The Influence of E-Wallet Usability and Financial Literacy on Generation Z’s Consumption Behavior in Cirebon City

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FORMOSA NEWS - Cirebon - Digital Wallets and Gen Z: How App Ease of Use Triggers Impulsive Spending in Cirebon City. A new study led by Nailah Hayatunnasha and Nurhana Dhea Parlina from Universitas Swadaya Gunung Jati reveals that the sheer convenience of digital wallets is driving impulsive consumption among Generation Z in Cirebon City. Published in the Asian Journal of Management Analytics in 2026, the research highlights a critical shift in financial behavior as young users prioritize transaction speed over long-term financial security. These findings are vital because they show that while financial technology offers efficiency, it also creates psychological triggers that lead to unplanned spending in a generation that dominates Indonesia's demographic landscape.

The Digital Shift and Financial Vulnerability

The rapid transformation from cash to digital payments in Indonesia has been fueled by innovations like QRIS, instant transfers, and aggressive promotions such as cashback. For Generation Z those born between the late 1990s and early 2010s these tools are not just a convenience but a daily necessity. However, this digital ease often creates a "frictionless" environment where the pain of paying is minimized, leading to more frequent and less deliberate purchases. The researchers from Swadaya Gunung Jati University argue that this trend is particularly prominent in mid-sized urban centers like Cirebon City, where digital literacy and social media influence are high among students and young professionals. Without a balance between technological ease and disciplined spending habits, young adults face future financial instability.

Simplifying the Science: How the Study Was Conducted

To understand these spending patterns, employed a quantitative research design focusing on 246 Generation Z residents in Cirebon City who actively use e-wallets. The study, conducted between late 2025 and early 2026, utilized a survey method where participants rated their experiences on a 1-to-5 scale. The analytical approach used was Partial Least Squares Structural Equation Modeling (PLS-SEM), a statistical method that allows researchers to see how different factors like app usability and financial knowledge interact to influence a final behavior. 

Key Findings: Convenience Wins Over Knowledge
The results of the analysis provide a clear picture of the modern digital consumer's struggle:

• Ease of Use Drives Spending: The convenience of using digital wallets, including features like easy top-ups and QRIS access, has a positive and significant impact on consumption behavior. As the platform becomes easier to use, the tendency for individuals to make impulsive, unplanned purchases increases.
• Literasi Keuangan (Financial Literacy) is Insufficient: Surprisingly, the study found that financial literacy has a negative but insignificant effect on controlling spending. This suggests that even if a young person understands financial concepts, that knowledge is often not strong enough to resist the immediate gratification offered by digital payment tech.
• Low Impact of Education on Action: While users may have high scores in financial knowledge, their actual behavior remains highly consumptive due to external stimuli like digital promotions and lifestyle pressures.
• The "Weak" Control Model: Combined, app ease and financial knowledge only explain 24.8% of consumption behavior, meaning that over 75% of spending decisions are driven by other factors like social media trends and self-control.
  

Real-World Implications for Society and Industry

The research from Universitas Swadaya Gunung Jati carries heavy implications for several sectors. For policymakers and educational institutions, it signals that traditional financial literacy programs which focus on definitions and concepts are failing to change actual behavior in the digital age. Education must shift toward "behavioral" literacy, focusing on self-control and practical budgeting in a high-speed environment. For the fintech industry, the findings suggest a need for "responsible innovation." E-wallet providers could benefit from integrating expense-tracking features or "cool-down" periods for large transactions to help users maintain financial health. For the users themselves, especially students in Cirebon, the study serves as a warning to apply more conscious effort in managing digital balances before they lead to long-term debt.

Author Profiles

Nailah Hayatunnasha is a researcher at  Swadaya Gunung Jati University with a focus on financial technology and consumer behavior. She specializes in how digital innovations affect the economic decisions of younger demographics in Indonesia.

Nurhana Dhea Parlina is an academic at  Swadaya Gunung Jati University. Her expertise lies in management analytics and the intersection of social behavior with modern financial systems

Source
Nailah Hayatunnasha, Nurhana Dhea Parlina (2026). The Influence of E-Wallet Usability and Financial Literacy on Generation Z's Consumption Behavior in Cirebon City. Asian Journal of Management Analytics (AJMA) Volume & Tahun: Vol. 5, No. 2, 2026 Hal: 295-308

DOI: https://doi.org/10.55927/ajma.v5i2.16452

URL: https://journal.formosapublisher.org/index.php/ajma