Analysis Of Factors Influencing The Adoption Of Sharia-Based Non-Cash Payments In Medan City
Abstract
This study aims to analyze the influence of technology, trust and risk, and Sharia compliance on the adoption of Sharia-based cashless payment systems among the people of Medan City. A quantitative approach was employed using a survey method through questionnaires distributed to respondents who were familiar with or had experience using Sharia-based cashless payment services. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS software. The results indicate that technology has a significant effect on the adoption of Sharia-based cashless payments, with a p-value of 0.027. Meanwhile, trust and risk (p-value = 0.462) and Sharia compliance (p-value = 0.166) do not have a significant effect on adoption. The R-Square value of 0.143 indicates that the independent variables explain 14.3% of the variance in Sharia-based cashless payment adoption, while the remaining variance is influenced by other factors outside the research model. These findings suggest that technology is the primary factor influencing users’ decisions to adopt Sharia-based digital payment services. The study provides practical insights for Islamic banks, digital payment providers, and regulators in developing a more effective, inclusive, and sustainable Islamic digital payment ecosystem.
Keywords
Full Text:
PDFReferences
Agrawal, A. (2021). Impact of elimination of dividend distribution tax on Indian corporate firms amid COVID disruptions. Journal of Risk and Financial Management, 14(9), Article 413. https://doi.org/10.3390/jrfm14090413
Chan, H. F. (2023). Cash and the hidden economy: Experimental evidence on fighting tax evasion in small business transactions. Journal of Business Ethics, 185(1), 89–114. https://doi.org/10.1007/s10551-022-05186-y
Fatimah, S. (2024). Pengaruh service quality, e-trust dan transformasi digital terhadap loyalitas nasabah pengguna produk BSI Mobile. Reslaj: Religion Education Social Laa Roiba. https://journal.laaroiba.com/index.php/reslaj/article/view/3952
Fergusson, K. (2023). Less-expensive long-term annuities linked to mortality, cash and equity. Annals of Actuarial Science, 17(1), 170–207. https://doi.org/10.1017/S1748499522000112
Ismail, A. H. (2022). The concept of online buying in shariah economy, 3(1), 924–928.
Jain, N., & Raman, T. V. (2022). A partial least squares approach to digital finance adoption. Journal of Financial Services Marketing, 27(4), 308–321. https://doi.org/10.1057/s41264-021-00127-8
Kovski, N. (2023). Unconditional cash transfers and mental health symptoms among parents with low incomes: Evidence from the 2021 child tax credit. SSM - Population Health, 22, Article 101420. https://doi.org/10.1016/j.ssmph.2023.101420
Mart, C. V., & Mart, P. A. (2021). Partial least squares structural equation modeling (PLS-SEM) applications in economics and finance. MDPI. https://doi.org/10.3390/books978-3-0365-2621-8
Monye, O. (2024). Cashless policy initiative in Nigeria: Outline of crucial socio-economic and regulatory considerations. Journal of Money Laundering Control, 27(3), 445–458. https://doi.org/10.1108/JMLC-05-2023-0098
Ningrum, W. R. (2025). Digital payment adoption among Generation Z: The roles of trust, ease of use, and financial literacy in QRIS usage in Indonesia. Scientific Culture, 11(3), 845–853. https://doi.org/10.5281/zenodo.11322566
Pradesyah, R., Ismail, A. H., & Adawiyah, R. (2024). Planned behavior in supporting cashless society in sharia financial institutions. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 7(2), 1–23. https://doi.org/10.31538/iijse.v7i2.4943
Riyazahmed, K. (2024). Do cash holdings impact the financials of companies? Evidence from India. Indian Journal of Finance, 18(3), 8–24. https://doi.org/10.17010/ijf/2024/v18i3/173614
Rösl, G. (2022). Cash demand in times of crisis. Journal of Payments Strategy and Systems, 16(2), 107–119.
Sihotang, M. K., Hasanah, U., & Hayati, I. (2022). Model of sharia bank profitability determination factors by measuring internal and external variables. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(1), 235–251.
Sodawan, A. (2022). Halal-friendly attributes and Muslims’ visit intention: Exploring the roles of perceived value and destination trust. Sustainability, 14(19), Article 12002. https://doi.org/10.3390/su141912002
Sung, C. T. (2023). A systematic review: Landscape of private equity in dermatology from past to present. Journal of Drugs in Dermatology, 22(4), 404–408. https://doi.org/10.36849/JDD.6892
?wiecka, B. (2021). Consumer financial knowledge and cashless payment behavior for sustainable development in Poland. Sustainability, 13(11), Article 6401. https://doi.org/10.3390/su13116401
Syafaastuti, S. (2024). The use of the Technology Acceptance Model (TAM) to analyze the effects of social influence on the interest in implementing cashless payment (QRIS). In Proceedings of the 2024 International Conference of Computer and Informatics Engineering (IC2IE 2024): Generative AI in democratizing access to knowledge and skills (pp. xx–xx). IEEE. https://doi.org/10.1109/IC2IE63342.2024.10748219
Wahyuni, S. F., Hafiz, M. S., & Pradesyah, R. (2023). MSME development model in conventional banks in Medan. 12(02), 755–761.
DOI: https://doi.org/10.56114/al-sharf.v7i2.13418
Refbacks
- There are currently no refbacks.
ISSN 2723-5440 (Online)
