Generation Z’s Adoption of E-Wallet: Understanding factors and Implication for Consumptive Behavior

In the contemporary digital landscape, the relationship between e-business and e-wallets is intricate and mutually reinforcing. E-business encompasses various online business models, while e-wallets serve as efficient payment tools within this ecosystem. This research provides insights into factors influencing Generation Z's adoption of e-wallets. This study explores the impact of factors such as perceived usefulness, ease of use, social norms, trust, and perceived risk on Generation Z's adoption of e-wallets and its influence on consumptive behavior. Drawing from established technology adoption theories like the Theory of Planned Behavior and Unified Theory of Acceptance and Use of Technology, this research proposes and tests several hypotheses. This research conducted a survey involving 100 participants residing in Jakarta and its surrounding areas, known as JABODETABEK. The study applied an extended version of the UTAUT (Unified Theory of Acceptance and Use of Technology) model and employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the collected data. The results indicate that Generation Z's adoption of e-wallets is positively influenced by perceived usefulness, ease of use, social norms, and trust, while perceived risk exerts a negative influence. Notably, despite the convenience and incentives offered by e-wallets, their usage does not significantly affect Generation Z's consumptive behavior. This outcome suggests that Generation Z may possess strong financial awareness and adequate financial literacy, enabling them to manage their finances wisely and resist impulsive spending. Overall, this study sheds light on the complex interplay between technology adoption and consumer behavior, emphasizing the need to consider a holistic perspective when examining the impact of digital payment technologies on the younger generation.