FACTORS AFFECTING INTENTION TO USE “SAKUKU” E-WALLET OF GENERATION Y IN INDONESIA Jerry M. Logahan 1) Maulana Viliano 2) School of Strategic and Global Study, University of Indonesia 1) Universitas Pelita Harapan, Banten Indonesia 2) Contact: jerrymarcellinus@yahoo.com , Vilianom@yahoo.com Abstract To succeed in the retail banking business, the bank must continue to innovate and apply the latest technologies into their business to meet the various needs of customers. While many banks have a tendency to provide banking application services to its customers, generation Y is a very potential market segments, especially the latest services and are phenomenal so- called e-wallet or electronic money with a smartphone device. Therefore, this study was conducted in order to evaluate the factors that affect on intention to use Sakuku e-wallet of Generation Y (Gen Y). Based on the Technology Acceptance Model - TAM, and previous research journals that serve as a reference, we propose a model research with five direct and indirect factors that affect on intention to use Sakuku e-wallet of generation Y. This research was conducted in Indonesian territory involving 100 respondents aged 16 s / d 35 years, have a smartphone and non Sakuku users. The data collection is done by distributing a questionnaire containing 26 questions with Likert scale of 1 - 5. The data was analyzed by SEM-based PLS. After analyzing the data collected from our survey, we showed five significant factors, and two of them have the most powerful affect to increase intention to use Sakuku e-wallet of the Y generation in Indonesia. According to these findings, we propose some managerial advice that can be applied by the bank to increase the number of users of Sakuku e-wallet on the Y generation in Indonesia. Keyword: perceived usefulness, perceived ease of use, attraction, risk, attitude towards behavior, intention to use. 1. Introduction Indonesia is a potential market of retail banking as the number of Indonesia's population is 255 million, number four in the world (IndonesiaInvestmen.com, 2016). The Central Statistics Agency (BPS) launch per capita income Indonesia IDR 45.18 million per year per capita in 2015 (Kompas.com, 2016). Financing demand is increasing rapidly. In 2014, there were approximately 57.9 million SMEs in Indonesia, and in 2016 is expected to continue to grow (Merdeka.com, 2014). Be aware that a large number of banks in Indonesia focused on individual customers, banking products and services continue to change, implement new technologies into their business because it plays an important role in meeting the various demands of a large number of customers. However, not all individuals had access to banking services that already exist today. Customers' needs will be the means to conduct transactions is increasing and increasingly required to be able to answer the needs of today's consumers, especially for the younger segment or Generation Y (Gen-Y). Gen-Y is the generation born after 1980 to 2000.