832 The Impact Of Perceived Risks And Perceived Benefits On The Intention To Use Momo E-Wallet Of Gen Z 2023.Docx

MINISTRYOFEDUCATION ANDTRAINING

THESTATE BANKOFVIETNAM

BANKINGUNIVERSITY OFHO CHI MINHCITY

NGUYENTRANMY DUYEN

THE IMPACT OF PERCEIVED RISKS
ANDPERCEIVED BENEFITS ON THE
INTENTIONTOREUSEMOMOE-WALLET OF
GEN Z
GRADUATETHESIS
MAJOR:BUSINESSADMINISTRATIONCO
DE:7340101

HOCHIMINHCITY, 2022


MINISTRYOFEDUCATION ANDTRAINING

THESTATE BANKOFVIETNAM

BANKINGUNIVERSITY OFHO CHI MINHCITY

NGUYENTRANMY DUYEN

THE IMPACT OF PERCEIVED RISKS
ANDPERCEIVED BENEFITS ON THE
INTENTIONTOREUSEMOMOE-WALLETOF
GEN Z

GRADUATETHESIS
MAJOR:BUSINESSADMINISTRATIONCO
DE:7340101

SUPERVISOR
Dr.PHAMHUONGDIEN

HOCHIMINHCITY,2022


1

DECLARATIONOFAUTHORSHIP
I thus declare that this thesis was written by me under the direction and
supervisionof a Ph.D. Pham Huong Dien; and that the work and findings included
therein areaccurate and do not breach research ethics. The data and figures in this
thesis
weregatheredf o r a n a l y s i s , c o m m e n t s , a n d a s s e s s m e n t s f r o m a v a r i e t y
o f s o u r c e s a n d havebeenproperlyrecognizedinthereferencesection.
I will accept full responsibility for any academic misconduct discovered in
mythesis.

Ho Chi Minh City, 27th Apr
2022Author

NguyenTranMyDuyen


ACKNOWLEDGEMENT
I'd want to express my gratitude to my supervisor, Dr. Pham Huong Dien, for

herunwaveringsupportanddirection.Dr.Dienwasaconstantsourceo f encouragement
and was always eager to help in any manner possible during thestudy effort.
Finally,

many

thanks

to

everyone

who

participated

in

the

survey

andmadethisstudypossible.

Ho Chi Minh City, 27th Apr
2022Author

NguyenTranMyDuyen

ABSTRACT
This study aims to examine the impact of perceived risks and perceived benefits
onthe intention to reuse the Momo e-wallet of Gen Z in Ho Chi Minh City. This
studyuses quantitative research methods. In the quantitative study, data was
collectedfrom an online questionnaire from 358 Gen Z people who are using
Momo e-wallet.TheanalysisresultsshowthattheperceivedriskofGenZwhenusingtheMomoe-wallet is created
by financial risk, security risk, time-loss risk, and operational risk,while the
perceived benefit of Gen Z when using the Momo e-wallet is created
bytheeconomicbenefit,seamlesstransaction,convenience.Besides,theanalysisresultsa
lsoshowthatGenZ'sintentiontoreuseMomoe-walletisnegativelyimpactedbyperceivedriskthiswill
reduceGenZ'sintentiontoreuseMomoe-wallet and is positively impacted by perceived benefit,
which increased Gen Z'sintention to reuse Momo wallet. In which, the perceived
benefit has a strongerimpact than the perceived risk. From the research results, a
number of implicationshave been proposed to help promote the users’ perceived
benefit

when

using

theservice,andatthesametime,tryhardtominimizeperceivedrisk,t h e r e b y promotin
g intendto reusee-walletsofGenZmoreandmore.
Keywords:Perceivedrisk,Perceivedbenefit,E-wallet


TableofContents
CHAPTER1: INTRODUCTION..............................................................................1
1.1. ResearchStatement........................................................................................1
1.2. ResearchObjectivesandQuestions................................................................3
1.2.1. ResearchObjectives...................................................................................3

1.2.2. ResearchQuestions....................................................................................4
1.3. ResearchSubjectsandScope...........................................................................4
1.4. ResearchMethodology...................................................................................4
1.5. ResearchSignificance.....................................................................................5
1.6. Thesisstructure..............................................................................................5
SummaryofChapter1................................................................................................6
CHAPTER2:LITERATUREREVIEW....................................................................7
2.1. Theoretical Foundations...............................................................................7
2.1.1. E-wallet.....................................................................................................7
2.1.2. GenerationZ..............................................................................................9
2.1.3. ReuseIntention..........................................................................................9
2.2. TheoreticalFramework...............................................................................10
2.2.1. TechnologyAcceptanceModel(TAM)......................................................10
2.2.2. TheRisk-BenefitFramework....................................................................12
2.3. Previousresearch.........................................................................................16
2.4. ResearchHypothesesandModel...................................................................22
2.4.1. Researchhypotheses................................................................................22
2.4.2. Researchmodel........................................................................................27
SummaryofChapter2..............................................................................................29
CHAPTER3:METHODOLOGY............................................................................30


3.1. Researchprocess...........................................................................................30
3.2. Researchdesign............................................................................................31
3.3. Datacollection...............................................................................................32
3.3.1. Sampling.................................................................................................32
3.3.2. Scaleformulation.....................................................................................33
3.3.3. Surveyquestionnaire.................................................................................34
3.4. Dataanalysis.................................................................................................34
3.4.1. Cronbach’sAlphaAnalysis.......................................................................34

3.4.2. ExploratoryFactorAnalysis(EFA)............................................................35
3.4.3. ConfirmatoryFactorAnalysis(CFA).........................................................36
3.4.4. StructuralEquationModeling(SEM)Analysis...........................................39
SummaryofChapter3...............................................................................................40
CHAPTER4:RESULT............................................................................................41
4.1. DescriptiveStatistics.....................................................................................41
4.2. Cronbach’sAlpha.........................................................................................44
4.3. ExploratoryFactorAnalysis.........................................................................46
4.3.1. Exploratoryfactoranalysisoffactorscreatingperceivedrisk.........................46
4.3.2. Exploratoryfactoranalysisoffactorscreatingperceivedbenefit...................47
4.3.3. Exploratoryfactoranalysisforthescaleoftheintentionto reuse.....................48
4.4. Confirmatory factoranalysis.......................................................................49
4.4.1. Confirmatory factor analysis for the scale of factors creating
perceivedrisk,perceivedbenefit..........................................................................49
4.4.2. Confirmatory factor analysis for the scales of perceived risk,
perceivedbenefit,andintentiontoreuse................................................................50
4.5. Structuralequation modeling......................................................................53
SummaryofChapter4...............................................................................................55
CHAPTER5:CONCLUSION.................................................................................56


5.1. Conclusion....................................................................................................56
5.2. Implications.................................................................................................58
5.3. Limitations ofthestudyandfutureresearchdirections.................................60
REFERENCES......................................................................................................62
APPENDIX1..........................................................................................................72
APPENDIX2..........................................................................................................79
APPENDIX3..........................................................................................................85
APPENDIX4..........................................................................................................88
APPENDIX5..........................................................................................................95

APPENDIX6........................................................................................................103
APPENDIX7........................................................................................................113


LISTOFFIGURES
Figure2.1. TechnologyAcceptanceModel.................................................................12
Figure2.2.Proposedresearch model...........................................................................28
Figure3.1.ResearchProcess......................................................................................31
Figure4.1.Theresults oftheanalysisof thestructuralequationmodeling.......................53

LISTOFFIGURESTABLES
Table2.1.Previousstudiessummary..........................................................................19
Table 2.2. Factors of perceived risk and perceived benefit impact the intention
toreuseanE-wallet....................................................................................................21
Table2.3. Synthesizethehypothesisofthecurrentstudy...............................................27
Table3.1. Synthesisof indicatorstoevaluatethegoodnessof fitof themodel.................38
Table4.1. Descriptive Statistics.................................................................................43
Table4.2. Cronbach'sAlphacoefficientanalysis.........................................................44
Table4.3.Exploratoryfactoranalysisof factorscreatingperceivedrisk.........................46
Table4.4.Exploratoryfactoranalysisoffactorscreatingperceivedbenefit.....................48
Table4.5.Exploratoryfactoranalysisforthescaleoftheintentionto reuse.......................49
Table4.6. Correlations ofFirst-OrderPerceivedRisks................................................50
Table4.7. CorrelationsofFirst-OrderPerceivedBenefits............................................50
Table4.8.ReliabilityConvergentValidityResults.......................................................51
Table4.9. CorrelationsofLatentVariables..................................................................52
Table4.10.Model FitMeasures.................................................................................52


LISTOFABBREVIATIONS
AMOS

AnalysisofMomentStructures

CFA

ConfirmatoryFactorAnalysis

CFI

ComparativeFitIndex

EFA

ExploratoryFactor Analysis

GFI

GoodnessofFitIndex

H(1-2)

Hypothesis(1-2)

TAM

TechnologyAcceptanceModel

TLI

TuckerandLewisIndex

TPR

TheoryofPerceived Risk

RMSEA

RootMeanSquareErrorofApproximation

SEM

StructuralEquationModeling

SPSS

StatisticalPackagefor SocialSciences


1

CHAPTER1:INTRODUCTION
Chapter 1 discusses why this issue was chosen and provides an outline of
thestudyobjective,researchquestions,methodologies,andscopeoftheresearch.Additiona
lly,itdiscussestheresearch'simportanceintermsofacademicsandpractice.Finally,sketchout
thestudytopic'spresentingstructure.
1.1. ResearchStatement
E-wallet is one of the most popular forms of online payment today. In
2021,Vietnam is in the top three countries with the percentage of users paying via
mobilein Asia with 29.1%. As of the end of the first quarter of 2020, Vietnam has
morethan 13 million e-wallet accounts activated and used, the total wallet balance

isabout 1.36 trillion VND and there are more than 225 million transactions made
(TheStateBankofVietnam,2020).
Using cash used to be the most popular payment method with
Vietnameseusers, but since the pandemic started, it has been on a declining trend.
According tosurvey results from Visa, the context of the Covid-19 pandemic has
made e-walletsgrow stronger. 57% of users have up to 3 e-wallet applications on
mobile platforms,55%ofconsumerspreferappsthatcanmakealltransactions.
AccordingtoastatisticalreportfromtheStateBankofVietnam,theVietnamese
market

has

about

48

e-wallets

and

non-bank

payment

intermediariesofficiallylicensedtooperate.Thisnumberhasincreased
7timescomparedto2015.
Momo is one of the most attractive e-wallets in Vietnam with more than
31million existing customers. According to Appota's Mobile Applications 2021
report,compared to other e- wallets, MoMo is the e-wallet with the highest percentage
ofregularusers(61%).MoMo'ssuccessisduetobringingaseriesofofflineservice

s


online.Withonlyoneapplication,almostallneedsaremet,makinglifesimplerandeasier,es
peciallyin thecurrent complicatedepidemicsituation.
It can be seen that transactions with e-wallets are very quick and
convenient,but there are also many potential risks from technology criminals. Over
the

past

fewyears,alotofsecurityburglariesstolepropertyfromthemobilepaymentapplications
that

appeared,

especially

whenthe

client

lost

hisp h o n e

or

a

h a c k e r stoletheaccesscodetoMoMo.Fromtheexistenceofsocietyhasaffectedpsych
ology, reducing customers' trust in the intention to reuse the service. Buildingtrust
from consumers is extremely important and necessary. Therefore, this is areasonto
studytherisk perceptionofcustomerswhenusingMoMoe-wallet.
Although there are still a few negative points that inhibit thei n t e n t i o n
t o reuse the Momo application. But there is no denying the convenience brought
byMomo, which motivates customers to act and carry out their behavior. The
recordgrowth of registered accounts after many years proves the importance of the
MoMoewallettoconsumers.People'slivesareincreasinglybusy,alongwiththedevelopmentofso
ciety.Fromhere,customerswillprioritizeusingconvenientproducts or services, both
reducing costs and saving time. If the perceived benefitoutweighs the perceived
risk, then the intention to reuse and perform the behaviorwill reach a higher level.
It is for this reason that perceived benefit research cannotbe ignored. In order for
customers to know and use the MoMo e-wallet applicationmore and more widely,
M_Service

company

needs

to

have

a

database

of

consumers'perceptionsofrisksandbenefitswhenusingit,fromwhichovercomet h e i r conc
erns,retain anddevelop the app further.
Around the world, some previous studies have shown that perceived risk
andperceivedbenefithaveaninfluenceontheacceptanceofmobilepaymentsbyPutritama
(2019); Sentanu et al. (2020); Shafi & Misman (2021). At the same time,the study of risks and benefits in
mobilep a y m e n t s

is

a

research

direction

t h a t attractsmanyscholars,butinVietnam,therearecurrentlyveryfewstudiesta
lking


abouttheimpactofperceivedriskandperceivedbenefittotheintentiontoreuseewallets.
In view of the development trend of e-wallets in the world and the
currentsituation of Momo e-wallet payment in Vietnam, the author has chosen the
topic ofgraduation thesis withthe title:"
The impact of perceivedrisks and
perceivedbenefits on the intention to reuse Momo e-wallet of Gen Z”to explore
what

makesusers still intend to reuse Momo e-wallet despite being aware of the potential

riskssurroundingthisapplication.

1.2. ResearchObjectivesand Questions
1.2.1. ResearchObjectives

The overall objectiveof the study is to determinet h e

impact

of

p e r c e i v e d risk and perceived benefit on the intention to reuse Momo e-wallet
of Gen Z in HoChiMinhCity.
Inaddition,thestudyalsohasthefollowingsub-researchobjectives:
The first is to identify the impact of perceived benefits and perceived risks
ontheintentionto reuseMoMoe-walletofGen ZinHoChiMinhCity.
Thesecondistomeasurethelevelofimpactofperceivedbenefits andperceivedrisksonthe
intentiontoreuseMoMoe-walletofGenZinHoChiMinhCity.
The third is to propose implications to increase benefits, reduce risks,
andincreaseGenZ'sintentiontoreuseMomoe-wallet.


1.2.2. ResearchQuestions

Do perceived risks and perceived benefits affect the intention to reuse
MoMoe-wallet?
How are the impacts of each perceived risk and perceived benefit factor
ontheintentionto reuseMomoe-wallet?
Whatm a n a g e r i a l i m p l i c a t i o n s c a n b e p r o p o s e d t o h e l p b u s i n e s s e s
i n c r e a s e theintentionto reuseMomoe-wallet?
1.3. ResearchSubjects andScope
Theresea rc hf oc us e s on theimpac t ofpe r c e ive d riskandperce ive d be

ne f it ontheintentiontoreuseMomoe-walletinvestigatedamongthegenerationZunderthe age of 27 living in Ho
Chi Minh City has been intending to reuse Momo e-wallet.
Thestudywill beconductedfromMarch2022toJune2022.
1.4. ResearchMethodology
Quantitative research method: Conduct a survey to collect information on
theimpact of perceived risk and perceived benefit on Gen Z's intention to reuse MomoewalletinHoChiMinhCity.Aftercollectinginformation,thedatawillb e analyzedthroug
hSPSS22 andAMOSsoftwarewithspecificstepsincluding:
-

Descriptivestatisticsoftheresearchsample

-

Cronbach'salphatest

-

EFAanalysis

-

CFAanalysis


-

SEManalysis

1.5. ResearchSignificance
Understanding of impacts of perceived risks and behaviors remains

limited.Measuringtheimpactofperceivedriskandperceivedbenefitfactorsont h e inten
tion to reuse Momo e-wallet helps Momo have a better insight into Gen
Z'sintention to reuse an e-wallet. Producing solutions to promote the intention to
reuseMomo e-wallet in Gen Z. Thereby, helping Momo effectively improve the
intentiontoreusetheexistingservicestoattracttheattentionandsatisfactionofuserstoconvincethem to use their ewalletappmore.
1.6. Thesisstructure
Includingthecover,thedeclaration,theacknowledgement,thetableofcontents,
the listofacronyms, the listoffigures, thelist oftables, the listofreferences, and the
appendices,

the

content.

This

thesis

chapters,particularlyasfollows:
Chapter 1:
IntroductionChapter 2:
Literature reviewChapter3:
Research
designChapter4:Dataanalysis
Chapter5:Conclusion andrecommendations

is

divided

into

five


SummaryofChapter1
Chapter 1 discussed the importanceo f
the

the

research

subject,

r e s e a r c h goals and tasks, the research difficulties and questions, the

research objects andscope of the research, the research methods and data, and the
study's
contributions.Ascanbeseenfromtheprecedingmaterial,thesubject"THEIMPACTOFP
ERCEIVEDR I S K S A N D P E R C E I V E D B E N E F I T S O N T H E I N T E N T I O N
TO
REUSE MOMO E-WALLET" is both scientific and practical. This establishes
thefoundationforfurtherresearchactivities.Itisanin-depthexaminationofthetheoretical
foundations,

research

methodologies,

and

togenerateresearchfindingsandprovidesolutions.

data

collecting

in

order


CHAPTER2:LITERATUREREVIEW
Chapter 2 discusses the theoretical underpinnings of intention to reuse an ewallet. This chapter analyses existing research materials on the subject and
thenproposesaresearchparadigmforthesubject.
2.1. TheoreticalFoundations
2.1.1. E-wallet

An e-wallet is described as a person's usage of a mobile phone to
performfinancial transactions. It is placed between two devices referred to as the
sender
andrecipienta n d i s u s e d t o b u y t h i n g s o r p a y b i l l s ( H a l e v i , M a , S a x e n
a , & X i a n g , 2012). In other terms, an E-wallet is a smartphone application that enables users todo a variety of
financial activities through mobile (Quasim, Siddiqui, & Rehman,2012).
Transactions that people engage in on a daily basis, such as purchasing
traintickets, as well as the ability to operate as a credit card, have been strengthened
andimproved as a result of the development of electronic wallets in recent years
(Shin,2009).
Then, according to Normayanti Putri et al. (2021) said that an e-wallet is

aform of prepaid account in which users may keep money and also use it as a
methodofpayment;thise-walletissafeguardedby

specificsecurity

measuressuchaspasswords.
Accordingto some ofthe definitionsabove, an e-wallet isa product orservice
that

enables

digital

money

saving

through

electronic

media

intermediarieslinkedtotheinternet.Thiselectronicwalletmaybeusedto makepayments.
Theewalletisnotrestrictedtoonlinetransactions.Theversatilityofemployinganewalletmaybeobservedinitsusetomobilephone-basedpoint-of-


salet r a n s a c t i o n s . T h i s t r a n s a c t i o n p a r a d i g m e n a b l e s m e r c h a n t s a
n d c u s t o m e r s t o easilyminimizetheircashonhand,whichisnotoriouslydifficulttohandl
e.

According to statistics from the the State Bank of Viet Nam, as of May
9,2022, Vietnam has 48 non-banking organizations and enterprises licensed by
theState Bank of Viet Nam to provide e-wallet services. Thanks to this, in the
contextof increasing e-commerce coverage, the basic needs of consumers have
been met.Someofthebenefitsof ane-walletcanbementionedas:
Various forms of money transfer, top-up and payment, saving time with
easyoperation.Userscanmakepaymentsforpurchases,payforservicesanytime,anywhe
re with just a few simple steps with a step of confirming the transactionpassword;
Help save users' travel time, make payment transactions easy and fast. At
thesametime,userscanqueryaccountinformationanytime,anywhere,especiallywithoutca
rryingcash,toavoidlosingorstealing money;
In

addition,

payment

by

e-wallethelpssecure

transactions,

allowsp a y m e n t ofsmallfees,iseasytouse,popular,andhasawiderangeofuses.
However,besidesthebenefitsthate-walletsbring,therearestillsomebacklogs
that need to be overcome when transacting such as: The security systemhas not
really made users trust; Users may be charged a fee during use, even
thiscostishigherthanthefeeforusingdigitalbankingservicessuchasInternetbanking, mobile
banking, etc. In addition, users can be stolen personal information,account information, and loss of money
when personal computers and phones oftenaccessunreliable websites containing

malicious code.
AccordingtoPoliushkevych(2019),themostimportantissueinusingmodern
forms of payment in general and e-wallets in particular is the issue of
aperfectl e g a l f ra me w o rk. I n m o s t c o u n t r i e s , t h e r e i s n o e f f e c t i v e m e t h o d o f


regulating the circulation of cryptocurrencies. Therefore, in the process of using,
therights of users will not be protected when risks and frauds occur. This is one of thereasons hindering the
development of e-wallets in Vietnam as well as in somecountries around the world.
This partly explains why e-wallets in Vietnam are stillnotwidelyuseddespite
thesignificantdevelopmentofthee-commercemarket.
2.1.2. GenerationZ

According to Skinner, Sarpong, & White (2018), generation Z is a group
ofpeople born between 1995 and 2010. This generation is believed to be the
mostconnectedtosocialmedia,sophisticatedtechnology,andhasag r e a t e r understan
ding of how to use the internet. According to Berkup (2014), generation
Zisdistinguishedfromearliergenerationsbytheirobsessionwithtechnology,individuali
sm, and a preference for convenience. Generation Z views technology asa 'thing'
that has been a part of their everyday lives since they were born. Numerousstudies
have

demonstrated

that

this

generation

engages

in

more

online

transactionsthanpreviousgenerations(Dalimunteetal.,2019;Dewanti&Indrajit,2018).
2.1.3. ReuseIntention

According to Sibona et al. (2017), the concept of a user's behavior
afterutilizing service in order to determine whether or not they want to utilize the
serviceagainisknown as reuse intention.
In other words, according to Yeboah-Asimah et al. (2018), the user's
resolveto continue using a service and to utilize all of the services that are given by
theserviceproviderisanexampleofreuseintention.Inthecontextofm o b i l e payments,
"reuse intention" refers to the degree to which a persona l r e a d y m a k e s use of
mobile payments to make purchases of goods or services that have beencreated and
intends tod o s o k n o w i n g l y i n t h e f o r e s e e a b l e f u t u r e a s
w e l l ( H u m b a n i & Wiese,2019).


Basedontheabovedefinition,reuseintentionmaybedescribedasaconsumer's
choice to repurchase or reuse a product or service from a business
orbrandrepeatedlyandpromoteittotheirfriendsandfamily.
2.2. TheoreticalFramework
2.2.1. TechnologyAcceptanceModel(TAM)

Davis (1989) developed the technology acceptance model on the basis of

theTRA,positingthatanindividual'stechnologyusemaybeanticipatedb y behaviourali
ntention,whichispredictedjointlybyperceivedusefulnessandperceived ease of use
(Figure 2.1). The author defined perceived usefulness as anindividual's belief in the
technology's ability to improve performance. Davis (1989)defined perceived ease
of use as an individual's belief that a specific technologywould be simple to use.
Additionally,

the

model

postulated

that

perceived

ease

ofuseisapredictorofperceivedusefulness.
Thechoicetoadoptanewtechnologyisperceivedbyitsp e r c e i v e d usefulness
and ease of use, whichi s r e g a r d e d t o b e t h e f o u n d a t i o n f o r
c a l c u l a t i n g theTAM(Davisetal.,1989).Mobilebasedpaymentsystemsarec o m m o n l y utilized for transactions, and customers
prefer this way of payment (Gokilavani etal.,2018).Asaresult,perceivedusefulnessis
relatedtobehavioralintentions.AccordingtoShaw(2014)believesthatperceivedusefulness
hasasubstantialimpactonthedesiretouseane-wallet.Thedatademonstratehowthesystem'spromise to produce
the intended outcomes motivates users to utilize it. In terms ofmobile payments,
respondents

indicated

that

they

can

complete

transactions

swiftlysincetheirsmartphonesarereadilyaccessible.Numerousresearchhavebeencond
ucted using perceived usefulness as a variable, and the majority of data showthat
perceived usefulness has a beneficial effect on technological adoption.
Thisimpliesthatperceivedusefulnessiscriticalininfluencingtechnologicalacceptabilit
y,w h i c h w i l l r e s u l t i n i m p r o v e d r e s u l t s f o r f u t u r e i n v e s t i g a t i o n
s.As