Generation Y and Digital Transformation: Determinants of Intention to Adopt E-Payment

Heri Faisal  Harahap; Mutia Fitri Chania

doi:10.32734/jomas.v5i1.19535

Authors

Heri Faisal Harahap Department of Agricultural Business, Politeknik Pertanian Negeri Payakumbuh, Lima Puluh Kota Regency, 26271, Indonesia
Mutia Fitri Chania Universitas Sumatera Utara

DOI:

https://doi.org/10.32734/jomas.v5i1.19535

Keywords:

Generation Y, e-Payment, Perceived Usefulness, Perceived Risk, Subjective Norms

Abstract

This study examines the factors influencing Generation Y’s intention to adopt ePayment services, using the Technology Acceptance Model (TAM) framework.
The study involved 200 Generation Y respondents. The variables tested include
perceived usefulness, perceived ease of use, perceived risk, and subjective
norms. Structural Equation Modeling-Partial Least Square (SEM-PLS) analysis
revealed that all variables significantly influence the intention to adopt ePayment. The findings indicate that perceived usefulness and ease of use have
the most substantial impact, reflecting the importance of efficient and accessible
systems for users. Conversely, perceived risk, particularly concerning security
and privacy, acts as a primary barrier, highlighting the need for more secure
system development. Subjective norms also influence user intentions through
social pressures from family, friends, and other significant figures. This study
underscores the importance of addressing perceived risks, enhancing system
usability, and leveraging social influence to promote e-Payment adoption among
Generation Y. The findings offer strategic insights for technology developers,
policymakers, and marketers to optimise e-Payment implementation and user
engagement.