The impact of expectation confirmation, technology compatibility, and customer’s acceptance on e-wallet continuance intention

Abstract

The adoption of e-wallet service is on the rise among Indonesian customers. People use e-wallet because it is convenient, more secured, and offers advantages over physical cash. In line with the growth of e-wallet adoption, the number of e-wallet services in Indonesia has increased to more than 50 providers in 2020. This situation leads to a competitive market in e-wallet service. This study examines key factors affecting customer satisfaction and continuance intention to use e-wallet services and applications based on the integration of Diffusion of Innovations (DOI) theory, Technology Acceptance Model (TAM), and Expectation-Confirmation Theory (ECT). The data collected from 663 participants were analyzed based on structural equation modeling partial least square. The results show that confirmation, perceived ease of use, compatibility, and trialability have positive impacts on customer satisfaction, and perceived usefulness, satisfaction, and habit contribute to continuance intention on e-wallet. In addition, customers prioritize security over ease of use when using e-wallet and consider it part of e-wallet usefulness. Based on findings, this study recommends strategies to maintain customer’s satisfaction and to increase continuance intention, such as security prioritization on e-wallet, a customized promotion for each customer, application update based on customer’s feedbacks, and market expansion to include small and medium enterprises (SMEs).