Analysis of Factors Affecting Interest in Using Digital Payment

Methods in E-wallet in Denpasar City

I Wayan Eka Arimbawa1, AA's Istri Ita Paramitha2, Ni Made Estiyanti3
1,2,3
STMIK Primakara
ek4arimbawa@gmail.com, ita@primakara.ac.id, estiyanti@primakara.ac.id

Abstract Keywords
E-wallet; LinkAja; Technology
This research was conducted to obtain the results of the factors
Acceptance Model; Interest in
that affect a person's interest in using the LinkAja e-wallet,
Use; SEM PLS.
especially in the Denpasar city area, using the TAM (Technology
Acceptance Model) model. This study used three main variables
from TAM and four additional variables from previous studies'
results. In this study, data were obtained directly from parties
related to distributing questionnaires, for the number of samples
used were 120 respondents using the area sampling technique. In
this area sampling technique, 120 samples were divided based on
four areas in the city of Denpasar. Thus, the sample used for each
area was 30. The data obtained were analyzed using the Partial
Least Square (PLS) method using smartPLS software. The results
of the tests carried out indicate that the accepted hypothesis is the
computer self-efficacy variable on the perceived usefulness and
perceived easy of use variables, the culture variable on perceived
usefulness, the perceived security variable on trust, the perceived
usefulness variable on attitude toward using, the perceived ease of
use variable on perceived usefulness and attitude toward using,
attitude toward using a variable on behavioural intention to use
the variable, trust variable on behavioural intention to use the
variable. Then there are also the results of the rejected hypothesis
with a positive but not significant effect on the interest in using the
LinkAja e-wallet, namely the culture variable on the perceived
usefulness variable.

I. Introduction

The development of technology has developed very rapidly. This rapid technological
development cannot be separated from increasingly complex human needs and human
dissatisfaction, which causes science to develop from time to time. With the support of
science and technology that is constantly updated, it produces innovations that always
make human life more manageable. These technological developments, of course, can now
be felt in everyday life, where currently, almost all sectors have used technology to provide
convenience in carrying out activities. One of several sectors that have been touched by
technology today is the financial sector, the technology in this financial sector that is best
known by the public is Fintech (Financial Technology). Fintech can be defined as an
industry that utilizes technology to support the financial system and delivery of financial
services more effectively and efficiently. The trigger for this technological development is
because of the development of technology and the internet since 1966. In the 80s, it started
to run in the banking and business finance sector, which can be accessed through the
internet network. Human Resources (HR) is the most important component in a company

23151
______________________________________________________________
DOI: https://doi.org/10.33258/birci.v5i3.6330
 Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume 5, No 3, August 2022, Page: 23151-23160
e-ISSN: 2615-3076 (Online), p-ISSN: 2615-1715 (Print)
www.bircu-journal.com/index.php/birci
email: birci.journal@gmail.com

or organization to run the business it does. Organization must have a goal to be achieved
by the organizational members (Niati et al., 2021). Development is a change towards
improvement. Changes towards improvement require the mobilization of all human
resources and reason to realize what is aspired (Shah et al, 2020). The development of
human resources is a process of changing the human resources who belong to an
organization, from one situation to another, which is better to prepare a future
responsibility in achieving organizational goals (Werdhiastutie et al, 2020).
Indonesia is currently a country that has supported the implementation of Fintech,
one of which is in terms of using payment methods. This is evidenced by the inauguration
of the GNTT (National Non-Cash Movement) by the Governor of Bank Indonesia Agus
DW Martowardojo, on Thursday, August 14, 2014, in Jakarta, one of which is aimed at
reducing and replacing the cash payment method. LinkAja is one of the payment method
platforms and, at the same time, an application platform for digital-based wallets (e-
wallets) in Indonesia that has been registered with Bank Indonesia based on Bank
Indonesia Permit Number 21/65/DKSP/B dated February 21, 2019.
LinkAja has developed a target user in the micro-business world to help reduce
payments using cash and provide alternative payments via e-wallet, namely the QRIS
feature. However, from the results of the snap card in 2020, at which time a survey was
conducted on respondents in Indonesia with the results of Shopee being e-wallet with a
percentage (50%), then followed by others, namely Ovo (23%), Gopay (12%) Dana (12%)
and LinkAja (3%). This indicates that user interest in the LinkAja application can still not
compete with the other four e-wallets in the survey. In addition, a study found that the total
transactions using e-wallets are only about 1% of the total transactions using electronic
payments in Indonesia.
Thus, of course, there is a need for an increase in understanding of the needs of users
in order to create a more significant service quality improvement and an increase in interest
in an e-wallet, especially LinkAja. Achieving this requires knowledge of the factors
influencing an applicant's interest and behaviour, such as an e-wallet. One widely used
model to analyze the level of acceptance and use of an e-wallet is TAM (Technology
Acceptance Model of Use, Actual System Usage, Attitude Toward Using, Behavioral
Intention to Use. The following is the original form or model of TAM issued by (Davis et
al., 1989)

Source: (Davis et al., 1989)

Figure 1. Original Model of TAM

Research related to e-wallets with this model has also been carried out by several
researchers earlier. Some of these researchers, for example, are research with the title
"Perception of usability, perception of ease of use, perception of security, and perception
of compatibility with intentions to use mobile payment in Indonesia", which was carried
out in 2019 by Hari Rizki Ananda in Yogyakarta, the results of this study show that

23152
perceived usefulness and perceived ease of use have a positive and significant effect on
interest in using mobile payments.
Based on this explanation, the researcher also intends to research the e-wallet using
the theory from TAM, with a case study on the LinkAja application platform. The
researcher uses the LinkAja Platform is bese based on the description of the Snapchat
survey above; it is stated that LinkAja has the lowest position. In this study, the researcher
plans to use one of the cities in Bali, Denpasar, as the research location. Researchers chose
this location based on research conducted by Gusi Putu Lestara Permana, Hesty Pahlevy
Setyo Rini. I Gusti Ngurah Darma Paramartha, in February 2021, explained that the city of
Denpasar is the centre of all community activities in Bali, so Denpasar City is the main
target for researching user behaviour in the use of e-wallets. It can also be said that the
people in Denpasar City are pretty familiar with this e-wallet application. In addition, in
Denpasar City, there has been an inauguration of the Quick Response Indonesia Standard
(QRIS) service for BPD Bali to promote non-cash transactions held at the 12th Denpasar
Festival (Denfest) on Saturday, December 28, 2019 [8]. Therefore, this research is entitled
"Analysis of factors that influence the interest in using digital payment methods in e-wallet
in Denpasar" with a case study on the e-wallet LinkAja

II. Research Method

The research method used in this study is using quantitative methods. In general,
quantitative methods consist of survey methods and experimental methods. [9].
The type of data used to conduct this research is the type of quantitative data. This
research uses primary data sources; the data is obtained directly from respondents related
to this research.

III. Result and Discussion

3.1 Respondent
Processing Data processing in this study uses the SEM-PLS technique by using tools
or test equipment in the form of software called SmartPLS. The following are the steps
taken in this method:
a. Model Design
The initial stage carried out is by making an initial design in the form of an inner
model and also an outer model. The inner model is formed by connecting one variable to
another, then for the outer model by connecting the latent variable with the indicator of the
variable. This model is designed on smartPLS software, the following is the model created
in this study:

23153
 Figure 3. Model Design

b. Evaluation Model
Evaluation of the model is carried out to verify the observed variables (indicators)
and latent variables, this is done before the hypothesis testing stage is carried out. This
stage is done by testing the outer and inner models that have been designed. Testing is
done using smartPLS software.

3.2 Outer Model

Test The outer model test (measurement model) is used to determine the
specification of the relationship between latent variables and their indicators, this test
includes convergent validity, discriminant validity and composite reliability.
a. Outer Model
Convergent validity is obtained from the loading factor value (indicator value)
resulting from the calculation of the PLS Algorithm smartPLS. The loading factor obtained
for each indicator must be > 0.7 [11]. If an indicator obtains a loading factor value of <0.7
then the indicator must be eliminated from the measurement model. In this study, there are
two indicators that have an indicator value below 0.7. The first indicator is the Flexible
level indicator (Y2.5) which underlies the measurement of the latent variable culture and
the Interaction level indicator (X3.1) which underlies the measurement of the latent
variable attitude toward using. Therefore, these 2 indicators are eliminated from the model
and recalculated on the remaining indicators. After recalculation, the following results are
obtained:

Figure 4. The results of factor loading after elimination

23154
b. Discriminant Validity
Discriminant validity is a value based on cross loading or correlation between
indicators and other latent variables. Discriminant validity was assessed based on cross
loading with a reference value > 0.7. Based on the results of data processing shows that the
overall correlation value of each variable observed with the latent variable> 0.7.

c. Composite reliability
Composite reliability is the value of an indicator that is able to provide a
measurement of the latent variables owned. The value of composite reliability is > 0.7 so
that the latent variables in the model can be said to be reliable.

Table 4.Composite Reliability

Composite
X1 0.851
X2 0.870
X3 0.873
Y1 0.857
Y2 0.891
Y3 0.865
Y4 0.913
Y5 0.917
_ Reliability.

3.3 Inner Model

Test The inner model test is conducted to determine the R-Square value. The R-
Square output results are obtained from the PLS Algorithm calculation on the smartPLS
software. The following is the R-Square output obtained:

Table 5. R-Square
R-Square
X1 -
X2 -
X3 -
Y1 0.430
Y2 0.401
Y3 0.381
Y4 0.489
Y5 0.570

The following is an explanation of the R-Square table shown above:

a. In the model that has been made in this study, the endogenous variable Y1 has an R-
Square value of 0.430. This means that the variables X1, X2, and Y2 in the model that
have been made are able to influence the Y1 variable as much as 43% and the rest are
influenced by other variables outside the model.

23155
b. In the model that has been made in this study, the endogenous variable Y2 has an R-
Square value of 0.401. This means that the variables X1 and X2 in the model that have
been made are able to influence the Y2 variable as much as 40.1% and the rest are
influenced by other variables outside the model.
c. In the model that has been made in this study, the endogenous variable Y3 has an R-
Square value of 0.381. This means that the variables Y1 and Y2 in the model that have
been made are able to influence the Y3 variable as much as 38.1% and the rest are
influenced by other variables outside the model.
d. In the model that has been made in this study, the endogenous variable Y4 obtains an R-
Square value of 0.48.9. This means that the X3 variable in the model that has been made
is able to influence the Y4 variable as much as 48.9% and the rest is influenced by other
variables outside the model.
e. In the model that has been made in this study, the endogenous variable Y5 has an R-
Square value of 0.570. This means that the variables Y3 and Y4 in the model that have
been made are able to influence the Y5 variable as much as 57% and the rest are
influenced by other variables outside the model.

3.4 Hypothesis Testing Hypothesis

Testing was carried out using the boostraping method which was run from the
smartPLS software. This step is done to see the relationship and influence between
variables. By using this boostraping method, the output results in the form of path
coefficients and t-test statistics can be obtained. In this study the path coefficient is used as
a benchmark whether the relationship between variables has a positive or negative
influence, provided that if a value is obtained from -1 to 0 then the variable is said to have
a negative influence and if the range of values is obtained from 0 to 1, the variable is said
to have a positive influence. For statistics, the t test is used to provide an overview of
whether the hypothesis made can be accepted or not (rejected). The hypothesis will be
accepted if the value of t statistic < t table (1.96), but otherwise the hypothesis is rejected
[11]. The output results of bostraping can be seen in the following table:

Table 6. Output Boostraping

Original T Statistics
Sample
(O)
X1 -> Y1 0.247
1.789
2.611
X1 -> Y2 0.535 6,371
X2 -> Y1 0.158 0.208
X2 -> Y2 3,294 X3
-> Y4 Y1 0.699 15.268
-> Y3 2.866 0.287
Y2 -> Y1 0.393 4,412
Y2 -> Y3 Y3 0.401 3,898
-> Y5 0.463 5,969
Y4 -> Y5 0.414 4,863

23156
 The following is an explanation of the boostraping output table:

a) Effect of computer self efficacy (X1) variable on variables perceived usefulness (Y1)
In table 6 it is shown that the path coefficient value on the X1 variable to Y1 has a range
of 0 to 1 which is 0.247, this proves that there is a positive between the X1 variable and
Y1. Then it is also shown that there is a significant relationship between the X1 variable
and the Y1 variable, this is proven because the t statistic > t table is 2.611 > 1.96. Thus
it can be concluded that hypothesis H1 can be accepted while hypothesis H0 is
rejected. This means that computer skills affect the user's perception of using the
LinkAja application that it can improve performance.
b) The effect of the computer self efficacy variable (X1) on the perceived easy of use
variable (Y2).
Table 6 shows that the path coefficient value on the X1 variable to Y2 has a range of 0
to 1 which is 0.535, this proves that there is a positive between the X1 variable and Y2.
Then it was also shown that there was a significant relationship between X1 and Y2.
This was proven because the value of t statistic > t table, which was 6.371 > 1.96. Thus,
it can be concluded that hypothesis H2 can be accepted while hypothesis H0 is
rejected. This means that the skill of using a computer affects the user's perception of
using the LinkAja application that it can improve performance.
c) The influence of the culture variable (X2) on the perceived usefulness variable (Y1).
In table 6 it is shown that the path coefficient value on the X1 variable to Y1 has a range
of 0 to 1 which is 0.158, this proves that there is a positive between the X2 variable on
Y1. Then it is also shown that there is an insignificant relationship between the X2
variable and the Y1 variable, this is proven because the t statistic value < t table is 1.789
< 1.96. Thus it can be concluded that hypothesis H3 is rejected while hypothesis H0 is
accepted. This means that the culture (internet experience) of the LinkAja application
will not affect the user's perception of the usefulness of the LinkAja application to
improve performance.
d) The influence of the Culture variable (X2) on the perceived easy of use variable (Y2).
In table 6 it is shown that the path coefficient value on the X2 variable to Y2 has a range
of 0 to 1 which is 0.208, this proves that there is a positive between the X2 variable on
Y2. Then it is also shown that there is a significant relationship between the X2 variable
and the Y2 variable, this is proven because the value of t statistic > t table is 3.298 >
1.96. Thus, it can be concluded that the H4 hypothesis can be accepted while
hypothesis H0 is rejected. This means that the culture (experience of using the internet)
of the LinkAja application will affect the user's perception of the ease that LinkAja
offers in carrying out tasks.
e) The effect of the perceived security variable (X3) on the trust variable (Y4).
In table 6 it is shown that the path coefficient value on the X3 variable to Y4 has a range
of 0 to 1 which is 0.699, this proves that there is a positive between the X3 variable on
Y4. Then it is also shown that there is a significant relationship between the X3 variable
and the Y4 variable, this is proven because the t statistic value > t table is 15.268 > 1.96.
Thus it can be concluded that hypothesis H5 can be accepted while hypothesis H0 is
rejected. This means that the security perception of the LinkAja application will affect
the trust of linkAja users to use the LinkAja application.
f) The effect of the perceived usefulness variable (Y1) on the attitude toward using (Y3)
variable.
Table 6 shows that the path coefficient value on the Y1 variable to Y3 has a range of 0
to 1, which is 0.287, this proves that there is a positive between the Y1 variables and

23157
 Y3. Then it was also shown that there was a significant relationship between the Y1
variable and the Y3 variable, this was proven because the t statistic value > t table,
which was 2.66 > 1.96. Thus it can be concluded that hypothesis H6 can be accepted
while hypothesis H0 is rejected. This means that users will show an attitude of
accepting or rejecting the use of the LinkAja application based on the benefits offered
by the LinkAja application to complete tasks.
g) The effect of the perceived easy of use variable (Y2) on the perceived usefulness
variable (Y1).
In table 6 it is shown that the path coefficient value on the Y2 variable to Y1 has a range
of 0 to 1 which is 0.393, this proves that there is a positive between the Y2 variable on
Y1. Then it was also shown that there was a significant relationship between the Y2
variable and the Y1 variable, this was proven because the t statistic value > t table,
namely 4.412 > 1.96. Thus it can be concluded that hypothesis H7 can be accepted
while hypothesis H0 is rejected. This means that the perception of the ease felt by users
in using the LinkAja application can affect the perception of the benefits of the LinkAja
application itself.
h) The influence of the perceived easy of use (Y2) variable on the attitude toward using
(Y3) variable.
i) Table 6 shows that the path coefficient value on the Y2 variable to Y3 has a range of 0
to 1, which is 0.401, this proves that there is a positive between Y2 and Y3 variables.
Then it was also shown that there was a significant relationship between Y2 and Y3
because the value of t statistic > t table was 4.898 > 1.96. Thus it can be concluded that
hypothesis H8 can be accepted while hypothesis H0 is rejected. means that the
perceived ease of use by users in using the LinkAja application can affect the attitude of
rejection or acceptance in using the LinkAja application itself.
j) The effect of the attitude toward using (Y3) variable on the behavioral intention to use
(Y5) variable.
Table 6 shows that the path coefficient value on the Y3 variable to Y5 has a range of 0
to 1, which is 0.463, this proves that there is a positive between the Y3 variable and Y5.
. Then it is also shown that there is a significant relationship between Y3 and Y5, this is
proven because the value of t statistic > t table is 5.969 > 1.96. Thus, it can be
concluded that hypothesis H9 can be accepted while hypothesis H0 is rejected. This
means that the attitude towards the use of the LinkAja application by its users can
automatically affect the interest in using the LinkAja application in completing tasks.
k) The effect of trust (Y4) on the behavioral intention to use variable (Y5)
In table 6 it is shown that the path coefficient value on the Y4 variable to Y5 has a range
of 0 to 1, which is 0.414, this proves that there is a positive between the Y4 variable and
Y5. Then it is also shown that there is a significant relationship between Y4 and Y5,
this is proven because the value of t statistic > t table is 4.863 > 1.96. Thus, it can be
concluded that the H10 hypothesis can be accepted while the H0 hypothesis is
rejected. This means that trust in the use of the LinkAja application by its users can
automatically affect the interest in using the LinkAja application in completing tasks.

23158
 IV. Conclusion

Based on the research results from the hypothesis test that have been described, this
study concludes that there is an accepted hypothesis with a positive and significant impact
on the interest in using the LinkAja e-wallet. The accepted hypotheses are:
1. Hypothesis 1 (X1->Y1) acceptedvariable computer self efficacy (computer skills) has a
positive effect on the perceived usefulness (perceived usefulness)
2. Hypothesis 2 (X1->Y2) acceptedvariable computer self efficacy (computer skills) has a
positive effect on the perceived easy of use (perceived ease of use)
3. Hypothesis 4 (X2->Y2) acceptedvariable culture (culture) has a positive effect on the
perceived easy of use (perceived ease of use)
4. Hypothesis 5 (X3 ->Y4) accepted, the perceived security has a positive effect on the
trust.
5. Hypothesis 6 (Y1->Y3) accepted, the perceived usefulness has a positive effect on the
attitude toward using (attitude)
6. Hypothesis 7 (Y2->Y1) accepted, the variable easy of use (perception of convenience)
has a positive effect on the variable perceived usefulness (perception of use)
7. Hypothesis 8 (Y2->Y3) accepted, the variable easy of use (perceived ease) has a
positive effect on the variable perceived attitude toward using (attitude)
8. Hypothesis 9 (Y3->Y5) accepted, the variable attitude toward using (attitude) has a
positive effectvariable behavioral intention (interest)
9. Hypothesis 10 (Y4->Y5) accepted, the trust has a positive effect on the behavioral
intention (interest).
These hypotheses are accepted because the results of hypothesis testing with the
boostraping on software show that t statistic obtained is greater than t table (1.96).
Then there are also the results of the rejected hypothesis with a positive but not
significant effect on the interest in using the LinkAja e-wallet, namely, Hypothesis 3 (X2-
>Y1) rejected, the culture has a positive effect on the perceived usefulness. The hypothesis
was rejected because the results of hypothesis testing using the boostraping on smartPLS
showed that the t-statistical value obtained was smaller than t-table (1.96), the t-statistical
value of the culture on the perceived usefulness was 1.789.

References

A. Husaini. (2020). "Riset Snapcart: Shopee paling diminati dan jadi pilihan konsumen
belanja," Kontan.co.id, 4 Juli. [Online]. Available:
https://industri.kontan.co.id/news/riset-snapcart-shopee-paling-diminati-dan-jadi-
pilihan-konsumen-berlanja.
AM Musyaffi, H. Khairunnisa and DK Respati. (2022). KONSEP DASAR
STRUCTURAL EQUATION MODEL- PARTIAL LEAST SQUARE (SEM-PLS)
MENGGUNAKAN SMARTPLS, Tanggerang Selatan: Pascal Books.
FD Davis, WRP and P. R. (1989). "User Acceptance of Computer Technology," A
Comparasion of Two Theoritical Models, vol. 35, no. 8, pp. 982-1003.
FK Nusantara. (2019). "Merchant," Fintek Karya Nusantara, 21 Januari. [Online].
Available: https://www.linkaja.id/merchants.
GPL Permana. (2021). HPS Rini and IGND Paramartha, "Fintech Dari Perspektif Perilaku
User Dalam Penggunaan E-Wallet Dengan Menggunakan Technology Acceptance
Model (TAM)," Widya Akuntansi dan Keuangan.
HR Ananda. (2019). "Persepsi kegunaan, persepsi kemudahan menggunakan, persepsi

23159
 keamanan, dan persepsi kompatibilitas terhadap intensi menggunakan layanan
mobile payment di Indonesia.
M. Alfarizi, RK Hanum and SA Hidayat. (2021). "Optimizing The Use Of Sharia Digital
Transactions To Support Indonesia's Ecomomic Recovery," Jurnal Ilmu Ekonomi
Terapan, pp. 122-132.
Maghfira. (2018). "Faktor-faktor yang mempengaruhi penggunaan sistem pembayaran Go-
Pay.
Niati, D. R., Siregar, Z. M. E., & Prayoga, Y. (2021). The Effect of Training on Work
Performance and Career Development: The Role of Motivation as Intervening
Variable. Budapest International Research and Critics Institute (BIRCI-Journal):
Humanities and Social Sciences, 4(2), 2385–2393.
https://doi.org/10.33258/birci.v4i2.1940
NLWSR Gintara, J. Simarmata, RA Purba, MY Tojiri, AA Duwila, MNH Siregar, . LE
Nainggolan, EL Marit, A. (2020). Sudirman and I. Siswanti, Teknologi Finansial:
Sistem Finansial Berbasis Teknologi di Era Digital, Yayasan Kita Menulis.
P. Suwardi Bambang Hermanto. (2017). "Determinan Penggunaan Aktual Perangkat
Lunak Akuntansi Pendekatan Technology Acceptance Model," Jurnal Akuntansi dan
Keuangan.
R. Search. (2018). "Pengertian metode Penelitian dan Jenis-Jenis Metode Penelitian,"
Ranah Publisher. [Online]. Available: https://ranahresearch.com/metode-penelitian-
dan-jenis-metode-penelitian/. [Accessed 24 Agustus 2021].
S. Djoyohadikusumo. (2017). "PENGARUH CUSTOMER SATISFACTION TERHADAP
CUSTOMER LOYALTY PADA PEMBELIAN TIKET ONLINE PESAWAT DI
SURABAYA," Jurnal Ilmiah Mahasiswa Universitas Surabaya, vol. 6, no. 2.
S. Megadewandanu and dkk. (2016). "Exploring Mobile Wallet Adoption in Indonesia
Using UTAUT2,".
SE Farahdiba. (2019) "Analisi faktor-faktor yang memengaruhi minat pengguna e-wallet
(electronic wallet) sebagai alat transaksi terhadap mahasiswa di Yogyakarta (Studi
Kasus: Mahasiswa Pengguna Layanan E-wallet OVO di Yogyakarta),".
Shah, M. M., et al. (2020). The Development Impact of PT. Medco E & P Malaka on
Economic Aspects in East Aceh Regency. Budapest International Research and
Critics Institute-Journal (BIRCI-Journal) Volume 3, No 1, Page: 276-286.
Werdhiastutie, A. et al. (2020). Achievement Motivation as Antecedents of Quality
Improvement of Organizational Human Resources. Budapest International Research
and Critics Institute-Journal (BIRCI-Journal) Volume 3, No 2, Page: 747-752.

23160