An empirical study to explore the influence of the COVID-19 crisis on consumers' behaviour towards cashless payment in Malaysia

Abstract

To move into a cashless society, it is important to investigate how consumers’ behaviour changes, particularly in response to extraordinary circumstances. Despite the movement restrictions implemented, the acceleration of e-commerce, initiatives taken by the government, and the modern payment system in Malaysia, cash remains the prevalent payment method. Hence, this study investigates how the coronavirus disease (COVID-19) crisis influenced consumers’ perceptions and determines factors contributing to consumers’ behavioural intention to use cashless payment. The research framework for this study is based on the unified theory of acceptance and use of technology (UTAUT). The study collected a total of 463 responses from the online survey. The data of this study were analysed using partial least square modelling techniques. This study demonstrates that the crisis significantly and positively influences consumers’ perceptions of performance expectancy, effort expectancy, social influence, and facilitating conditions. All of these factors explain consumers’ behavioural intention to use cashless payment, except facilitating conditions. The findings acknowledge the impact of the health crisis on consumer perceptions and influence their behavioural intentions to use cashless payment.