THE INFLUENCE OF CONSUMER BEHAVIOR, FINANCIAL LITERACY, AND TRANSACTION SECURITY ON THE USE OF DIGITAL PAYMENT METHOD IN GEN Z

Abstract

This research explores the impact of consumer behavior, financial literacy, and transaction security on Gen Z's propensity to use digital payment methods, specifically e-wallets. A quantitative approach was adopted, with data analyzed through multiple linear regression, determination coefficient (R²), partial (t), and simultaneous (F) tests. The study's results reveal several key insights. The Consumer Behavior variable (X1) significantly affects digital payment method usage (Y), as indicated by a t-value of 2.017 (p<0.05). Likewise, Financial Literacy (X2) demonstrates a significant effect on e-wallet usage (Y), with a t-value of 3.333 (p<0.05). Additionally, Transaction Security (X3) is found to significantly influence digital payment method usage (Y), reflected by a t-value of 5.123 (p<0.05). In all cases, the t-values surpassed the critical t-table value of 1.984. Finally, with an F-count of 47.450 (p<0.05) exceeding the F-table value of 2.70, it's evident that Consumer Behavior (X1), Financial Literacy (X2), and Transaction Security (X3) jointly have a significant influence on the use of digital payment methods (Y).