The Effect of Satisfaction and Loyalty towards Digital Payment System Users among Generation Z in Yogyakarta Special Region

Abstract

Two of the most popular digital wallet application companies in Indonesia are Go-Pay 80% and OVO 60%. To be able to survive in the midst of the intense competition in digital wallet applications, application companies must innovate marketing strategies that focus on consumers. Due to the useof digital wallets among the very large generation Z and increasingly intense competition in the business of digital payment applications, the authors examine the effect of user satisfaction and loyalty towards digital payments among generation Z ( case study on Go-Pay and OVO users in Yogyakarta). This research objective is to analyze the satisfaction and loyalty of digital payment system users among generation Z in Yogyakarta Special Region, so that the researchers can find out the influencing variable to empower the development of digital payment especially Ovo and Go Pay. The reseacrh methodology considered as descriptive research, in which the data collecting technique utilized Likert scale questionnaire and employed purposive sampling for selecting the sample. The data analysis applied multiple regressions. The result of the multiple regression testing shows that satisfaction and loyalty affect the Z-generation respondents using the digital payment with the indicators that the digital payment sounds more easy, cashless, and more benefit. Moreover, the usage of digital payment is easy to track small expenses.