Technology readiness and UTAUT2 in e-wallet adoption in a developing country

Area of Science:

• Digital Finance
• Consumer Behavior
• Technology Adoption

Background:

• E-wallets are crucial for transforming payment systems and promoting cashless societies.
• Despite government initiatives, e-wallet adoption in Malaysia remains below potential.
• Understanding user readiness and perceptions is key to increasing adoption.

Purpose of the Study:

• To investigate Malaysian consumers' readiness for e-wallet adoption.
• To analyze perceptions influencing e-wallet usage through the UTAUT2 model.
• To identify key drivers and barriers for e-wallet acceptance in Malaysia.

Main Methods:

• Utilized the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model.
• Collected and analyzed 309 valid survey responses.
• Employed Partial Least Squares Structural Equation Modeling (PLS-SEM) for data analysis.

Main Results:

• Respondents expressed confidence in e-wallet technology and perceived its usefulness.
• E-wallet adoption intention was significantly driven by performance expectancy, price value, facilitating conditions, and social influence.
• Insecurity was found to have no significant impact on performance or effort expectancy.

Conclusions:

• The study offers a combined system-specific and individual-specific model for e-wallet adoption.
• Findings provide valuable insights for e-wallet service providers and policymakers.
• Understanding these factors can enhance Malaysians' readiness and adoption of e-wallets.