Factors Influencing Mobile Payment Adoption in Indonesia

Abstract

Mobile payment in Indonesia has been growing rapidly in recent years. Based on data from the World Bank's Global Financial Inclusion data, only 0.4 % of the population over the age of 15 used mobile payment in 2015. This study's purpose is to define all the elements that affect the adoption of using mobile payment in Indonesia. Using data from 274 respondents which obtained via online to test the hypothesis based on the designed research model. Method of partial least square - structural equation modelling (PLS-SEM) used for processed the collected data. This study found that habit is the most powerful element affecting the rate of mobile payment adoption in Indonesia, followed by facilitating condition, social risk, performance expectancy, and social impact. It also found behavioral intention had a huge effect on usage behavior. Mobile payment service provider could use this outcome to make strategic decisions when implementing mobile payment in Indonesia.