Digital payment adoption: A revisit on the theory of planned behavior among the young generation

Abstract

This study examines how individual behavior is influenced by intentions and factors such as financial literacy, subjective norms, and perceived behavioral control. A quantitative survey was conducted with 263 respondents familiar with fintech applications, specifically digital payments, using purposive and snowball sampling technique. Empirical analysis with Smart-PLS reveals significant effects of these factors. Notably, financial literacy and perceived behavioral control significantly influence intention, whereas subjective norms shows no clear effect. Testing for indirect relationships indicates that intention serves as the sole mediator between perceived behavioral control and digital payment usage behavior. However, intention does not mediate the relationships between financial literacy and digital payment behavior or between subjective norms and digital payment behavior. This study's exploration of intention as a mediator provides valuable insights into the dynamics of these relationships, addressing a knowledge gap in management literature and contributing to the revisit of Theory of Planned Behavior in the context of digital payment adoption.