The impact of perceived risks and perceived benefits on the intention to use Momo E-wallet of Gen Z, 2022

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN TRAN MY DUYEN

THE IMPACT OF PERCEIVED RISKS AND

PERCEIVED BENEFITS ON THE INTENTION

TO REUSE MOMO E-WALLET OF GEN Z

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

HO CHI MINH CITY, 2022

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN TRAN MY DUYEN

THE IMPACT OF PERCEIVED RISKS AND

PERCEIVED BENEFITS ON THE INTENTION

TO REUSE MOMO E-WALLET OF GEN Z

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR

Dr. PHAM HUONG DIEN

HO CHI MINH CITY, 2022

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DECLARATION OF AUTHORSHIP

I thus declare that this thesis was written by me under the direction and supervision

of a Ph.D. Pham Huong Dien; and that the work and findings included therein are

accurate and do not breach research ethics. The data and figures in this thesis were

gathered for analysis, comments, and assessments from a variety of sources and

have been properly recognized in the reference section.

I will accept full responsibility for any academic misconduct discovered in my

thesis.

Ho Chi Minh City, 27th Apr 2022

Author

Nguyen Tran My Duyen

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ACKNOWLEDGEMENT

I'd want to express my gratitude to my supervisor, Dr. Pham Huong Dien, for her

unwavering support and direction. Dr. Dien was a constant source of

encouragement and was always eager to help in any manner possible during the

study effort. Finally, many thanks to everyone who participated in the survey and

made this study possible.

Ho Chi Minh City, 27th Apr 2022

Author

Nguyen Tran My Duyen

iii

ABSTRACT

This study aims to examine the impact of perceived risks and perceived benefits on

the intention to reuse the Momo e-wallet of Gen Z in Ho Chi Minh City. This study

uses quantitative research methods. In the quantitative study, data was collected

from an online questionnaire from 358 Gen Z people who are using Momo e-wallet.

The analysis results show that the perceived risk of Gen Z when using the Momo e￾wallet is created by financial risk, security risk, time-loss risk, and operational risk,

while the perceived benefit of Gen Z when using the Momo e-wallet is created by

the economic benefit, seamless transaction, convenience. Besides, the analysis

results also show that Gen Z's intention to reuse Momo e-wallet is negatively

impacted by perceived risk this will reduce Gen Z's intention to reuse Momo e￾wallet and is positively impacted by perceived benefit, which increased Gen Z's

intention to reuse Momo wallet. In which, the perceived benefit has a stronger

impact than the perceived risk. From the research results, a number of implications

have been proposed to help promote the users’ perceived benefit when using the

service, and at the same time, try hard to minimize perceived risk, thereby

promoting intend to reuse e-wallets of Gen Z more and more.

Keywords: Perceived risk, Perceived benefit, E-wallet

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Table of Contents

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

1.1. Research Statement ........................................................................................1

1.2. Research Objectives and Questions..............................................................3

1.2.1. Research Objectives...................................................................................3

1.2.2. Research Questions ....................................................................................4

1.3. Research Subjects and Scope.........................................................................4

1.4. Research Methodology ...................................................................................4

1.5. Research Significance.....................................................................................5

1.6. Thesis structure...............................................................................................5

Summary of Chapter 1 ...............................................................................................6

CHAPTER 2: LITERATURE REVIEW...................................................................7

2.1. Theoretical Foundations ................................................................................7

2.1.1. E-wallet ......................................................................................................7

2.1.2. Generation Z...............................................................................................9

2.1.3. Reuse Intention...........................................................................................9

2.2. Theoretical Framework................................................................................10

2.2.1. Technology Acceptance Model (TAM) ...................................................10

2.2.2. The Risk-Benefit Framework...................................................................12

2.3. Previous research..........................................................................................16

2.4. Research Hypotheses and Model.................................................................22

2.4.1. Research hypotheses.................................................................................22

2.4.2. Research model ........................................................................................27

Summary of Chapter 2 .............................................................................................29

CHAPTER 3: METHODOLOGY............................................................................30

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3.1. Research process...........................................................................................30

3.2. Research design.............................................................................................31

3.3. Data collection...............................................................................................32

3.3.1. Sampling...................................................................................................32

3.3.2. Scale formulation .....................................................................................33

3.3.3. Survey questionnaire ................................................................................34

3.4. Data analysis..................................................................................................34

3.4.1. Cronbach’s Alpha Analysis......................................................................34

3.4.2. Exploratory Factor Analysis (EFA) .........................................................35

3.4.3. Confirmatory Factor Analysis (CFA) ......................................................36

3.4.4. Structural Equation Modeling (SEM) Analysis.......................................39

Summary of Chapter 3 .............................................................................................40

CHAPTER 4: RESULT ...........................................................................................41

4.1. Descriptive Statistics.....................................................................................41

4.2. Cronbach’s Alpha.........................................................................................44

4.3. Exploratory Factor Analysis........................................................................46

4.3.1. Exploratory factor analysis of factors creating perceived risk.................46

4.3.2. Exploratory factor analysis of factors creating perceived benefit............47

4.3.3. Exploratory factor analysis for the scale of the intention to reuse...........48

4.4. Confirmatory factor analysis.......................................................................49

4.4.1. Confirmatory factor analysis for the scale of factors creating perceived

risk, perceived benefit ........................................................................................49

4.4.2. Confirmatory factor analysis for the scales of perceived risk, perceived

benefit, and intention to reuse ............................................................................50

4.5. Structural equation modeling......................................................................53

Summary of Chapter 4 .............................................................................................55

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CHAPTER 5: CONCLUSION.................................................................................56

5.1. Conclusion .....................................................................................................56

5.2. Implications...................................................................................................58

5.3. Limitations of the study and future research directions...........................60

REFERENCES ........................................................................................................62

APPENDIX 1............................................................................................................72

APPENDIX 2............................................................................................................79

APPENDIX 3............................................................................................................85

APPENDIX 4............................................................................................................88

APPENDIX 5............................................................................................................95

APPENDIX 6..........................................................................................................103

APPENDIX 7..........................................................................................................113

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LIST OF FIGURES

Figure 2.1. Technology Acceptance Model ..............................................................12

Figure 2.2. Proposed research model ........................................................................28

Figure 3.1. Research Process ....................................................................................31

Figure 4.1. The results of the analysis of the structural equation modeling .............53

LIST OF FIGURES TABLES

Table 2.1. Previous studies summary........................................................................19

Table 2.2. Factors of perceived risk and perceived benefit impact the intention to

reuse an E-wallet .......................................................................................................21

Table 2.3. Synthesize the hypothesis of the current study........................................27

Table 3.1. Synthesis of indicators to evaluate the goodness of fit of the model.......38

Table 4.1. Descriptive Statistics................................................................................43

Table 4.2. Cronbach's Alpha coefficient analysis.....................................................44

Table 4.3. Exploratory factor analysis of factors creating perceived risk ................46

Table 4.4. Exploratory factor analysis of factors creating perceived benefit ...........48

Table 4.5. Exploratory factor analysis for the scale of the intention to reuse...........49

Table 4.6. Correlations of First-Order Perceived Risks............................................50

Table 4.7. Correlations of First-Order Perceived Benefits .......................................50

Table 4.8. Reliability Convergent Validity Results..................................................51

Table 4.9. Correlations of Latent Variables..............................................................52

Table 4.10. Model Fit Measures ...............................................................................52

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LIST OF ABBREVIATIONS

AMOS Analysis of Moment Structures

CFA Confirmatory Factor Analysis

CFI Comparative Fit Index

EFA Exploratory Factor Analysis

GFI Goodness of Fit Index

H (1-2) Hypothesis (1-2)

TAM Technology Acceptance Model

TLI Tucker and Lewis Index

TPR Theory of Perceived Risk

RMSEA Root Mean Square Error of Approximation

SEM Structural Equation Modeling

SPSS Statistical Package for Social Sciences

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CHAPTER 1: INTRODUCTION

Chapter 1 discusses why this issue was chosen and provides an outline of the

study objective, research questions, methodologies, and scope of the research.

Additionally, it discusses the research's importance in terms of academics and

practice. Finally, sketch out the study topic's presenting structure.

1.1. Research Statement

E-wallet is one of the most popular forms of online payment today. In 2021,

Vietnam is in the top three countries with the percentage of users paying via mobile

in Asia with 29.1%. As of the end of the first quarter of 2020, Vietnam has more

than 13 million e-wallet accounts activated and used, the total wallet balance is

about 1.36 trillion VND and there are more than 225 million transactions made (The

State Bank of Vietnam, 2020).

Using cash used to be the most popular payment method with Vietnamese

users, but since the pandemic started, it has been on a declining trend. According to

survey results from Visa, the context of the Covid-19 pandemic has made e-wallets

grow stronger. 57% of users have up to 3 e-wallet applications on mobile platforms,

55% of consumers prefer apps that can make all transactions.

According to a statistical report from the State Bank of Vietnam, the

Vietnamese market has about 48 e-wallets and non-bank payment intermediaries

officially licensed to operate. This number has increased 7 times compared to 2015.

Momo is one of the most attractive e-wallets in Vietnam with more than 31

million existing customers. According to Appota's Mobile Applications 2021 report,

compared to other e- wallets, MoMo is the e-wallet with the highest percentage of

regular users (61%). MoMo's success is due to bringing a series of offline services

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online. With only one application, almost all needs are met, making life simpler and

easier, especially in the current complicated epidemic situation.

It can be seen that transactions with e-wallets are very quick and convenient,

but there are also many potential risks from technology criminals. Over the past few

years, a lot of security burglaries stole property from the mobile payment

applications that appeared, especially when the client lost his phone or a hacker

stole the access code to MoMo. From the existence of society has affected

psychology, reducing customers' trust in the intention to reuse the service. Building

trust from consumers is extremely important and necessary. Therefore, this is a

reason to study the risk perception of customers when using MoMo e-wallet.

Although there are still a few negative points that inhibit the intention to

reuse the Momo application. But there is no denying the convenience brought by

Momo, which motivates customers to act and carry out their behavior. The record

growth of registered accounts after many years proves the importance of the MoMo

e-wallet to consumers. People's lives are increasingly busy, along with the

development of society. From here, customers will prioritize using convenient

products or services, both reducing costs and saving time. If the perceived benefit

outweighs the perceived risk, then the intention to reuse and perform the behavior

will reach a higher level. It is for this reason that perceived benefit research cannot

be ignored. In order for customers to know and use the MoMo e-wallet application

more and more widely, M_Service company needs to have a database of consumers'

perceptions of risks and benefits when using it, from which overcome their

concerns, retain and develop the app further.

Around the world, some previous studies have shown that perceived risk and

perceived benefit have an influence on the acceptance of mobile payments by

Putritama (2019); Sentanu et al. (2020); Shafi & Misman (2021). At the same time,

the study of risks and benefits in mobile payments is a research direction that

attracts many scholars, but in Vietnam, there are currently very few studies talking

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about the impact of perceived risk and perceived benefit to the intention to reuse e￾wallets.

In view of the development trend of e-wallets in the world and the current

situation of Momo e-wallet payment in Vietnam, the author has chosen the topic of

graduation thesis with the title: "The impact of perceived risks and perceived

benefits on the intention to reuse Momo e-wallet of Gen Z” to explore what makes

users still intend to reuse Momo e-wallet despite being aware of the potential risks

surrounding this application.

1.2. Research Objectives and Questions

1.2.1. Research Objectives

The overall objective of the study is to determine the impact of perceived

risk and perceived benefit on the intention to reuse Momo e-wallet of Gen Z in Ho

Chi Minh City.

In addition, the study also has the following sub-research objectives:

The first is to identify the impact of perceived benefits and perceived risks on

the intention to reuse MoMo e-wallet of Gen Z in Ho Chi Minh City.

The second is to measure the level of impact of perceived benefits and

perceived risks on the intention to reuse MoMo e-wallet of Gen Z in Ho Chi Minh

City.

The third is to propose implications to increase benefits, reduce risks, and

increase Gen Z's intention to reuse Momo e-wallet.