Determinant of Digital E-Payment Adoption among Ar-rahnu Co-operative Users in Malaysia

Abstract

Transitioning to electronic payments offers several advantages, including improved financial management efficiency and support for eco-friendly practices. Acknowledging the significance of technology in bolstering business resilience during the covid-19 pandemic, it is a potential for ar-rahnu industry to tap into the technology stream. Applying the UTAUT theory, this study investigate the determinant of ar-rahnu digital e-payment adoption among its users in Malaysia. This study used Statistical Package for the Social Sciences (SPSS) for data cleaning and screening and Partial Least Square-Structural Equation Model (PLS-SEM) 4.0 to explore the relationship factors influencing the adoption of ar-rahnu e-payment. The finding of this study shows that all hypotheses (H1-H4) exhibit a statistically significant relationship. Consequently, this study recommends that policy makers, such as Suruhanjaya Koperasi Malaysia (SKM), Institut Koperasi Malaysia (IKMa), and other relevant stakeholders, prioritize and promote the utilization and development of digitalization within the ar-rahnu sector. This entails creating a policy framework that encompasses comprehensive support systems and launching extensive awareness campaigns. Furthermore, financial federations should play an active role in fostering a complete ecosystem by providing applications, platforms, expert services, and facilitating collaboration networks among ar-rahnu operators.