IDEAS home Printed from https://ideas.repec.org/p/gtr/gatrjs/afr239.html
   My bibliography  Save this paper

What Factors Drive Cashless Payment Adoption and Satisfaction?

Author

Listed:
  • Khaira Amalia Fachrudin

    (Universitas Sumatera Utara, Jalan TM Hanafiah, Kampus USU, 20155, Medan, Indonesia Author-2-Name: Muhammad Faidhil Iman Author-2-Workplace-Name: Universitas Indonesia, Jalan Lingkar Kampus Raya, 16424, Depok, Indonesia Author-3-Name: Khairina Sariza Muliana Author-3-Workplace-Name: "Universitas Sumatera Utara, Jalan TM Hanafiah, Kampus USU, 20155, Medan, Indonesia " Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - A national cashless movement is actively being promoted in Indonesia. This research aims to offer empirical insights into how practicality, lifestyle, digital financial literacy, perceived trust, and price orientation affect cashless payment adoption and whether it affects satisfaction with using these systems. This study further explores how the adoption of cashless payments functions as a mediating variable in the relationship between five key factors and user satisfaction with cashless payment usage. Methodology/Technique - The sample consisted of 400 income-earning individuals in Indonesia who had previously used cashless payment methods. Using partial least squares structural equation modeling (PLS-SEM) with a 5% significance level, the findings indicate that practicality, lifestyle, digital financial literacy, perceived trust, and price orientation all exert a significant and positive influence on the adoption of cashless payments. Satisfaction with cashless payments is positively and significantly affected by their adoption. Findings - Cashless payment adoption mediates the effects of price orientation, practicality, digital financial literacy, perceived trust, and lifestyle on satisfaction. The results suggest that companies should implement appealing or competitive pricing strategies to encourage consumers to use cashless payments. Novelty - Financial service providers should prioritize practicality and security to build trust in cashless payment systems. Finally, the government and educational institutions should provide continuous education initiatives to promote digital financial literacy among the public. Type of Paper - Empirical"

Suggested Citation

  • Khaira Amalia Fachrudin, 2025. "What Factors Drive Cashless Payment Adoption and Satisfaction?," GATR Journals afr239, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:afr239
    DOI: https://doi.org/10.35609/afr.2025.10.1(1)
    as

    Download full text from publisher

    File URL: http://gatrenterprise.com/GATRJournals/AFR/pdf_files/AFR-Vol-10(1)/1.Khaira%20Amalia%20Fachrudin.pdf
    Download Restriction: http://gatrenterprise.com/GATRJournals/online_submission.html
    File URL: https://libkey.io/https://doi.org/10.35609/afr.2025.10.1(1)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Escobar-Rodríguez, T. & Carvajal-Trujillo, E., 2014. "Online purchasing tickets for low cost carriers: An application of the unified theory of acceptance and use of technology (UTAUT) model," Tourism Management, Elsevier, vol. 43(C), pages 70-88.
    2. Ng, Dennis, 2018. "Evolution of digital payments: Early learnings from Singapore’s cashless payment drive," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 11(4), pages 306-312, February.
    3. Marvello Yang & Abdullah Al Mamun & Muhammad Mohiuddin & Noorshella Che Nawi & Noor Raihani Zainol, 2021. "Cashless Transactions: A Study on Intention and Adoption of e-Wallets," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    4. Necmi K. Avkiran & Christian M. Ringle (ed.), 2018. "Partial Least Squares Structural Equation Modeling," International Series in Operations Research and Management Science, Springer, number 978-3-319-71691-6, March.
    5. Necmi K. Avkiran, 2018. "Rise of the Partial Least Squares Structural Equation Modeling: An Application in Banking," International Series in Operations Research & Management Science, in: Necmi K. Avkiran & Christian M. Ringle (ed.), Partial Least Squares Structural Equation Modeling, chapter 0, pages 1-29, Springer.
    6. Fuzhong Chen & Guohai Jiang, 2022. "The Roles of FinTech with Perceived Mediators in Consumer Financial Satisfaction with Cashless Payments," Mathematics, MDPI, vol. 10(19), pages 1-21, September.
    7. Li, Feng & Lu, Hui & Hou, Meiqian & Cui, Kangle & Darbandi, Mehdi, 2021. "Customer satisfaction with bank services: The role of cloud services, security, e-learning and service quality," Technology in Society, Elsevier, vol. 64(C).
    8. Yongrok Choi & Lili Sun, 2016. "Reuse Intention of Third-Party Online Payments: A Focus on the Sustainable Factors of Alipay," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shami, Mohammad Reza & Rad, Vahid Bigdeli & Moinifar, Maryam, 2022. "The structural model of indicators for evaluating the quality of urban smart living," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Seiler, Volker & Fanenbruck, Katharina Maria, 2021. "Acceptance of digital investment solutions: The case of robo advisory in Germany," Research in International Business and Finance, Elsevier, vol. 58(C).
    3. María del Carmen Valls Martínez & Pedro Antonio Martín-Cervantes & Ana María Sánchez Pérez & María del Carmen Martínez Victoria, 2021. "Learning Mathematics of Financial Operations during the COVID-19 Era: An Assessment with Partial Least Squares Structural Equation Modeling," Mathematics, MDPI, vol. 9(17), pages 1-21, September.
    4. Juan J. García-Machado & Włodzimierz Sroka & Martyna Nowak, 2021. "R&D and Innovation Collaboration between Universities and Business—A PLS-SEM Model for the Spanish Province of Huelva," Administrative Sciences, MDPI, vol. 11(3), pages 1-27, August.
    5. Weizhen Zhan & Zhenwu You, 2024. "Family communication patterns, self-efficacy, and adolescent online prosocial behavior: a moderated mediation model," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    6. Mohamed A. Zayed & Ibrahim A. Elshaer, 2022. "Physical Activities and Learning Experience of Higher Education Students: Mediating Role of Quality of Life and Physical Self-Esteem," IJERPH, MDPI, vol. 19(20), pages 1-14, October.
    7. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2022. "Personal Traits and Digital Entrepreneurship: A Mediation Model Using SmartPLS Data Analysis," Mathematics, MDPI, vol. 10(21), pages 1-19, October.
    8. Cristian Busu & Mihail Busu, 2020. "Research on the Factors of Competition in the Green Procurement Processes: A Case Study for the Conditions of Romania Using PLS-SEM Methodology," Mathematics, MDPI, vol. 9(1), pages 1-16, December.
    9. Daniel Limones, 2020. "CSR and Firm Performance Nexus in UK: Empirical Evidence of Manufacturing Sector," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 9(2), pages 64-72.
    10. Mohd Shafie Rosli & Nor Shela Saleh & Azlah Md. Ali & Suaibah Abu Bakar, 2023. "Factors Determining the Acceptance of E-Wallet among Gen Z from the Lens of the Extended Technology Acceptance Model," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    11. Mohamed M. Khalifa Tailab, 2020. "Using Importance-Performance Matrix Analysis to Evaluate the Financial Performance of American Banks During the Financial Crisis," SAGE Open, , vol. 10(1), pages 21582440209, January.
    12. Adriana María Berrocal González & Lili Domínguez Ortíz & Fernando José Mariné Osorio & Liliana Raquel Ruiz Fuentes, 2022. "El desempeño financiero de la empresa y la composición del consejo de administración," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(2), pages 1-26, Abril - J.
    13. Uzir, Md Uzir Hossain & Al Halbusi, Hussam & Lim, Rodney & Jerin, Ishraq & Abdul Hamid, Abu Bakar & Ramayah, Thurasamy & Haque, Ahasanul, 2021. "Applied Artificial Intelligence and user satisfaction: Smartwatch usage for healthcare in Bangladesh during COVID-19," Technology in Society, Elsevier, vol. 67(C).
    14. Andreas Mühlbacher & Thomas Guhr, 2018. "Extreme Portfolio Loss Correlations in Credit Risk," Risks, MDPI, vol. 6(3), pages 1-25, July.
    15. James R. Barth & Sunghoon Joo & Hyeongwoo Kim & Kang Bok Lee & Stevan Maglic & Xuan Shen, 2020. "Forecasting Net Charge-Off Rates of Banks: A PLS Approach," World Scientific Book Chapters, in: Cheng Few Lee & John C Lee (ed.), HANDBOOK OF FINANCIAL ECONOMETRICS, MATHEMATICS, STATISTICS, AND MACHINE LEARNING, chapter 63, pages 2265-2301, World Scientific Publishing Co. Pte. Ltd..
    16. A. Blanco-Oliver & A. Irimia-Diéguez, 2021. "Impact of outreach on financial performance of microfinance institutions: a moderated mediation model of productivity, loan portfolio quality, and profit status," Review of Managerial Science, Springer, vol. 15(3), pages 633-668, April.
    17. Ramli, Nur Ainna & Latan, Hengky & Solovida, Grace T., 2019. "Determinants of capital structure and firm financial performance—A PLS-SEM approach: Evidence from Malaysia and Indonesia," The Quarterly Review of Economics and Finance, Elsevier, vol. 71(C), pages 148-160.
    18. Shafaqat Mehmood & Changyong Liang & Dongxiao Gu, 2018. "Heritage Image and Attitudes toward a Heritage Site: Do They Really Mediate the Relationship between User-Generated Content and Travel Intentions toward a Heritage Site?," Sustainability, MDPI, vol. 10(12), pages 1-26, November.
    19. Mohamad Ridhuan Mat Dangi & Shazalina Mohamed Shuhidan, 2024. "Interaction Influence of Organisational Support on the Educators’ Acceptance, Personality Traits, and Technological Competence towards Intention to Adopt the Virtual Learning Environment," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 1297-1323, September.
    20. Nabil Hasan Al-Kumaim & Muhammad Salman Shabbir & Salman Alfarisi & Siti Hasnah Hassan & Abdulsalam K. Alhazmi & Sanil S. Hishan & Samer Al-Shami & Nadhmi A. Gazem & Fathey Mohammed & Hussein Mohammed, 2021. "Fostering a Clean and Sustainable Environment through Green Product Purchasing Behavior: Insights from Malaysian Consumers’ Perspective," Sustainability, MDPI, vol. 13(22), pages 1-17, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gtr:gatrjs:afr239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Abd Rahim Mohamad (email available below). General contact details of provider: http://gatrenterprise.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.