A model of consumers' continued intention of using e-wallet in Indonesia

The development of e-wallets in Indonesia has been slow due to low trust in transaction security, limited merchant acceptance of e-wallet payments and transaction costs. Although the Indonesian government is promoting a shift from cash to cashless payments, studies are needed to identify the factors that encourage continued e-wallet use. This study aims to determine whether the continued intention to use e-wallets will result in a shift from cash to cashless payments. It also examines whether trust is a key factor influencing continued e-wallet use. Increased trust is achieved through promotional campaigns, facilitating merchants' provision of e-wallet devices, and offering various incentives. This study adopts the Expectation-Confirmation Model (ECM) as a foundational model to investigate the factors influencing the intention to continue using e-wallets. This model integrates several constructs, such as trust, wide acceptance, incentives, perceived security, and habits, which are deemed to increase the use of e-wallets. This study uses a quantitative-positivist approach, with data analysed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) to validate the proposed model. Overall, the model shows a good fit with the data collected. The findings reveal that trust and satisfaction are significant predictors of the intention to continue using e-wallets. Interestingly, perceived usefulness is not a dominant factor, likely due to varying levels of user experience among respondents, with some lacking prior exposure to e-wallet usage. The continued intention to use ewallets can shape people's habits to transact using the e-wallet. Theoretically, this study contributes to the continuance of e-wallet usage by highlighting the importance of enhancing public satisfaction and trust, which, in turn, fosters habitual usage. Practically, this study provides valuable insights for e-wallet providers into key factors that can increase the use of e-wallets in the future. Additionally, this study supports government initiatives towards a cashless society