From Cash to Cashless: Understanding Users’ Switching Intentions from Cash to Mobile Payment Applications

Abstract

Mobile payments (MP) are the main driver for creating a cashless society in Indonesia. However, the use of this technology still does not show its significance, especially when compared to similar countries. Therefore, this study proposes a theoretical framework based on push–pull–mooring, with factors derived from motivation theory, technology acceptance model and other theories. The research findings underscore the comparison of perceived value internally (efficiency and effectiveness) and externally (discounts, rebates and others) as push and pull factors for users to switch from cash to MP. Furthermore, mooring proxies represented by switching costs and self-efficacy provide a unique understanding of the body of knowledge in the discussed field. The practical action proposed for MP service providers is to always improve quality in terms of accessibility for technical use, and collaboration with related parties is important. Also, for policymakers in Indonesia, deployment of information technology infrastructure and accommodating policies to facilitate licensing for service providers to ensure the security of deposit funds, user data and personal profiles.