Digitising social assistance payments to accelerate financial inclusion in East Java, Indonesia: which factors matter for user acceptance?

Indonesia has disbursed social assistance payments electronically and via debit cards since 2017. This study aims to identify factors affecting user acceptance of debit cards among the social assistance program (PKH) recipients in Indonesia. This study modified the unified theory of acceptance and use of technology (UTAUT) model by incorporating variables such as trust, financial literacy, religious beliefs, and perceived security. Data were collected through a field survey using multistage stratified random sampling and analysed using PLS-SEM. The study found that the two salient variables in the UTAUT model – performance expectancy and effort expectancy – were the best predictors of attitudes toward using debit cards; however, their effect sizes were small. Perceived security and religious beliefs also significantly affected trust in using debit cards. The research findings enrich our understanding of technology acceptance in the financial sector, offering practical insights for authorities to support the digitisation of social assistance programs.