FINAL GROUP PROJECT

INTERGENERATIONAL PERSPECTIVE AND EXPERIENCE OF

ACTUALIZING A CASHLESS SOCIETY IN YOGYAKARTA

Group members:

Muhammad Affan Alfian - 224214128

Rafael Nugroho Putra Susanto - 224214130

Mohammad Aditya Fahrizal - 224214135

Muhammad Ihsan - 224214138

Asyar Majid Riviera - 224214143

Yoakim Setya Evan - 224214148

Department of English Sanata Dharma University

Introduction to Indonesian Culture B

Sri Mulyani, Ph.D.

 ABSTRACT

This research explored how each generation's younger and older perspectives on using
payment transactions in daily life, particularly the transition from cash to cashless, differed
young and older generations. The data collection methods used in this study were interviews, as
well as a descriptive explanation of the correlation of the observations with the theories used:
the technology-organization-environment (TOE) framework and the unified theory of acceptance
and use of technology (UTAUT), which discussed payment shift. The study discovered
that technological advancements have an impact on daily payment transaction methods,
which are supported by several factors such as technology, convenience and speed, online
trading, and payment systems. As a result, globalization has an impact on technology,
requiring humans to adapt and learn to use it in the present.

Keywords: Payment, Cashless, Technology, Transaction, Money, Globalization, Yogyakarta.

I. INTRODUCTION

A cashless society is an economic concept in which all public financial

transactions are conducted without the use of cash. The digital medium, specifically
internet banking, mobile banking, electronic wallets, and digital wallets, is the backbone
of a cashless society. Thus, a cashless society means reducing, if not eliminating, the use
of cash and physical payment methods such as paper money.

In 2009, Bank Indonesia Regulation (PBI No. 11/12/PBI/2009) regarding

electronic money initiated the transition from cash payments to non-cash or cashless
payments. Then, in 2014, Bank Indonesia declared the National Non-Cash Movement
(GNNT), reinforcing the concept of non-cash transactions once more. Furthermore, since
then, the Indonesian economy has slowly expanded in terms of services and non-cash
payment options.
 According to Bank Indonesia statistics, the volume of electronic money
transactions reached 206.9 million by the end of June 2018, and there were 142,477,296
electronic money instruments in circulation in September 2018. This represents a 298.6%
increase in the volume of electronic money transactions since June 2017.

The implementation of e-money for toll road access transactions in Indonesia,

which began in October 2017, has also resulted in a 198% increase, or nearly double, in
the amount of electronic money in Indonesia, namely 71,783,618 electronic money
instruments. Not only E-money but also e-wallets or digital wallets are popular payment
methods at the moment. As with QRISS, we can accept payments through Indonesian
e-wallets such as T-Cash, OVO Payment, Go-Pay, DANA, and many others.

A cashless society has many advantages, including being simpler and safer, as well as
reducing the amount of money that must be managed by the printing or destroying
money. However, every cashless transaction is meticulously recorded. This means that
using electronic money makes economic planning easier.

This research will focus on how transactions affect payment changes in daily life,
especially the change in use between younger and older generations in Yogyakarta. The
theories that will be used in this study are the technology-organization-environment
(TOE) framework, which will explain what factors influence technology adoption
payment change, and the unified theory of acceptance and use of technology (UTAUT),
which will explain the effects of performance on payment change gradually increasing.

II. SELECTED THEORIES

The theories that are selected by researchers in this paper are the Theory of
Innovation and the Unified Theory of Acceptance and Use of Technology. The theory
of Innovation, this theory is based on the attributes of innovation and the TOE
framework. Roger’s theory has been used as a prediction of the factors that influence the
adoption of a cashless payment system. The TOE framework included the uses of
Technology,
Organization, and Environment. This theory can be popularized by the consumer needs in
convenient transactions and businesses' needs for new profit advantages. How quickly
society can adapt to this theory is an important step in adopting cashless payment
methods.

The second theory is the Unified Theory of Acceptance and Use of

Technology (UTAUT). This study focused on Venkatesh et al. UTAUT and
its extended theoretical framework are very popular and often used to predict
behavioral intentions for technology adoption. Venkatesh, along with many other
researchers, predicts customer purchase/use intent by Expected Performance (PE),
Expected Effort (EE), Social Impact (SI), and Support Terms (FC) indicating that
it is likely to be some modifications/adoption of concepts mentioned some other
factors as well. In this study, the authors decided to include risk perception and
confidence, coefficients and were encouraged to reconstruct the model in the
Jordanian context. The first UTAUT derived from its predecessor model, namely
H. Technology Acceptance Model (TAM), Planned Behavior Theory (TPB),
Rational Behavior Theory (TRA), and Innovation Diffusion Theory (IDT).

- Performance Expectancy (PE)

User expectations for technology performance influence their intention to

adopt the technology. Previous research has shown evidence that perceived
performance influences behavioral intentions. Venkatesh et al provided evidence in
their study that the intention of customers to adopt technology depends on how they
perceive its usefulness. Mobile banking promises to be a fast and portable medium for
financial transactions, and user perception of delivering on these promises will
determine the success of this endeavor. Researchers living in different geographic
locations and looking at different domains have found that performance expectations
are a key factor in helping users shape their behavioral intentions.

- Effort Expectancy
 Experts in technology adoption models emphasized that user perceptions of
ease of use determine technology adoption. One of the main reasons users of mobile
banking and its QR payment service are it’s easy to use and less effort. The service
aims to make your life easier by providing a user-friendly interface and quick
payment setup.

- Social Influence

Venkatesh et al. Recognized the importance of social impact in incorporating

technology into their work. Researchers used a variety of conventional frameworks to
understand how social influences shape customers' purchase intentions. In his work,
Singh showed that his decision to launch his mobile commerce service was influenced
by his loved ones. Being part of the people around him cannot ignore the social
impact in his daily life. The desire to fit in and connect drives people to embrace
themselves and research on innovation adoption confirms this fact.

- Risk Perception

The perception of risks associated with QR payments influences the behavior

of people using the service. People are inherently resistant to change when they step
out of their comfort zone. Fear of additional security issues and loss of privacy,
therefore, discourages exploring opportunities. A lack of proper understanding of how
the system works and self-awareness of privacy hinder the adoption of innovation.
Prior experience with technology and perceptions of confidentiality and security
influence technology acceptance.

- Trust factor

Trust plays an important role in technology acceptance. The reliability and

availability of a system when users require services are important factors affecting the
acceptance of such services. In their research, Kim and Prabhakar showed that trust
plays an important role in the adoption of new technologies. Systems must be up and
 active on a timely basis as required. Real-time customer support in times of trouble
builds trust. The system should be robust enough to be available 24/7.

III. Data Presentation

CONSUMER

1. Mr. Pambudi (58 years old)

Mr.Pambudi has no difficulties in making cashless payments because he does not use
cashless in everyday life. Mr. Pambudi still uses cash in his daily transaction process so
there are no difficulties using cashless payments. He has not had any problems with
transactions yet.
2. Ela (27 years old)
Ela is already using cashless in everyday life. In the buying and selling process, She has
not encountered any difficulties with the cashless feature. She thought the existence of a
cashless feature is very helpful in the process of buying and selling every day. She hopes
that more and more sellers will provide/hold cashless features so that she does not have to
carry cash.
3. Vanya ( 13 years old)
Vanya does not use cashless in everyday life. In her daily life, she has never experienced
cashless payments, so she has no difficulties. Within the scope of her school, Vanya
still uses cash in the system of buying and selling food for both canteens and snacks
outside school. She hopes that cashless technology will be more advanced, after hearing
from her sister that cashless facilities have really helped her life in Yogyakarta.
4. Tanti (45 years old)
Tanti does not use cashless often, only at certain times does she use cashless. Tanti does
not experience difficulties in using cashless because it becomes easier and faster to use
cashless payments and is also more helpful. She hopes that more merchants will use
cashless facilities as a means of payment.

MERCHANT
1. Food Merchant (jasuke)
The sellers know about cashless payments such as Qris and ShopeePay. They are using a
cashless device for transactions in their daily life. They said there were no difficulties in
cashless payment facilities during trading. They thought cashless payments are very
effective in buying and selling activities during trading because when using cash people
rarely use money in small denominations and it is hard to get the change. However, until
now there are still many consumers choosing cash over cashless for the transaction
process.
2. Beverage merchant (kuwut ice)
The seller knows about cashless payments and using ShopeePay. The seller said using a
cashless device in daily life for the transaction process. Sellers have no difficulty in
cashless payment facilities in the transaction process. He thought that cashless payments
are very effective during buying and selling activities because many young people
(adults) prefer to use cashless payments and also avoid the risk of losing money.
However, now there are still many consumers who prefer cash and only 15% of
consumers use cashless in the transactions process.
3. Food merchant (fried tofu)
The sellers know a little about cashless payments for merchants. However, in daily life,
sellers do not have or use a cashless device. No difficulties were experienced even though
sellers still use cash payment facilities and many consumers still use cash. According to
the seller, the use of cashless may be effective considering that some consumers ask
whether they can use cashless or not. However, currently they still only accept cash and
do not provide cashless facilities.
4. Food merchant (donuts)
The sellers do not know anything about cashless payments. Sometimes, sellers
experience difficulties because sellers do not have or use a cashless device because many
consumers ask whether cashless payment facilities are available or not. Even though they
experienced difficulties, the seller was still forced to trade using the cash system.
According to the seller, the cashless payment facility is very effective because it is very
helpful and facilitates transactions, considering that some consumers ask whether they
 can use cashless or not, but currently sellers only accept cash and do not provide cashless
facilities.

DOCUMENTATION

IV. DATA ANALYSIS

In the consumer presentation data, it can be seen that some are already using
cashless and some are not using cashless in the transaction process they make. This is in
accordance with Roger and Venkatesh's theory explained by researchers regarding
innovation and the use of technology in the present. Rapidly developing technology
makes it easier for users to do everything in their lives. However, in reality, there are still
many who have not fully utilized this technology. This is caused by several factors,
namely environmental factors, age factors, social factors, and also the lack of trust in
technology itself.

Based on the data, it can be seen that people who use cashless are people in the
range of ages of the 20s to 40s. People who use cashless think that using cashless is more
convenient and easier to use in everyday life. Despite the wide range of people who like
to use cashless, there are still a lot of people who prefer using cash more than cashless in
their daily life. Most people who still use cash are people who have entered old age.
However, there are still young people who prefer to use cash in the transaction process
because they think using cash is more comfortable. Usually, elders who still use cash are
influenced by their age and environmental factors.

People who still use cash for their transaction process, mostly children and old
people, feel more comfortable using cash because of the uncomplicated process of
transaction that is offered by transaction in cash. There are several procedures that should
be done In the process of transactions using cashless. There's already a cashless option
that does not require a certain procedure, with just tapping the card then the transaction is
already done. However, the machines that support this method are not available
everywhere and mostly this method is only used for transportation such as KRL, city bus,
or toll payment. Elders who are not used to the new technology also face difficulty in
using cashless as the transaction option and age become the main factors in this matter.
Technology nowadays has developed faster than technology before the revolution of
industry 4.0. Elders find it hard to keep up with new technology, this makes them become
comfortable using cash for the transaction process in their daily life.

In the merchant presentation data, it can be seen that almost all sellers know very
well about non-cash payments. This relates to Roger and Venkatesh's theory which
explains innovation and the use of technology. Sellers are starting to utilize technology in
their sales process. This shows that technology has a great influence on the social
environment of society. Many people think that using cashless makes it easier for them to
make transactions. The sellers also think that using cashless is easier for them than using
cash. The sellers think it is easier because sometimes it is difficult to provide small
denominations to the consumers when they use cash in large units. The appearance of
cashless means they don't have to worry about providing small denominations anymore.
In addition, many consumers ask about the provision of cashless which also makes sellers
intend to provide cashless as an option for their sales transactions. This is a factor of
social influence from consumers to sellers. This makes the percentage of cashless use
start to increase rapidly. Despite the growth of cashless options, there are still sellers who
still use cash in their sales process. This can happen because of environmental factors and
 economic factors. Sellers who did not use the cashless option tend to think that the
consumer prefers to use cash in the transaction process. Therefore, lack of funds also
became the reason why sellers did not provide the cashless option. Technology that is
increasing rapidly makes the transaction process between sellers and consumers become
much easier. Sellers and consumers did not face any difficulties with this new technology.
However, the appearance of a cashless option does not reduce the use of cash even
though it makes the transaction process become easier.

V. CONCLUSION

Cashless payment is transactions that are conducted without using cash. The
cashless society such as internet banking, mobile banking, electronic wallets, and digital
wallets. E-money or digital wallets in Indonesia began in October 2017, such as T-Cash,
OVO payment, Go-Pay, DANA, etc. Cashless payment has many advantages such as
being more convenient, simple, and safer.

Based on data, people that use cashless payment in Yogyakarta are mostly
younger people in the range of ages of the 20s to 40s because they feel more comfortable
and easier using it. Meanwhile, customers that are still using cash are older people
because they feel more comfortable and not struggling to use the technology because they
are not accustomed to the technology.

Most of the sellers in Yogyakarta already know about cashless payment but not all
of them are using it because some of the customers still do not need cashless payment. It
was caused by social factors and economic factors. However, due to globalization and
technology, the usage of cashless payment has increased.

From these two theories, the Technological-Organization-Environment (TOE)

Framework and the Unified Theory of Acceptance and Use of Technology (UTAUT)
fit perfectly with cashless payment innovations, starting from their predictions, and
research on the factors that will influence cashless innovation.
 For this reason, it can be concluded that cashless users with current technology
make people's daily life more convenient, while non-technical people may experience
cashless transactions as options and something that is difficult. Most cashless users are
young, tech-savvy, and people who have no problem using cashlessness in the payment
process. As a result, cashless use is likely to increase in the coming years as many young
people now use increasingly advanced technology.

VI. REFERENCES

Wujudkan Cashless Society di Indonesia, BRI Maksimalkan Open Banking BRIAPI. (n.d).
Developers BRI.
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en-banking-briapi

Perkembangan & Keuntungan Transaksi Cashless dalam Proses Bisnis. (n.d). Jurnal
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Marikyan, D. & Papagiannidis, S. (2021) Unified Theory of Acceptance and Use of Technology:
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Technology-organization-environment framework. (2015, January 07). EduTech Wiki, A

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