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

• Main Authors: Balakrishnan, Vimala, Shuib, Nor Liyana Mohd
• Format: Article
• Published: Elsevier Sci Ltd 2021
• Subjects: H Social Sciences (General); HE Transportation and Communications
• Online Access: http://eprints.um.edu.my/26926/
• Institution: Universiti Malaya

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.