PROFILES OF DIGITAL PAYMENT ADOPTION AMONG AR-RAHNU CO-OPERATIVE CUSTOMERS IN MALAYSIA

Abstract

The rapid shift towards digital finance, accelerated by the COVID-19 pandemic, has become a key challenge and opportunity for Islamic microfinance institutions, particularly ar-rahnu, to maintain customer engagement and ensure financial accessibility. Ar-rahnu is an institution that offers loans by pawning gold or jewellery as a pledged asset at their physical outlet. Therefore, after the spreading of COVID-19, it is quite difficult for this institution to survive as these institutions must be in contactless with each other which has never happened before. Because that has never happened before, this study is designed to understand the profiles of ar-rahnu users, especially in terms of technology usage. Therefore, understanding the profiles and preferences of ar-rahnu customers is crucial for the optimisation of e-payment platforms. Data analysis was conducted using SPSS 28, where descriptive statistics and correlation analysis were employed to assess the relationship between demographic profiles and digital payment adoption. The results show that the majority of ar-rahnu users are women, Malay, and married, predominantly holding certificate or diploma qualifications, residing in urban areas, and working in the private sector. Social media platforms like Facebook play a crucial role in disseminating information about ar-rahnu, supplemented by personal networks and messaging apps like WhatsApp. By profiling the preferences of ar-rahnu users, this study offers actionable insights for policymakers to design more inclusive digital payment solutions, enhancing financial literacy and digital trust among underserved communities.