FACTORS ENCOURAGING THE USE OF PEER-TO-PEER LENDING BY FARMERS

Abstract

Research on the adoption of peer-to-peer (P2P) lending by farmers in agribusiness, such as farming, is still limited. P2P lending is used to address the main challenges of Indonesian smallholder farmers' in accessing financial sources. However, despite its numerous benefits, the adoption rate of this strategy by farmers is still relatively low; therefore, it is essential to encourage its adequate utilization. This research examines the factors that encourage farmers' behavioral intention to adopt the P2P lending strategy in farming funding. The Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) were the variables used. Data were obtained from 371 farmers in West Java, Indonesia, yet to adopt the use of this lending strategy and analyzed using the SEM. The results showed that hedonic motivation, price value, and habit are significantly correlated with behavioral intentions. Therefore, P2P lending providers need to educate farmers on the benefits of adopting this strategy in terms of simplicity, easiness, etc.

Keywords

• consumer behavior
• farming funding
• peer-to-peer lending
• sharing economy
• technology adoption
• utaut2