Individual Factors As Antecedents of Mobile Payment Usage Radinal Setyadinsa Faculty of Computer Science Universitas Indonesia Depok, Indonesia radinals@gmail.com Muhammad Rifki Shihab Faculty of Computer Science Universitas Indonesia Depok, Indonesia shihab@cs.ui.ac.id Yudho Giri Sucahyo Faculty of Computer Science Universitas Indonesia Depok, Indonesia yudho@cs.ui.ac.id Abstract— The aim of this research was to discover the stances of individual elements as antecedents of mobile payment usage. Data was gathered by distributing a questionnaire, which in latter steps was analyzed quantitatively. This research collected 90 samples, of whom represented users of a mobile payment service in Indonesia. The collected dataset was statistically analyzed, by employing partial least square structural equational modelling (PLS- SEM), aided with SmartPLS3.0. The results showed that two types of individual factors, namely individual difference and behavioral belief played significant roles in shaping users’ intention to use mobile payments. Individual differences, consisting of mobile payment knowledge and compatibility significantly influenced perceived ease of use. Behavioral belief, such as trust, was shown to significantly influenced perceived usefulness. Finally, perceived ease of use and perceived usefulness concertedly affected mobile payment users’ intention to use. Keywords—PLS, SEM, Mobile Payment, Individual I. INTRODUCTION In recent years, more consumers have conducted purchase transactions over the Internet [1], and have led to an increase of customer demands toward a novel payment instrument that allows for mobility to increase convenience, more specifically in small transactions [2]. Since August 2014, the Governor of Indonesia’s Central Bank declared the "Non-Cash National Movement” which aims to increase public awareness of non-cash instruments, thereby gradually moving towards a less-cash society. Despite the ample benefits of using mobile payment services, its adoption in Indonesia is still relatively low. MasterCard Mobile Payments Readiness Index (MMPRI) in 2012 ranked Indonesia 33rd out of 34 countries in the mobile payment readiness survey, placing Indonesia’s consumers as ‘below average’ in terms of familiarity, frequency and willingness to use mobile payment services [3]. This can also be seen in the lack of availability of payment method options using mobile payment or electronic money in Indonesia. Such predicament led the authors to raise the main question in this research, namely, what factors affect Indonesians in using mobile payment services? This research will look more specifically at individual factors and its roles in shaping consumers’ behaviors of mobile payment adoption? There are some previous works that have investigated behavioral aspects of mobile payments adoption. For example, the work of [1] investigated the antecedents of mobile payment and its intention to use in Vietnam, from the perspectives of mobility, convenience, and compatibility. Other researchers focused on comparing individualities and mobile payment system characteristics [4]. Other researchers, such as [5] focuses on examining the roles of attitude, subjective norm and perceived behavioral control in shaping interests of using mobile payment services. In this research, individual factor is first loosely understood as anything or circumstance that may influence an individual to do something. This research differs individual factors as individual difference and behavioral belief. Hence, the goal of this study is to elaborate the roles of individual precursors, namely individual difference and behavioral belief, towards consumers’ intention to use mobile payment. II. HYPOTHESES DEVELOPMENT Previous studies were analyzed to obtain a theoretical framework for this research. A visual representation of the underlying research model is portrayed in Figure 1. The hypothesis projected herein are elaborated below: Fig. 1. Underlying Research Model According to [6], mobile payment knowledge can be defined as knowledge or information concerning the way payment systems are utilized on mobile devices, connected to a mobile communications networks, to induct, approve and approve commercial transactions. Given the popularity of mobile devices, it is very important to understand if those who are users of mobile devices are likely to conduct transactions through mobile payment services. Other research previously conducted has shown the impacts of the level of knowledge concerning mobile payment on the ease of use of mobile payment services [1]. Individuals with higher levels of knowledge concerning mobile payment tend to find the mobile payment service easier to use than those with less knowledge [4]. Customers will find it easier to utilize mobile payment services given a superior degree of knowledge concerning the relevant mobile payment tools [1]. Thus, this research proposes the following hypothesis: This Research was funded by the 2018 PITTA Grant, Universitas Indonesia, Contract Number: 1887/UN2.R3.1/HKP.05.00/2018 Proceeding of EECSI 2018, Malang - Indonesia, 16-18 Oct 2018 978-1-5386-8402-3/18/$31.00 ©2018 IEEE 514 brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by Proceeding of the Electrical Engineering Computer Science and Informatics