The Effect of Promotion and Application Features on Online Transaction Growth of Livin' Merchant Application Users with Continuance Intention as an Intervening Variable (A Case Study at Bank Mandiri Imam Bonjol Branch Office)

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Targeted Promotion and Reliable App Features Drive Digital Transaction Growth for Medan Small Businesses

MEDAN — Strategic promotion and reliable app features significantly boost digital payment adoption among micro, small, and medium enterprises (MSMEs). A study led by researchers from Universitas Sumatera Utara examined merchants using the Livin' Merchant application at PT Bank Mandiri (Persero) Tbk Imam Bonjol Branch Office in Medan, North Sumatra. Published in August 2026 in the Indonesian Journal of Economic & Management Sciences, the findings reveal that building long-term merchant intention to continue using digital payment tools is essential for accelerating cashless transaction growth and strengthening local economic digitalization.

The research was conducted by Febrina Sari Nst, Prof. Dr. Arlina Nurbaity Lubis, and Dr. Beby Karina Fawzeea Sembiring from the Faculty of Economics and Business at Universitas Sumatera Utara.

Background and Context: Overcoming Merchant Retention Barriers

The rapid adoption of electronic payment systems, particularly the Quick Response Code Indonesian Standard (QRIS), has revolutionized Indonesia’s retail ecosystem. Financial institutions such as Bank Mandiri introduced merchant applications like Livin' Merchant to streamline payment processing and help small business owners transition away from cash.

Despite widespread digital onboarding, financial institutions face a persistent challenge: ensuring that merchants actively use digital platforms for daily transactions rather than reverting to cash or alternative payment apps. Preliminary observations in Medan indicated that many merchants registered for Livin' Merchant but failed to integrate it fully into their core operations. Understanding how promotional communication and system quality foster long-term merchant commitment—known as continuance intention—is crucial for financial service providers seeking sustainable digital transaction growth.

Simple Methodology Summary

The Universitas Sumatera Utara research team utilized a quantitative explanatory design to analyze causal relationships among promotion, application features, continuance intention, and online transaction growth. Conducted between April and September 2026, the study collected primary survey data from 273 merchant respondents selected through purposive sampling at Bank Mandiri Imam Bonjol Branch Office in Medan.

Data were evaluated using Partial Least Squares Structural Equation Modeling (PLS-SEM) executed on SmartPLS 4. The research model assessed four primary concepts:

• Promotion: Evaluated through advertising, sales promotion, personal selling, public relations, and direct marketing.
• Application Features: Assessed via ease of use, system reliability, and response speed.
• Continuance Intention: Measured through usage loyalty, intensity, repeat usage intention, and willingness to recommend.
• Online Transaction Growth: Tracked through transaction frequency, volume, operational efficiency, and repeated transactions.

Key Research Findings

Statistical testing confirmed that all direct and indirect hypotheses proposed by the researchers were fully supported:

• Promotion as the Strongest Intention Driver: Promotional campaigns exerted a powerful, direct positive impact on merchants' intention to continue using the application ($\beta = 0.712$, $t = 13.070$, $p < 0.001$). Marketing communication proved to be the most influential determinant of merchant retention.
• Impact of Application Quality: Functional app features directly increased both continuance intention ($\beta = 0.281$, $t = 5.131$, $p < 0.001$) and online transaction growth ($\beta = 0.301$, $t = 4.846$, $p < 0.001$). System speed, stability, and navigation ease reduced operational friction for sellers.
• Direct Growth Acceleration: Promotional activities ($\beta = 0.345$) and continuance intention ($\beta = 0.350$) directly increased digital transaction volume and frequency.
• Key Intervening Role of Continuance Intention: Continuance intention significantly mediated the relationship between promotion and transaction growth ($\beta = 0.249$, $t = 5.012$) as well as application features and transaction growth ($\beta = 0.098$, $t = 4.047$). Features and promotions successfully expand transactions when they build genuine merchant loyalty.
• High Explanatory Accuracy: The structural model explained 98.0% of the variance in merchant continuance intention and 98.3% of the variance in online transaction growth.

Real-World Implications and Strategic Impact

The insights provided by Universitas Sumatera Utara offer actionable strategies for commercial banks, fintech developers, and digital economy policymakers. For banking institutions such as PT Bank Mandiri (Persero) Tbk, marketing initiatives must extend beyond initial onboarding. Continuous educational campaigns, personalized merchant incentives, and direct support programs are necessary to sustain merchant engagement over time.

For application developers, maintaining high system availability, fast processing speed, and user-friendly interface design remains vital. Technical glitches or slow responses directly disrupt business operations, driving merchants back to cash. By refining both technology and communication, financial providers can drive long-term digital inclusion across regional business sectors.

"Sustainable growth in digital financial services cannot rely solely on basic application features; it requires continuous, educational promotion that builds long-term merchant commitment," emphasized the research team from Universitas Sumatera Utara.

Author Profiles

1. Febrina Sari Nst, S.E., M.M. — Lead researcher and Master of Management graduate from the Faculty of Economics and Business, Universitas Sumatera Utara, specializing in Digital Marketing and Consumer Behavior.
2. Prof. Dr. Arlina Nurbaity Lubis, S.E., M.Si. — Professor and senior lecturer at the Faculty of Economics and Business, Universitas Sumatera Utara, specializing in Marketing Management, Consumer Behavior, and Business Strategy.
3. Dr. Beby Karina Fawzeea Sembiring, S.E., M.Si. — Senior lecturer and researcher at the Faculty of Economics and Business, Universitas Sumatera Utara, specializing in Strategic Management and Banking Services Marketing.

Research Source Information

• Article Title: The Effect of Promotion and Application Features on Online Transaction Growth of Livin' Merchant Application Users with Continuance Intention as an Intervening Variable (A Case Study at Bank Mandiri Imam Bonjol Branch Office)
• Journal: Indonesian Journal of Economic & Management Sciences (IJEMS), Vol. 4, No. 4, 2026, pp. 1781–1800
• DOI: https://doi.org/10.55927/ijems.v4i4.86
• Official URL: https://journalijems.my.id/index.php/ijems/index