Technology readiness and UTAUT2 in e-wallet adoption in a developing country

Abstract

Background: An e-wallet is a digital equivalent of a physical wallet which plays an essential role in payment system transformation. To embrace the concept of a cashless society, the Malaysian Government and central bank have taken various steps to encourage the adoption of e-wallets. Despite the seamless services offered by the e-wallet, it is yet to reach high-scale adoption in Malaysia. This study aims to investigate Malaysians' readiness towards the e-wallet and their perceptions of it by employing the UTAUT2 model. Methods: A total of 309 valid data were gathered and analysed with partial least squares structural equation modelling (PLS-SEM). Results: The findings revealed that the respondents were confident about the new technology and tended to believe that e-wallet was somehow useful for them. The results also disclosed that e-wallet adoption intention was significantly influenced by performance expectancy, price value, facilitating conditions, and followed closely by social influence. Nonetheless, insecurity did not present significant impact on both performance expectancy and effort expectancy of e-wallet. Conclusions: This study provides a substantial contribution to the knowledge domain by combining system-specific and individual-specific models in an e-wallet context. The outcomes of this study would also benefit e-wallet service providers and policymakers by delivering holistic insight into Malaysians' readiness and adoption behaviour of the e-wallet.