The Factors influencing e-wallet adoption among Sri Lankan millennials

Abstract

The digital revolution in 21st century has transformed and reshaped the way people engage in financial transactions worldwide. Electronic wallets, as a prominent component of this technological shift, have emerged as an essential tool in the financial sector. Despite their potential benefits such as convenience, efficiency, effectiveness, and security, e-wallet adoption in Sri Lanka remains relatively low compared to the countries in the region. This research aims to examine the determinants of e-wallet adoption among Sri Lankan millennials studying factors such as Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, and Perceived Security. Considering the theoretical frameworks of Technology Acceptance Model (TAM), Unified Theory of Acceptance and Use of Technology model (UTAUT), and UTAUT2 model, empirical analysis is conducted to explore the relationships between these variables and behavioral intention towards e-wallet adoption. The study also examines the moderating effect of gender on these relationships. A sample of Millennials in the Western Province of Sri Lanka was considered in the data collection process providing an online survey to gather data to get more insight into their attitudes and perceptions towards e-wallets. The findings of this research reveal that Performance Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, and Perceived Security show significant relationships with behavioral intention to adopt e-wallets while Effort Expectancy does not show a significant relationship with behavioral intention. Further, the moderating effect of gender is not significant on the relationships between behavioral intention to adopt e-wallet with Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, and Perceived Security. The findings of this research bring valuable insights for policymakers, financial institutions, and e- wallet service providers to promote digital payment systems in Sri Lanka.