An Empirical Study on User’s Continuous Usage Intention of Mobile Payment Services Among Generation Z in Bandung City

• Main Author: Linardi, Kristian
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/40852
• Institution: Institut Teknologi Bandung

The increase in internet services and mobile phone users has transformed the traditional payment industry with more focus on involving technology in the business model. Fintech or financial technology is the term used to explain the combination of financial services which bring new kind of financial services and technology such as mobile phone and internet of things (IOT) (Kim, Park, Choi, & Yeon, 2015). From 2016 to 2021, non-cash transactions are going to grow at the rate of 12.7 CAGR with the emerging markets to grow even higher at 21.6% CAGR. Currently, emerging markets make up to one-third of the total global non-cash transaction and by 2021 is expected to account for half of the global transaction. Asia is expected as the leader in growth as it will have growth at 28.8% CAGR from 2016 to 2021. E-wallet transactions in 2016 are approximated to be about 41.8 billion or 8.6% from global non-cash transactions (BNP Paribas, 2018). Given the predicted rise of financial technology services such as mobile payment, there is still some lack of research regarding continuous usage in the mobile payment system. This research aims to see the factors influencing the user’s continuous usage intention of mobile payment services among generation Z in Bandung City. Coming from UTAUT as research foundation. This research also adds literature on perceived risk and hedonic motivation. The research model has a sample of 479 correspondent using mobile payment services and considered as generation Z who lives in Bandung City. The result shows that performance expectancy, hedonic motivation, and social influence have a significant positive impact on consumer’s continuous usage intention of mobile payment services among generation Z in Bandung City. Meanwhile, effort expectancy and perceived risk do not have a considerable effect.