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What Factors Drive Cashless Payment Adoption and Satisfaction?

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  • 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)
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    Keywords

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    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

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