Financial Literacy and Mobile Payment Usage as Financial Inclusion Determinants

Abstract

Indonesia is categorized as a low level of financial literacy and inclusion when it is being compared to the population. However, it could be risen by trending technology utilization, namely Financial Technology (Fintech), in which mobile payment (m-payment) is one of the instruments. Therefore, the objective of our research is to examine financial literacy and mobile payment usage as financial inclusion determinants. The model of this research involved three indicators of financial literacy and two variables of TAM to indicate m-payment usage as technology adoption. We used primary data by spreading the questionnaire to 100 respondents, in which using the Slovin formula to decide this research sample. Multiple linear regression is employed for data analysis using SPSS 23. The results proved that financial knowledge, financial behavior, perceived usefulness, and perceived ease of use of mobile payments have a positive impact and statistically significant to financial inclusion. Meanwhile, a negative impact and statistically insignificant financial attitudes to financial inclusion are proved as well. Overall, better financial literacy and high usage of mobile payment may increase financial inclusion, especially in the Jabodetabek area. Our research paper contributes valuable insights to the Indonesian government, financial technology association, and the users.