PUSH AND PULL FACTORS AFFECTING TO THE DECISION TO SWITCH TO THE MOBILE PAYMENT SYSTEM IN JABODETABEK AREA

Abstract

The mobile payment system provides a faster, more convenient, and safer experience than the existing payment method of carrying cash or a credit card. The purpose of this study is to analyze the factors that induce various users to use mobile payments in their daily lives in Jabodetabek Area. This study employed four PUSH factors (Dissatisfaction, Situational Influence, Facilitating Conditions and Fear of Missing Out) and four PULL factors (Perceived Convenience, Deal Proneness, Perceived Usefulness, and Perceived Security) were set as independent variables, and the effects of these variables on users' behavioral decision were analyzed. The online survey was conducted among residents aged 17 and over living in Jabodetabek Area, and the data collected from 262 people were analyzed using a structural equation model (SEM). The results explain that Dissatisfaction and Fear of Missing Out are significant PUSH factors for conversion to mobile payment use. It also shows that Perceived Convenience, Deal Proneness, and Perceived Usefulness are PULL Factors that make users decide to switch to mobile payments. On the other hand, Situational Influence, Facilitating Condition, and Perceived Security were analyzed to have no significant effect on decision adoption. This study provides insight into consumer behavior and can be used as a reference for building the digitization of the payment system as quickly as possible.