The Emergence of E-Wallet in Sarawak: Factors Influencing the Adoption of Sarawak Pay
DOI:
https://doi.org/10.33736/ijbs.5172.2022Keywords:
Technology Acceptance Model (TAM), perceived usefulness, perceived ease of use, perceived risk and rewardAbstract
This paper discusses the adoption factors of electronic wallet, more specifically Sarawak Pay in Kuching, Sarawak. The Sarawak Government has a very aggressive mandate in terms of digital transformation to boost the e-commerce industry in Sarawak. Propel with the effort of federal and state governments in encouraging a cashless and digital society, Kuching will foresee a rapid rise in the adoption of Sarawak Pay. This paper adopts and expands the Technology Acceptance Model (TAM) in addressing the adoption factors of Sarawak Pay. With a population of three quarter a million, it is vital to understand whether perceived usefulness, perceived ease of use, perceived risk and reward play any significant roles in the adoption of Sarawak Pay. Data were collected from 204 respondents and the results were examined using partial least squares-structured equation modelling (PLS-SEM). Findings indicated that perceived usefulness, perceived ease of use and perceived risk have significant impacts on Sarawak Pay adoption. As a result of the study, the understanding of existing theoretical literature on e-wallets in Malaysia will be enhanced.
References
Abrahao, R. S., Moriguchi, S., & Andrade, D. (2016). Intention of adoption of mobile payment: An analysis in the light of the unified theory of acceptance and use of technology (UTAUT). RAI Revista de Administracao e Inovacao, 13, 221-230. https://doi.org/10.1016/j.rai.2016.06.003
Adnan, A. H., Fahmi, Z., Azlina, A. B., & Wan Salihin, A. (2016). The effects of perceived usefulness and perceived ease of use on continuance intention to use e-government. Procedia Economics and Finance, 35, 644-649. https://doi.org/10.1016/S2212-5671(16)00079-4
Alaeddin, O., Altounjy, R., Zalina, Z., & Fakarudin, K. (2018). From physical to digital: Investigating consumer behaviour of switching to mobile wallet. Polish Journal of Management Studies, 17(2), 18-30. https://doi.org/10.17512/pjms.2018.17.2.02
Amin, H. (2009). Mobile wallet acceptance in Sabah: An empirical analysis. Labuan Bulletin of International Business and Finance, 7, 33-52.
Anthony, W. (2019). The uncertainty effect: An introduction to risk management. Wilson Risk Services.
Arumugam, T. (2020, January 20). Do more to get users, e-wallet players urged. New Straits Times. https://www.nst.com.my/news/nation/2020/01/558100/do-more-get-users-e-wallet-players-urged
Aydin, G., & Burnaz, S. (2016). Adoption of mobile payment systems: A study on mobile wallets. Journal of Business, Economics and Finance, 5(1), 73-92. https://doi.org/10.17261/Pressacademia.2016116555
Baerenklau, K. A. (2005). Toward an understanding of technology adoption: Risk, learning, and neighborhood effects. Land Economics, 81(1), 1-19. https://doi.org/10.3368/le.81.1.1
Campbell, D., & Singh, C. B. (2017). A study of customer innovativeness for the mobile wallet acceptance in Rajasthan. Pacific Business Review International, 10(6), 07-15.
Chawla, D., & Joshi, H. (2019). Consumer attitude and intention to adopt mobile wallet in India - An empirical study. The International Journal of Bank Marketing, 37(7), 1590-1618. https://doi.org/10.1108/IJBM-09-2018-0256
Cho, Y. C., & Sagynov, E. (2015). Exploring factors that affect usefulness, ease of use, trust, and purchase intention in the online environment. International Journal of Management & Information Systems (IJMIS), 19(1), 21-36. https://doi.org/10.19030/ijmis.v19i1.9086
Chua, C. J., Lim, C. S., & Aye, A. K. (2019, August 16). Investigating of factors affecting the consumers' adoption of mobile wallet in Malaysia [Paper presentation]. UPM 2019 National Seminar on Digitalization, Sustainability & Globalization, Selangor, Malaysia.
D'souza, M. D., & Bhadury, K. (2017). Potential risks of mobile wallet usage as compared to a physical wallet in India. International Journal of Latest Engineering and Management Research (IJLEMR), 2(2), 01-08.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. https://doi.org/10.2307/249008
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982-1003. https://doi.org/10.1287/mnsc.35.8.982
Department of Statistics Malaysia. (2010). Malaysia population statistic 2010. Department of Statistics Malaysia Official Portal. https://www.statistics.gov.my/index.php?r=column/cone&menu_id=ZHJlbWFBSTVEc HY1ait6akR3WmtVUT09
Fagan, M. H., Neill, S., & Wooldridge, B. R. (2008). Exploring the intention to use computers: An empirical investigation of the role of intrinsic motivation, extrinsic motivation, and perceived ease of use. Journal of Computer Information Systems, 48(3), 31-37. https://doi.org/10.1080/08874417.2008.11646019
Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling. University of Akron Press.
Gefen, D., & Straub, D. (2005). A practical guide to factorial validity using PLS-graph: Tutorial and annotated example. Communications of the Association for Information Systems, 16, 91-109. https://doi.org/10.17705/1CAIS.01605
Gurme, V. M. (2019). An empirical study on customers adoption of e-wallet with special reference to Pune city. International Journal of Engineering Applied Sciences and Technology, 4(5), 195-198. https://doi.org/10.33564/IJEAST.2019.v04i05.029
Hair, Jr. J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand Oaks: Sage.
Hedges, M. R., Pacheco, G., & Webber, D. J. (2013). Extrinsic versus intrinsic motivation: Does major choice make a difference? [Conference paper]. 54th New Zealand Association of Economists, Wellington, New Zealand. https://openrepository.aut.ac.nz/bitstream/handle/10292/5677/hedges.pdf?sequence=2&isAllowed=y
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modelling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8
Horst, M., Kuttschreuter, M., & Gutteling, J. M. (2007). Perceived usefulness, personal experiences, risk perception and trust as determinants of adoption of e-government services in The Netherlands. Computers in Human Behavior, 23(4), 1838-1852. https://doi.org/10.1016/j.chb.2005.11.003
Im, I., Kim, Y., & Han, H. (2007). The effects of perceived risk and technology type on users' acceptance of technologies. Information & Management, 45, 1-9. https://doi.org/10.1016/j.im.2007.03.005
Isaac, O., Abdullah, Z., Ramayah, T., Mutahar, A. M., & Alrajawy, I. (2016, December 1). Perceived usefulness, perceived ease of use, perceived compatibility, and net benefits: An empirical study of internet usage among employees in Yemen [Paper presentation]. 7th International Conference Postgraduate Education, Kuala Lumpur, Malaysia. https://www.researchgate.net/publication/316877003_Perceived_Usefulness_Perceived_Ease_of_Use_Perceived_Compatibility_and_Net_Benefits_an_empirical_study_of_internet_usage_among_employees_in_Yemen
Israel, G. D. (1992). Determining sample size (Report No. Fact Sheet PEOD-6). University of Florida, Florida Cooperative Extension Service.
Jose, G., & Almeida, S. M. (2018). Adoption and practices of mobile wallet users in Bengaluru. Research Review International Journal of Multidisciplinary, 9(8), 338-345.
J.P. Morgan (2019). E-commerce payments trends: Malaysia. https://www.jpmorgan.com/merchant-services/insights/reports/malaysia
Kafsh, S. Z. (2015). Developing consumer adoption model on mobile wallet in Canada [Master's Thesis, University of Ottawa]. Uo Research. https://ruor.uottawa.ca/handle/10393/32391
Kagan, J. (2021, March 29). Digital Wallet. Investopedia. https://www.investopedia.com/terms/d/digital-wallet.asp
Kerviler, G., Demoulin, N. & Zidda, P. (2016). Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers? Journal of Retailing and Consumer Services, 31(C), 334-344. https://doi.org/10.1016/j.jretconser.2016.04.011
Kim, Y., & Han, J. (2014) Why smartphone advertising attracts customers: A model of web advertising, flow, and personalization. Computers in Human Behavior, 33, 256-269. https://doi.org/10.1016/j.chb.2014.01.015
Kleijnen, M., Wetzels, M., & Ruyter, K. D. (2004). Consumer acceptance of wireless finance. Journal of Financial Services Marketing, 8(3), 206-217. https://doi.org/10.1057/palgrave.fsm.4770120
Koundouri, P., Nauges, C., & Tzouvelekas, V. (2006). Technology adoption under production uncertainty: Theory and application to irigation technology. American Journal of Agricultural Economics, 88(3), 657-670. https://doi.org/10.1111/j.1467-8276.2006.00886.x
Kustono, A. S., Nanggala, A. Y. A., & Mas'ud, I. (2020). Determinants of the use of e-wallet for transaction payment among college students. Journal of Economics, Business, and Accountancy Ventura, 23(1), 85 - 95. https://doi.org/10.14414/jebav.v23i1.2245
Lai, J. Y. (2009). How reward, computer self-efficacy, and perceived power security affect knowledge management systems success: An empirical investigation in high-tech companies. Journal of the American Society for Information Science and Technology, 60(2), 332-347. https://doi.org/10.1002/asi.20982
Lai, Y. H. (2012). The study of technology acceptance for e-wallets application of clinic fees payment. Health, 4(11), 1082-1087. https://doi.org/10.4236/health.2012.411165
Lee, Y. H., Hsieh, Y. C., & Hsu, C. N. (2011). Adding innovation diffusion theory to the technology acceptance model: Supporting employees' intentions to use e-learning systems. Journal of Educational Technology & Society, 14(4), 124-137.
Lim, J. & Shim, J. (2016). The development of mobile applications to attract customers in a continuous rewards. Journal of Korea Multimedia Society, 19(5), 948-956. https://doi.org/10.9717/kmms.2016.19.5.948
Ling, S. (2021, March 4). Sarawak's e-wallet gets a name change, overseas payments now possible. The Star. https://www.thestar.com.my/news/nation/2021/03/04/sarawak039s-e-wallet-gets-a-name-change-overseas-payments-now-possible
Lwoga, E. T., & Lwoga, N. B. (2017). User acceptance of mobile payment: The effects of user-centric security, system characteristics and gender. The Electronic Journal of Information Systems in Developing Countries, 81(3), 1-24. https://doi.org/10.1002/j.1681-4835.2017.tb00595.x
Madan, K., & Yadav, R. (2016). Behavioural intention to adopt mobile wallet: A developing country perspective. Journal of Indian Business Research, 8(3), 227-244. https://doi.org/10.1108/JIBR-10-2015-0112
Malik, A. N. A., & Annuar, S. N. S. (2021). The effect of perceived usefulness, perceived ease of use, reward, and perceived risk toward e-wallet usage intention. In M. H. Bilgin, H. Danis, & E. Demir (Eds.), Eurasian business and economics perspectives (pp.115-130). Springer, Cham. https://doi.org/10.1007/978-3-030-65147-3_8
Mittal, S., & Kumar, V. (2018). Adoption of mobile wallets in India: An analysis. IUP Journal of Information Technology, 14(1), 42-57.
Mumtaza, Q. M. H., Nabillah, S. I., Amaliya, S., Rosabella, Y., & Hammad, J. A. (2020). Worldwide mobile wallet: A futuristic cashless system. Bulletin of Social Informatics Theory and Application, 4(2), 70-75. https://doi.org/10.31763/businta.v4i2.204
Moon, J. W., & Kim, Y. G. (2001). Extending the TAM for a world-wide-web context. Information and Management, 38, 217-230. https://doi.org/10.1016/S0378-7206(00)00061-6
Nag, A. K., & Gilitwala, B. (2019). E-wallet - Factors affecting its intention to use. International Journal of Recent Technology and Engineering, 8(4), 3411-3415. https://doi.org/10.35940/ijrte.D6756.118419
Nguyen, T. D., & Huynh P. A. (2018). The roles of perceived risk and trust on e-payment adoption. In L. Anh, L. Dong, V. Kreinovich, & N. Thach (Eds.), Econometrics for financial applications. ECONVN 2018. Studies in Computational Intelligence: Vol. 760. Springer, Cham. https://doi.org/10.1007/978-3-319-73150-6_68
Nguyen, T., & Malik, A. (2021). Employee acceptance of online platforms for knowledge sharing: Exploring differences in usage behavior. Journal of Knowledge Management, 26(8), 1985-2006. https://doi.org/10.1108/JKM-06-2021-0420
Ozbek, V., Gunalan, M., Koc, F., Sahin, N., & Kas, E. (2015). The effects of perceived risk and cost on technology acceptance: A study on tourists' use of online booking. Celal Bayar Üniversitesi Sosyal Bilimler Dergisi, 13(2), 227-244. https://doi.org/10.18026/cbusos.49782
Pachpande, B. R., & Kamble, A. A. (2018). Study of e-wallet awareness and its usage in Mumbai. Journal of Commerce & Management Thought, 9(1), 33-45. https://doi.org/10.5958/0976-478X.2018.00004.6
Peeters, J. (2020). Data Protection in Mobile Wallets. European Data Protection Law Review, 6(1), 56-65. https://doi.org/10.21552/edpl/2020/1/8
Penalver, B. A. J., Santos, J. A. C., Conesa, J. A. B., & Santos, M. C. (2018). Innovation management and strategy. Journal of Scientific and Industrial Research, 77, 437-441.
Phonthanukitithaworn, C., Sellitto, C., & Fong, M. W. L. (2016). A comparative study of current and potential users of mobile payment services. SAGE Open, 6(4), 1-14. https://doi.org/10.1177/2158244016675397
Phuah, K. T., Ting, J. L., & Wong, K. K. S. (2018). Understanding customer intention to use mobile payment services in Nanjing, China. International Journal of Community Development & Management Studies, 2, 49-60. https://doi.org/10.31355/22
Pim, L. H. (2017, November 16). Chief minister officially launches Sarawakpay. Borneo Post Online. https://www.theborneopost.com/2017/11/16/chief-minister-officially-launches-sarawakpay/
Prabhakaran, S., & Vasantha, S. (2020). Effect of social influence on intention to use mobile wallet with the mediating effect of promotional benefits. Journal of Xi'an University of Architecture & Technology, 12(2), 3003-3019.
Rose, J., & Fogarty, G. (2006). Determinants of perceived usefulness and perceived ease of use in the technology acceptance model: Senior consumers' adoption of self-service banking technologies. Proceedings of the Academy of World Business, Marketing & Management Development, 2(10), 122-129. https://core.ac.uk/download/pdf/11035679.pdf
Roumani, Y., Nwankpa, J. K., & Roumani, Y. F. (2015). The impact of incentives on the intention to try a new technology. Technology Analysis & Strategic Management, 27(2), 126-141. https://doi.org/10.1080/09537325.2014.952625
Salzabella, S., Sumarwan, U., & Yuliati, L. N. (2021). Analysis of factors influencing consumers in using the e-wallet application. International Journal of Research and Review, 8(6), 45-58. https://doi.org/10.52403/ijrr.20210608
Saprikis, V., Avlogiaris, G., Katarachia, A., & Altini, A. (2020). Mobile augmented reality apps in shopping malls in Greece: Exploring users' behavioral intentions. Communications of the IBIMA, 2020, 1-13. https://doi.org/10.5171/2020.301245
Sarika, P. & Vasantha, S. (2018). Review on influence of trust on mobile wallet adoption and its effect on users' satisfaction. International Journal of Management, Technology and Engineering, 8(12), 1731-1744.
Seetharaman, A., Kumar, K. N., Palaniappan, S., & Weber, G. (2017). Factors influencing behavioural intention to use the mobile wallet in Singapore. Journal of Applied Economics and Business Research JAEBR, 7(2), 16-136.
Siddiqui, S. I., Jabeen, S., & Mumtaz, M. (2014). Whether cell phone is a necessity or a luxurious item? Middle-East Journal of Scientific Research, 19 (1), 61-65.
Singh, N., & Sinha, N. (2020). How perceived trust mediates merchant's intention to use a mobile wallet technology. Journal of Retailing and Consumer Services, 52, 101894. https://doi.org/10.1016/j.jretconser.2019.101894
SMA offers 10 pct Cash Rewards to Merchants for Transactions Made using Sarawak Pay. (2018, July 7). Borneo Post Online. https://www.theborneopost.com/2018/07/07/sma-offers-10-pct-cash-rewards-to-merchants-for-transactions-made-using-sarawak-pay/
Song, C., Wang, T., & Hu, M. Y. (2019). Referral reward programs with scarcity messages on bank credit card adoption. International Journal of Bank Marketing, 37(2), 531-544. https://doi.org/10.1108/IJBM-12-2017-0260
Suh, B., & Han, I. (2002). Effect of trust on customer acceptance of internet banking. Electronic Commerce Research and Applications, 1(3), 247-263. https://doi.org/10.1016/S1567-4223(02)00017-0
Surendran, P. (2012). Technology acceptance model: A survey of literature. International Journal of Business and Social Research, 2(4), 175-178.
Taufan, A., & Yuwono, R. T. (2019). Analysis of factors that affect intention to use e-wallet through the technology acceptance model approach (Case Study: GO-PAY). International Journal of Science and Research, 8(7), 413-419.
Tavilla, E. (2017). Rewarding loyal customers to increase mobile payments adoption. Federal Reserve Bank of Boston. https://www.bostonfed.org//media/Documents/PaymentStrategies/rewarding-loyal-customers-to-increase-mobile-payments-adoption.pdf
Ten, M. (2018, May 15). Improving internet coverage. Borneo Post Online. https://www.theborneopost.com/2018/05/15/improving-internet-coverage/
Ten, M. (2021, September 15). Sarawak pay now S pay global, more features and services added. Borneo Post Online. https://www.theborneopost.com/2021/09/15/sarawak-pay-now-s-pay-global-more-features-and-services-added/
Teo, R. (2018, December 23). Sarawak's drive towards electronic payments. Borneo Post Online. https://www.theborneopost.com/2018/12/23/sarawaks-drive-towards-electronic-payments/
Torkamani, J., & Shajari, S. (2008). Adoption of new irrigation technology under production risk. Water Resources Management, 22(2), 229-237. https://doi.org/10.1007/s11269-007-9154-3
Venkatesh, V., & Davis, F. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46(2), 186-204. https://doi.org/10.1287/mnsc.46.2.186.11926
Wasko, M., & Faraj, S. (2005). Why should I share? Examining social capital and knowledge contribution in electronic networks of practice. MIS Quarterly, 29(1), 35-57. https://doi.org/10.2307/25148667
Wong, W. H., & Mo, W. Y. (2019). A study of consumer intention of mobile payment in Hong Kong, based on perceived risk, perceived trust, perceived security and technological acceptance model. Journal of Advanced Management Science, 7(2), 33-38. https://doi.org/10.18178/joams.7.2.33-38
Yadav, P. (2017). Active determinants for adoption of mobile wallet. i-manager's Journal on Management, 12(1), 7-14. https://doi.org/10.26634/jmgt.12.1.13565
Yang, M, Mamun, A. A., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Cashless transactions: A study on intention and adoption of e-wallets. Sustainability, 13(2), 831. https://doi.org/10.3390/su13020831
Zhang, Y., Sun, J., Yang, Z., & Wang, Y. (2018). What makes people actually embrace or shun mobile payment: A cross-culture study. Mobile Information Systems, 2018, 1-13. https://doi.org/10.1155/2018/7497545
Zhao, H., Anong, S. T., & Zhang, L. (2019). Understanding the impact of financial incentives on NFC mobile payment adoption: An experimental analysis. International Journal of Bank Marketing, 37(5), 1296-1312. https://doi.org/10.1108/IJBM-08-2018-0229
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
