Factors Influencing Consumer’s Intention To Use E-Wallet In Malaysia

Discuss About The Research Applications Electronic Commerce?

The research study is based on analyzing “the factors which influence consumer’s intention to use of E-Wallet into Malaysia”. The rationale of this study is to examine the factors and proposed conceptual framework is taken into consideration many factors which are collectively verified before. The researcher gets an interest in this research topic, but there are some problems which are raised like inconvenience and unattractiveness of the E-wallet technology solutions in order to increase consumer’s intention to use of this system (Mortimer et al. 2015).The study is focused on the customer based research such as intention of customers to use which are measurable with adopting of “Technology Acceptance Model (TAM)”. E-wallet is beneficial to the customers for doing transactions as the services are resulted into operational cost reduction as well as time saving. Barkhordari et al. (2017) stated that the proper e-wallet system into Malaysia is based on its country’s culture with infrastructure.

E-wallet technology is not new to people of Malaysia. Due to invention of QR code, it enabled the users to scan as well as make of payments with use of mobile phones. It helped the customers from carrying cash which is quite hassling free. Slade et al. (2015) discussed that e-wallet is such an electronic card which is used for transactions made online throughout use of Smartphone. It is linked with the bank accounting of individual to make payments. Rouibah, Lowry and Hwang (2016) mentioned that age of people provides an impact on attitude towards the e-wallet services. There is young customer’s intention to use of e-wallet services.  Based on “Government E-payment adoption ranking”, Malaysia was being raked as 24^th out of the 43 countries within the worldwide (Azidin, Romle and Mansor 2015). This particular report analyzed the factors which influence intent to use of e-wallet services amongst the citizens of Malaysia. The researcher studied the strategies to support the customers to use of the e-wallet services in the future opportunity (Upadhyay and Jahanyan 2016).Into the e-commerce company, the repute of seller is key significant aspect for sellers as well as buyers. The reason behind purchase of products and doing transactions online are that the desired products are not available into the traditional stores. The e-wallet system into Malaysia is based on culture along with infrastructure within the company. This paper also proposed a model such as “Technology Acceptance Model (TAM)” which evaluates the factors influences consumer’s intent to use of the e-wallet into Malaysia.

Research Objectives

The complexity of implementation of e-wallet creates challenges into influencing consumer’s intention to employ of payment services. The significant distinctiveness of e-wallet services are quality as well as accessibility. Other problems are integration of the legacy system, installation of security mechanism, authentication and authorization policies, maintainability in addition to social issues are required to be studied to increase consumer’s participation into usage of the e-wallet initiatives. The problem is that the study is focused on the young consumers between ages 18-25. Therefore, the results are not generalized for the customers of other age groups.

• To determine influence of performance expectancy, social influence and effort expectancy on behavioral intention of customers for using e-wallet services
• To evaluate UTAUT model for understanding factors influence customer’s intent to utilize of E-wallet in Malaysia
• To examine whether age has impact on attitude towards e-wallet services

This research is focused on aim to utilize of e-wallet services amid the citizens of Malaysia. This particular research helps the strategy maker to identify the aspects that can influence as well as influence customer’s intention to use of e-wallet. It would also assist to recognize the security policies which can strengthen the governmental websites and customer’s concerns. The expected outcome of this study is to raises elf-assurance of customers to utilize of e-wallet in the future. The value added services are such as peer-to-peer transfers, promotions of marketing along with splitting of bill are helping to make the usage of e-wallet. There is lower intent to use of e-wallet services suitable to volatility of the e-services system such as server downward, security, data integrity, complexity, confidentiality and authentication by the society. By knowing the behaviors and intention to use E-wallets, the researcher gets the understanding of how as well as why the consumers are used of this technology.

Ting et al. (2016) stated that e-payments into circumstance of the e-commerce is referred to the online transactions are to be carried out via use of internet, and there are numerous forms of the e-payment services such as transaction through online credit card, e-wallet, e-cash, digital checking system as well as wireless payment system. Rouibah, Lowry and Hwang (2016) discussed that e-wallet is such an e-payment process which is done without use of the paper instruments. Slade et al. (2015) argued that today, e-transactions through e-commerce site are used done through e-wallet is become common. Online transactions are not required of physical credit card or any signature; therefore consumers are most interested into the online transactions. E-wallet is also used to accumulate of the information such as credit card number, e-cash, shipping information which is used at instance to investigate the e-commerce sites. Upadhyay and Jahanyan (2016) stated that e-wallet has consisted of two components such as software as well as information. The components of software are stored of personal information of customers, provided security along with data encryption. The components of information provided details of users that includes of name, address for shipping, payment methods, details of credit/debit card.

Electronic Payment Services (E-wallet)

In Malaysia, Alipay is the latest e-wallet. Malaysians are used of Alipay e-wallet at the time of shopping. They used of mobile devices for shopping when looking for the product information (64%), compare the prices (60%), looking for coupons and deals (51%), making of proper shopping decisions (50%) along with making shopping trips faster (41%) (Quint, Rogers and Ferguson 2013).Yoon and Occena (2015) illustrated that in order to use Alipay, we have to open an account that is recognized. The shoppers should register for Alipay before marketing of payment. Payment page is used by the shoppers to decide which payment method is used. Othman and Shahzad (2016) discussed that 7-Elevn is one of the first retailer within Malaysia that accept of Alipay mobile wallet applications. Nguyen and Huynh (2018) mentioned that employ of mobile devices into Malaysia is high at 112% of their residents. The higher rate of use of mobile devices in Malaysia makes the e-commerce companies to take advantage into e-wallet transactions.

The theoretical models are designed as well as planned in order to investigate the technology acceptance into IT literature. The research model is developed in this particular learning by drawings on findings prior to “Unified Theory of Acceptance and Use of Technology (UTAUT)” which is extended beyond the established TAM.

TAM is introduced by Davis in the year 1986 for determining performance of computer’s procedure. The model is used for constructing perceived usefulness along with perceived ease of use in order to forecast the behavioral intent attitude (Quan and Nam 2017). This model is used to identify the motivational use of technology. UTAUT is developed for four constructs which examines the behavior of users towards e-wallet and examine the mobile payment. UTAUT model is consisted of four constructs as the independent variables, age of users as the moderating variable as well as intention to use e-wallet as the dependent variable. This study eliminates the use behavior as it is impractical to ascertain actual adoption of the e-wallet for this particular research (Junadi 2015). Behavioral intention is better measurement as compared to use behavior as e-wallet is considered at early life stage within Malaysia. E-wallet system are used into the online transactions which provides of various benefits such as increase into efficiency throughout cost saving, providing of convenience to make payments and flexibility into making of payments. Even it is seen that e-wallet system presents various benefits, but its stage of use is less desirable by the consumers (Rouibah, Lowry and Hwang 2016).The proposed UTAUT model is used to investigate the consumer’s intention to utilize of e-wallet in Malaysia.

Theories and Models into Acceptance of Technology

Technology is key significant behaviors to increase quality of people’s life. There are different age groups to make decision to adopt of e-wallet system. It refers that age reflects willingness of the users for using of e-wallet system. It is indicated that the younger workers display enthusiasm towards use of e-wallet. Age influences the behavioral intention to adopt of e-wallet. It is also suggested that due to increase in age, the intention to use of e-wallet system also decreases (Spodak 2015). Age affects the perceptions about the performance expectancy, even though expectations are affected by the user experiences.

It is determined the stage of perceived ease of customers while utilize of e-wallet system into online transactions (Pei, Wang and Guo 2017). It is discovered that technological aspects of e-wallet system affects the acceptance of customer. Effort expectancy is key driver of growth into the e-wallet acceptance. It is the ability of e-wallet to ensure of faster download time along with avoid of downtimes would influence the e-wallet acceptance of the customers from younger age group.   

Fashoto, Uzoka and Mabayoje (2016) stated that it is perceived influence those encourage the customers to use of e-wallet into transactions. It measures the effect of the organization support on the acceptance of e-wallet. Social support from the younger generation is required to attain of research goal such as increase into use of e-wallet and customer’s intention. Technology acceptance improves the social exchange.

Shin and Kim (2016) indicated that existing subjective norms have positive impact on the customer’s behavioral intention. Those norms are from various age groups which exist into the society. The study of subjective norms influence by young age group along with its impact on person’s behavioral intention become important for the researchers to understand the decision making to use of e-wallet.

Alba and Grossman (2014) stated that the young generation people are more interested with new and advanced technology for payment. The young age group of people is mostly interested to use of e-wallet for performing the transactions. The e-payment market such as e-wallet grows a rapid pace with rapid adoption of the technology by young people. The young generation caught the use of advanced technology.

Following are the hypothesis which is proposed on the literature review as:

H1: Performance expectancy is positively influence by younger generation.

H2: Effort expectancy is positively influence by younger generation.

H3: Social influence is positively influence by younger generation.

Unified Theory of Acceptance and Use of Technology (UTAUT)

H4: Subjective norms are positively influence by younger generation.

H5: Younger generation is positively influence by the intention to use e-wallet.

Brinkmann (2014) stated that research design is such a plan which is used to investigate as well as gain of answers to the mentioned research question. The research design is based on the primary data collection using questionnaire. The question is based on examining the factors which influence the customer’s purpose to use of e-wallet services into Malaysia. The research problem statement determines that descriptive design is best research design for this particular research study. This selected research design helps to describe along with measure the factors which will influence the online intention by the customers. Descriptive design is used to gather information which enables the researcher to answer to the research questions along with three of the research objectives. This research design is employed to recognize the factors and depict influence on the factors.

The selected data collection method is primary which takes the data into statistical form. Questionnaire is used to perform online survey is the best way to get information efficiently. The selected population for this study is consumers. The design is quantitative as the data are taken into numerical form. The researcher is able to measure as well as analyze the relationship among influencing factors as well as intention of consumers to use of e-wallet services. This data collection method is used to test and generalize the research findings. Online method is used as most successful method to other sampling techniques. The survey is focused on response collection from participants.

The participants are male as well as female employees. The data are collected from Malaysia.

The random sampling method is used as the sampling method.

The sample size for this research study is 50 employees.

The variable ease of use is relevant for the respondents that is experiencing of internet usage can also perform of e-wallet with use of technology in order to replace the traditional payment method. Kissi, Oluwatobiloba and Berko (2017) stated that the e-wallet services is expanded and increased the amount of interest of consumers into online shopping. TAM model is used to measure adoption of e-wallet into Malaysia. It is observed that relationships between the variables are summarized as form of hypothesis which is illustrated as below:

Perception in ease of use of e-wallet: Smith et al. (2014) stated that it is based on usefulness, attitudes, behavioral intention along with social influence. Those are the factors which influence the customer’s intention to use of e-wallet. Perceived usefulness is based on desirability along with choice of behavior which is used of e-wallet. There is direct relationship among perceived ease of use as well as behavioral intention to utilize of entire satisfaction by use of e-wallet.

Attitude in use of e- wallet: It is referred to both positive as well as negative feel towards the target behavior of the customers. Usefulness, ease of use, attitude towards the technologies provides positive attitudes with use of e-wallet. Coppinger (2016) argued that attitude is come from “usefulness, ease of use along with trust”. Perceived risks provides of negative attitudes with use of e-wallet. Privacy as well as security is the main concerns of the users. Fashoto, Uzoka and Mabayoje (2016) concluded that cultural factors such as elder population of the country is not pushing the technology are intended the users to use of digital wallet.

Facilitate conditions of the e-wallet: E-wallet is facilitated conditions of the mobile wallets. Pei, Wang and Guo (2017) summarized that behavioral intention is based on both internal as well as external resources. The external factor is network which is provided by the service operator. The internal factor includes of mobile device which are connected to the service accessed. Mostly the elder people are not aware how to use of e-wallet.

Perceived security and privacy of e-wallet: Authentication, confidentiality and unauthorized access errors are the security as well as privacy factors.

Perceive of social influence: Behavioral intention in addition to attractiveness is the factors which are used to perceive of social influences (Dahlberg, Guo and Ondrus 2015). Lack of evidence, relationship among facilitates conditions as well as behavioral intentions are used for e-wallet to test its social influence.  

Perceived risk: Yoon and Occena (2015) stated that trust is dealt with perceived risk. Security and privacy are both important to feel the trust. Most of are not used of e-wallet due to its security concerns.

Reliability of the test is referred to as measurement over the time. The researcher should ensure that the collected data should be reliable and valid so that it helps to achieve required research outcomes. The internal validity of the test is extent to which it will measure what it is to be supposed to be measured.

The research study is based on quantitative research which consists of numerical values. It is focused on quality of the data. In this data analysis method, structured techniques, larger number of respondents as well as descriptive findings are required. This method provides with objective measurements and analysis of the data throughout questionnaire and survey. This method is dependent on gathering of numerical data and generalizing it among people groups.

Ethical principles	Description
Permission	Before accessing of any information from the organizational company reports, the researcher has taken permission from the owner so that it will not violate any organizational laws and regulations.
Treatment of human subjects	The researcher treats the participants both ethically as well as respectfully. No metal and physical harassment are done with the respondents.
Data gathering	The gathered data for this research study helps to appreciate the factors which manipulate consumer’s intent to utilize of E-wallet into Malaysia. The commercial gathering of the data is avoided such that the research findings are limited to the academic purposes only.

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