The rapid development of technologies leads massive change in the way people
live including how people manage transaction. In results, Many service providers in
many countries start to offer mobile wallet with various benefits. The mobile suica in
Japan can be referred as one of the most successful implementation. Even though
there are many mobile wallet offered by services providers in Indonesia, statistic
showed that only 1% of total transaction were made using mobile wallet. Hence, a
study is needed to understanding consumer behaviour toward mobile wallet adoption.
To collect data, Questionnaires were distributed through both online and offline
channel using convenience sampling method. 523 data from Y Generation were
collected between first week of October and First week of November 2016. 17 out 523
were indentified as invalid data during data screening process, hence, only 506 data
were used in data analysis. Majority of respondents already have knowledge of
mobile wallet, although only half of the respondents have use experience with the
mobile wallet. T-Cash was the most popular mobile wallet product in Indonesia,
following by Go-Pay.
SmartPLS 3.0 was used to analyze the data using. First, the assessment of
measurement model was conducted to ensure the validity and reliability, followed by
the assessment of structural model to test the research hypothesis, as well as model fit,
predictive relevance, and effect size of each latent variables. This study found that
trust is the most important factor to affect individual’s intention to use mobile wallet,
followed by Habit, Social Influence, Facilitating Conditions, Trialability, and Price
Value. In Contrast, factors such as Performance Expectancy, Effort Expectancy,
Awareness, Network Externalities, and Hedonic Motivation were insignificant. The
model proposed could explain 61% variance toward behavioral intention. The result
can be utilitez by service providers to formulate better strategies.