Modeling Adoption of Electronic Money in Indonesia: Conceptual Approach for Less Cash Society Development

Electronic money or virtual cash is rapidly becoming the currency of the world economy and its financial markets. Indonesia itself has seen keen to adopt this technology realizing that the young population of over 250 million people and 30.9% use mobile phones, which in the last two or so years revolutionized the retail and transportation sectors. In 2018, 38 electronic money licenses issued and potentially more to follow. This paper aims to conceptualize the key variables that could drive a better electronic money adoption using the conceptualization stage used in the system dynamics approach. The conceptual model shows that electronic money satisfaction rates, and switching rates as the key variables and gives a positive effect on the adoption of electronic money.