Factors affecting decisions on using e-wallet momo of students of Banking University Ho Chi Minh City: Bachelor thesis of Banking and Finance / Pham Nguyen Dan Thuy ; supervisor Nguyen Duy Linh

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

PHẠM NGUYỄN ĐAN THÙY

FACTORS AFFECTING DECISIONS ON

USING E-WALLET MOMO OF STUDENTS

OF BANKING UNIVERSITY HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

HO CHI MINH CITY, 2022

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

PHẠM NGUYỄN ĐAN THÙY

FACTORS AFFECTING DECISIONS ON

USING E-WALLET MOMO OF STUDENTS

OF BANKING UNIVERSITY HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

HO CHI MINH CITY, 2022

i

ABSTRACT

The purpose of this research is to identify the factors affecting decisions in

using Momo E-wallet of students of Banking University of Ho Chi Minh City. The

study was conducted on a theoretical foundation and earlier research on decisions to

use Momo, in which the factors affecting the decisions to use the service is closely

examined.

The research data was collected through a self-administered questionnaire

which was distributed online with a total of 150 respondents. Supported by the

collected data, the study was conducted formal research by quantitative research

method using descriptive statistical analysis, correlation and linear regression analysis.

The research results show that Social Influence, Perceived Usefulness and Perceived

Reliability significantly show positive effect on decisions to use Momo of BUH

students. Additionally, Perceived Ease of Use and Perceived Cost also affect these

decisions but possess a lower impact level.

From the research findings above, the study suggests solutions and can be used

as recommendations relating to e-wallet service activities of Momo in order to

improve the platform design as well as services to attract more consumers. As a

theoretical contribution, this study applies Technology Acceptance Model to

investigate the factors affecting decisions in using Momo E-wallet of students of

Banking University of Ho Chi Minh City.

Keywords: Decisions on using, Momo, E-wallets, Technology Acceptance

Model

ii

COMMITMENT

I hereby declare that this thesis is my own work, with the support of my

supervisor, Mr. Nguyen Duy Linh, a lecturer at the Banking University of Ho Chi

Minh City's Faculty of Finance. To the best of my knowledge and belief, the thesis

does not copy prior studies, and all assertions and material presented herein are correct

and truthful. The report's statistics and material are clearly cited and presented

honestly.

Ho Chi Minh City, …………………

Author

Phạm Nguyễn Đan Thùy

iii

ACKNOWLEDGEMENT

First of all, I would like to express my sincere gratitude to the teachers from

Banking University Ho Chi Minh City, who generously assisted me throughout my

four years of schooling. I have gained a lot of knowledge over the last four years, all of

which help me to become more confident and experience in the future.

Secondly, I would like to express my deepest gratitude to my supervisor -

Nguyen Duy Linh, Ph.D., who has wholeheartedly guided and helped me to complete

this research.

Due to the limitation of time, knowledge, and practical experience, this thesis

certainly still has many shortcomings in the implementation process. I am looking

forward to receiving the sincere responses and suggestions of lecturers to improve this

thesis. This would be the basis, the premise for me to improve my knowledge in the

future.

Best regards!

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CONTENT

LIST OF ABBREVIATIONS.................................................................................... vii

LIST OF FIGURES................................................................................................... viii

LIST OF TABLES........................................................................................................ix

CHAPTER 1: INTRODUCTION ................................................................................1

1.1 Research motivation.............................................................................................1

1.2 Research gap.........................................................................................................3

1.3 Research objectives..............................................................................................3

1.3.1 General objectives..........................................................................................3

1.3.2 Specific objectives..........................................................................................3

1.4. Research questions..............................................................................................3

1.5 Research object and Research scope..................................................................4

1.5.1 Research object ..............................................................................................4

1.5.2 Research scope ...............................................................................................4

1.6 Research methodology.........................................................................................4

1.6.1 The approach methods..................................................................................4

1.6.2 Data collecting methods ................................................................................5

1.6.3 Data processing methods...............................................................................5

1.7 Research framework............................................................................................5

1.8 Research contributions........................................................................................6

1.8.1 In literature ....................................................................................................6

1.8.2 In practice.......................................................................................................6

1.9 Thesis structure ....................................................................................................6

CHAPTER 2: LITERATURE REVIEWS..................................................................9

2.1 Cashless payment .................................................................................................9

2.1.1 Definition ........................................................................................................9

2.1.2 The role of cashless payment ......................................................................10

2.1.3 Types of cashless payments.........................................................................11

2.2 Electronic wallet.................................................................................................12

2.2.1 Definition ......................................................................................................12

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2.2.2 Role of electronic wallet ..............................................................................13

2.3 Consumer decisions on using E-wallet service ................................................14

2.3.1 Definition ......................................................................................................14

2.3.2 The role of consumer decisions on using E-wallet service .......................15

2.4 Theoretical literatures .......................................................................................16

2.4.1 Theory of Reasoned Action – TRA ............................................................16

2.4.2 Theory of Planned Behavior – TPB ...........................................................17

2.4.3 Technology Acceptance Model – TAM......................................................18

2.5 Relative empirical studies..................................................................................19

2.5.1 International studies....................................................................................19

2.5.2 Domestic studies...........................................................................................21

2.6. General regression model.................................................................................28

CHAPTER 3: RESEARCH METHODOLOGY......................................................32

3.1. Research process ...............................................................................................32

3.2. Proposed regression model for sample............................................................33

3.3. Research hypotheses .........................................................................................33

3.3.1. Relationship between Perceived Usefulness and User Decision .............33

3.3.2. Relationship between Perceived Ease of Use and User Decision ...........34

3.3.3. Relationship between Social Influence and User Decision .....................34

3.3.4. Relationship between Perceived Reliability and User Decision .............35

3.3.5. Relationship between Perceived Cost and User Decision .......................35

3.4. Scale construction..............................................................................................36

3.5. Data collection methods....................................................................................38

3.6 Model testing method.........................................................................................39

3.7 Data processing methods...................................................................................39

3.7.1 Quantitative method....................................................................................39

3.7.2 Descriptive statistics method ......................................................................40

3.7.2.1 Measures of Frequency.........................................................................40

3.7.2.2 Measures of Central Tendency ............................................................40

vi

3.7.2.3 Measures of Dispersion.........................................................................41

3.7.2.4 Cross-tabulation ....................................................................................41

3.7.3 Cronbach’s Alpha reliability coefficient method......................................41

3.7.4 Exploratory factor analysis.........................................................................42

3.7.5 Pearson correlation matrix analysis ..........................................................44

3.7.6 Regression analysis......................................................................................44

CHAPTER 4: RESEARCH RESULTS AND DISCUSSIONS ...............................47

4.1. Research results.................................................................................................47

4.1.1. Descriptive statistics ...................................................................................47

4.1.2. Analyzing the scale’s reliability.................................................................52

4.1.3. Exploratory Factors Analysis (EFA)............................................................53

4.1.4. Pearson correlation coefficients....................................................................55

4.1.5. Regression test results....................................................................................56

4.1.6. Variance Inflation Factor test.......................................................................57

4.1.7. Heteroskedasticity test...................................................................................58

4.1.8. Accepted linear regression model.................................................................59

4.1.8.1. Testing the assumptions of residual normal distribution ....................59

4.1.8.2. Testing assumption of the linear relationship.......................................60

4.2. Discussions on the results of research findings..................................................61

CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS ...........................65

5.1. Conclusions........................................................................................................65

5.2. Recommendations.............................................................................................65

5.2.1. Perceived Usefulness......................................................................................66

5.2.2. Perceived Ease of Use ....................................................................................66

5.2.3. Social Influence...............................................................................................67

5.2.4. Perceived Reliability ......................................................................................67

5.2.5. Perceived Cost ................................................................................................68

5.3. Limitations and research direction .................................................................68

REFERENCES ............................................................................................................71

vii

LIST OF ABBREVIATIONS

Abbreviation Meaning

BUH Banking University of Ho Chi Minh City

DW Durbin Watson

E-banking Electronic banking

E-wallet Electronic wallet

ECM Expectation-Confirmation Model

EFA Exploratory Factor Analysis

IT Information Technology

MOMO Mobile Money

PCI DSS Payment Card Industry Data Security Standard

PEU Perceived Ease of Use

PI Personal Identification Number

POS Point of Sales

PU Perceived Usefulness

QR Quick Response

SEM Structural Equation Modelling

SMS Short Message Service

SPSS Statistical Package for Social Sciences

TAM Technology Acceptance Model

TPB Theory of Planned Behaviour

TPR Theory of Perceived Risk

TRA Theory of Reasoned Action

UTAUT Unified Theory of Acceptance and Use of Technology

VIF Variance Inflation Factor