Understanding consumers' intention to use cryptocurrency payments in Malaysia: The role of technology perception and digital literacy

Cryptocurrency has emerged as an alternative digital payment method; however, its adoption for retail transactions remains limited in Malaysia. This study examines the factors influencing consumers' intention to use cryptocurrency payments by extending the Technology Acceptance Model (TAM) with social influence and perceived risk, while examining the moderating effect of digital literacy. Data were collected through a cross-sectional survey of 375 respondents in the Klang Valley who were familiar with cryptocurrency and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results indicate that perceived usefulness and social influence have significant positive relationships with consumers' intention to use cryptocurrency payments, whereas the relationship between perceived ease of use and intention to use is not statistically significant. Although perceived risk showed a significant relationship with intention to use, the relationship was opposite to the hypothesised negative direction and was therefore H4 not supported. The findings further reveal that digital literacy significantly moderates the relationships of perceived usefulness and perceived ease of use with intention to use. Specifically, digital literacy weakens the relationship between perceived usefulness and intention to use while strengthening the relationship between perceived ease of use and intention to use. However, it does not significantly moderate the relationships of social influence or perceived risk with intention to use. This study contributes to the technology adoption literature by demonstrating that digital literacy serves as an important boundary condition in shaping consumers' adoption of cryptocurrency payments. The findings also provide practical implications for policymakers, fintech service providers, and educators by highlighting the importance of improving digital literacy, enhancing platform usability, and increasing consumer awareness to encourage the responsible adoption of cryptocurrency payment systems in Malaysia.