The Impact of Digital Payment Systems on the Transaction Efficiency for Cross-Border Transactions

Abstract—Cross-border transactions have been challenging due to the high fees and long processing duration for each transaction. This study delivers a thorough examination of how effective digital payment systems are in improving the efficiency of cross-border transactions. Primary data were obtained online from 442 respondents across Indonesia, predominantly from the Jabodetabek area (Jakarta, Bogor, Depok, Tangerang, and Bekasi), on second week of April 2025 until the third week of May 2025, who have conducted a cross-border transaction using global digital payment systems for any purposes, while the secondary data were gained from a variety of sources. This research employed Structural Equation Modeling (SEM) with Partial Least Squares (PLS) through Smart-PLS 4 to test 7 hypotheses. Results revealed that Perceived Advantage, Perceived Usefulness, and trust significantly impacts the intention to use digital payment, while financial literacy and social influence are insignificant.