Indonesia Acceptance of E-wallet: The Role of Trust & Flexibility

Abstract

In past decade, determining and measuring the acceptance of new technology are highly dependent on perceived usefulness and perceived ease of use as TAM’s two main variables. Surprisingly, in today’s latest new technology innovation, it might not fully represent the user’s acceptance. In terms of e-wallet technology in Indonesia (as one of an emerging market in Asia), we introduce Trust and Flexibility as two additional variables to better understand the acceptance of the technology. Hence, we analyzed on a total of seven variables. The survey was conducted to 217 respondents across different cities in Indonesia with age ranges from 18 to 70 years old. We use Smart PLS-SEM software with a sampling method of minimum 10 respondents for each variable. Our study has shown that TAM, with additional variable of Trust and Flexibility, has a significant impact on the acceptance of e-wallet in Indonesia, especially in the time where this technology is growing very fast. Acceptance of e-wallet will be the key factor to determine whether this acceptance will bring benefits to both users and business, both for short term and long-term period.