The effect of paylater on purchase decision and continuance intention in generation Z at GoFood application

. In the age of digitalization, technology and information are developing rapidly, and the internet network is widespread, allowing individuals to do numerous transactions online. Electronic commerce, or e-commerce, is facilitated by many businesses. Nowadays people rarely want to bring cash and want payment method to be as simple as possible, with that a lot of people especially Generation Z choose using paylater as their payment method. This study aims to determines the effect of perceived ease of use, perceived security, and perceived usefulness of paylater on purchase decision at GoFood. Also, to determine the effect of purchase decision of Paylater on continuance intention at GoFood. The research method used on this study is quantitative research and the data collection techniques was carried out by surveying 200 respondent through questionnaire which are Gopay users live in Jakarta that are Generation Z and have made transaction at least once a month using Gopaylater. We use structural equation modelling (SEM) and SmartPLS for analyzing our data. The result of this study indicate that perceived ease of use and perceived security have significant positive effect on purchase decision. And, also purchase decision has a positive significant effect on continuance intention. But perceived usefulness do not have significant effect on purchase decision.


Introduction
Technology that helps online businesses has grown, and as a result, now there are more platforms and ways to handle money transactions.There are many ways to run a business, from the old ways of exchanging cash or checks to the newest ways of hiring people [1].Online payment plans like Paylater are one example of such services [2].Paylater is an agreement between the customer, the payment service, and the store [3].In Indonesia, since the introduction of Paylater, Gojek multi-service digital platform gives users access to a various services, such as modes of transport, transactions, meal delivery, and shipping, amongst many others.Go-Jek has had a 14-fold increase of user since the launching of Paylater service.From Shopee digital platforms, they have launched a Paylater service, and the users have reached 1.27 million, with active borrower accumulation reaching 67% or approximately 850 thousand borrowers.This trend is expected to continue through the year 2020 [4].
After the significant advancement of Go-Jek, they eventually launched GoFood.GoFood is a platform that offers food delivery services in Indonesia.Consumers place orders through an app or website.Several benefits can be obtained by food service providers, as well as the customers.From the customer's point of view, placing food orders online offers much more convenience without leaving their house.Similarly, the business owners will appreciate the boost in revenue that comes * Corresponding author: cindy.budiman@binus.ac.id from the high volume of orders placed through the app [5].The ease of application manifests itself in the transaction experience of the consumer, which in turn influences consumer trust, an essential component of the digital connection between the buyer and the supplier [6].Consumers take into consideration how simple it is to sign up for and use Paylater when making decisions regarding product purchases [7].These features has lead to an increase in numbers of Paylater users.There are various reasons why customers are willing to adopt Paylater payment system.More elaboration regarding this topic presented in the following section.
People are encouraged to use Paylater and other forms of FinTech by a several factors, including the perceived usefulness of the product, the perceived ease of use of the product, and the security of the organization that provides the product [8].To find out whether customers are willing to use new smart technology, various scholars have used Technology Acceptance Model introduced by Davis [9].Technology Acceptance Model (TAM) is one of the models that is used to establish whether or not a person is acceptable to participate in various information technology systems.If they believe that certain technology is userfriendly and has the potential to affect transactional interest, then other people will be interested in utilizing that technology.Consumers take into consideration how simple it is to sign up for and use Paylater when making judgments regarding product purchases [10].A person's willingness to make purchases of a specific product is known as their transactional interest in that product [11].In the case of the current study, a potential user is eligible to utilize the Gojek Paylater service if the user has upgraded the Gojek application, uploaded a photo of himself in the form of an ID card, and used GoPay each time he performed a transaction.In addition, the prospective user must have a Gojek account.Users of Gopaylater are charged a subscription fee of IDR 25,000 per month, but they are not given access to interest rates offered by the company [12].
Since there are numerous mobile wallet users in Indonesia, it is difficult for mobile wallet services to retain their existing customers and attract more significant number of subscribers, which is essential so that mobile payments can proceed to be used among the various payment options that are presently accessible.This is a challenge that mobile wallet providers face because there are so many mobile wallet players in Indonesia [13].Zhou's prior research [14] examines the factors that contribute to the sustained usage of mobile payment, such as users' performance expectations, their level of confidence in mobile payment, and their flow when using digital payments.According to the results of the research, factors such as credibility, system quality, quality of information, flow, satisfaction, and quality of the service all have an impact on ongoing usage all the way up to and including purchase.Unfortunately, the objective of those earlier studies was only to identify acceptability variables on actual use or continuous utilization of mobile purchases in China.Furthermore, because the tradition of Indonesia is unique in comparison to the cultures of other nations, there's going to be a variety of factors that can impact the choice that an Indonesian user makes when it comes to the mobile payment paylater that is used.
Based on the above conditions, this study aims to determine the effect of paylater on continuance intention and purchase decisions in Generation Z at GoFood application.The underlying reason for conducting this study is the fact that many users of paylater are members of Generation Z is the primary reason behind the creation of this study.People that utilize paylater do so for a number of other reasons as well, including the fact that it is much simpler than paying with cash and may be done at a later date.GoFood also offered a number of discounts and promotions to customers who paid using paylater.

Literature review 2.1 Paylater
Paylater is a service that provides a financial facility for making payments in instalments without the need for a credit card.One of the things that contribute to the Paylater's ease of use is the consumers' desire to shop online with the option to pay later.The ease with which transactions can be completed while using Paylater begins with the requirements.In contrast to applying for a credit card via a bank, registering for this service is a simple task [15].
Customers have a simpler time with Paylater because there are many different payment terms to choose from.This is confirmed by research that was done in the past by researchers who argued that it is easier for customers because the Paylater payment tenor may be altered according to the customer's capabilities [16].According to the findings of another piece of research, users of Paylater have the ability to select a payment tenor to settle bills ranging from one to twelve months without being subject to any guarantees or conditions, and consumers will make bill payments in accordance with the payment tenor that was previously selected [17].

Technology Acceptance Model (TAM)
The technology acceptance model, often known as TAM, is a model that is utilized for the purpose of analyzing the utilization of information systems that are based on information technology, such as the internet, applications, and so on [18].This model, which Fred Davis initially presented in 1986 and which, has continued to improve to the present day.The findings of earlier studies [19] show that numerous elements were used by researchers to produce TAM, where TAM development changes are an expansion of components referred to as external variables.
Perceived ease of use examines the degree to which people think using particular technologies will need less effort or won't require any effort at all.The extent to which people feel the usage of particular technologies will be able to improve their job performance is known as perceived usefulness [20].Perceived security, of course, when consumers select a payment system, security is the first factor they take into account.The primary factors for mobile payment platforms to win over customers are consumer data security and other issues [21].
Drawing from the work of H. Van der Heijden, T. Verhagen, and M. Creemers, Perceived ease of use has the following indicators: easy to learn to use online store sites, easy to find what you are looking for in the online store, interactions in online stores are clear and easy to understand, flexible in interacting in online stores, online store sites are easy to use [22].The indicators of perceived usefulness include the following: online store websites offer reliable information, internet stores can aid in enhancing shoppers' performance, internet stores can improve how effective consumers are at shopping, websites are helpful while looking for products in online shops [23].Perceived security has the following indicators : disclosing sensitive information about customers through the mobile payment networks is something they would feel comfortable doing, customers have the impression that mobile payment platforms are reliable methods to complete a transaction [24].
According to previous research that is conducted by Anggalia Wibasuri, Mieke Rahayu, Ni Wayan Cahaya Adi, and I Made Yuda Suryawan [25], this study intends to determine the factor that influences intention to use ShopeePaylater with perceived usefulness, ease of use, attitude, and intention to use.This research has 120 respondents for the data.The result of this study stated that, their attitude is influenced by individual curiosity about utilizing the ShopeePaylater E-Wallet.
Other past research was conducted by A.S. Rachmawati and R.D. Astuti [26].This study aims to analyze the factors that influence customer intention to use Paylater among Millennials in Indonesia.Millenials are the population being studied for this study.This research has 271 respondents for the data.The result of this study stated that Customers' intent to utilize pay later is significantly influenced by their impressions of the service's usefulness, reliability, and perceived ease of use.In the following section, customers' purchase decision is discussed.

Purchase decision
Consumers making purchases through the use of Internet media are engaged in online purchasing decisions, which typically have higher value benefits [27].From [28], the actions or behaviours of a person that involve making a decision to purchase a product, either in terms of the type of product or the quantity of that goods, are referred to as purchasing decisions.Purchase decision variable indicators, specifically : decisions regarding the reputation of vendors, decisions regarding the priority of purchases, decisions regarding the efficiency of searches, and decisions regarding the frequency of transactions [29].
From the previous research by Sri Lestari, Naniek Utami Handayani, and Manik Mahacandra [30], This study intends to determine which independent variables can have an effect on a user's decision to make a purchase when using ShopeePay or the Shopee Paylater feature, as well as which variables have the greatest impact on a user's decision to make a purchase when using Shopee.In addition, the study will investigate which variables have the most significant impact on a user's decision.In this study they have at least 55 respondents for the data research [30].In this study, they found that variables such as feature knowledge, satisfaction with the product and service, and consumption risk have not been able to affect the process of making purchasing decisions.
The current research also seeks to determine how customers would continuously use the Paylater payment system.Hence, the continuance intention is also elaborated in the following section.

Continuance intention
The intensity of a person's desire to frequently use a mobile financial application to make purchases is known as their continuance intention.Continuous usage of information systems by adopters is known as a continuance intention, where the initial acceptance choice is followed by the continuance decision [31].The indicators of continuance intention are : awareness of usage, preference, continuance use, potential use in the future [32].
According to the previous research that is conducted by Geraldi Tekaqnetha and Rodhiah [33], The objective of this research is to evaluate whether or not factors such as routine, perceived utility, user satisfaction, and perceived ease of use may have a significant effect on a person's intention to continue using Go-Pay in West Jakarta.There were one hundred people who participated in this survey for the data.The result of this study stated that In Jakarta, the habits, perceptions of usefulness, and enjoyment of using Go-pay all play a big role in users' intentions to continue using the service.However, it does not indicate that consumers' perceptions of Go-pay's ease of use have a significant effect on their intentions to continue using the service in Jakarta.
Paylater Acceptance and its Influences on Purchase Decision and Continuance Intention: A Study of Generation Z.

Hyphothesis
H1: Paylater's perceived ease of use positively and significantly influence customers' purchase decision in GoFood.H2: Paylater's perceived security positively and significantly influence customers' purchase decision in GoFood.H3: Paylater's perceived usefulness positively and significantly influence customers' purchase decision in GoFood.H4: Paylater's purchase decision positively and significantly influence customers' continuance intention in GoFood.

Methodology
The research method used in this study is a quantitative method.Quantitative research often involves the systematic and empirical investigation of phenomena through the application of statistics and mathematics, in addition to the analysis of numerical information [34].The process of creating estimates of numbers is a fundamental linking mechanism in quantitative research, serving as the important connection process between empirical knowledge as well as the numerical description of the correlational analysis.When doing quantitative research, the data are often selected at random, and once collected, they are analyzed utilizing a numerical representation of some kind [35].
The primary data collection method to be used in this study is the method of distributing questionnaires.The respondents to this research are members of Generation Z who live in Jakarta and are users of the e-commerce platform Gojek who have enabled the Paylater payment option.Their ages range from around 21 to 28 years old.While the sample for this study is Generation Z users of Gopaylater who live in Jakarta and range in age from 21 to 28 years old, all of the respondent which answer the questionnaires in this study have previously used the Paylater payment method on the Gofood application to complete at least one transaction.
According to Hair, the minimum number of samples that ought to be utilized is ten times the overall number of variables that ought to be used [36].This study has 19 indicators.Hence, the number of respondents that are needed is 19 times 10, which results in the need for 190 respondents.
For the Technology Acceptance Model (TAM), which are perceived usefulness, perceived ease of use, and perceived security, each has indicators.For the measurement of perceived ease of use, the instruments are adapted from H. Van Der Heijden, T. Verhagen, and M. Creemers [22].The item includes "Easy to learn to use online store sites," "Easy to find what you are looking for in the online store," "Interactions in online stores are clear and easy to understand," "Flexible in interacting in online stores," and "Online store sites are easy to use."For the measurement of perceived usefulness, the instruments is adapted from K. Hassanein and M. Head [23].The item includes are "Online store websites offer reliable information," "Internet stores can aid in enhancing shoppers' performance," "Internet stores can improve how effective consumers are at shopping," and "Websites are helpful while looking for products in online shops."For the measurement of perceived security, the instruments is adapted from J. Khalilzadeh, A.B. Ozturk, and A. Bilgihan [24].The items include are "Disclosing sensitive information about customers through the mobile payment networks is something they would feel comfortable doing" and "Customers have the impression that mobile payment platforms are reliable methods to complete a transaction." For the measurement of purchase decision, the instruments is adapted from N.A. Lestari and S.S. Iriani [29].The items include are: "decisions regarding the reputation of vendors," "decisions regarding the priority of purchases," "decisions regarding the efficiency of searches," and "decisions regarding the frequency of transactions."Lastly, for the measurement of continuance intention, it is adapted from H.-S. Ryu [32] the items includes are : "Awareness of usage," "Preference," "Continuance use," and "Potential use in the future." The questionnaire used to collect the data and information for this study was created using Google Forms, and it was distributed to a select group of Generation Z Paylater users who are based in Jakarta.A Likert scale with five points is used to evaluate each response to the questions in this survey.The analysis of this study used several hypothesis tests using partial least squares (SEMPLS).).With 72 responses or 36% of the total, most of our respondents have an income between Rp1.000.000,00 to Rp5.000.000,00.Their frequency of using Paylater in one-month ranges from twice a month (74 responses), which accounts for 37% of the total, to more than three times a month (only five responses), which accounts for 2.5% of the total.The most common frequency of using Paylater is twice a month.Since the results of the data processing in the table above show that the factor loading is greater than 0.5 [37], [38] and the AVE value is greater than 0.5 [39], it is possible to draw the conclusion that all of the indicators of each variable in the table above can be considered valid.This conclusion can be drawn from the results shown in Table 2.

Validity Convergent and Reliability Test
The findings of the Composite Reliability and Cronbach's Alpha are shown to have strong results with a value that is greater than the requirement, which is 0.7 [40], as shown in Table 2.This demonstrates that there is a high level of consistency among the indicators found in the questionnaire.From Table 2, it is concluded that all the indicators are reliable.

Discriminant validity
If the construct's AVE root is higher than the relationship between the construct and any other inactive components, then the discriminant's legitimacy may be deemed to be high [41].According to Table 3, each value of the examined variable has the highest cross-loading number compared to the other cross-loading values.This cross-loading number is shown in the table as the "highest crossloading value."It can be concluded that these findings have strong discriminant validity.

Hyphotheses test
The purpose of this theory test is to determine whether or not the autonomous variable and the subordinate variable share a significant impact on the overall system.Based on the findings of Hair [42], which state that pvalues of less than 0.05 indicate that the independent factors have a substantial impact on the dependent variable, a conclusion on this hypothesis test has been reached.

Discussion
In this study, the first hypothesis which is perceived ease of use on Paylater has a positive effect and significantly at the purchase decision in GoFood is accepted.The outcomes of this study indicate that the majority of respondents benefited from the paylater method in some way.The Paylater user did not need to have a credit card which has a physical card and did not have to worry when they didn't have enough cash.This is also in line with the previous research from Madiha Khan and Shejuti Haque [39] which state that perceived ease of use on Paylater significantly and positively affecting the purchase decision on users of Paylater in Dhaka City.
The second hypothesis which is perceived security on Paylater has a positive effect and significantly at the purchase decision in GoFood, is accepted.This can be known by using password each time Paylater user wants to use the Paylater service in GoFood.This is also in line with the previous study from Sarihim and Leo Alexander Tambunan [40].They stated that perceived security on Paylater significantly and positively affecting the purchase decision.
The third hypothesis which is perceived usefulness on Paylater has a positive effect and significantly at the purchase decision in GoFood is rejected.It means that with perceived usefulness for Paylater user in GoFood doesn't mean it will has a significant effect on purchase decisions.This can happen because Paylater in GoFood, user must pay monthly payment as much as Rp25.000,00 per month.Many people also don't like using Paylater service because the costs will accumulate at the end of the month, and when the user can't pay in time, they will get fined for not paying in time.This also in line with the previous research from Murti Wijayanti, Heni Rohaeni, Aswiyatul Mukarromah, and Tyna Yunita [41] which stated that perceived usefulness on Paylater do not significantly and positively affecting the purchase decision.
The last hypothesis which is purchase decision has a positive effect and significantly at the continuance intention to use GoFood is accepted.This can be known because user which already using Paylater to buy food in GoFood, will continue to use Paylater because of discount they get from using Paylater, and also it is easy to use.This also in line with the previous study from Ryanis Naufalia, Cholilah Lateefa, and Danendra Yassar [43].They stated that purchase decision on Paylater significantly and positively affecting continuance intention.

Conclusion
The purpose of the study is to examine Paylater's perceived ease of use, perceived security, and perceived usefulness have a significant and positive effect on purchase decisions in GoFood.Also, if the purchase decision to use Paylater has a significant and positive effect at the continuance intention in GoFood.This study is important.The research aims to find out if the technology acceptance model (TAM), which is Paylater's perceived ease of use, perceived security, and perceived usefulness has a significant and positive effect at purchase decision in GoFood.Also, if purchase decision with using Paylater has a significant and positive effect on the continuance intention in GoFood.
Based on the study achieved, variable perceived ease of use and perceived security of Paylater has a positive and significant effect on purchase decision at GoFood.Also Paylater's purchase decision has a positive and significant effect on continuance intention at GoFood.Meanwhile Paylater's perceived usefulness has no significant effect on purchase decision at GoFood.
Therefore, the suggestion we can give to the GoJek company is to pay attention to the promotions and discounts given to each merchant at GoFood.and shall ensure the security of each Paylater user's personal information.company must also be able to increase service quality so that Paylater users can continue to have the desire to utilize Paylater services for a long length of time.
There are several suggestions for additional study in the academic sector.The research we performed still has flaws.Thus, we suggest further expanding this research by looking for other aspects, such as indicators or dimensions that are completer and more diverse from this research.as well as finding a hypothesis that better supports further study using the same variables.
Our study has several limitations.First, our research mainly focuses on customers in Jakarta.Therefore, the results can not be generalized.Hence, future studies need to conduct research in other regions.Second, our research mainly focuses on Generation Z as the sample.Thus, the results can not be generalized.Hence, additional studies need to conduct in other generations.And the last one, our research mainly focuses on the user of Gopaylater.Therefore, the results can not be generalized.Hence, further study needs to conduct on other Paylater services.