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64
Volume 19 Issue 2 eISSN 2600- 7894
Labuan Bulletin of International Business &Finance
CONSUMERS’ BEHAVIOURAL INTENTION TO USE E-WALLET DURING
THE PANDEMIC OF COVID-19: APPLYING THE UNIFIED THEORY OF
ACCEPTANCE AND USE OF TECHNOLOGY (UTAUT)
Sharinah Puasaa*, Tan JiaLea, Haneffa Muchlis Gazalia, Nurjeehan Ayuba
a Faculty of Labuan International Finance, Universiti Malaysia Sabah, Malaysia
*Corresponding author’s email: sharinah@ums.edu.my
ABSTRACT
The new norm of living during the COVID-19 pandemic has changed the way consumers
perceived e-wallet. This study aims to: (i) examine consumers’ behavioural intention
level to use e-wallet during the COVID-19 pandemic; and (ii) applied the Unified Theory
of Acceptance and Use of Technology (UTAUT) in investigating the factors influencing
the behavioural intention to use e-wallet during the pandemic situation. A survey
questionnaire was conducted through an online platform with consumers in Kuala
Lumpur. The descriptive finding (n = 205) indicates a moderate to high level of
consumers’ behavioural intention to use e-wallet during the pandemic. Statistical analysis
found that Performance Expectancy (p < 1%), Effort Expectancy (p < 1%) and
Facilitating Conditions (p < 10%) have significant positive relationships with consumers’
behavioural intention to use e-wallet during the pandemic. The results highlight the
critical factors of behavioural intention to use e-wallet in which the Performance
Expectancy, Effort Expectancy and Facilitating Conditions remain significant during the
pandemic situation. Remarkably, the consumers' behavioural intention to use e-wallet is
strongly influenced by Performance Expectancy compared to other variables. On the
other hand, Social Influence is found insignificant in influencing the consumers’
behavioural intention to use e-wallet during the pandemic.
JEL classification: M15, D12, G21.
Keywords: E-wallet, pandemic COVID-19, UTAUT, behavioural intention.
Received: April 15, 2021
Revised: August 19, 2021
Accepted: August 19, 2021
1. INTRODUCTION
Corona Virus Disease 2019 (COVID-19) has changed the way people do business. On
11th March 2020, the World Health Organization (WHO) declared the COVID-19
outbreak a pandemic (WHO, 2020b). This pandemic has a massive impact on the
economic and financial market as a whole (Aji et al., 2020; Shah et al., 2020). The impact
includes the way consumers performing purchase and payment transactions. However,
studies on the pandemic impact on a payment method from consumers’ point of view are
very limited (Aji et al., 2020). Cashless payment, also known as e-payment, has been well
LBIFf 19(2), pp. 64-78.
65
used by consumers, especially credit/debit cards. The pandemic and the enforcement of
Movement Control Order (MCO) have boosted the usage of cashless payment, including
e-wallet.
The Malaysian Government announced that the first MCO to be enforced started on
March 18th 2020 until May 12th 2020. The situation was followed with Conditional MCO
(CMCO) on May 13th 2020 to June 9th 2020, and continued with Recovery MCO
(RMCO) except for certain areas with a high number of cases that are placed under
Enhanced MCO (EMCO). In October 2020, some areas in Malaysia were again placed
under CMCO. As the case of COVID-19 increased tremendously, in January 2021 the
Government re-imposed the MCO (known as MCO 2.0) to almost all states in Malaysia.
The MCO 2.0 remained until February 2021 and moved to CMCO by phase following
the reported number of cases. In May 2021, the fourth wave of COVID-19 had led to the
enforcement of MCO 3.0.
The first MCO, MCO 2.0, and MCO 3.0 had restricted people movement. People were
ordered to stay at home (National Security Council Malaysia, 2020). The enforcement
aimed to curb the spread of COVID-19. During the MCO, consumers are encouraged to
make an online purchase, an online payment and go out only if it is essential (National
Security Council Malaysia, 2020). WHO and the Ministry of Health (MOH) Malaysia
stated that the COVID-19 could be transmitted "through respiratory droplets and direct
or indirect contact with the mucous membranes of the eyes, mouth, and nose" (Shah et
al., 2020, p. 109). In other words, the virus can be easily transmitted through contaminated
hands, objects or surfaces (WHO, 2020a). WHO and MOH Malaysia recommended
people to keep physical distance, limit physical contact in public areas and frequently
clean hands to avoid being infected.
The pandemic of COVID-19, MCO and the new norm of living have extended the
adoption and usage of e-payment technique from credit/debit card to mobile payment
through e-wallet and mobile banking. Bank Negara Malaysia (BNM) reported a
tremendous increase in electronic money (e-money) usage for the first half of 2020. The
report includes card-based (e.g. Touch 'n Go prepaid card, BigPay) and network-based
(e.g. Maybank QRPay, CIMB Pay, GrabPay, Boost) (BNM, 2020). The number of e-
money users in Malaysia is approximately 95.2 million and 119.5 million during April
2020 and April 2021, respectively (BNM, 2021a). The report showed a remarkable
increase of e-money users for April 2021 compared to April 2020. The issuer of e-money
comprises banking institutions and non-banking institutions registered with BNM. To
date, there are seven (7) products of e-money (e.g. CIMB Pay, Maybank QRPay) issued
by banks (e.g. CIMB Bank Berhad, Malayan Banking Berhad, RHB Bank Berhad) and
48 products of e-money (e.g. Lazada Wallet, Boost, GrabPay, Zapp) issued by non-banks
(e.g. Axiata Digital eCode Sdn Bhd, Alipay Malaysia Sdn Bhd) (BNM, 2021b).
Studies on e-wallet have been widely conducted globally (Abdullah et al., 2020).
However, a specific study on the e-wallet during the pandemic remains scarce.
Technically, an e-wallet requires a device and internet connection to operate (Abdullah,
2020). The technology of e-wallet intends to offer convenient, safe and best service to
consumers (Tee and Ong, 2016; Akinola, 2012). In Malaysia, e-wallet has been
introduced and implemented for several years (Mei, 2019). However, adoption and
acceptance in Malaysia are mentioned as relatively low (Abdullah et al. 2020; Mei, 2019;
PricewaterhouseCoopers, 2018). Nevertheless, BNM statistic reported a tremendous
increment in the first half of 2020 and the first quarter of 2021 on e-money users,
including e-wallet. The increase may be due to the current situation of the COVID-19
LBIFf 19(2), pp. 64-78.
66
outbreak and the enforcement of MCO. The pandemic situation has restricted people
movement. Ideally, the use of e-wallet leads consumers to practise the new norms of
living, which are physical distancing and avoid physical contact with cashier or
object/surface to minimise the risk of being infected. However, related studies providing
evidence on this matter are still limited. Besides, specific studies on e-wallet during the
pandemic situation require attention to overcome the barriers in the effective adoption of
e-money through e-wallet. Therefore, the objectives of this study are:
i). To examine the level of consumers' behavioural intention to use e-wallet during
the pandemic of COVID-19.
ii). To investigate the factors influencing the behavioural intention to use e-wallet
during the COVID-19 situation by applying the Unified Theory of Acceptance
and Use of Technology (UTAUT).
The first section of this paper provides the introductory of e-wallet and its relation
with the current situation of pandemic COVID-19. The following section provides brief
literature on e-wallet from the Malaysian perspective and discussions of UTAUT. Then,
the section is continued with the research method, data analysis, result and discussion.
The conclusion and limitation of this study are presented in the last section.
2. LITERATURE REVIEW
2.1 Definition of e-Wallet
This study adopts the definition of e-wallet as a technology system that keeps individual
money in digital form and stores payment data digitally in physical devices through the
internet connection (Abdullah et al., 2020; Abiyyu Ganeswangga et al., 2020, Cheng et
al. 2018). E-wallet also referred to as an online payment system using a smartphone
(Qasim et al., 2012).
Digital transaction through e-wallet could reduce the complexity of the financial
transactions process and offer benefits to the cashless economy, including convenience,
easiness, and spending record (Cao et al., 2016). Also, e-wallet provides innovative
benefits on communication and customisation of the transaction (Osakwe and Okeke,
2016) and flexibility and protection (Uddin and Akhi, 2014). Besides, the adoption of e-
wallet among traders is increased due to its efficiency in cash management, fast
transaction process and reduce labour cost (Hayashi and Bradford, 2014). Subsequently,
e-wallet begins to demonstrate its presence to internet users in terms of mobile payment
(Falk et al., 2016).
2.2 E-Wallet during the pandemic of COVID-19
The pandemic COVID-19 has significantly changed the socio-economic, business and
the way people perform the transaction. Most nation tries to control the spread of COVID-
19 by implementing the social distancing policy (Aji et al., 2020; Newbold et al., 2020).
By chance, digital technology progress has made social distancing possible. The
implementation of social distancing aims to reduce the spread of coronavirus disease.
Previous research has shown that COVID-19 can be easily transmitted via respiratory
droplets or by contact (Ather et al., 2020). Thus, physical money has a higher possibility
to be the agent of the virus when the money is touched by the infected person (Aji et al.,
2020). Therefore, WHO suggested the use of digital payment (Brown, 2020). Hence, e-
LBIFf 19(2), pp. 64-78.
67
wallet is seemed as a suitable tool in adapting the new norm of living and the new way of
making payments. E-wallet allows consumers to make payment digitally (i.e. contactless
payment) with the benefit of mobile application technology and the internet.
2.3 Behavioural intention to use
Intention refers to the aim of an individual in accomplishing something (Zhao and
Othman, 2011). In other words, intention refers to how often an individual is willing to
try and the effort a person put into adopting towards performing the behaviour (Mamman
et al., 2016). Technically, intention is defined as a propensity to respond positively or
negatively to an event, individual, occurrence, or institution (Ajzen et al., 1980).
Specifically focused on behavioural intention, Venkatesh and Davis (2000) characterised
behavioural intention as an individual's desire to perform or not to perform certain
specified future behaviours. Behavioural intention is generally viewed as a guide to the
practical application of technology. Behavioural intention is viewed through the level of
consumer desire in using the existing system continuously, assuming the consumer has
access to knowledge on an ongoing basis.
In this study, behavioural intention refers to the consumer's intention to use e-wallet
payment. Many studies have been conducted empirically on behavioural intention. In a
study conducted by Yang et al. (2012), behavioural intention towards mobile payment is
influenced by behavioural beliefs that are divided into two parts, which are positive utility
and negative utility. The findings showed that the perceived risk reflects a negative utility,
while the relative benefit indicates a positive utility. Smartphone users who have strong
convictions intend to use mobile technology (Oliveira et al., 2016; Pham and Ho, 2015).
An analysis of consumers’ intention provides a crucial basis for predicting the actual
actions of consumers about how a specific action is taken (Gomes and Neves, 2011).
2.4 Unified Theory of Acceptance and Use of Technology (UTAUT)
Unified Theory of Acceptance and Use of Technology (UTAUT) is a comprehensive
model that explains the determinants of user intention to use technology to assess the
possibility of technology success (Lu et al., 2005). UTAUT assumes four (4) important
antecedences that directly affect user acceptance and usage behaviour of Information
Technology (IT): performance expectancy, effort expectancy, social influence, and
facilitating conditions (Venkatesh et al., 2003).
The UTAUT model was extended by Vankatesh et al. (2012) with three (3) additional
constructs, namely hedonic motivation, price value, and experience and habit. The
extended model is known as UTAUT2. However, this study applied UTAUT instead of
UTAUT2 to emphasise the primary factors influencing the behavioural intention to use
e-wallet that specifically focus on its usage during the pandemic situation. Furthermore,
testing the experience and habit as one of the constructs as in UTAUT2 may not suit this
study because the pandemic of COVID-19 situation is new to all consumers. Thus, their
perception of the experience and habit may not be accurate for the setting of this study.
2.4.1 Performance expectancy
Performance expectancy is the degree to which an individual believes that using the
technology system can help achieve job performance (Venkatesh et al., 2003). The
willingness of consumers to use technology relies on the way they perceive the utility of
the technology (Venkatesh et al., 2003). Previous studies indicated that five (5)
constructs, including job-fit, extrinsic motivation, perceived usefulness, outcome
LBIFf 19(2), pp. 64-78.
68
expectations, and relative advantage, are performance expectancy factors (Aldás-
Manzano, 2009; Venkatesh et al., 2003). The previous research presents empirical
evidence of perceived performance impact on behavioural intention to use mobile
banking (Brown et al., 2003). Researchers in various geographical locations identify that
the primary factor shaping users behavioural intention to use technology is performance
expectancy. These lead to the following hypothesis:
H1: There is a significant positive relationship between performance expectancy and
behavioural intention to use e-wallet during the COVID-19 pandemic.
2.4.2 Effort expectancy
Effort expectancy refers to the easiness level associated with payment adoption
(Venkatesh et al., 2003). Technology adoption model experts emphasised that the
perception of the user's ease of use determines the technology's acceptance. Many
previous studies have been explored the concept of effort expectancy as the consumer is
easy to use and requiring less effort to adopt new technology. Besides, the technological
advance makes consumer life easier by providing a fast payment setup and a user-friendly
interface (Karjaluoto et al., 2010; Venkatesh et al., 2003). A previous study has reported
that one of the significant variables for determining the intention of using new technology
is effort expectancy (Wang & Yi, 2012). These lead to the following hypothesis:
H2: There is a significant positive relationship between effort expectancy and
behavioural intention to use e-wallet during the COVID-19 pandemic.
2.4.3 Social influence
The significance of social influence in technology adoption was acknowledged by
Venkatesh et al. (2003). Social influence refers to the extent to which an individual thinks
it is essential for others to suggest that he or she should adopt the new technology. Based
on the previous studies, the decision to use mobile commerce services was influenced by
those close and dear to them (Nysveen et al., 2005). Relevant references, along with
residents, colleagues, family, and friends, may influence individual decisions. Previous
studies by Jain and Singhal (2019) define peer influence, demographic factors, and
society as part of social influence. Recent studies by Yang et al. (2021) and Laywilla
(2020) found a significant positive relationship between social influence and behavioural
intention to use e-wallet. These lead to the following hypothesis:
H3: There is a significant positive relationship between social influence and
behavioural intention to use e-wallet during the COVID-19 pandemic.
2.4.4 Facilitating conditions
Facilitating conditions refers to the degree to which a person believes that technological
infrastructure exists to support technology adoption (Venkatesh et al., 2003). It represents
perceptions of external behavioural constraints, including resources and technology
facilitating conditions (Yang & Forney, 2013). According to Venkatesh et al. (2003), the
research identified that guidance availability and support employees could serve users in
addressing technical challenges. Previous studies have reported the factors facilitating
technology adoption, including prior technology experience, prior computer experience,
and attitude toward online banking influences on experience (Karjaluoto et al., 2002).
LBIFf 19(2), pp. 64-78.
69
Facilitating conditions in this study's context refers to motivating factors that make it easy
to use technology when performing purchase and payment transactions. Laywilla et al.
(2020) and Patel (2016), in their studies, found a significant positive relationship between
facilitating conditions and behavioural intention to use mobile wallet. These lead to the
following hypothesis:
H4: There is a significant positive relationship between facilitating conditions and
behavioural intention to use e-wallet during the COVID-19 pandemic.
3. METHODOLOGY
This study applies a quantitative approach by using a survey questionnaire technique to
gather the primary data. The primary data is randomly collected from consumers who are
living in Kuala Lumpur. Targeted respondents are consumers that used e-wallet during
the COVID-19 pandemic.
The questionnaire was adapted from previous studies (e.g. Aji et al., 2020; Xian et al.,
2018; Abrahão et al., 2016; Junadi and Sfenrianto, 2015) and amended accordingly to
reflect the situation of COVID-19. There are three (3) sections in the questionnaire: the
demographic profile, the usage of e-wallet and factors influencing behavioural intention
to use e-wallet during the pandemic of COVID-19. Five-Likert scale is used to represent
consumers’ perception towards the constructed variables applying UTAUT. The scale
starts from the value 1 of strongly disagree to the value 5 of strongly agree. Table 1 shows
measurement items for all variables.
The questionnaire was created in Google form and distributed through online
platforms (i.e. email, social media). Primary data obtained for this study were analysed
using SmartPLS 3. The research framework of this study illustrates the application of
UTAUT, as presented in Figure 1.
4. RESULTS
4.1 Descriptive statistics
4.1.1 Respondents profiles
A total of 206 respondents' data were collected for this study. However, one (1)
respondent's data was incomplete and thus removed from the data set. The final data set
is 205 respondents.
Approximately 55% of the respondents are female. A Majority of the respondents
were aged between 18 to 25 years old (83%). That age range supported the domination
of student as respondents (55%) in this study. More than 80% have a bachelor's degree.
Furthermore, nearly 50% of the respondents are grouped in B40 household income (i.e.
household income less than RM4,850) followed by M40 (i.e. household income RM4,850
– RM10,959) (46%). Overall, all respondents have experience in using e-wallet.
Descriptively, the respondents mostly use Touch ‘n Go (52%), GrabPay (28%),
Maybank Pay (13%) and Boost (7%) for food and beverage (59%), groceries (17%),
transportation (12%) and other purchase activities (12%). Almost 35% of the respondents
use e-wallet 2-3 times a month, and 18% of them use e-wallet more than once a week.
LBIFf 19(2), pp. 64-78.
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Table 1: Measurement items for all variables.
Variable
Code
Measurement Item
Behavioural
Intention to Use
E-Wallet
(BI)
BI1
BI2
BI3
- I will use e-wallet for payment transaction during the
COVID-19 pandemic.
- I prefer to use e-wallet for payment transaction during the
COVID-19 pandemic.
- I will use e-wallet for payment transaction in the future.
Performance
Expectancy
(PE)
PE1
PE2
PE3
- During the COVID-19 pandemic, using e-wallet would
speed up the payment process.
- During the COVID-19 pandemic, I would use e-wallet at
any place.
- During the COVID-19 pandemic, using e-wallet would
save my time.
Effort
Expectancy
(EE)
EE1
EE2
EE3
- Using e-wallet would be easy for me to make payment
during the COVID-19 pandemic.
- Learning e-wallet would be easy for me during the COVID-
19 pandemic.
- E-wallet is flexible in making payment transaction during
the COVID-19 pandemic.
Social Influence
(SI)
SI1
SI2
SI3
- People who are important to me recommend me to use e-
wallet during the COVID-19 pandemic.
- My friends and family use e-wallet during the COVID-19
pandemic.
- People who influence my behaviour think that I should use
e-wallet during the COVID-19 pandemic.
Facilitating
Condition (FC)
FC1
FC2
FC3
FC4
- My mobile device is appropriate to use e-wallet during the
COVID-19 pandemic.
- I have knowledge of how to use e-wallet during the
COVID-19 pandemic.
- I can easily find a person who can help me if I get stuck
while using e-wallet during the COVID-19 pandemic.
- Many shops offer e-wallet for payment transaction during
the COVID-19 pandemic.
Figure 1: Research framework.
LBIFf 19(2), pp. 64-78.
71
4.1.2 Behavioural intention to use e-wallet
Majority of the respondents intent to use e-wallet during the pandemic of COVID-19 (n
= 205, mean value = 4.48, Strongly Agree = 58%, Agree = 34%). Approximately, 87%
prefer to use e-wallet during the pandemic of COVID-19 (n = 205, mean value = 4.37,
Strongly Agree = 50%, Agree = 37%). Furthermore, 90% of them intent to use e-wallet
for payment transaction in future (n = 205, mean value = 4.37, Strongly Agree = 48%,
Agree = 42%). Overall, the respondents of this study have behavioural intention to use e-
wallet during the pandemic of COVID-19 with mean value of 4.41.
4.2 Measurement model evaluation
Outer loadings for all items are above 0.708 with minimum and maximum values of 0.740
and 0.923, respectively (see Table 2). Furthermore, this study reported that the Average
Variance Extracted (AVE) value for all variables is well above 0.5 (range from 0.595 to
0.787), as presented in Table 3. The results indicate convergent validity for all items and
variables of this study.
Table 2: Outer loadings
Item/Variable
BI
EE
FC
PE
SI
BI1
0.869
BI2
0.872
BI3
0.818
EE1
0.923
EE2
0.880
EE3
0.791
FC1
0.740
FC2
0.841
FC3
0.740
FC4
0.759
PE1
0.860
PE2
0.902
PE3
0.899
SI1
0.847
SI2
0.826
SI3
0.879
Table 3: Cronbach’s alpha, composite reliability and average variance extracted
(AVE)
Variable
Cronbach's Alpha
Composite
Reliability
Average Variance
Extracted (AVE)
BI
0.813
0.889
0.728
EE
0.833
0.900
0.750
FC
0.773
0.854
0.595
PE
0.866
0.917
0.787
SI
0.81
0.887
0.724
LBIFf 19(2), pp. 64-78.
72
Besides, the Cronbach's Alpha and Composite Reliability value for all variables are
higher than 0.7 (see Table 3). The minimum value for Cronbach's Alpha and Composite
Reliability is 0.773 and 0.854, respectively. The results imply the internal consistency
reliability for all variables in this study.
Also, the result of Fornell-Larcker Criterion established support for the discriminant
validity of all variables. The square root of AVE value for each variable is higher than its
correlation with any other variables, as presented in Table 4.
Table 4: Fornell-Larcker criterion
Variable
BI
EE
FC
PE
SI
BI
0.853
EE
0.600
0.866
FC
0.558
0.726
0.771
PE
0.595
0.703
0.644
0.887
SI
0.382
0.430
0.421
0.576
0.851
Furthermore, the Variance Inflation Factor (VIF) value for all variables is below five
(5), with a maximum value of 2.610, suggesting no critical collinearity issue. Thus, the
data set proceeds for further evaluation.
4.3 Structural model evaluation
A bootstrapping procedure was applied to examine the relationships between the
independent variables and a dependent variable of this study. This study applied a
complete bootstrapping of 5,000 with Bias-Correlated and Accelerated (BCa) Bootstrap
and one-tailed at a significance level of 10%.
The results reported R2 value of 43.4% and adjusted R2 value of 42.2%, indicating a
moderate level of predictive accuracy. Further analysis applying a blindfolding procedure
reported Q2 value of 0.293, demonstrating clear support for the model's predictive
relevance.
4.3.1 Hypotheses test
Statistical analysis of this study found three (3) significant positive relationships (see
Table 5), which are Performance Expectancy (p < 1%), Effort Expectancy (p < 1%) and
Facilitating Conditions (p < 10%). Instead, Social Influence is found to have a positive
relationship, but not significant, with t-value of 0.566.
Performance Expectancy is found to have the strongest relationships compared to
other variables in this study, with a t-value of 3.171. On the other hand, Effort Expectancy
and Facilitating Conditions reported a t-value of 2.669 and 1.565, respectively.
LBIFf 19(2), pp. 64-78.
73
Table 5: Hypotheses result.
Hypothesis
Result
H1. There is a significant positive relationship between performance
expectancy and behavioural intention to use e-wallet during the
COVID-19 pandemic.
Supported
H2. There is a significant positive relationship between effort expectancy
and behavioural intention to use e-wallet during the COVID-19
pandemic.
Supported
H3. There is a significant positive relationship between social influence
and behavioural intention to use e-wallet during the COVID-19
pandemic.
Not Supported
H4. There is a significant positive relationship between facilitating
conditions and behavioural intention to use e-wallet during the
COVID-19 pandemic.
Supported
5. DISCUSSION
The first objective of this study is to examine the level of consumers' behavioural
intention to use e-wallet during the pandemic of COVID-19. This study descriptively
confirmed that the consumers in Kuala Lumpur have a moderate to high level of intention
to use e-wallet during the COVID-19 pandemic situation. This finding is consistent with
e-wallet literature about user acceptance towards e-wallet. E-wallet has successfully
attracted consumer in Malaysia (Abdullah et al., 2020). The statistic of e-wallet users
tremendously increased in 2021 compared to 2020. Also, e-wallet features and function
offer support to the new norm of living as suggested by the National Security Council
Malaysia and the Ministry of Health Malaysia. Besides, on 31st July 2020, the
Government of Malaysia had given an incentive of RM50 to e-wallet users as an initiative
to encourage the use of e-wallet (Pelan Jana Semula Ekonomi Negara, 2020). E-wallet is
not new in Malaysia, especially in Kuala Lumpur. Ideally, the pandemic situation has
made this type of payment as an alternative way to minimise physical contact.
The second objective of this study is to investigate the factors influencing the
behavioural intention to use e-wallet during the COVID-19 pandemic situation applying
the Unified Theory of Acceptance and Use of Technology (UTAUT). This study found
that the Performance Expectancy is significantly influenced consumers' intention in Kuala
Lumpur to use e-wallet during the COVID-19 pandemic. This finding is parallel with
Abdullah et al. (2020), Laywilla et al. (2020), Lin et al. (2019), Patel (2016) and Brown
et al. (2003). This study confirmed that the benefits offered by e-wallet (i.e. productivity,
convenience and speed) have greatly led to consumers' intention to use this type of
payment, regardless of any situations.
Furthermore, consumers' intention to use e-wallet during the pandemic situation is
significantly influenced by Effort Expectancy. In contrast, previous studies by Abdullah
et al. (2020) and Patel (2016) found that Effort Expectancy is not significantly influenced
consumers' intention to use e-wallet. However, a recent study by Laywilla et al. (2020)
and an earlier study by Wang and Yi (2012) are in line with the findings of this study on
Effort Expectancy. Besides, the new norm of living during the pandemic of COVID-19
encourages people to make contactless payment to avoid virus infection via physical
contact. Consumers perceived the easiness and flexibility features of e-wallet suits the
LBIFf 19(2), pp. 64-78.
74
practice required in the new norm, which had influenced their intention to use e-wallet in
performing payment transactions.
Also, Facilitating Conditions remain significant in influencing consumers’ intention
to use e-wallet during the COVID-19 pandemic. This finding disagrees with recent
studies conducted by Yang et al. (2021) and Lin et al. (2019). Nevertheless, the finding
of this study is consistent with Laywilla et al. (2020) and Patel (2016). The rapid changes
in technology have enabled technology knowledge, and its related devices became
everyday things in daily life. Thus, e-wallet service providers must create an e-wallet
product that provides convenience support, especially during this pandemic.
However, the pandemic situation had changed consumers' perception of Social
Influence with regards to e-wallet usage. Social Influence in this study is found to have
an insignificant relationship with consumers' intention to use e-wallet. The finding of this
study is in contrast with recent studies by Yang et al. (2021) and Laywilla (2020). This
study specifically focused on the COVID19 pandemic situation, indicated that people are
now aware and started to practise the new norm of living. In other words, Social Influence
lost it effect on the intention to use e-wallet during the pandemic of COVID19 because
of the pandemic situation that requires people to keep physical distancing and practice
contactless payment. Moreover, the Government continuous campaign to encourage the
usage of e-wallet had successfully attracted consumers. The individual maturity towards
technological matters and awareness of the COVID-19 outbreak may be the reason for
the irrelevancy of Social Influence in influencing consumers’ intention to use e-wallet.
6. CONCLUSION
The current study provides evidence on a moderate to high level of intention among
consumers in Kuala Lumpur to use e-wallet during the pandemic of COVID-19. To date,
there are over 45 e-wallet products available in Malaysia. Having too many e-wallet
products may also low down the curve of e-wallet usage (PricewaterhouseCoopers,
2018). Thus, the Government and system developers may have to look into this matter
and consider a platform that capable of integrating all e-wallet products in one (1), to
maintain its benefits and favourable features.
Furthermore, the Performance Expectancy, Effort Expectancy and Facilitating
Conditions of e-wallet are significantly influence consumers' intention to use this type of
payment during the pandemic of COVID-19. Through e-Panjana and continuous
campaign on e-wallet with the new norm of living, the Government initiative has shown
in the raised of awareness among consumers to stay safe by minimising physical contact
in public area and perform a cashless transaction. Subsequently, the pandemic situation
had boosted the number of e-wallet users. The findings of this study offer important
elements and features that must have in an e-wallet product. Therefore, service providers
of an e-wallet product should focus on the benefits of productivity, convenience and speed
(Performance Expectancy), easiness and flexibility (Effort Expectancy) and support
system (Facilitating Conditions), in order to stay relevant in the market of cashless
system.
This study has several limitations. First, this study only focused on the consumers in
the Kuala Lumpur area. Second, this study assessed the level of consumers’ intention to
use e-wallet during the pandemic of COVID-19 using descriptive analysis. Thus, future
study should consider broader context such as Malaysia or Asia and conduct a statistical
analysis on the level of consumers' intention to use e-wallet.
LBIFf 19(2), pp. 64-78.
75
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