or revised and the list of question can be concluded as accurate and precise to measure all variables needed (Babbie, 2014).
4. Results and Discussion
4.1 Pearson’s Correlation Coefficient Result
To identify the relationship between each independent variable with the dependent variable, Pearson’s Correlation Coefficient is used to indicates a linear relationship between an independent variable and a dependent variable without any implication of determining causation effect between variables. A correlation exists if the p-value is less than 0.05. The first three correlation are between 3 independent variables which are financial literacy, perceived usefulness, and perceived ease of use with one dependent variable which is paylater usage. The fourth correlation is between paylater usage and impulsive buying behavior where paylater usage acts as the independent variable and impulsive buying behavior as the dependent variable.
The interpretation of correlation coefficient follows Evans description where there are 5 categories of correlation. The first one is very weak correlation with coefficients between 0.00 and 0.19. The second one is weak correlation with coefficients between 0.20 and 0.39. The third one is moderate correlation with coefficients between 0.40 and 0.59. The fourth one is strong correlation with coefficients between 0.60 and 0.79. The last category is very strong correlation with more than.79 correlation or between 0.80 and 1.0 (Evans, 1996).
Based on result (see Table 1), there isn’t any significant correlation between financial literacy (FL) and paylater usage (PL) since the p-value is more than 0.05. There are correlations between perceived usefulness (PU) and PL as well as between perceived ease of use (PE) and PL since the p-value is less than 0.05.
Table 1: Pearson’s Correlation Analysis Results Variables Correlation (r) p-value
FL & PL 0.055 0.310
PU & PL 0.416** 0.000
PE & PL 0.119* 0.028
PL & IB 0.311** 0.000
* Correlation is significant at the 0.05 level (2-tailed)
**Correlation is significant at the 0.001 level (2-tailed)
Based on Evans (1996) interpretation of correlation value, PU and PL has a moderate positive correlation since the r value is 0.416. On the other hand, the correlation between PE and PL indicates a very weak positive correlation since the r value is only 0.119. It can be concluded that PU has the most correlation with PL.
Besides analyzing the relationship between those 3 independent variables and paylater usage as the dependent variable, this research also aims to study the relationship between paylater usage as an independent variable and impulsive buying behavior as the dependent variable.
Based on p-value, it can be concluded that there is a significant correlation between paylater usage and impulsive buying behavior. Since the Pearson’s correlation coefficient of 0.311 is between 0.20 and 0.39, the relationship is considered a weak positive correlation.
As a reminder, if a significant correlation is identified, it means that a linear relationship between independent and dependent variable is present. It only indicates the increase of one variable as the other one increase and vice versa. Correlation can’t be used to identify further causation effect or influence of the independent variable to the dependent variable (Levine et al., 2016).
4.2 Hypothesis Testing with t-Test
The Pearson’s Correlation Coefficients calculated in the previous part are used to determine whether there is a statistically significant linear relationship between each independent variable and the dependent variable. The Pearson’s Correlation Coefficient for the population is symbolized by ρ. The null and alternative hypothesis for this test according to Levine et al.
(2016) are no correlation and correlation exist respectively.
The null hypothesis will be rejected if at least one of these conditions is met. The first condition is if the tSTAT is more than the t from the critical value table with a degree of freedom of n-2 and a level of significance (α) of 0.05. The second condition is if the p-value is less than 0.05.
This study uses 341 sample, so the degree of freedom is 339. With 0.05 level of significance, the corresponding t value from the table is 1.6484. The tSTAT is calculated using a formula p where r indicates the correlation coefficient and n indicates the number of samples Levine et al. (2016):
𝑡STAT
=
r√1 − 𝑟2 𝑛−2
If the calculated tSTAT is more than 1.6484, the null hypothesis will be rejected. The result of tSTAT calculations for the correlation and the p-value of each correlation are as follows (see Table 2). There are 4 main points to interpret the results of the hypothesis testing using t test for the Correlation Coefficient. There isn’t enough evidence to conclude that there is a significant correlation between financial literacy (FL) and paylater usage (PL). There is enough evidence to conclude that there is a significant correlation between perceived usefulness (PU) and paylater usage (PL). There is enough evidence to conclude that there is a significant correlation between perceived ease of use (PE) and paylater usage (PL). There is enough evidence to conclude that there is a significant correlation between paylater usage (PL) and impulsive buying behavior (IB).
Table 2: Hypothesis Testing Result
Relationship Correlation tSTAT p-value H0 Status
FL → PL 0.055 1.0142 0.311 Do not reject H0
PU → PL 0.416 8.4228 0.000 Reject H0
PE → PL 0.119 2.2067 0.028 Reject H0
PL → IB 0.311 6.0249 0.000 Reject H0
4.2 Discussion
The results show that there isn’t any significant relationship between financial literacy and paylater usage. It means there is no monotonic relationship between 2 variable which either the value of one variable increase with the other variable or decrease. It implies that people who have low financial literacy is still likely to have similar paylater usage as people who have high literacy, resulting in no apparent linear relationship.
Hamid & Loke (2021) states about the impact of financial literacy on credit card usage specifically about the repayment pattern. Since paylater is like credit card, relationship between financial literacy and paylater may present in the repayment process or pattern. Chernovita (2020) also emphasize on the temptation to use paylater, not the paylater usage itself. Although Chernovita (2020) stated that there is a positive relationship between financial literacy and carefulness in using paylater, this research proves that there isn’t any relationship in the general use, specifically frequent or routine use of paylater.
The results show that there is a significant positive correlation between perceived usefulness and paylater usage. The correlation coefficient is also the highest among 2 other independent variables. The presence of paylater gives its user opportunity to fulfil their needs and/or wants in the absence of cash or credit card, or even when the funds are insufficient. The usefulness of paylater is like credit card as it provides the same benefits, mainly for urgent need (Rumayya et al., 2020; Shahid & Razaq, 2017). This result also in accordance with several studies about the relationship between both variables (Kurniawan et al., 2021; Rachmawati & Astuti, 2020).
The result shows that there is a significant positive correlation between perceived ease of use and paylater usage. Although the correlation coefficient is not as high as the correlation between perceived usefulness and paylater usage, it is still statistically significant. The result is in accordance with (Rumayya et al., 2020) that suggests the usage of paylater is driven by the ease of access and relatively easy to fulfil requirements to get credit. The result also inline with some studies which specify the relationship between the ease of use of paylater with user’s intention to use paylater (Harun & Ayu Salmah, 2020; Putri & Iriani, 2020; Rachmawati &
Astuti, 2020). Thus, the ease of using paylater, finding information about how to use it, as well as do repayment process in paylater have an impact on the frequent use of paylater.
The result shows a significant positive correlation between paylater usage and impulsive buying behavior. As explained in Sari (2021), paylater usage is considered one driver of impulsive buying since there is a high probability of impulse buying happened to paylater users.
Hilmi & Pratika (2021) also shows similar result about the relationship between the use of paylater with impulsive buying behavior. The easiness, speediness, and relatively low interest offered by paylater has an impact on impulsive buying.
5. Conclusion
The first objective to identify the relationship between financial literacy and paylater usage is already answered since the result fails to identify the relationship between these variables by using correlation coefficient. It can be concluded that there is no relationship between financial literacy and paylater usage. The frequent use of paylater of people with high financial literacy and low financial literacy may have a little different, resulting in no existing correlation. The researcher suggests for further research to identify the behavior use of paylater between two groups, high financial literacy, and low financial literacy. Benchmarking to product like paylater, credit card, a relationship between financial literacy and paylater usage may exist on the repayment pattern.
The second objective to identify the relationship between perceived usefulness and paylater usage is answered by the existence of significant correlation between these variables. It is proven that the usefulness of paylater, especially when cash is insufficient, drives the usage of paylater. The benefits of paylater that is like credit card who provides possibilities to do instalment to fulfil needs or want impact the usage of paylater. The results shows that respondents who feel the usefulness of paylater tends to use paylater more frequently or routinely and more likely to use it on the future. Suggestion for further research is to differentiate the perceived usefulness of paylater between two different groups, which are high financial literacy and low financial literacy.
The third objective to identify the relationship between perceived ease of use and paylater usage is answered by the existence of significant correlation between these variables. The correlation is not as strong as perceived usefulness but still there is a relationship between the perceived ease of use and paylater usage. People who feel the ease when using paylater will use it more frequently rather than using other payment methods. Several studies also prove these results which emphasize the relationship between the perceived ease of use and paylater usage. The relatively easy process to apply and register for paylater than credit card is also a driver when people decide to use paylater. Furthermore, the availability of information regarding how to use paylater is a factor that supports the usage of paylater.
The last objective of this research is to identify the relationship between paylater usage and impulsive buying behavior. The relationship is identified by the positive correlation between these variables, indicating a high probability of impulsive buying among paylater users.
Previous studies also prove this relationship where paylater usage is considered as a driver for impulsive buying. There are several supporting factors such as the easiness, speediness, and relatively low interest offered by paylater.
As mentioned above, there are some inputs for further research involving the variables included in this research. The first one is to identify the usage behavior of people with high financial literacy and low financial literacy when using paylater, especially the repayment process. The second one is to identify the different of perceived usefulness between the same group of people, high versus low financial literacy. There may be a difference of usefulness or benefits perceived by these 2 different groups.
Besides recommendation for further research, findings from this research can be use as fundamentals of recommendation for businesses especially e-commerce platforms and paylater services providers. Since there is a significant relationship between perceived usefulness and perceived ease of use in using paylater, e-commerce platforms and paylater providers should consider to gives a clear information about the benefits offered by using paylater, not only to buy something now and pay it later but to an extent that someone can manage their cash flow better by using paylater or even buy urgent needs when cash is sufficient. Regarding the ease of use, e-commerce platform and paylater provider must ensure the customer journey when using paylater is full of easiness and convenience without any complicated process that may hinder the usage of paylater.
Furthermore, this research also identifies the relationship between paylater usage and impulsive buying behavior. This finding may be helpful for financial education institution to raise awareness of impulsive buying among paylater users. There are many downsides of impulsive buying when using paylater, such as failed to pay debt that may affect user’s credit scoring.
For current or potential user, the result is also helpful for them to be more self-conscious when using paylater especially in e-commerce, so they won’t buy impulsively.
6. Acknowledgement
The author would like to say thank you to all stakeholders that involved in this research.
Without their support, help, and advice from them, this research will not be completed as it is.
The author also express gratitude to and acknowledge the support of Dr. Raden Aswin Rahadi for the guidance given in building this paper.
References
Ahrens, R. de B., Lirani, L. da S., & de Francisco, A. C. (2020). Construct validity and reliability of the work environment assessment instrument WE-10. International Journal of Environmental Research and Public Health, 17(20), 1–19. https://doi.org/10.3390/
ijerph17207364
Babbie, E. (2014). The Basics of Social Research (6th Edition) (6th ed.). Wadsworth, Cengage Learning.
DailySocial.id. (2020). Fintech Report 2020: Maintaining Growth during Pandemic.
https://fintechworldreport.com/wp-content/uploads/sites/9/2020/04/World-FinTech- Report-WFTR-2020_Web.pdf
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–
339. https://doi.org/10.2307/249008
Evans, J. D. (1996). Straightforward statistics for the behavioral sciences. Thomson Brooks/Cole Publishing Co.
Google, Temasek, & Bain & Company. (2020). e-Conomy SEA 2020.
https://www.bain.com/globalassets/noindex/2020/e_conomy_sea_2020_report.pdf
Hamid, F. S., & Loke, Y. J. (2021). Financial literacy, money management skill and credit card repayments. International Journal of Consumer Studies, 45(2). https://doi.org/10.1111/
ijcs.12614
Harun, A., & Ayu Salmah, N. N. (2020). Pengaruh Kepercayaan dan Kemudahan Terhadap Keputusan Pembelian Online Melalui Aplikasi Shopee. Jurnal Media Wahana Ekonomika, 17(2), 114. https://doi.org/10.31851/jmwe.v17i2.4318
Hilmi, L. D., & Pratika, Y. (2021). Paylater Feature: Impulsive Buying Driver for E-Commerce in Indonesia. International Journal of Economics, Business, and Accounting Research, 5(2), 63–74.
Hung, A. A., Parker, A. M., Yoong, J. K., Parker, A. M., & Yoong, J. (2009). Defining and Measuring Financial Literacy.
J.P. Morgan. (2021). 2020 E-commerce Payments Trends Report: Indonesia Country Insights.
https://www.jpmorgan.com/merchant-services/insights/reports/indonesia-2020
Kurniawan, Y., Bhatara, R., Anwar, N., & Johan. (2021). Analysis of the effect of usefulness, ease of use, and security perception on intentions to use the paylater application. In Journal of Theoretical and Applied Information Technology (Vol. 99, Issue 14).
Laily, N. (2016). Pengaruh Literasi Keuangan Terhadap Perilaku Mahasiswa Dalam Mengelola Keuangan. Journal of Accounting and Business Education, 1(4). https://doi.org/
10.26675/jabe.v1i4.6042
Lee, J. A., & Kacen, J. J. (2002). The relationship between independent and interdependent self-concepts and reasons for purchase. Cross-National Consumer Psychographics, 12(2), 83–99. https://doi.org/10.4324/9781315865294-6
Levine, D. M., Szabat, K. A., & Stephan, D. F. (2016). Business Statistics: A First Course (D.
Lynch (ed.); 7th ed.). Pearson Education.
Lusardi, A., Michaud, P.-C., & Mitchell, O. S. (2017). Optimal Financial Knowledge and Wealth Inequality. Journal of Political Economy, 125(2), 431–477. https://doi.org/10.1086/
690950
Muljani, N., & Ellitan, L. (2019). Developing Competitiveness in Industrial Revolution 4.0.
International Journal of Trend in Research and Development., 6(1), 1–3.
OECD. (2016). G20/OECD INFE Core competencies framework on fi nancial literacy for adults. http://www.oecd.org/daf/fin/financial-education/core-competencies-frameworks- for-financial-literacy.htm
Panos, G. A., & Wilson, J. O. S. (2020). Financial literacy and responsible finance in the FinTech era: capabilities and challenges. In European Journal of Finance (Vol. 26, Issues 4–5). https://doi.org/10.1080/1351847X.2020.1717569
Pratika, Y., Salahudin, S., Riyanto, D. W. U., & Ambarwati, T. (2021). Analysis of Pay Later Payment System on Online Shopping in Indonesia. Journal of Economics, Business, &
Accountancy Ventura, 23(3), 329–339. https://doi.org/10.14414/jebav.v23i3.2343
Putri, F. A., & Iriani, S. S. (2020). Pengaruh Kepercayaan dan Kemudahan terhadap Keputusan Pembelian Menggunakan Pinjaman Online Shopee PayLater. Jurnal Ilmu Manajemen, 8(3), 818. https://doi.org/10.26740/jim.v8n3.p818-828
Rachmawati, A. S., & Astuti, R. D. (2020). Consumer intention to adopt PayLater: An empirical study. In Contemporary Research on Business and Management.
https://doi.org/10.1201/ 9781003035985-36
Research & Markets. (2021). Indonesia Buy Now Pay Later (BNPL) Market and Investment Opportunities Report 2021-2028. https://www.businesswire.com/news/home/
20210716005393/en/Indonesia-Buy-Now-Pay-Later-BNPL-Market-and-Investment- Opportunities-Report-2021-2028
Rumayya, Sari, F. R., Wahyuni, E., Rohman, M. S., Arini, H. R. B., & Agusti, K. S. (2020).
Persepsi Pasar Terhadap Pemanfaatan Fitur Pembayaran Paylater.
Satoto, S. H., Nurrohim, H., & Putra, K. (2021). The Effect of Financial Literacy and other Determinants on the Intention to Use Electronic Money : Consumer Behavior as a Variable Mediation. International Journal of Applied Business and International Management (IJABIM), 6(3), 23–34.
Saunders, M., Lewis, P., & Thornhill, A. (2012). Research Methods for Business Students. In International Journal of the History of Sport (6th ed., Vol. 30, Issue 1). Pearson Education.
Schober, P., & Schwarte, L. A. (2018). Correlation coefficients: Appropriate use and interpretation. Anesthesia and Analgesia, 126(5), 1763–1768. https://doi.org/10.1213/
ANE.0000000000002864
Shahid, Q., & Razaq, L. (2017). Demonetisation for changing payment behaviour and building platforms. Journal of Payments Strategy & Systems, 11(2), 158–167.
Widyawati, I. (2012). FAKTOR-FAKTOR YANG MEMPENGARUHI LITERASI FINANSIAL MAHASISWA FAKULTAS EKONOMI DAN BISNIS UNIVERSITAS BRAWIJAYA. Assets: Jurnal Akuntansi Dan Pendidikan, 1(1). https://doi.org/10.25273/
jap.v1i1.527
Yuesti, A., Rustiarini, N. W., & Suryandari, N. N. A. (2020). Financial literacy in the covid- 19 pandemic: Pressure conditions in indonesia. Entrepreneurship and Sustainability Issues, 8(1). https://doi.org/10.9770/jesi.2020.8.1(59)
Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business Research Methods Eight Edition. South Western Educ Pub, 668.
Appendices
Appendix 1 – Questionnaire Items
Variable Code Indicator
Financial Literacy
FL1 I make a daily budget allocation plan FL2 I have a financial goal(s)
FL3 I track income & expense routinely
FL4 I allocate some money for savings and/or investment
FL5 Before using a financial product/service, I find information about the desired product/service
FL6 I compare several financial product/services before making a decision FL7 I’m willing to take risk when investing
FL8 I put a lot of concern for my financial needs
Perceived Usefulness
PU1 Paylater makes payment process a lot easier PU2 Using paylater during online shopping is timesaving
PU3 Using paylater can help me in managing finance (income & expense) PU4 Overall, paylater is useful in your daily life
Perceived Ease of Use
PE1 Paylater is easy to use as a payment method PE2 I can easily learn how to use paylater
PE3 Information about how to use paylater is easy to obtain PE4 Paylater repayment process is easy to be done
Paylater Usage
PL1 I routinely use paylater as a payment method
PL2 Paylater can be considered as an alternative payment method PL3 I have a desire to use paylater regularly in the future
PL4 I’m willing to recommend my close friend to use paylater
Impulsive Buying Behavior
IB1 When using paylater, I often buy product without careful consideration IB2 When using paylater, I easily get tempted to buy new product
IB3 When using paylater, there is a sudden urge to purchase something impulsively IB4 I feel regret after purchasing something using paylater
Appendix 2 – Validity Test
Code r value Category Code r value Category
FL1 0.578 Valid PE1 0.748 Valid
FL2 0.647 Valid PE2 0.837 Valid
FL3 0.656 Valid PE3 0.724 Valid
FL4 0.686 Valid PE4 0.472 Valid
FL5 0.586 Valid PL1 0.894 Valid
FL6 0.482 Valid PL2 0.687 Valid
FL7 0.401 Valid PL3 0.818 Valid
FL8 0.459 Valid PL4 0.916 Valid
PU1 0.731 Valid IB1 0.835 Valid
PU2 0.701 Valid IB2 0.963 Valid
PU3 0.789 Valid IB3 0.939 Valid
PU4 0.850 Valid IB4 0.788 Valid
Appendix 3 – Reliability Test
Variables Cronbach’s alpha Category
FL 0.680 Reliable
PU 0.762 Reliable
PE 0.632 Reliable
PL 0.850 Reliable
IB 0.904 Reliable
