Modelling the intention and adoption of cashless payment methods among the young adults in Malaysia

• Published in: Journal of science and technology policy management (Online) 2024-01, Vol.15 (2), p.374-395
• Main Authors: Munikrishnan, Uma Thevi, Abdullah Al Mamun, Xin, Nicole Kok Sue, Ham, Siu Chian, Naznen, Farzana
• Format: Article
• Language: English
• Subjects: Age factors; Comparative studies; Consumers; Contactless payment; Credibility; Customers; Digital economy; Economic growth; Influence; Lifestyles; Marketing; Mobile commerce; Modelling; Network security; Payment systems; Payments; Security; Tactics; Technology; Technology Acceptance Model; Technology adoption; Voluntariness; Young adults
• ISSN: 2053-4620; 2053-4639
• DOI: 10.1108/JSTPM-04-2022-0077

PurposeCashless payment is gradually replacing physical currency in almost every financial transaction across the world. Even though cashless payment methods have been available in Malaysia since a decade ago, their usage has remained relatively low in comparison to other countries. This study aims to analyse the elements that affect the Malaysian youth’s adoption intention and actual use of cashless payment by extending the unified theory of acceptance and use of technology (UTAUT) model with two key factors (perceived security [PS] and lifestyle compatibility [LC]).Design/methodology/approachData were gathered online from 364 Malaysian youths and processed using partial least squares structural equation modelling.FindingsThe findings revealed that performance expectancy (PE), LC and PS had a positive and substantial effect on the intention to use cashless payment (ICP). In contrast, effort expectancy (EE) and social influence did not have any considerable influence on ICP. Furthermore, ICP had substantial mediating effects between the adoption of cashless payment (ACP) and PE, LC and PS. In the analysis of the moderating effect of age, gender, experience and voluntariness, only experience had moderating effects on the associations between PE and ICP and between FC and ACP.Research limitations/implicationsThis study’s findings will be highly useful for marketers and the management as they plan their promotional and marketing tactics, with a focus on the factors that inspire customers to adopt cashless payments. Besides, architects and designers can benefit from the study results while designing and updating their services by consolidating consumers’ lifestyle standards as well as enhancing security features. Finally, governments may support service providers with security building through legislative measures and policy campaigns to strengthen the trustworthiness and mass adoption of contactless payment.Originality/valueThis study extended the UTAUT model with two new variables, i.e. PS and LC.