Accelerating Electronic Wallet Payment Service Adoption in Indonesian Small and Medium-sized Businesses

Abstract

The development of financial technology in Indonesia in general has increased exponentially during the last decade. In particular, the rapid and massive e-wallet promotion offered by several prominent vendors has raised new opportunities for small and medium-sized businesses (SMBs) to increase sales revenue. In addition, e-wallet use has boosted the enthusiasm of consumers through various discounted prices. Few studies on the attitudes of owners or managers of SMBs on financial technology have examined deeply the factors that influence the adoption of the e-wallet in SMBs. This research uses a technology-organisation-environment (TOE) framework to focus on internal and external characteristics of SMBs. Data from 402 respondents were analysed using SEM-PLS. The findings suggested that vendors offering e-wallet payment services should consider their perceived usefulness and ease of use. Government support has also shown to be a significant antecedent toward consumers’ intention to use e-wallet payment services in Indonesian SMBs.