Exploring Generation Z Perceptions Toward Digital Payment: Evidence from Indonesian University Students
TL;DR
Generation Z's perceptions of digital payment use among students at Universitas Islam Negeri Sumatera Utara (UINSU) Medan are analyzed to demonstrate that students' continued use is shaped not only by perceived ease and usefulness but also by their trust in security mechanisms and awareness of digital risks.
Abstract
The development of digital payment systems has transformed transaction patterns, particularly among Generation Z, who demonstrate high adaptability to digital technology. However, research exploring how Generation Z simultaneously perceives the ease of use, usefulness, security, and risks of digital payment remains limited, particularly among students in Islamic higher education institutions. This study aims to analyze Generation Z's perceptions of digital payment use among students at Universitas Islam Negeri Sumatera Utara (UINSU) Medan, focusing on ease of use, usefulness, security, and perceived risks. A descriptive qualitative approach was employed. Data were collected through in-depth interviews with 20 purposively selected student informants who actively use digital payment systems, supported by a questionnaire administered to 100 students to identify general patterns of perception. The qualitative data were analyzed using the Miles and Huberman model, consisting of data reduction, data display, and conclusion drawing, while source triangulation was employed to strengthen data validity. The findings indicate that students generally perceive digital payment positively in terms of ease of use and usefulness because it facilitates faster, more practical, and flexible transactions. Although security features such as PINs and one-time passwords (OTPs) provide a sense of protection, students continue to express concerns regarding personal data misuse, digital fraud, and network disruptions. These findings demonstrate that positive perceptions of ease and usefulness do not completely eliminate perceived security risks. Instead, students tend to respond to these risks through precautionary behaviors while continuing to use digital payment systems. The study contributes to the digital payment literature by demonstrating that students' continued use is shaped not only by perceived ease and usefulness but also by their trust in security mechanisms and awareness of digital risks. Digital payment has therefore become an important component of students' daily transactions, although it has not completely replaced cash payments.