Title:
FACTORS AFFECTING CONSUMERS' ADOPTION OF ELECTRONIC PAYMENT: AN EMPIRICAL STUDY ON INDONESIAN CUSTOMER

Authors:
Stephanie Roselyn, Yulianto Suharto, Indonesia

Abstract:

The development of technology has rapidly evolved and has covered a lot of sectors, including financial sectors, which can be seen by the evolution in payment methods such as e-payment. As people’s needs keeps on developing, the technology that is available now might not be relevant to fulfil people’s needs in the future. This study aims to explore the factors influencing people’s intention to adopt electronic payment by examining the correlations of the electronic payment adoption with Perceived Ease of Use, Perceived Usefulness, Perceived Risk, Perceived Trust, Compatibility, and Perceived Cost. Extended Technology Acceptance Model (TAM) by Davis (1985) is used for this study to develop the variables. The data was obtained by distributing online questionnaires using Likert Scale to 100 respondents in Indonesia with purposive sampling method. To explain the relationship between the dependent variable and independent variables, Path Analysis is used to measure the questionnaires. The result of this study finds that perceived cost and compatibility are significantly related to the consumers adoption of electronic payment, with compatibility as the strongest factors that influence consumers adoption of electronic payment. This research aims to be useful for the electronic payment service providers to develop their services for their consumers, especially in the context of Indonesian’s market.