Yan Putra Timur, Y.P. Masrizal, Budi Trianto
Purpose: Financial technology is developed to help companies reduce costs and create efficiencies. This study aims to identify and explore the intentions of microenterprise owners in Indonesia to adopt e-payments. Design/methodology/approach: A mixed-method approach was used, utilizing both survey questionnaires and brief focus group discussions (FGDs). The researchers applied partial least squares structural equation modeling (PLS-SEM) as a statistical tool. Using a nonprobability convenience sampling method, the questionnaires were distributed to 250 microenterprise owners in Indonesia. Meanwhile, the qualitative approach involved FGDs. Data analysis was performed using the PLS-SEM approach. In addition, the authors conducted FGDs with participants from microenterprises, the Digital Economy Department of the Ministry of Economy of the Republic of Indonesia, Bank Indonesia and Sharia Banks at four different points in time. Findings: Using a qualitative approach, the results of the study found that the majority of microenterprises have adopted fintech, particularly e-wallets, for business transactions. However, they have not extensively used debit ATMs, e-money and QRIS for their business transactions. Using SEM-PLS analysis, the researchers found that the variables of facilitating conditions and social influence are the primary drivers of microenterprise owners’ intention to adopt electronic payments. In contrast, performance expectation and effort expectancy did not have a significant impact. Research limitations/implications: The sample of this study involved microbusinesses in three islands in Indonesia, but these results cannot be generalized because of limitations in terms of the sampling technique used. However, the results of this study can be used as an illustration of how adoption of e-payment by microenterprises in Indonesia. Practical implications: This study provides direction that to mitigate the digital divide among microenterprises in using e-payment system in Indonesia, the service providers, regulator and also government should make the right strategy. This paper recommends several strategies that can be executed by policymakers in Indonesia. Originality/value: The novelty of this study lies in the analysis of microenterprises’ owners use of e-payment systems. Indonesia is the fourth most populous country in the world and is one of the developing nations with significant potential to advance e-payment systems. To the best of the authors’ knowledge, this is the first study that explores the use and adoption of e-payment by microenterprises’owners in Indonesia. © 2025, Emerald Publishing Limited.
Department of Islamic Economics, Faculty of Economics and Business, Universitas Negeri Surabaya, Surabaya, Indonesia; Department of Islamic Economics, Universitas Airlangga, Surabaya, Indonesia; Department of Islamic Economics, Sekolah Tinggi Ekonomi Islam Iqra Annisa, Pekanbaru, Indonesia; Department of Islamic Economics, Postgraduate, Universitas Islam Negeri Sultan Syarif Kasim, Pekanbaru, Indonesia
