Financial Literacy, Perceived Security, and Cashless Behavior among Generation Z: The Mediating Role of Trust

Abstract

This study examines the direct and indirect relationships of financial literacy and perceived security with self-reported cashless behavior through trust among accounting students at Politeknik Negeri Lampung. Using a cross-sectional survey and purposive sampling, 141 students with prior cashless payment experience completed a four-point Likert-scale questionnaire. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3, supplemented by bootstrap confidence intervals, sample size sensitivity assessment, and alternative indicator specifications. The findings indicate that financial literacy (β = 0.139, p = 0.074) and perceived security (β = −0.011, p = 0.901) were not directly associated with cashless behavior at a statistically significant level. Both variables were positively associated with trust (β = 0.269 and 0.713, respectively), while trust was positively associated with cashless behavior (β = 0.728, all p < 0.001). Significant indirect relationships were identified through trust for financial literacy (β = 0.195, 95% CI [0.110, 0.287]) and perceived security (β = 0.519, 95% CI [0.354, 0.693]). The model explained 66.0% of the variance in cashless behavior and 76.9% in trust. These findings support indirect-only statistical mediation through trust, although the cross-sectional design prevents causal inference. Limitations include the single-institution sample, self-reported behavior, and conceptual overlap between security and trust. The study contributes context-specific evidence that trust is an important intermediary in understanding cashless payment practices and highlights implications for financial education and digital payment reliability.

Keywords

Financial Literacy Generation Z Perceived Security Self-Reported Cashless Behavior Trust