When Technology Meets Financial Behavior: A Household-Level Study on Digital Payment, Literacy, and Connectivity in Indonesia

Abstract

The rapid expansion of digital financial services has significantly transformed household financial behavior, particularly in developing economies. However, the effectiveness of these tools in improving household financial efficiency depends not only on their usage but also on users' digital literacy and access to supporting infrastructure. This study aims to examine the influence of digital payment system usage, digital financial literacy, and internet access on household financial efficiency in the context of Indonesia's digital economy. A quantitative survey was conducted among 120 households in Banyumas Regency, Central Java, using a structured questionnaire. Data were analyzed using multiple linear regression after validating assumptions of normality, multicollinearity, and heteroscedasticity. The variables measured included frequency of digital payments, financial literacy levels, internet accessibility, and self-reported financial efficiency. The results indicate that all three independent variables significantly and positively affect household financial efficiency, with digital financial literacy exerting the strongest influence. Digital payment usage and internet access also contributed significantly. These findings suggest that financial efficiency is not merely a function of access or usage but is strengthened when supported by adequate literacy and infrastructure. The study highlights the interdependent role of behavioral and structural factors in enabling effective household financial management. This research contributes to the growing literature on digital financial behavior by focusing on the household level in a semi-urban setting. The findings offer practical implications for policymakers, fintech developers, and financial educators aiming to promote inclusive and efficient digital financial ecosystems.