Exploring the Factors Influencing the Intention to Adopt the Contactless Payments in Post-Covid 19 in Malaysia

After the Covid 19 pandemic, automation and digitization technologies have become widely accepted, particularly from millennials (Gen Y) and Gen Z. It is anticipated that Malaysia will transition to a cashless society by 2030, owing to its convenience and security. To achieve that goal, there is a need to rise the adoption rate among Malaysians. The aim of this study is to examine the factors that influence Malaysians’ intention to adopt contactless payments. Specifically, the study emphasized on perceived ease of use, digital financial literacy, social influence, and perceived risk. A simple random sampling technique was employed to conduct a survey in Ipoh, Perak. A total of 400 respondents participated in the data collection process, which took place between June and July of 2023. Pearson correlation and multiple linear regression analyses were performed using IBM SPSS Statistics 26. The results demonstrated that respondents were more likely to choose contactless payments when they considered the process was simple, clear-cut, and flexible. The respondents’ readiness to accept new technologies was also found to be influenced by their peers (i.e., family, relatives, or friends). However, digital financial literacy and perceived risk are not significant factors. This study showed that people prioritize convenience over concerns about potential risks. Nevertheless, the rising number of scams, fraud, and data breaches remains a concern for some Malaysians. Since contactless payments are susceptible to changes in consumer behavior and technology improvements, continuous research is necessary.