The Moderating Role of Knowledge about Riba on Intention to Use E-Money: Findings from Indonesia

Payment transaction is now experiencing revolution as the rapid advancement of financial technology system. There is growing usage of e-money as a mean of payment in Indonesia. Besides, there is also a growing concern on the ethical aspect of e-money from an Islamic perspective, that is riba or usury. Previous studies have examined customers' behavioral intention to use e-money by implementing Theory of Planned Behavior (TPB) and Technology Acceptance Model (TAM). However, none of them considering customers' knowledge about riba that might become ethical aspect detaining them to use e-money as the mode of payment. The objective of this research is to examine the moderating effect of knowledge about riba on Technology Acceptance Model (TAM) variabels, such as perceived usefuleness, perceived ease of use and intention to use e-money. Data of this research are collected by distributing online questionnaires. By convenience sampling method, there are total 253 respondents. From the statistical computation, it is found that intention to use e-money is significantly affected by respondents' perception of e-money usefulness and ease of use. Interestingly, it is also found that customers' intention to use e-money are moderated by their knowledge about riba. Therefore, as managerial implication, it is suggested for e-money providers to build a Muslim-friendly system that is free from riba. Finally, this research also suggests future research agenda to consider subjective norm and religiosity variabels in a single model.