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Determinants Affecting the Acceptance of Cashless Payment Among SMEs in Malaysia: Proposal of A Conceptual Framework

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  • Muhammad Faizal Samat
  • Zaim Aizat Afdhal Bashri

Abstract

There is little uncertainty regarding the driving forces behind the adoption of cashless payment by Small and Medium Enterprises (SMEs), a trend expected to persist and exert a significant impact on SMEs in Malaysia. Such developments are facilitated by collaborative efforts, trust, and a societal inclination towards practicality. Despite the growing body of scholarly and practical research on cashless payment, existing guidelines for its adoption, implementation, and integration into business strategies in Malaysia lack comprehensive research support. This study seeks to propose a new acceptance framework to explore the utilization of cashless payment solutions among small business owners in Malaysia to maximize the benefits of the sustainability of their businesses. 100 respondents of SMEs from four regions in Peninsular Malaysia were involved in the interview to collect the data. The findings of this study are instrumental in enhancing the understanding of e-payment adoption within the SME payment system landscape and its effects on business performance. Additionally, the proposed conceptual framework can be used for future research to determine the relationship between factors of cashless payment adoption and SME performance.

Suggested Citation

  • Muhammad Faizal Samat & Zaim Aizat Afdhal Bashri, 2024. "Determinants Affecting the Acceptance of Cashless Payment Among SMEs in Malaysia: Proposal of A Conceptual Framework," Information Management and Business Review, AMH International, vol. 16(3), pages 653-660.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:653-660
    DOI: 10.22610/imbr.v16i3(I).4018
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    References listed on IDEAS

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    3. Moghavvemi, Sedigheh & Mei, Tan Xin & Phoong, Seuk Wai & Phoong, Seuk Yen, 2021. "Drivers and barriers of mobile payment adoption: Malaysian merchants' perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    4. S. Ananda & Sonal Devesh & Anis Moosa Al Lawati, 2020. "What factors drive the adoption of digital banking? An empirical study from the perspective of Omani retail banking," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 25(1), pages 14-24, June.
    5. Jünger, Moritz & Mietzner, Mark, 2020. "Banking goes digital: The adoption of FinTech services by German households," Finance Research Letters, Elsevier, vol. 34(C).
    6. Jeremy Samer Srouji, 2020. "Digital Payments, the Cashless Economy, and Financial Inclusion in the United Arab Emirates: Why Is Everyone Still Transacting in Cash?," Post-Print hal-03015357, HAL.
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