Acceptability of ATM and Transit Applications Embedded in Multipurpose Smart Identity Card: An Exploratory Study in Malaysia

Acceptability of ATM and Transit Applications Embedded in Multipurpose Smart Identity Card: An Exploratory Study in Malaysia

Paul H.P. Yeow (Multimedia University, Malaysia) and W.H. Loo (Multimedia University, Malaysia)
DOI: 10.4018/978-1-60960-162-1.ch008
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The study investigates the user acceptance of automated teller machine (ATM) and transit applications (Touch ‘n Go) which are embedded in Malaysian multipurpose smart identity card named as MyKad. A research framework was developed based on a well known user acceptance model i.e. Unified Theory of Acceptance and Use of Technology (UTAUT) model. Five hundred questionnaires were randomly distributed in the Multimedia Super Corridor, Malaysia. The data were analyzed using descriptive and inferential statistics. The results show that Malaysians do not have strong intentions of using the two applications. This can be explained by factors shown in the research framework: performance expectancy, effort expectancy, social influence, facilitating conditions, perceived credibility, and anxiety. Malaysians have little understanding of their benefits and the efforts needed to use them. In addition, they have the misconception that there are insufficient facilities to support the usage of the applications. Consequently, there is no social support to use the applications. Moreover, they perceive that the applications do not have credibility. Besides, they are unsure if they use of the applications would cause anxieties. As a result, few Malaysians have intentions of using the applications. Recommendations were given to increase the acceptance and to resolve the discovered issues. The present research can be replicated to study user acceptance of other applications in MyKad/smart identity cards in other countries (e.g. Hong Kong, India and the sultanate of Oman).
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The inventions of various technologies have dramatically changed many aspects of contemporary society. The influence of such technologies on human life, as well as the way we perceive and use them, has attracted the interest of many researchers from various streams. One of the streams is studying technology acceptance in electronic government (E-Gov) initiative. It is crucial to understand the factors influencing user acceptance in E-Gov initiative because investment in E-Gov initiative is usually huge and can be considered worthwhile only if it is accepted and used by the citizens (Dillion and Morris, 1996). Many studies have been conducted in this area, e.g., Reddick (2008) conducted a study of technology acceptance of E-Gov in the US and found that the E-Gov usage was positively related to managerial effectiveness, having a champion of E-Gov and perceived effectiveness of citizen access to online information. In the industrially developing countries, Kannabiran et al. (2008) conducted a technology acceptance study on an E-Gov initiative in Tamilnadu, India, which is used to provide rural access to government services. They found issues such as lack of government support, non-scaleable technology, and ownership problems. Similarly, Al-Fakhri et al. (2008) did a study of E-Gov initiatives in Saudi Arabia and found poor adoption issues such as lack of Internet facilities, poor awareness from the public and government employees, lack of legal framework for secure e-transactions, etc. The present study investigates the technology acceptance of two Malaysian E-Gov initiatives, i.e. Touch ‘n Go (a transportation card) and automated teller machine (ATM) applications embedded in Malaysian national identity smartcard (called MyKad).

Nowadays, one might find that his/her wallet probably has several smartcards such as credit card, identity card, ATM card, etc. A smartcard can be defined as a plastic card, usually similar in size and shape to a credit card, containing a microprocessor and memory (which allows it to store and process data) and complying with ISO 7816 standard (Dhar, 2003). Smartcards began to be used in the last 10 years due to several reasons: (1) most smartcard-related patents expired in 1995, (2) the high fraud rate associated with magnetic-striped cards compelled many companies to search for a more secure and cost-effective alternative, (3) technological advancements have made possible the existence of smartcard technology through the availability of cost-effective equipment and interoperability of different smartcards (Gail et al., 1995), and the enhanced security and flexible features of smartcards make them an ideal solution for today’s technology-savvy and demanding consumers (Yates, 2005).

Following the global trend towards smartcard implementation, many countries in Western Europe, Asia, and the Middle East have begun introducing smart identity card. Some countries such as Hong Kong, India, the sultanate of Oman, and Malaysia had implemented smart identity card with multipurpose applications (Yeow et al., 2007). As such, smart identity card with multiple applications will become more prevalent in the near future. Many countries are expected to spend huge amount of money to implement such card, e.g. Malaysia had spent RM500 million (USD139 million) on its MyKad project (Singh, 2006). Therefore, it is of paramount importance to investigate the acceptability of the applications in multipurpose smart identity cards. In fact, the success of a multipurpose smart identity card project (e.g. MyKad) largely depends on how frequently and actively people use the card (i.e. each application embedded in the card), in comparison with other available options.

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