Champion of Digital Wallet Competition in Indonesia: Analysis of E-Wallet based on UTAUT Theory
Marheni Eka Saputri, Trisha Gilang Saraswati, Farah Oktafani, Anita Silvianita

Telkom University, Bandung, Indonesia

Abstract

The development of financial technology or fintech produce various of innovation in services, one of them is digital wallet. Through these products, users can save money and transact electronically. Based on Bank Indonesia (BI) data, no less than 38 electronic wallet applications (e-wallets) have received official licenses. During the 2018 period alone, research institute and advisor based in India RedSeer, reported that e-wallet transactions in Indonesia had reached US $ 1.5 billion, equivalent to Rp21.73 trillion. Indonesia has several major players in e-wallet namely GoPay, OVO, LinkAja, and DANA, however non-cash transactions via fintech only 1.66% of the velocity of money in Indonesia. According to Mckinsey, fintech penetration in Indonesia has only reached 5%. This figure is much lower than other countries, even though Indonesia has a huge potency. Mobile Payment or abbreviated as M-Payment is a method of payment that uses a mobile phone. Fintech payments including LinkAja, Go-Pay, OVO, and DANA are indeed expected to target users in remote parts of the archipelago. However, it cannot be denied, there are still Indonesian residents who use ordinary mobile phones or have not accessed the internet. Moreover, based on Statista data, smartphone users are projected to only reach 28% of the total population of Indonesia this year. Looking at these data, we can assume that the actual market potential for mobile money in Indonesia is quite large but the market penetration is still low. Based on this background, it can be seen that the intention to adopt mobile payment is still very low. As for the behaviors that are factors in the intention to adopt technology, performance expectancy, effort expectation, social influence, perceived risk, and perceived cost. The purpose of this study is to look at how the influence of performance expectancy, effort expectation, social influence, perceived risk, and perceived cost of the intention to use mobile payment in Indonesia. This research was conducted on 400 respondents using Structural Equation Model (SEM PLS) analysis.

Keywords: Performance Expectancy, Effort Expectation, Social Influence, Perceived Risk, Dan Perceived Cost, UTAUT, Behavioral Intention, e-Wallet

Topic: Marketing Management