Analysis of Switching Behavior from Cash Payment Method to Use of Mobile Payment in Offline Store

¹ Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Indonesia
² Student at Master of Economics, Postgraduate Program, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: dimas_kusuma@umy.ac.id

Abstract

The swift advancement of digital technology is evident in multiple domains, including the business realm. This is evident from the ease with which customers can make payments using fintech services in physical stores, such as mobile payments. Thus, by using the Push-Pull-Mooring (PPM), this study attempts to analyze consumer switching behavior in offline stores from cash payment methods to mobile payments. The analysis was conducted by students in Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta (FEB UMY). A structured questionnaire was utilized to gather data from 98 participants who satisfied the research criteria. Switching behavior was the dependent variable, and the push, pull, and mooring effects were the independent variables that were measured. Then, by utilizing Smart PLS 4 software, partial least squares structural equation modeling (PLS-SEM) was used to analyze the data. The research findings demonstrated that the consumers remained stuck with the cash payment method because the push effect, measured by satisfaction and perceived risk, had a negative and negligible impact on switching behavior. Customers tended to move to mobile payment methods due to the pull effect, which included agreement tendencies, ease of use, and convenience. Statistically, pull effect had a positive and significant impact on switching behavior. In addition, mooring variable positively and significantly impacted switching behavior, which was due to encompassing peer groups, subjective standards, and consumer innovation. These findings suggest that consumer behavior regarding fintech, particularly for students, is complementary rather than substitution in nature. For that reason, transactions among students of FEB UMY combine cash and mobile payments all together.