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

Uma Thevi Munikrishnan (Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia)
Abdullah Al Mamun (UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi, Malaysia)
Nicole Kok Sue Xin (Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia)
Ham Siu Chian (Faculty of Business and Management, UCSI University, Kuala Lumpur, Malaysia)
Farzana Naznen (UCSI Graduate Business School, UCSI University, Kuala Lumpur, Malaysia)

Journal of Science and Technology Policy Management

ISSN: 2053-4620

Article publication date: 21 October 2022

449

Abstract

Purpose

Cashless 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/approach

Data were gathered online from 364 Malaysian youths and processed using partial least squares structural equation modelling.

Findings

The 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/implications

This 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/value

This study extended the UTAUT model with two new variables, i.e. PS and LC.

Keywords

Acknowledgements

Declarations:Availability of data and materials: The original contributions presented in the study are included in the article/Supplementary Material, further inquiries can be directed to the corresponding author(s).

Citation

Munikrishnan, U.T., Mamun, A.A., Xin, N.K.S., Chian, H.S. and Naznen, F. (2022), "Modelling the intention and adoption of cashless payment methods among the young adults in Malaysia", Journal of Science and Technology Policy Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JSTPM-04-2022-0077

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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