Determinants intention usage of Islamic E-Wallet Among Millennials

Abstract

Purpose: The main purpose of this study is to investigate the behavioural intention of the millennials in Malaysia toward the acceptance of Islamic e-wallet usage using Unified Theory of Acceptance and Use of Technology(UTAUT) via Structural Equation Model. Design/methodology/approach: The data have been collected by the 384 millennials in Malaysia. A person has aged between 25 until 40 years old is considered the millennials group The method that used in this paper is the Unified theory of acceptance and use of technology (UTAUT). There will be five independent variables: performance expectancy, effort expectancy, social influence, facilitating condition, and Shariah-compliant. Shariah-compliant variables have been added to the study because the study investigates the Islamic e-wallet where it is needed the Shariah-compliant elements. Before the data is analysed into measurement, preliminary analysis such as Exploratory Factor Analysis (EFA) is conducted as well. Findings: The result showed that the performance expectancy (PE), effort expectancy (EE), social influence (SI) and Shariah complaint (SC) significantly affect the Islamic e-wallet acceptance among the millennials. In addition, the Shariah complaint has a strong effect on Islamic e-wallet acceptance. In contrast, facilitating condition (FC) showed no effect on Islamic e-wallet acceptance. In this study, all the requirements for model fit were achieved. The four exogenous constructs are performance expectancy (PE), effort expectancy (EE), social influence (SI) and facilitating condition (FC). The mediating construct is behavioural intention (BI) and the endogenous is user adoption (UA). All exogenous constructs show significant p-value except for effort expectancy (EE). Research limitation/implications: This paper offers important implications specifically for the digital economy as it is currently making its way throughout every aspect in the human life, be it social, religion, financial transaction, entertainment and many more. The impact of digital economy can be traced through the emergence of Fintech. One of the least academically discussed areas is the adoption of Islamic Fintech. This study is considered necessary to explore the prediction of consumer behaviour in Islamic Fintech intention, as part of digital economy. Originality/value: The paper fills the gap perceived within the existing literature of finance technology by showing Islamic financial technology (E-Wallet) intention via model measurement.