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An empirical analysis of cashless payment systems for business transactions

This paper examines the antecedents of cashless payment systems among businesses in Malaysia. The adoption of cashless payment systems by businesses has the potential to reduce the costs related to handling huge amounts of cash in the market and enhance transaction speed. Unfortunately, its current...

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Main Authors:	Rahman, Mahfuzur, Ismail, Izlin, Zakaria, Shamshul Bahri, Rahman, Muhammad Khalilur
Format:	Article
Published:	MDPI 2022
Subjects:	HB Economic Theory Business
Online Access:	http://eprints.um.edu.my/43998/ https://www.scopus.com/inward/record.uri?eid=2-s2.0-85144725563&doi=10.3390%2fjoitmc8040213&partnerID=40&md5=738438bbea57a812c5dbc46d4830a01a
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spelling	my.um.eprints.439982023-12-27T02:35:59Z http://eprints.um.edu.my/43998/ An empirical analysis of cashless payment systems for business transactions Rahman, Mahfuzur Ismail, Izlin Zakaria, Shamshul Bahri Rahman, Muhammad Khalilur HB Economic Theory Business This paper examines the antecedents of cashless payment systems among businesses in Malaysia. The adoption of cashless payment systems by businesses has the potential to reduce the costs related to handling huge amounts of cash in the market and enhance transaction speed. Unfortunately, its current adoption in Malaysia is still small and very little is known about the factors. A seven-factor model based on the TOE framework was developed and tested. The partial least square (PLS) statistical approach was employed to analyze data collected from 200 business entities in Malaysia. The results reveal that compatibility and technology competence have higher significant relationships with the adoption of cashless payment systems. Management support, firm critical mass, competitive pressure, and information intensity are significantly related to the adoption of cashless payment systems, while firm size is not associated with it. The findings of this study provide significant practical implications for Malaysian stakeholders and technology vendors to recognize factors that affect a firm’s adoption of cashless payment systems to support business transactions. By investigating the phenomenon through the TOE framework, this study presents an integrated model of cashless payment systems by businesses. Our findings also offer guidance for future application of the PLS method in cashless payment and related research. The paper provides a more holistic understanding of the factors influencing cashless payment systems among businesses. © 2022 by the authors. MDPI 2022 Article PeerReviewed Rahman, Mahfuzur and Ismail, Izlin and Zakaria, Shamshul Bahri and Rahman, Muhammad Khalilur (2022) An empirical analysis of cashless payment systems for business transactions. Journal of Open Innovation: Technology, Market, and Complexity, 8 (4). ISSN 2199-8531, DOI https://doi.org/10.3390/joitmc8040213 <https://doi.org/10.3390/joitmc8040213>. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85144725563&doi=10.3390%2fjoitmc8040213&partnerID=40&md5=738438bbea57a812c5dbc46d4830a01a 10.3390/joitmc8040213
institution	Universiti Malaya
building	UM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Malaya
content_source	UM Research Repository
url_provider	http://eprints.um.edu.my/
topic	HB Economic Theory Business
spellingShingle	HB Economic Theory Business Rahman, Mahfuzur Ismail, Izlin Zakaria, Shamshul Bahri Rahman, Muhammad Khalilur An empirical analysis of cashless payment systems for business transactions
description	This paper examines the antecedents of cashless payment systems among businesses in Malaysia. The adoption of cashless payment systems by businesses has the potential to reduce the costs related to handling huge amounts of cash in the market and enhance transaction speed. Unfortunately, its current adoption in Malaysia is still small and very little is known about the factors. A seven-factor model based on the TOE framework was developed and tested. The partial least square (PLS) statistical approach was employed to analyze data collected from 200 business entities in Malaysia. The results reveal that compatibility and technology competence have higher significant relationships with the adoption of cashless payment systems. Management support, firm critical mass, competitive pressure, and information intensity are significantly related to the adoption of cashless payment systems, while firm size is not associated with it. The findings of this study provide significant practical implications for Malaysian stakeholders and technology vendors to recognize factors that affect a firm’s adoption of cashless payment systems to support business transactions. By investigating the phenomenon through the TOE framework, this study presents an integrated model of cashless payment systems by businesses. Our findings also offer guidance for future application of the PLS method in cashless payment and related research. The paper provides a more holistic understanding of the factors influencing cashless payment systems among businesses. © 2022 by the authors.
format	Article
author	Rahman, Mahfuzur Ismail, Izlin Zakaria, Shamshul Bahri Rahman, Muhammad Khalilur
author_facet	Rahman, Mahfuzur Ismail, Izlin Zakaria, Shamshul Bahri Rahman, Muhammad Khalilur
author_sort	Rahman, Mahfuzur
title	An empirical analysis of cashless payment systems for business transactions
title_short	An empirical analysis of cashless payment systems for business transactions
title_full	An empirical analysis of cashless payment systems for business transactions
title_fullStr	An empirical analysis of cashless payment systems for business transactions
title_full_unstemmed	An empirical analysis of cashless payment systems for business transactions
title_sort	empirical analysis of cashless payment systems for business transactions
publisher	MDPI
publishDate	2022
url	http://eprints.um.edu.my/43998/ https://www.scopus.com/inward/record.uri?eid=2-s2.0-85144725563&doi=10.3390%2fjoitmc8040213&partnerID=40&md5=738438bbea57a812c5dbc46d4830a01a
_version_	1787133833023324160
score	13.211869

An empirical analysis of cashless payment systems for business transactions

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