Embracing e-wallet applications among Generation Z in Malaysia: The mediating role of trust

Background and Purpose: Smartphone advancements have led to a rise in cashless transactions like electronic wallets or e-wallets. Despite their success in digital payments, their uptake in Malaysia is still in its infancy, with e-wallets being used to a lesser extent than traditional methods. The primary objective of this study is thus to investigate the behavioral intentions of Generation Z in Malaysia to use e-wallets using the extended Technology Acceptance Model (TAM) via the Structural Equation Modelling (SEM). Methodology: This quantitative study used an online questionnaire distributed to Generation Z in Malaysia, involving 207 respondents from a convenience sample. The data was analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 to examine the relationship between the variables, aiming to understand their willingness to use e-wallets. Findings: The study reveals that perceived usefulness, ease of use, and social influence significantly influence trust in e-wallet usage among Malaysia's Generation Z. In addition, perceived ease of use proves to be a predictor of perceived usefulness. Also, perceived usefulness, perceived ease of use, and social influence are found to have a significant impact on the intention to use e-wallets. Trust mediates the relationship between perceived usefulness, ease of use, and intention to use e-wallets, but not between social influence and intention. Contributions: This study enhances consumer behavior understanding and the effectiveness of the Technology Acceptance Model (TAM) in analyzing e-wallet adoption. It aids providers and developers in comprehending customer willingness to use e-wallets and underscores the significance of trust in customer service. Keywords: E-wallet, intention, trust, generation Z, theory of Acceptance Model.