Grassroots Economy Towards Cashless Society: An Empirical Analysis Of Micro-Merchant’s Readiness In Continuing The Usage Of Cashless Payment System

Mobile payment or cashless payment system is rapidly developing in the last few years. Cashless payment system is an emerging market in Indonesia. There are many of users and merchants that have been adopting cashless payment system replacing the conventional transactions. Micro- merchant is one of the stakeholders of mobile payment ecosystem which specifically receiving the low-value payment transaction from the mobile payment users. To measure micro-merchant’s readiness in continuing their usage on cashless payment system, we used the Technology Readiness Index (TRI) 2.0 approach. Parasuraman and Colby (2014) developed TRI 2.0 as a research scale in measuring and classifying individuals by their propensity to adopt technology. This research will provide the highlights of current situation of micro-merchant’s technology readiness and their continuance intention to adopt cashless payment system based on TR constructs. There are four constructs which are Optimism, Innovativeness, Discomfort and Insecurity that will be tested to find their relationship to the continuance intention in adopting cashless payment system. This research found that optimism is a determinant factor driving the micro-merchants’ continuance intention to adopt cashless payment system while discomfort is becoming main inhibitor.