Non-Cash transaction behavior of people Yogyakarta City: a case from Indonesia

Abstract

The changes in information technology have also changed community behavior in doing transaction payments from cash to non-cash. This study aims to discover the effect of easiness, trust, life-style, and risk factors on people of Yogyakarta city interest to do a non-cash transaction. The research data were primary data obtained through interviews and questionnaires to 100 respondents in Malioboro shopping center which is the icon of Yogyakarta city, Indonesia. The data then estimated through multiple linear regression models using SPSS 16 statistical program. The result of the study empirically showed that easiness, trust, and life-style had positive and significant effects on the community’s choice to have non-cash transactions. Meanwhile, risk had a negative and significant effect on the interest of people in doing non-cash transactions. In general, non-cash payment promoted the intensity and capacity of a payment transaction because the payment is easier and cheaper. This study recommends increasing community awareness about the benefits and risks of a non-cash payment transaction. Moreover, law enforcement of customer protection from the misuse of non-cash payment facilities should be enhanced.