Factors impacting user acceptance of e-wallets in Bangladesh's transition towards a cashless society

https://doi.org/10.35912/amor.v6i1.2088
Published: Aug 12, 2024

Abstract:

Purpose: This study investigates the impact of the digital revolution on everyday life, focusing mainly on the emergence of e-wallets as substitutes for traditional physical wallets, and the adoption of various banking technologies in Bangladesh.

Research Methodology: This study examines the utilization of several banking technologies in Bangladesh, including bKash Limited's mobile banking services, which were introduced in July 2011, and offer secure and convenient financial services to individuals with or without bank accounts. Additionally, this study explores the National Payment Switch developed by Bangladesh Bank in 2012, which aims to standardize electronic payments among commercial banks, facilitating cash withdrawals using plastic cards at ATMs and point-of-sale (POS) locations.

Results: The findings indicate that bKash Limited's mobile wallet facilitates secure transactions through its highly encrypted Visa technology platform, enabling customers to deposit for various services such as wages, loans, and domestic remittances. However, the availability of bKash is limited to specific networks and areas, with restrictions on the use of bank accounts. Moreover, implementing the National Payment Switch is expected to reduce transaction costs, enhance financial inclusivity, and streamline online transactions by eliminating individual payment networks.

Limitations: One limitation of the study is the limited availability of bKash in specific regions and networks, and the restrictions imposed on bank account usage within the system.

Contribution: This study contributes to the understanding of the evolving landscape of digital banking technologies in Bangladesh by offering insights into the adoption and impact of e-wallets and other banking solutions. The findings may inform policymakers, financial institutions, and researchers about strategies to enhance financial inclusivity, reduce transaction costs, and promote digitalization in the banking sector.

Keywords:
1. Cashless Banking
2. e-wallet
Authors:
1 . Moutusi Tanha
University of Canterbury, Christchurch, New Zealand
2 . Nurul Islam
University of Dhaka, Bangladesh
3 . Farhana Akter Priya
University of Dhaka, Bangladesh
4 . Mohammad Zonaed Emran
University of Dhaka, Bangladesh
5 . Tanvir Mahmud
University of Dhaka, Bangladesh
6 . Md. Mortuza
National University, Bangladesh
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How to Cite
Tanha, M., Islam , N., Priya, F. A., Emran, M. Z., Mahmud , T., & Mortuza, M. (2024). Factors impacting user acceptance of e-wallets in Bangladesh’s transition towards a cashless society. Annals of Management and Organization Research, 6(1), 71–89. https://doi.org/10.35912/amor.v6i1.2088
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Issue & Section
Vol. 6 No. 1 (2024): August
Articles
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    Moure, N. G. (2016). Financial literacy and retirement planning in Chile. Journal of Pension Economics & Finance, 15(2), 203-223.

    Mourine, A., Ambrose, J., & Fredrick, N. (2017). Financial Literacy and Financial Preparedness for Retirement among Permanent and Pensionable Employees in State Owned Corporations in Nairobi, Kenya. International Journal of Business and Social Science, 11(8), 68-82.

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    Pangestu, S., & Karnadi, E. B. (2020). The effects of financial literacy and materialism on the savings decision of generation Z Indonesians. Cogent Business & Management, 7(1), 1743618.

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  2. Agnew, J. R., Bateman, H., & Thorp, S. (2012). Financial literacy and retirement planning in Australian. UNSW Australian School of Business Research Paper(2012ACTL16).
  3. Ahmad, G., Widyastuti, U., Susanti, S., & Mukhibad, H. (2020). Determinants of the Islamic financial literacy. Accounting, 6(6), 961-966.
  4. Alavinia, S. M., & Burdorf, A. (2008). Unemployment and retirement and ill-health: a cross-sectional analysis across European countries. International archives of occupational and environmental health, 82, 39-45.
  5. Almenberg, J., & Säve-Söderbergh, J. (2011). Financial literacy and retirement planning in Sweden. Journal of Pension Economics & Finance, 10(4), 585-598.
  6. Aluodi, E., Njuguna, A., & Omboi, B. (2017). Effect of financial literacy on retirement preparedness among employees in the insurance sector in Kenya. International Journal of Biometrics, 12.
  7. Ando, A., & Modigliani, F. (1963). The" life cycle" hypothesis of saving: Aggregate implications and tests.
  8. Antoni, X., Saayman, M., & Vosloo, N. (2020). The relationship between financial literacy and retirement planning, Nelson Mandela Bay. International Journal of Business and Management Studies, 12(2), 579-593.
  9. Bassett, W. F., Fleming, M. J., & Rodrigues, A. P. (1998). How workers use 401 (k) plans: The participation, contribution, and withdrawal decisions. National Tax Journal, 51(2), 263-289.
  10. Boisclair, D., Lusardi, A., & Michaud, P.-C. (2017). Financial literacy and retirement planning in Canada. Journal of Pension Economics & Finance, 16(3), 277-296.
  11. Brown, M., & Graf, R. (2013). Financial literacy and retirement planning in Switzerland. Numeracy, 6(2), 6.
  12. Bucher-Koenen, T., & Lusardi, A. (2011). Financial literacy and retirement planning in Germany. Journal of Pension Economics & Finance, 10(4), 565-584.
  13. Chowa, T., Mhlanga, R., & Munakamwe, M. A. (2015). Where did our money go? Answering the questions behind loss of value to pensioners in Zimbabwe after multi-currency adoption. International Open and Distance Learning Journal, 1(1).
  14. Clark, R., Lusardi, A., & Mitchell, O. S. (2017). Employee financial literacy and retirement plan behavior: a case study. Economic Inquiry, 55(1), 248-259.
  15. Dhlembeu, N. T. (2018). The relationship between retirement planning and financial literacy in South Africa: University of Pretoria (South Africa).
  16. Eagers, J., Franklin, R. C., Broome, K., & Yau, M. K. (2019). The experiences of work: Retirees’ perspectives and the relationship to the role of occupational therapy in the work-to-retirement transition process. Work, 64(2), 341-354.
  17. Fatoki, O. (2014). The Financial literacy of non-business university students in South Africa. International Journal of Educational Sciences, 7(2), 261-267.
  18. Gallego-Losada, R., Montero-Navarro, A., Rodríguez-Sánchez, J.-L., & González-Torres, T. (2022). Retirement planning and financial literacy, at the crossroads. A bibliometric analysis. Finance Research Letters, 44, 102109.
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  21. Huston, S. J. (2010). Measuring financial literacy. Journal of consumer affairs, 44(2), 296-316.
  22. Hutchings, K., Wilkinson, A., & Brewster, C. (2022). Ageing academics do not retire-they just give up their administration and fly away: a study of continuing employment of older academic international business travellers. The International Journal of Human Resource Management, 33(7), 1296-1325.
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  24. Krekula, C., & Vickerstaff, S. (2020). The ‘older worker’and the ‘ideal worker’: A critical examination of concepts and categorisations in the rhetoric of extending working lives. Extended working life policies: International gender and health perspectives, 29-45.
  25. Lamprecht, L. (2015). Why only 6% of South Africans can Retire comfortably. Moneyweb. https://www. moneyweb. co. za/mymoney/moneyweb-financial-planning/6-south-africans-can-retire-comfortably.
  26. Lim, T. S., Osman, Z., A.B.U, Z., Abdul Jamal, A. A., Mohidin, R., & Mail, R. (2013). Financial Literacy in Southeast Coast of Sabah.
  27. Lusardi, A., & Mitchell, O. S. (2011). Financial literacy and retirement planning in the United States. Journal of Pension Economics & Finance, 10(4), 509-525.
  28. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5-44.
  29. Mashizha, M., Maumbe, B., & Sibanda, M. (2019). Financial literacy among small and medium enterprises in Zimbabwe. The Southern African Journal of Entrepreneurship and Small Business Management, 11(1), 1-10.
  30. Mndzebele, Z. W., & Kwenda, F. (2020). The effects of financial literacy on financial preparedness for retirement among academic staff in higher learning institutions in the kingdom of Eswatini. Acta Universitatis Danubius. Œconomica, 16(5).
  31. Moure, N. G. (2016). Financial literacy and retirement planning in Chile. Journal of Pension Economics & Finance, 15(2), 203-223.
  32. Mourine, A., Ambrose, J., & Fredrick, N. (2017). Financial Literacy and Financial Preparedness for Retirement among Permanent and Pensionable Employees in State Owned Corporations in Nairobi, Kenya. International Journal of Business and Social Science, 11(8), 68-82.
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  36. Niu, G., Zhou, Y., & Gan, H. (2020). Financial literacy and retirement preparation in China. Pacific-Basin Finance Journal, 59, 101262.
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  44. Sekita, S. (2011). Financial literacy and retirement planning in Japan. Journal of Pension Economics & Finance, 10(4), 637-656.
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