Empirical analysis identifies key drivers influencing cashless payment adoption, suggesting strategic improvements in user satisfaction.
A national cashless movement is being promoted in Indonesia. This study aims to provide empirical evidence regarding the effects of practicality, lifestyle, digital financial literacy, perceived trust, and price orientation on cashless payment adoption and whether it affects satisfaction with using these systems. Cashless payment adoption's mediating role in the influence of these five factors on satisfaction with using cashless payment is also examined. The research sample comprised 400 people in Indonesia who had an income and had made cashless payments before. The results with an alpha of 5% obtained by employing partial least squares-structural equation modelling indicate that practicality, lifestyle, digital financial literacy, perceived trust, and price orientation all significantly positively affect cashless payment adoption. Satisfaction with cashless payments is positively and significantly affected by the adoption of cashless payments. Cashless payment adoption mediates the effects of price orientation, practicality, digital financial literacy, perceived trust, and lifestyle on satisfaction. The findings imply that businesses should use attractive pricing to encourage consumers to use cashless payments. Financial service providers should prioritise practicality and security to build trust in cashless payment systems. Finally, the government and educational institutions should provide continuous education initiatives to promote digital financial literacy among the public. JEL Codes: E42, G53, O33 Keywords: Practicality, Lifestyle, Digital Financial Literacy, Price Orientation, Cashless Payment.
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Fachrudin et al. (2025) studied this question.
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