Motivational factors to paying zakat through institutions: a multigroup analysis of urban and suburban muzakki based on digital payment scheme

Purpose This study aims to empirically explore several factors that encourage muzakki (zakat payers) to pay their zakat through institutions by elaborating on their extrinsic and intrinsic motivations as the composite factors regarding the attitude and intention improvement of muzakki. This study specifically studies zakat payment via digital means and categorizes the muzakki groups into two (urban and suburban) to be considered in the results. Design/methodology/approach Overall, this study gathers the data from 298 muzakki using a partial least squares technique the multigroup analysis to compare the analysis. Findings This study found that different sociodemographic aspects will result in varied performances of motivation in using technology between the two groups. Furthermore, positive preference aspects, such as muzakki’s attitude, can be a catalyst in improving their motivation to pay zakat through institutions. Practical implications The findings of this study can be used as a foundation to improve the technology-based services that will be more accessible and reachable. Provision of technical follow-ups regarding the utilization of technology, including community-based digital platform socializations, availability of online customer service that will respond to muzakki’s needs and synergy between stakeholders, are the primary obligations that a zakat institution must fulfill. Originality/value As far as the researchers are concerned, the studies focusing on the motivational factors and attitude of muzakki as an intervention in paying zakat via institutions are limited in numbers, especially studies on digital payment. In this study, however, classifying the groups into two will help gain a deeper understanding of this topic.