Understanding Digital Wallet Adoption: How Usefulness and Security Shape Customer Satisfaction

The development of digital technology has accelerated the transformation of financial transactions, including in the MSME sector, which is the backbone of the Indonesian economy. This study aims to describe the perceptions of usefulness, perceptions of security, user satisfaction, and intention to reuse digital wallets among MSME players in Kediri City. Using a descriptive analysis approach and a sample of 176 MSMEs under the guidance of the Kediri City Industry and Trade Agency, this study evaluates the level of acceptance and user experience based on key indicators in the Technology Acceptance Model (TAM) and user satisfaction theory. The results indicate that the perception of usefulness is very high, particularly in terms of transaction effectiveness, payment efficiency, ease of use, and the application's ability to support business activities. Perceptions of security also received favorable ratings, as demonstrated by appreciation for policy transparency, personal data protection, regulatory compliance, and the availability of privacy features. Both perceptions were found to contribute significantly to user satisfaction, which in turn increased the intention to reuse digital wallets in daily transactions. These findings confirm that functional benefits and trust in security are key determinants of the continued use of digital wallets among MSMEs. This research has important implications for service providers and local governments in strengthening a digital payment ecosystem that is secure, efficient, and supports the enhancement of MSME competitiveness.