What drives Generation Z to use e-wallets? The moderating role of trust in digital payment adoption

The utilization of e-wallets has grown significantly in Kupang in recent years. Digital wallets are now gaining serious attention from both the government and fintech providers, driven by people’s growing dependence on mobile technology as well as ongoing efforts to improve financial inclusion. This study examines how users’ intentions to use e-wallets are affected by perceived usefulness, perceived security, and perceived ease of use, with trust acting as a moderating variable. The research applies a quantitative framework with a causal-associative design. Data was gathered through an online survey of 125 e-wallet users in Kupang City, selected using purposive sampling, and measured using 25 indicators. The analysis was carried out using the PLS-SEM method. The study’s findings demonstrate that Generation Z in Kupang City are encouraged to embrace e-wallets by perceived security, perceived ease of use, and trust, as each of these factors have a significant and positive effect on their intention to use the technology. Furthermore, trust functions as a moderating construct that amplifies the influence of perceived security and perceived ease of use on intention to use e-wallets. However, trust is unable to moderate the effect of perceived usefulness on intention to use e-wallets. The findings of this study provide valuable insights for businesses in addressing the evolving needs of users and achieving superior business performance in the future. The results of this study also offer useful ideas for marketers, policymakers, and fintech developers to connect the gap between user adoption and technological availability.