The Impact of Cashless Payment in Application-Based Transportation on Gen Z User Behavior in Jakarta

Abstract

Many industrial sectors, including transportation, have seen a series of adjustments or changes because of technological advancements. The traditional mode of transportation, particularly on land, is now application-based. This provides several advantages, including flexibility, convenience, speed, and security. This is also influencing payment methods for these app-based transportation services. Transportation service providers, including one of them, continue to promote the use of this cashless method through promotion or a loyalty point program for service users. This is undeniably appealing to its users, particularly those born after the year 2000. The purpose of this study is to examine the behavior of users who switch to cashless payment methods and the impact on their behavior. Using SmartPLS 3.0 structural modeling and 120 participants in Jakarta, we used application-based transportation services from generation Z. According to the findings of this study, four hypotheses are accepted and three are rejected. This study specifically explains that switching costs have a significant impact on switching decisions. Furthermore, this study demonstrates that the decision to switch has a significant impact on user satisfaction. User satisfaction is significantly influenced by attitude promotion. According to the study's other findings, attitude toward promotion does not moderate the effect of switching costs on switching decisions. The limitations of this study stem from the use of variables that only use transitional forming factors, and satisfaction is based solely on attitude variables and transitional drivers from the promotion aspect. Meanwhile, other variables such as price competition from application-based transportation service providers or the number of competitors may have a different impact, enriching the study's findings. Another suggestion for future research is to cover research areas with sample sizes from different generations.