Perceived Covid-19 Risk and E-Wallet Adoption: An Empirical Evidence MSEs of Indonesia

ABSTRACT

Along with the global growth of Covid-19 infections, transactions involving physical money pose a significant danger of viral transmission. As a result, customers and Indonesian MSEs increasingly utilize E-Wallets to conduct cashless transactions. Given the lack of studies linking Covid-19 and E-Wallets, The goal of this study is to analyze how Indonesian micro and small enterprises (MSEs) adopted E-Wallets during Covid-19. Specifically, this study examines the effect of perceived usefulness, perceived Covid-19 risk, perceived financial cost, and perceived ease of use on Indonesian MSEs’ intention to adopt E-Wallet. The data for this study were gathered via a questionnaire-based survey. Respondents in this study were either owners or managers of Indonesian MSEs. The model is tested using SmartPLS 3.0, based on the PLS-SEM approach. The analysis reveals that Perceived Covid-19 Risk significantly affects the perceived usefulness and intention of Indonesian MSEs to adopt E-Wallets. Surprisingly, the perceived financial cost does not affect the intention of Indonesian MSEs to use E-Wallet. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.