Exploring the adoption of digital finance among university students in Malaysia using the technology acceptance model (tam)

Chong, Ming Fatt (2025) Exploring the adoption of digital finance among university students in Malaysia using the technology acceptance model (tam). Final Year Project, UTAR.

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Abstract

The rapid evolution of digital finance in Malaysia has driven extensive research into exploring the adoption of digital finance among university students in Malaysia using Technology Acceptance Model (TAM). This research explores digital finance using fintech technologies with mobile applications such as Touch ‘n Go eWallet, Shopee Pay, Grab Pay, Maybank2u, and Boost. It aims to identify the convenience, security, and cost savings. This study proposes an integrated model by synthesising Technology Acceptance Model (TAM) with perceived ease of use and perceived usefulness as the independent variables, digital finance usage (DFU) has been employed as the dependent variable and social influence, perceived risk, and perceived trust as the external variables. This study uses the quantitative approach research design with questionnaires distributed to university students in Malaysia. Data has been collected from 240 respondents and has been analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) in SmartPLS. Outer loadings, composite reliability (CR), average variance extracted (AVE), discriminant validity, multicollinearity test, and structural equation modelling (SEM) have been checked in SmartPLS. The model explained 24.10%, 13.50%, and 28.70% of the variance in digital finance usage, perceived ease of use, and perceived usefulness respectively. The findings of this study in the original structural model, Perceived Usefulness has a strong and significant positive impact on Digital Finance Usage, Social Influence positively and significantly affects Perceived Usefulness, Perceived Risk positive and significant effect on Perceived Ease of Use, Perceived Trust positively and significantly affects Perceived Ease of Use and Perceived Usefulness, Perceived Ease of Use does not significantly affect Digital Finance Usage, Social Influence does not significantly affect Perceived Ease of Use, and Perceived Risk does not significantly affect Perceived Usefulness are statistically significant at the 5% level. Policymakers should prioritize cybersecurity and data protection in digital finance as these variables are considered important by the university students. Financial institutions for digital finance providers should leverage social recommendations and engaging platform features that can enhance trust, perceived usefulness, and continued usage among the student demographic. Keywords: Digital Finance, Fintech, Technology Acceptance Model (TAM), Malaysia Subject Area: HG1710 -1710.5 Electronic funds transfers

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