GEN Z RURAL AREA PERSPECTIVE ON USE OF E-MONEY APPLICATIONS IN INDONESIA

Abstract

This study investigates factors influencing e-money adoption among Generation Z in rural Indonesia, a demographic vital for financial inclusion. Employing a modified Unified Theory of Acceptance and Use of Technology (UTAUT) framework, data from 208 rural Gen Z respondents were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Key findings reveal social influence and effort expectancy significantly drive e-money usage, while performance expectancy does not. These results highlight the need for tailored strategies by fintech providers to foster digital payment adoption, particularly by strengthening community engagement and enhancing user-friendliness. The study offers novel insights into consumer behavior in underserved areas, with implications for financial inclusion policies. Future research should expand sample size and geographical scope.