Investigating the drivers of digital wallet adoption in developing countries: Indonesia perspective

The digital wallet industry in Indonesia has been growing rapidly, makes the competitiveness of digital wallet market higher than before. However, the digital wallet adoption rate in Indonesia is still low and the number of in-depth studies exploring the adoption of digital wallet in Indonesia are still limited. This study aims to explore reasons for individuals to use digital wallet in Indonesia through a quantitative study. The proposed model in this research combines technology acceptance model (TAM) with prior experience, promotional benefits, and perceived security. The model tested by partial least square - structural equation modelling (PLS-SEM) using SmartPLS software. The research results from 421 respondents indicated that digital wallet adoption influenced by various reasons related to attitude toward using, perceived of usefulness, perceived ease of use and prior experience among others. The study findings indicate that the influence of prior experience on individual’s decision to use digital wallet in Indonesia appear to be the most important. The outcomes of this study enhance the current knowledge about the digital wallet adoption particularly in Indonesia. They can also be used by financial company to devise appropriate strategies to encourage wider adoption of digital wallet.