ANALYSIS OF E-WALLET USAGE ON STUDENT FINANCIAL EXPENDITURE: AN EMPIRICAL STUDY AT UNIVERSITAS DHARMAWANGSA MEDAN

Abstract

This study aims to examine and analyze the effect of electronic wallet (e-wallet) usage on student financial expenditure at Universitas Dharmawangsa, Medan. Utilizing a quantitative associative design, data were collected via structured questionnaires distributed to a sample of 100 students selected through purposive sampling and calculated using the Slovin formula. Instrument validation confirmed excellent construct validity across all 25 items and superior reliability (Cronbach's Alpha = 0.968 for e-wallet usage; 0.957 for financial expenditure). Linear regression diagnostics satisfied classical assumptions, including normal P-P plot residual distribution, non-multicollinearity (Tolerance = 1.000, VIF = 1.000), homoscedasticity, and non-autocorrelation (Durbin-Watson = 1.901). Empirical results demonstrate that e-wallet usage exerts a positive and significant effect on student financial expenditure (t-count = 7.107 > t-table = 1.984; sig. < 0.001; F = 50.503, sig. < 0.001). The estimated regression equation, Y = 6.701 + 0.373X, indicates that each unit increase in e-wallet utilization leads to a 0.373-unit increase in financial spending. The coefficient of determination (R² = 0.340; Adjusted R² = 0.333) reveals that 34.0% of the variance in financial expenditure is explained by e-wallet usage, while the remaining 66.0% is governed by external factors such as allowance levels, peer influence, and personal financial literacy. These findings substantiate Behavioral Finance and Technology Acceptance theories, emphasizing that digital payment convenience and aggressive promotional stimuli trigger frictionless, repetitive, and impulsive micro-transactions among university students.