Adoption of Cashless Transactions among Campus Merchants: Motivations and Constraints - A Case Study of Universiti Utara Malaysia

ABSTRACT : This study examines the acceptance of cashless transaction systems by merchants at Universiti Utara Malaysia (UUM). It analyzes the drivers, barriers, and effects of the technical capability. Malaysia is migrating to a cashless economy; therefore, it is important to narrow the gap that exists in understanding the functioning of cashless payment systems within educational institutions. In conducting this research, it was established that drivers influencing the acceptance of the system are efficient in operations and customer pressure, but barriers include lack of internet connectivity, poor technology, and regulatory issues. A quantitative research methodology was used, whereby structured questionnaires collected information from merchant services within the campus. According to the research, it was established that good technical capability is critical for cashless transactions to take place. This study adds to the body of knowledge by informing all stakeholders that addressing the gaps will promote the acceptance of cashless systems, which will help in creating an economic environment for easy flow of finances in Malaysian Institutes of Higher Learning (IHLs).