Determinant Factors to E-wallets Adoption among Small-Sized Muslim Merchants: A Preliminary Analysis

Purpose: The purpose of this study are to determine factors influencing the small-sized Muslim merchants in Malaysia to adopt e-wallet and to validate their relationship. Design/methodology/approach: A set of questionnaires was distributed to the 380 small-sized Muslim merchants in two traditional market in Kelantan and Terengganu, Malaysia. This study employed a descriptives statistics for preliminary analysis using SPSS. Findings: The results reveal that all independent variables such as perceived usefulness, perceived ease of use trust, technology self-efficacy, government support and structural assurance are significantly positively correlated to e-wallet adoption. Research limitations/implications: This study focused on two states only, therefore the findings from this study limits its generalizability. Future research may empirically test these antecedents to other regions in Malaysia and other Muslim countries. Practical implications: This study provides valuable insight for the e-wallet providers and government as well in leveraging their strategies to increase e-wallet adoptions among small-sizes Muslim merchants and accelerating the national aspiration towards a cashless society. Originality/value: The study is the first study that comprehensively identified determinant for e-wallet adoption from merchant context that integrating both technological and religious contexts. The study confirms that the variables identified from previous researchers on customer's perspective of e-wallet adoption also applicable for merchant's context. Notably, structural assurance emerges as a new variable influencing e-wallet adoption among Muslim merchants. Keywords: e-wallet, adoption, small-sized merchants, Technology Acceptance Model, preliminary analysis.
Introduction E-wallets have emerged as a substitute for traditional cash and credit card transactions, promoting the shift to a digital, cashless economy. Essentially, an e-wallet operates like a physical wallet [...]