The Influence of Digital Payment Usage, Perceived Ease of Use, and Financial Self-Control on Financial Behavior in Promoting a Cashless Society

Abstract

The rapid development of digital payment technology has accelerated the transition toward a cashless society. However, limited studies have comprehensively examined the role of financial behavior in linking technological and psychological factors to the development of a cashless society. This study aims to analyze the effects of Digital Payment Usage, Perceived Ease of Use, and Financial Self-Control on Financial Behavior and their implications for a Cashless Society. A quantitative approach with an explanatory research design was employed. Data were collected through questionnaires distributed to active users of digital payment services using purposive sampling. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS software. The findings reveal that Digital Payment Usage, Perceived Ease of Use, and Financial Self-Control positively influence Financial Behavior, with Financial Self-Control emerging as the strongest predictor. Furthermore, Financial Behavior positively contributes to the development of a Cashless Society. The study concludes that Financial Behavior serves as a key mechanism linking technology adoption and financial self-control to the formation of a cashless society. Future research is encouraged to incorporate additional variables such as financial literacy, trust, and perceived security to enhance the explanatory power of the model.