Intention To Use Islamic Fintech In Java: An Extention Of The Utaut Model

Abstract

The Islamic financial technology may  answer the needs of the Indonesian people who want transactions to be easier, faster, and cheaper, and to avoid riba, gharar, and maysir practices. However, Islamic fintech in Indonesia still faces various  challenges.  The  gap  between  the  number  of companies and the number of services provided by Islamic fintech compared to conventional fintech is still very large. Based on that, this study aims to determine the effect of the level  of  performance  expectancy,  effort  expectancy,  social influence,  perceived  risk,  digital  literacy,  sharia  financial literacy  and  its  effect  on  behavioral  intention  in  using Islamic fintech. The subjects examined in this research are muslim who have not yet used Islamic fintech and reside in Java  Island,  with  a  total  sample  of  334  respondents.  The method used in this research is quantitative with a causality descriptive  research  design.  The  analysis  tool  used  is Partial Least Square – Structural Equation Modeling (PLS- SEM) using the SmartPLS 3 application. The results of the study  show  the  level  of  performance  expectancy,  effort expectancy,  and  digital  literacy  has  a  positive  and significant  effect  on  behavioral  intention  to  use  Islamic fintech. Meanwhile, the level of social influence, perceived risk,  and  sharia  financial  literacy  has  no  effect  on behavioral intention to use Islamic fintech.