1162 factors affecting decisions on using e wallet momo of students of banking university ho chi minh city bachelor luận văn TCNH pham nguyen dan thuy supe

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM
BANKING UNIVERSITY OF HO CHI MINH CITY

PHẠM NGUYỄN ĐAN THÙY

FACTORS AFFECTING DECISIONS ON
USING E-WALLET MOMO OF STUDENTS
OF BANKING UNIVERSITY HO CHI MINH CITY

GRADUATION THESIS
MAJOR: FINANCE – BANKING
CODE: 7340201

HO CHI MINH CITY, 2022


PHẠM NGUYỄN ĐAN THÙY

FACTORS AFFECTING DECISIONS ON
USING E-WALLET MOMO OF STUDENTS
OF BANKING UNIVERSITY HO CHI MINH CITY

GRADUATION THESIS
MAJOR: FINANCE – BANKING
CODE: 7340201

HO CHI MINH CITY, 2022


i

ABSTRACT
The purpose of this research is to identify the factors affecting decisions in using
Momo E-wallet of students of Banking University of Ho Chi Minh City. The study was
conducted on a theoretical foundation and earlier research on decisions to use Momo, in
which the factors affecting the decisions to use the service is closely examined.
The research data was collected through a self-administered questionnaire which
was distributed online with a total of 150 respondents. Supported by the collected data,
the study was conducted formal research by quantitative research method using
descriptive statistical analysis, correlation and linear regression analysis. The research
results show that Social Influence, Perceived Usefulness and Perceived Reliability
significantly show positive effect on decisions to use Momo of BUH students.
Additionally, Perceived Ease of Use and Perceived Cost also affect these decisions but
possess a lower impact level.
From the research findings above, the study suggests solutions and can be used as
recommendations relating to e-wallet service activities of Momo in order to improve the
platform design as well as services to attract more consumers. As a theoretical
contribution, this study applies Technology Acceptance Model to investigate the factors
affecting decisions in using Momo E-wallet of students of Banking University of Ho Chi
Minh City.
Keywords: Decisions on using, Momo, E-wallets, Technology Acceptance
Model


COMMITMENT
I hereby declare that this thesis is my own work, with the support of my
supervisor, Mr. Nguyen Duy Linh, a lecturer at the Banking University of Ho Chi Minh
City's Faculty of Finance. To the best of my knowledge and belief, the thesis does not
copy prior studies, and all assertions and material presented herein are correct and
truthful. The report's statistics and material are clearly cited and presented honestly.
Ho Chi Minh City, …………………

Author

Phạm Nguyễn Đan Thùy


ACKNOWLEDGEMENT
First of all, I would like to express my sincere gratitude to the teachers from
Banking University Ho Chi Minh City, who generously assisted me throughout my four
years of schooling. I have gained a lot of knowledge over the last four years, all of which
help me to become more confident and experience in the future.
Secondly, I would like to express my deepest gratitude to my supervisor - Nguyen
Duy Linh, Ph.D., who has wholeheartedly guided and helped me to complete this
research.
Due to the limitation of time, knowledge, and practical experience, this thesis
certainly still has many shortcomings in the implementation process. I am looking
forward to receiving the sincere responses and suggestions of lecturers to improve this
thesis. This would be the basis, the premise for me to improve my knowledge in the
future.
Best regards!


CONTENT
LIST OF ABBREVIATIONS................................................................................... vii
LIST OF FIGURES.................................................................................................. viii
LIST OF TABLES...................................................................................................... ix
CHAPTER 1: INTRODUCTION............................................................................... 1
1.1 Research motivation........................................................................................... 1
1.2 Research gap....................................................................................................... 3
1.3 Research objectives............................................................................................. 3
1.3.1 General objectives........................................................................................ 3

1.3.2 Specific objectives......................................................................................... 3
1.4. Research questions............................................................................................ 3
1.5 Research object and Research scope................................................................. 4
1.5.1 Research object............................................................................................. 4
1.5.2 Research scope.............................................................................................. 4
1.6 Research methodology........................................................................................ 4
1.6.1 The approach methods................................................................................. 4
1.6.2 Data collecting methods............................................................................... 5
1.6.3 Data processing methods............................................................................. 5
1.7 Research framework.......................................................................................... 5
1.8 Research contributions....................................................................................... 6
1.8.1 In literature................................................................................................... 6
1.8.2 In practice..................................................................................................... 6
1.9 Thesis structure.................................................................................................. 6
CHAPTER 2: LITERATURE REVIEWS................................................................. 9
2.1 Cashless payment................................................................................................ 9
2.1.1 Definition....................................................................................................... 9
2.1.2 The role of cashless payment..................................................................... 10
2.1.3 Types of cashless payments........................................................................ 11
2.2 Electronic wallet............................................................................................... 12


2.2.1 Definition..................................................................................................... 12
2.2.2 Role of electronic wallet............................................................................. 13
2.3 Consumer decisions on using E-wallet service............................................... 14
2.3.1 Definition..................................................................................................... 14
2.3.2 The role of consumer decisions on using E-wallet service.......................15
2.4 Theoretical literatures...................................................................................... 16
2.4.1 Theory of Reasoned Action – TRA........................................................... 16
2.4.2 Theory of Planned Behavior – TPB.......................................................... 17

2.4.3 Technology Acceptance Model – TAM...................................................... 18
2.5 Relative empirical studies................................................................................ 19
2.5.1 International studies.................................................................................. 19
2.5.2 Domestic studies......................................................................................... 21
2.6. General regression model................................................................................ 28
CHAPTER 3: RESEARCH METHODOLOGY..................................................... 32
3.1. Research process.............................................................................................. 32
3.2. Proposed regression model for sample........................................................... 33
3.3. Research hypotheses........................................................................................ 33
3.3.1. Relationship between Perceived Usefulness and User Decision.............33
3.3.2. Relationship between Perceived Ease of Use and User Decision...........34
3.3.3. Relationship between Social Influence and User Decision.....................34
3.3.4. Relationship between Perceived Reliability and User Decision.............35
3.3.5. Relationship between Perceived Cost and User Decision.......................35
3.4. Scale construction............................................................................................ 36
3.5. Data collection methods.................................................................................. 38
3.6 Model testing method....................................................................................... 39
3.7 Data processing methods.................................................................................. 39
3.7.1 Quantitative method.................................................................................. 39
3.7.2 Descriptive statistics method..................................................................... 40
3.7.2.1 Measures of Frequency........................................................................ 40


3.7.2.2 Measures of Central Tendency............................................................ 40
3.7.2.3 Measures of Dispersion........................................................................ 41
3.7.2.4 Cross-tabulation................................................................................... 41
3.7.3 Cronbach’s Alpha reliability coefficient method..................................... 41
3.7.4 Exploratory factor analysis....................................................................... 42
3.7.5 Pearson correlation matrix analysis.......................................................... 44
3.7.6 Regression analysis..................................................................................... 44

CHAPTER 4: RESEARCH RESULTS AND DISCUSSIONS............................... 47
4.1. Research results............................................................................................... 47
4.1.1. Descriptive statistics.................................................................................. 47
4.1.2. Analyzing the scale’s reliability................................................................ 52
4.1.3. Exploratory Factors Analysis (EFA)........................................................... 53
4.1.4. Pearson correlation coefficients................................................................... 55
4.1.5. Regression test results.................................................................................. 56
4.1.6. Variance Inflation Factor test...................................................................... 57
4.1.7. Heteroskedasticity test.................................................................................. 58
4.1.8. Accepted linear regression model................................................................ 59
4.1.8.1. Testing the assumptions of residual normal distribution....................59
4.1.8.2. Testing assumption of the linear relationship....................................... 60
4.2. Discussions on the results of research findings................................................. 61
CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONS...........................65
5.1. Conclusions...................................................................................................... 65
5.2. Recommendations............................................................................................ 65
5.2.1. Perceived Usefulness..................................................................................... 66
5.2.2. Perceived Ease of Use................................................................................... 66
5.2.3. Social Influence............................................................................................. 67
5.2.4. Perceived Reliability..................................................................................... 67
5.2.5. Perceived Cost............................................................................................... 68
5.3. Limitations and research direction................................................................. 68
REFERENCES.......................................................................................................... 71


LIST OF ABBREVIATIONS
Abbreviation

Meaning

BUH

Banking University of Ho Chi Minh City

DW

Durbin Watson

E-banking

Electronic banking

E-wallet

Electronic wallet

ECM

Expectation-Confirmation Model

EFA

Exploratory Factor Analysis

IT

Information Technology

MOMO

Mobile Money

PCI DSS

Payment Card Industry Data Security Standard

PEU

Perceived Ease of Use

PI

Personal Identification Number

POS

Point of Sales

PU

Perceived Usefulness

QR

Quick Response

SEM

Structural Equation Modelling

SMS

Short Message Service

SPSS

Statistical Package for Social Sciences

TAM

Technology Acceptance Model

TPB

Theory of Planned Behaviour

TPR

Theory of Perceived Risk

TRA

Theory of Reasoned Action

UTAUT

Unified Theory of Acceptance and Use of Technology

VIF

Variance Inflation Factor


LIST OF FIGURES
Figure 2.1. Model of Consumer Behavior.................................................................... 15
Figure 2.2. Theory of Reasoned Action Model............................................................ 17
Figure 2.3. Theory of Planned Behavior Model........................................................... 18
Figure 2.4. Technology Acceptance Model.................................................................. 19
Figure 4.1. The degree of impact of factors affecting consumer’s decisions in using
Momo E-wallet at BUH.................................................................................................. 58
Figure 4.2. Histogram graph and the Normal P-P Plot of Regression..........................59
Figure 4.3. Scatter plot................................................................................................. 60


LIST OF TABLES
Table 3.1. Summary table of hypothesis and expected values...................................... 36
Table 3.2. Scales coding for variables.......................................................................... 37
Table 4.1. Demographic statistics of Momo users at BUH..........................................47
Table 4.2. Statistics for major of Momo users at BUH................................................ 48
Table 4.3. Statistics for average monthly income of Momo users at BUH...................49
Table 4.4. Statistics for daily Internet usage of Momo users at BUH..........................50
Table 4.5. Statistics for Momo using period of users at BUH...................................... 50
Table 4.6. Statistics for daily Momo usage of users at BUH........................................ 51
Table 4.7. Reliability Statistics.................................................................................... 52
Table 4.8. KMO and Barlett’s Test............................................................................... 53
Table 4.9. Total Variance Explained............................................................................. 53
Table 4.10. Exploratory Factors Analysis.................................................................... 54
Table 4.11. Pearson Correlation Coefficients............................................................... 55
Table 4.12. Adjusted R-square and ANOVA................................................................ 56
Table 4.13. Multicollinearity statistics......................................................................... 57

Table 4.14. Spearman Correlation Coefficient............................................................. 58
Table 4.15. Results of Hypotheses testing.................................................................... 63


1

CHAPTER 1: INTRODUCTION
The first chapter introduces the research motivation and identifies the research
gap. Moreover, the research objectives, research scope, research methodology,
contributions and processes are presented in detail in this chapter. By the end of this
chapter, a summary is provided to convey the core content and serve as a basis for
chapter 2.
1.1 Research motivation
With the development of industrial revolution 4.0, E-wallet is the key driver for
financial inclusion, in both developing and developed countries. An E-wallet is a virtual
wallet that helps store payment card information on computers or mobile devices to
facilitate not only online purchases but also payments at retail points (Tolety, 2018).
There has been an increasing number in academic studies and research models
about factors affecting the decisions to use e-wallet in the world (Hayashi et al., 2014;
Rathore, 2016; Matemba & Li, 2018; Aydin & Burnaz, 2016; Punwatkar & Verghese,
2018; Soodan & Rana, 2020; Singh & Sinha, 2020;). These authors analyze factor
affecting the decisions on using e-wallet globally in the various ways. For instance, three
major factors that influence consumer decisions on using e-wallet, including
convenience in buying products online, brand loyalty, and usefulness of digital wallets
(Rathore, 2016). Another research discussed that it is not only advantageous for buyers;
traders are accepting e-wallet as a payment method because of its fastest transaction
process, efficient cash management and less cost of labor (Hayashi et al., 2014). In spite
of presenting their own conclusions after research findings, these studies provide shared
overview of this emerging payment industry and the positive impact of e-wallet in the
development of the fintech market.

Recognizing the importance in this business, in Vietnam, many domestic research
papers have been published online in the recent years. Exploring the factors affecting the
emergence of mobile payment acceptance in Vietnam, (Phuong et al., 2020) concluded
that customer satisfaction and trust considerably affect customers’ continuance
intentions towards e-wallet usage. By using the analysis results of the


Unified Theory of Acceptance and Use of Technology (UTAUT) model, the research
shows that factors including “Perceived usefulness”, “Mobile application quality” and
“Payment security” all have significant influence on customer’s satisfaction. According
to Huong et al. (2020), the strongest factor being “Customer perception to social impact”
should be highly considered to better understand customer’s choosing intention
regarding e-wallet. In addition, another research discussed that the effectiveness of use
has a substantial impact on the intention of using e-wallet service, which is the most
leading factor considered by consumers (Cuong et al., 2020). However, throughout
author’s research progress within the existing databases, it is noticed that there has been
a limitation in studies to explore the factors affecting customer decisions on using ewallet in Vietnam. These above empirical studies mostly examined large populations
rather than specific audience segment with distinctive behaviors, which can be
inapplicable in consideration of the differences in economy, culture and society. On the
other hand, the domestic studies have only encountered the decisions of customer
towards e-wallet service in general instead of focusing on a specific platform.
In recent years, the advent of Fintech has brought about positive changes to
Vietnam’s economy and created an impact on traditional finance organization’s business
strategy. Moreover, the arrival of digital wallets in Vietnam has received significant
attention from consumers in recent years for the ease of use, as well as advantageous
payment features with lower costs, wider and better access. Witnessing advantages and
potential in this emerging industry, the fierce competition in the digital wallet market has
attracted the participation of over 30 service operators. One of Vietnam’s dominating
names with an estimated 20 million users, Momo has become widely known among the
young generation Although the mobile payment industry continues to grow and attract

investors’ interest, e-wallet has not made such an impact on consumption habits of
Vietnamese people, particularly the young generation who are always in contact with
modern technology. Therefore, it is essential to analyze the factors affecting decisions on
using e-wallet Momo of students of Banking University Ho Chi Minh City to help
service provider establish a stable development.
From reasons above, within in the framework of the thesis entitled “FACTORS
AFFECTING DECISIONS ON USING E-WALLET MOMO OF STUDENTS OF


BANKING UNIVERSITY HO CHI MINH CITY”, the thesis will give detailed
explanation about the mentioned factors and propose some recommendations to service
providers of Momo in order to pay attention to these factors as well as improve the
customers’ satisfaction when using Momo.
1.2 Research gap
There has been a number of scientific publications and magazine articles released
which contribute to the research on factors influencing the decisions on using e-wallet
payment across major cities in Vietnam as well as oversea. However, most of these
documents likely to focus on the adoption and attitude of customers towards e-wallet
payment systems in general so there is still a lack of studies on Fintech products and
services such as Momo. Following the relative empirical studies, the author applies the
quantitative method as the same approach which most authors chose to analyze the
research subject. In short, this study is designed to supplement and contribute to Momo’s
operations as well as the company further development in Vietnam.
1.3 Research objectives
1.3.1 General objectives
This research investigates the factors that influence the decisions of using e- wallet
Momo (Momo) of students of Banking University Ho Chi Minh City (BUH students).
The results are used to propose some recommendations to Momo providers in order to
further improve their services as well as attract more customers.
1.3.2 Specific objectives

 Identifying the factors which affect customers’ decisions on using E-wallet.
 Examining the influence level of each factor on BUH students’ decisions when
using Momo.
 Proposing some recommendations to Momo developers in order to enhance
consumers’ satisfaction.
1.4. Research questions
 Which factors are affecting customers’ decisions on using E-wallet?
 How do these factors affect BUH students’ decisions when using Momo?
 What are recommendations to Momo developers in order to enhance
consumers’ satisfaction?


1.5 Research object and Research scope
1.5.1 Research object
The research studies factors influencing the decisions of using Momo E-wallet
among BUH students.
1.5.2 Research scope
 Scope of space: Banking University Ho Chi Minh City
 Scope of time: January 2022 – April 2022
1.6 Research methodology
1.6.1 The approach methods
Study based on the acquisition and inheritance of theories as a basis for the research
on factors affecting BUH students’ decisions on using Momo as follows:
 Theory of Reasoned Action (Fishbein & Ajzen, 1975) suggests that most
behaviors of social relevance are under volitional control, and that a person's
intention to perform a behavior is both the immediate determinant and the
single best predictor of that behavior.
 Theory of Planned Behavior (Ajzen, 1991) is an extension of the Theory of
Reasoned Action to include behaviors that are not entirely under volitional
control. Therefore, a variable called “Perceived Behavioral Control” was added

to the TRA to accommodate such behaviors.
 The author applies the Technology Acceptance Model (Davis, 1989), which is a
particularly well-researched intention model that have proved successful in
predicting technology acceptance behavior.
 The study adopts related international and domestic studies of factors that
influence customer’s decisions on using electronic payment methods (Taufan &
Yuwono, 2019; Sfenrianto, 2015; Chin & Ahmad, 2015; Dastan & Gürler,
2016; Gia-Shie Liu & Tai, 2016; Thanh & Phuc, 2017; Bich & Ninh, 2020).
These theories are also the basis for the study of factors affecting decisions on
using Momo of BUH students. Moreover, the study consults the relative empirical
studies and research documents of factors affecting decisions on using e-wallet service as
a foundation for comparison and evaluation of the quantitative analysis results.


1.6.2 Data collecting methods
The thesis collects primary data from an online survey, which takes place from
January 2022 – April 2022 with respondents mainly are students from BUH. Sample size
chosen for the research includes 165 BUH students, who are familiar with the e- wallet
industry and use Momo frequently. The survey’s language is conducted in Vietnamese.
1.6.3 Data processing methods
The research is conducted with quantitative research methods. Quantitative
research gathers the statistic results from questionnaires respondents and measures the
effect of factors affecting decisions on using Momo of BUH students.
 Use SPSS software
 Descriptive analysis
 Examine the reliability of measured scale
 Exploratory factor analysis
 Pearson correlation matrix analysis
 Analysis of multivariable linear regression model
 Testing of model defects (VIF, DW, Spearman)

1.7 Research framework
 Step 1: Determining research subject and research object
Research subject: factors affecting decisions on using Momo of BUH students
Research object: analyzing factors influencing the decisions of using Momo among
BUH students, thereby proposing some recommendations to enhance customer
satisfaction.
 Step 2: Reviewing literature and empirical studies
Approach methods: Theory of Reasoned Action (TRA), Theory of Planned
Behavior (TPB), Technology Acceptance Model (TAM).
 Step 3: Collecting data
Primary data collected from online survey with BUH students as respondents.
 Step 4: Conducting quantitative analysis
Using SPSS software to display descriptive analysis; examine scale’s reliability;
exploratory factor analysis; Pearson correlation matrix analysis; analysis of multivariable
linear regression model; testing of model defects (VIF, DW, Spearman).


 Step 5: Writing the report
Reviewing theories and empirical studies by both foreign and domestic studies h
concerning decisions of customers on choosing e-wallet as a mode of digital payment
method; Determining factors affecting decisions on using Momo of BUH students;
Statistically analyzing the factors affecting decisions by estimating the multivariable
linear regression model and testing of model defects (VIF, DW, Spearman); Proposing
recommendations in terms of the findings, solutions to expand users’ network and
improve customer satisfaction of Momo.
1.8 Research contributions
1.8.1 In literature
 The thesis aims to provide an individual insight and analysis of the factors
influencing customers’ decisions when using E-wallet.
 The thesis provides empirical evidence on factors affecting decisions on using ewallet Momo of BUH students.

1.8.2 In practice
 The thesis explores different aspects of digital wallet and indicates encouraging
and impeding factors affecting decisions on using Momo of BUH students.
 The thesis also proposes some recommendations for service providers to
encourage the use of e-wallets in general, and Momo in particular, to improve
user satisfaction.
1.9 Thesis structure
In addition to the table of contents, list of figures and tables, appendix,
conclusions, references and citations using APA style (The American Psychological
Association), the thesis is presented in five chapters:
 Chapter 1: Introduction
The first chapter introduces the research motivation and identifies the research
gap. Moreover, the research objectives, research scope, research methodology,
contributions and processes are presented in detail in this chapter. By the end of this
chapter, a summary is provided to convey the core content and serve as a basis for
chapter 2.
 Chapter 2: Literature reviews


This chapter presents relevant concepts and a range of literature reviews regarding
research objective. Specifically, the second chapter exhibits (1) the concept and role of
E-wallet; (2) basic concepts and characteristics of factors affecting decisions on using
Momo of BUH students; (3) theoretical basis and (4) international and domestic
empirical studies to identify research gaps. Thereby, (5) presenting the multivariate linear
regression models to evaluate the effects of studied factors. By the end of this chapter, a
summary is provided to serve as a basis for chapter 3.
 Chapter 3: Research methodology
This chapter covers the main contents including specifying research methodology
in the process of (1) approaching, (2) collecting and (3) processing data. From there, the
thesis (1) proceeds to build a multivariable linear regression model applied to the set of

data with variables collected from surveying customers at Banking University. Followed
by (2) a demonstration of conducting the study scale and questionnaire as well as
describing how to collect specific data. Lastly, the chapter (3) performs the quantitative
analysis steps implemented in processing data. By the end of this chapter, a summary is
provided to serve as a basis for chapter 4.
 Chapter 4: Research results and discussions
This chapter conducts quantitative analysis to analyze collected data by SPSS
software, including (1) descriptive analysis; (2) examine scale’s reliability; (3)
exploratory factor analysis; (4) Pearson correlation matrix analysis; (5) analysis of
multivariable linear regression model; (6) testing of model defects (VIF, DW,
Spearman). Therefore, the thesis presents a discussion of the research findings of each
factor which affect decisions on using Momo of BUH students. By the end of this
chapter, a summary is provided to serve as a basis for chapter 5.
 Chapter 5: Recommendation and conclusions
The final chapter proposes recommendations for factors affecting decisions on
using e-wallet Momo of BUH students. At the same time, concludes on the general role
of this electronic payment system and the need to focus on influencing factors on
consumer satisfaction. Finally, the conclusion presents limitations to the topic and future
research directions.


SUMMARY OF CHAPTER 1
The first chapter of the study introduces reasons for selecting the research topic
with a general overview of research objectives. Accordingly, the study has outlined
research questions along with choosing factors affecting decisions on using Momo of
BUH students, which is the main research subject. The following section of this
chapter describes the scope of research that based on time and sample taken from
primary data. In the next part of this chapter, the study further conducts research methods
through the process of approaching, collecting, processing data and proposing a research
process framework. As a result, the thesis presents new research outcomes which will be

contributed theoretically and empirically. Besides, the thesis structure is composed of 5
chapters with each specific content presented in detail to help achieve research
objectives.


CHAPTER 2: LITERATURE REVIEWS
This chapter presents relevant concepts and a range of literature reviews
regarding research objective. Specifically, the second chapter exhibits (1) the concept
and role of E-wallet; (2) basic concepts and characteristics of factors affecting decisions
on using Momo of BUH students; (3) theoretical basis and (4) international and domestic
empirical studies to identify research gaps. Thereby, (5) presenting the multivariate
linear regression models to evaluate the effects of studied factors. By the end of this
chapter, a summary is provided to serve as a basis for chapter 3.
2.1 Cashless payment
2.1.1 Definition
The diffusion of cashless payment will result in the adoption of cashless
transactions within the society or community, which makes it essential to learn the
existing literature on cashless payment. In prior studies of cashless payment, the review
on definitions of non-cash payments has shown that research studies evolved with
technological innovations of these payment methods.
Cashless payments are digital methods for exchanging financial transactions
between two parties. Pursuant to Decree No. 101/2012/ND-CP of Vietnamese
government, cashless payment is mentioned as non-cash payment services which include
payment services via payment accounts and a number of non-cash payment services via
customer accounts. Mallat (2007) defined cashless payment as the use of an electronic
device to conduct a payment transaction in which money or funds are transferred from
payer to receiver via an intermediary or without an intermediary. Pousttchi (2008) adds
the details of a transaction process by including initiation, authorization, or completion
of payment. Another definition proposed by Gans and Scheelings (2009) stating that
cashless payment as payments made through electronic signals linked directly to deposit

or credit accounts. Using cashless payments provide an alternative to using traditional
paper or coin currency. Recently, a cashless payment also further refers to an economic
setting whereby goods and services are transacted without cash (Paul & Friday, 2012),
either through electronic transfer or cheque payment.