EFFECTS OF SUBJECTIVE NORMS, PERCEIVED BEHAVIORAL CONTROL, PERCEIVED RISK, AND PERCEIVED USEFULNESS TOWARDS INTENTION TO USE CREDIT CARDS

Credit cards are becoming one of the most-used method of payment, both domestic and overseas. Consumers need not hassle with carrying cash to pay, hence reducing the risk of losing your money. Credit cards however, have their own drawback as it can be hacked, resulting in the breach of personal information by a third party, and abusing it to make transactions unknown to the card owner. This phenomenon is still in debate among credit card holders. As such, the purpose of this study is to test the effects of subjective norms, perceived behavioral control, perceived risk, and perceived usefulness towards the intention to use credit cards. Psychological factor and risk level becomes a challenge to card holders when they are making a transaction. Purposive sampling technique is used to gather data through questionnaire spread in both hardcopy and online to 100 credit card owners in Surabaya. Data is then processed using Partial Least Square (PLS). Analyzation result shows subjective norms, perceived behavioral control, and perceived usefulness significantly affects the intention to use credit cards, while perceived risk does not. The result of this study shows that by fully understanding both the advantages and disadvantages of credit cards, consumers can use it to make better financial planning, and not making transactions that leads to a certain lifestyle.