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 ii 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., 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! iv CONTENT LIST OF ABBREVIATIONS.vii LIST OF FIGURES.viii LIST OF TABLES. ix CHAPTER 1: INTRODUCTION.5 Research object and Research scope.1 The approach methods.2 Data collecting methods.3 Data processing methods.
6 CHAPTER 2: LITERATURE REVIEWS.2 The role of cashless payment.3 Types of cashless payments.2 Role of electronic wallet.3 Consumer decisions on using E-wallet service.2 The role of consumer decisions on using E-wallet service.1 Theory of Reasoned Action – TRA.2 Theory of Planned Behavior – TPB.3 Technology Acceptance Model – TAM.5 Relative empirical studies. General regression model.28 CHAPTER 3: RESEARCH METHODOLOGY. Proposed regression model for sample. Relationship between Perceived Usefulness and User Decision.
Relationship between Perceived Ease of Use and User Decision. Relationship between Social Influence and User Decision. Relationship between Perceived Reliability and User Decision. Relationship between Perceived Cost and User Decision.
Data collection methods.6 Model testing method.7 Data processing methods.2 Descriptive statistics method.1 Measures of Frequency.2 Measures of Central Tendency.3 Measures of Dispersion.3 Cronbach’s Alpha reliability coefficient method.4 Exploratory factor analysis.5 Pearson correlation matrix analysis. 44 CHAPTER 4: RESEARCH RESULTS AND DISCUSSIONS. Analyzing the scale’s reliability. Exploratory Factors Analysis (EFA).
Pearson correlation coefficients. Regression test results. Variance Inflation Factor test. Accepted linear regression model.
Testing the assumptions of residual normal distribution. Testing assumption of the linear relationship. Discussions on the results of research findings.61 CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS. Perceived Ease of Use.
Limitations and research direction. 71 vi 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 vi LIST OF FIGURES Figure 2. Model of Consumer Behavior. Theory of Reasoned Action Model.
Theory of Planned Behavior Model. Technology Acceptance Model. The degree of impact of factors affecting consumer’s decisions in using Momo E-wallet at BUH. Histogram graph and the Normal P-P Plot of Regression.60 ix LIST OF TABLES Table 3.
Summary table of hypothesis and expected values. Scales coding for variables. Demographic statistics of Momo users at BUH. Statistics for major of Momo users at BUH.
Statistics for average monthly income of Momo users at BUH. Statistics for daily Internet usage of Momo users at BUH. Statistics for Momo using period of users at BUH. Statistics for daily Momo usage of users at BUH.
KMO and Barlett’s Test. Total Variance Explained. Exploratory Factors Analysis. Pearson Correlation Coefficients.
Adjusted R-square and ANOVA. Spearman Correlation Coefficient. Results of Hypotheses testing.63 1 CHAPTER 1: INTRODUCTION The first chapter introduces the research motivation and identifies the research gap. Moreover, the research objectives, research scope, research methodology, contributions and processes are presented in detail in this chapter.
By the end of this chapter, a summary is provided to convey the core content and serve as a basis for chapter 2.1 Research motivation With the development of industrial revolution 4.0, E-wallet is the key driver for financial inclusion, in both developing and developed countries. An E-wallet is a virtual wallet that helps store payment card information on computers or mobile devices to facilitate not only online purchases but also payments at retail points (Tolety, 2018). There has been an increasing number in academic studies and research models about factors affecting the decisions to use e-wallet in the world (Hayashi et al., 2014; Rathore, 2016; Matemba & Li, 2018; Aydin & Burnaz, 2016; Punwatkar & Verghese, 2018; Soodan & Rana, 2020; Singh & Sinha, 2020;). These authors analyze factor affecting the decisions on using e-wallet globally in the various ways.
For instance, three major factors that influence consumer decisions on using e-wallet, including convenience in buying products online, brand loyalty, and usefulness of digital wallets (Rathore, 2016). Another research discussed that it is not only advantageous for buyers; traders are accepting e-wallet as a payment method because of its fastest transaction process, efficient cash management and less cost of labor (Hayashi et al. In spite of presenting their own conclusions after research findings, these studies provide shared overview of this emerging payment industry and the positive impact of e-wallet in the development of the fintech market. Recognizing the importance in this business, in Vietnam, many domestic research papers have been published online in the recent years.
Exploring the factors affecting the emergence of mobile payment acceptance in Vietnam, (Phuong et al., 2020) concluded that customer satisfaction and trust considerably affect customers’ continuance intentions towards e-wallet usage. By using the analysis results of the 2 Unified Theory of Acceptance and Use of Technology (UTAUT) model, the research shows that factors including “Perceived usefulness”, “Mobile application quality” and “Payment security” all have significant influence on customer’s satisfaction. According to Huong et al. (2020), the strongest factor being “Customer perception to social impact” should be highly considered to better understand customer’s choosing intention regarding e-wallet.
In addition, another research discussed that the effectiveness of use has a substantial impact on the intention of using e-wallet service, which is the most leading factor considered by consumers (Cuong et al. However, throughout author’s research progress within the existing databases, it is noticed that there has been a limitation in studies to explore the factors affecting customer decisions on using e-wallet in Vietnam. These above empirical studies mostly examined large populations rather than specific audience segment with distinctive behaviors, which can be inapplicable in consideration of the differences in economy, culture and society. On the other hand, the domestic studies have only encountered the decisions of customer towards e-wallet service in general instead of focusing on a specific platform.
In recent years, the advent of Fintech has brought about positive changes to Vietnam’s economy and created an impact on traditional finance organization’s business strategy. Moreover, the arrival of digital wallets in Vietnam has received significant attention from consumers in recent years for the ease of use, as well as advantageous payment features with lower costs, wider and better access. Witnessing advantages and potential in this emerging industry, the fierce competition in the digital wallet market has attracted the participation of over 30 service operators. One of Vietnam’s dominating names with an estimated 20 million users, Momo has become widely known among the young generation Although the mobile payment industry continues to grow and attract investors’ interest, e-wallet has not made such an impact on consumption habits of Vietnamese people, particularly the young generation who are always in contact with modern technology.
Therefore, it is essential to analyze the factors affecting decisions on using e-wallet Momo of students of Banking University Ho Chi Minh City to help service provider establish a stable development. From reasons above, within in the framework of the thesis entitled “FACTORS AFFECTING DECISIONS ON USING E-WALLET MOMO OF STUDENTS OF 3 BANKING UNIVERSITY HO CHI MINH CITY”, the thesis will give detailed explanation about the mentioned factors and propose some recommendations to service providers of Momo in order to pay attention to these factors as well as improve the customers’ satisfaction when using Momo.2 Research gap There has been a number of scientific publications and magazine articles released which contribute to the research on factors influencing the decisions on using e-wallet payment across major cities in Vietnam as well as oversea. However, most of these documents likely to focus on the adoption and attitude of customers towards e-wallet payment systems in general so there is still a lack of studies on Fintech products and services such as Momo. Following the relative empirical studies, the author applies the quantitative method as the same approach which most authors chose to analyze the research subject.
In short, this study is designed to supplement and contribute to Momo’s operations as well as the company further development in Vietnam.1 General objectives This research investigates the factors that influence the decisions of using e- wallet Momo (Momo) of students of Banking University Ho Chi Minh City (BUH students). The results are used to propose some recommendations to Momo providers in order to further improve their services as well as attract more customers.2 Specific objectives Identifying the factors which affect customers’ decisions on using E-wallet. Examining the influence level of each factor on BUH students’ decisions when using Momo. Proposing some recommendations to Momo developers in order to enhance consumers’ satisfaction.
Research questions Which factors are affecting customers’ decisions on using E-wallet?