Trust vs Risk: Influence of Contactless Payment Adoption Among Consumers in Indonesia

The adoption of contactless payment services in Indonesia, especially in Greater Jakarta (Jabodetabek), is relatively low. Although contactless payment services offer efficient transactions, the process of single-point validation creates security vulnerabilities that may increase the risk of unauthorized transactions and data breaches. This preliminary research study aims to evaluate various behavioral and technological factors influencing consumers’ intention to adopt contactless payment services and also propose a blockchain artifact, through a mix method combining Structural Equation Modeling (SEM) and Design Science Research (DSR). Data were collected using a digital questionnaire, yielding 95 valid responses, which were analyzed using SmartPLS 4. This study shows that the "Perceived Risk" variable did not have a significant effect, while the "User Trust" variable showed the strongest influence on adoption intentions. In addition, “Perceived Security”, “Perceived Usefulness”, “Technology Competence”, and "Government Support” show significant positive results within the proposed research model. Based on these findings, the proposed Blockchain artifact used Smart Contract system to increase and strengthen the transaction security while maintaining user trust in contactless payment services. The proposed Blockchain Smart Contract can contribute both theoretically and practically by integrating technology with consumer behavior in designing a secure technology framework to increase the adoption of contactless payment services in Indonesia.