Factors influencing the adoption of mobile payment systems in Indonesia

Purpose This empirical study aims to determine factors that influence an individual’s intention to use mobile payment (MP) systems. The study investigates direct, indirect and total effects as well as factors that mediate or moderate effects on intention. Design/methodology/approach A theoretical model is derived from previous studies and combines factors from technology acceptance model and unified theory of acceptance and use of technology (perceived usefulness, perceived ease of use, social influence, facilitating conditions, behavioral intention) with factors relevant to MP (perceived security, uncertainty avoidance, trust, network externalities and self-efficacy). Gender, age, MP experience and income are included as moderators of direct effects on behavioral intention. The sample includes 736 participants from the four large cities in Indonesia. Structural equation modeling is used to analyze and develop the theoretical model. Findings Self-efficacy has the greatest total effect on behavioral intention, followed in decreasing order of importance by perceived usefulness, perceived ease of use, social influence, trust, network externalities and uncertainty Avoidance. only gender and MP experience have significant moderating effects whereby the direct effects of self-efficacy and network externalities on behavioral intention are influenced by gender and MP experience, respectively. Trust, perceived usefulness and perceived ease of use have important mediation effects. Originality/value This study fills the gap in the limited theoretical understanding of MP adoption in Indonesia. New theoretical findings related to mediating and moderating effects, direct, indirect, and total effects are used to discuss important practical implications of the findings.