Drivers and inhibitors for digital payment adoption using the cashless society readiness-adoption model in Malaysia

Document Type

Article

Publication Date

5-1-2021

Abstract

The paper investigated the relationship between readiness towards a cashless society and adoption of cashless applications among Malaysians. Specifically, drivers and inhibitors were explored and examined to assess their direct and indirect effects through the development of the Cashless Society Readiness-Adoption model. The model was developed based on Unified Theory of Acceptance and Use of Technology 2 and Technology Readiness Index 2.0. Self-administered surveys were administered in online and offline modes, resulting in 258 valid responses (Mage = 34.5; SDage = 7.82). Structured equation modelling revealed Ease of Use, Usefulness, Innovativeness, Optimism and Lack of awareness to directly affect users' readiness in going cashless. Interestingly, perceived readiness had no direct effect in the adoption of digital payment services, however, the effect was found to be significant with the inclusion of risk and intrinsic motivation as the mediating factors. Similarities and dissimilarities with existing studies are discussed in this paper. Results would be beneficial to respective parties such as service providers, financial institutions and government agencies to develop and design strategies to encourage more people to embrace digital payment services effectively.

Keywords

Cashless society, Inhibitors, Drivers, Malaysia, Surveys

Divisions

fsktm

Funders

Ministry of Education, Malaysia[FP109-2018A],Ministry of Education, Malaysia[FRGS/1/2018/ICT04/UM/02/11]

Publication Title

Technology in Society

Volume

65

Publisher

Elsevier Sci Ltd

Publisher Location

THE BOULEVARD, LANGFORD LANE, KIDLINGTON, OXFORD OX5 1GB, OXON, ENGLAND

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