DETERMINANTS OF STUDENTS’ ONLINE PURCHASING DECISIONS: THE ROLE OF DIGITAL LITERACY AND DIGITAL PAYMENT INNOVATION IN THE SOCIETY 5.0 ERA

Abstract

The rapid development of digital technology in the Society 5.0 era has transformed consumer behavior, particularly in online shopping activities and the use of digital payment systems. This study aims to analyze the effect of digital literacy on digital payment usage and online purchase decisions among university students, as well as the effect of digital payment on online purchase decisions. The study employed a quantitative approach using a survey method and hypothesis testing through Structural Equation Modeling–Partial Least Squares (SEM-PLS). Data were collected through an online questionnaire distributed to 138 active university students in Banyumas Regency who use e-commerce and digital payment services. The findings indicate that digital literacy has a positive and significant effect on online purchase decisions and digital payment usage. Furthermore, digital payment has a positive and significant effect on online purchase decisions and demonstrates the strongest influence among the variables examined. The results suggest that students with higher levels of digital literacy tend to adopt digital payment services more frequently and make online purchase decisions more confidently. This study contributes to the literature on digital consumer behavior by highlighting the mediating role of digital payment in the relationship between digital literacy and online purchase decisions. The findings also provide practical implications for e-commerce platforms and digital payment providers in enhancing digital literacy and improving payment service quality to support a more efficient, secure, and effective digital transaction ecosystem.