During Covid 19 in Indonesia:

A Review Study on Credit Card Usage

SUGESKO SUGESKO, AGUS RAHAYU, DISMAN DISMAN, CHAIRUL FURQON

Faculty of Economic and Business,

Indonesia Education University,

Jl. Dr. Setiabudi No. 229, Bandung 40154,

INDONESIA

Abstract: - The purpose of this study is to explore the effect of financial management and lifestyle on credit

card usage in Indonesia during COVID-19 as moderating variable. The methodology used is hypothesis testing.

The sample is 250 credit card users with specified characteristics. The result of the study using structural

equation modeling - partial least square analysis show that these two variables have a significant effect on

credit card usage and covid 19 can be a significant moderator for it.

Key-Words: - Financial management, Lifestyle, Credit card usage, Covid 19, Demography, Consumer

Behavior, Compulsive Buying.

Received: June 13, 2023. Revised: February 26, 2024. Accepted: April 6, 2024. Published: May 13, 2024.

1 Introduction

Indonesia and other countries in the world are

experiencing the COVID-19 pandemic which has

now turned into endemic. Its spread was recorded to

be very fast and massive. The COVID-19 pandemic

is not only attacking health but also global economic

conditions, including Indonesia. Responding to this,

Minister of Finance Sri Mulyani said that COVID-

19 would worsen the Indonesian economy, even

economic growth is predicted to be only 0% or even

below 0% at the time.

Currently, the use of credit cards is widely used

in Indonesia and is not only dominated by high-level

consumers. The use of credit cards has developed

very rapidly. This happens because there are several

advantages to using a credit card. To buy goods and

services, customers do not need to make

transactions in cash. Customers simply use a credit

card and take advantage of the benefits provided by

the credit card, [1]. On the other hand, using a credit

card also has some drawbacks, with the ease of

using credit cards, it causes someone to be more

consumptive, thereby increasing spending. This

leads to behavior to fulfill desires that go beyond

needs, [2].

In 2019, according to Bank Indonesia the number

of credit cards increased to 17.15 million people,

especially in the e-commerce sector with the

number of transactions reaching 55.46 million. At

the same time, payment methods have also changed,

where people are worried that using cash can carry

viruses, [3]. So that the use of credit cards is

growing and can be accepted by the public, along

with credit card payment infrastructure, [4].

Previous research has discussed the use of credit

cards, such as factors influencing the use of credit

cards usage among Sri Lankan working adults, said

the intention to use credit card influence by

indicators in TAM model perceived ease of use and

perceived usefulness, demography such as age and

gender, monthly income, personal financial

knowledge, and personal attitude, [5]. It is different

variable use and premise. Then other research, said

that credit card usage depends on easy access to

credit, aggressive promotion by credit card

providers, low minimum payment requirement,

attitude towards credit usage, and credit card-related

knowledge, [6]. Following another research, shows

that compulsive buying influenced by money power

prestige, money distrust, and money anxiety

moderated by credit cards, [7]. There is another

research, [8], where gratification shopping, idea,

adventure, value seeking shopping, and social

shopping motivations are variables that affect

impulse buying with credit card usage as mediator

variable. Previous research has differences from this

study which uses financial management and lifestyle

as independent research variables with Covid 19 as

a moderator variable to observe credit card usage.

Previous research [9], in 2023 stated that good

financial knowledge makes customer financial

behavior in using credit cards better. Customers will

avoid excessive use of credit cards but only

according to their needs and try their best not to pay

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

148

Volume 20, 2024

minimum payments. Other research [10], stated that

age, income level and marital status have a

significant influence on credit card usage behavior.

The benefits provided by banks, including payment

pattern policies and awareness regarding the amount

of debt, also have a significant influence. However,

occupation factors and management of income vs

expenses do not have a significant effect on credit

card use.

This study intends to examine the significant

effect of financial management (MK) and lifestyle

(GH) on credit card use (PK), moderated by the

COVID-19 pandemic (C) factor on credit card

consumers in Indonesia.

2 Problem Formulation

In terms of using a credit card, good financial

management is needed. Financial management

emphasizes the behavioral skills of managing

individual finances, [11]. Financial management to

achieve family financial goals in the short term,

including budgeting, savings, income management,

investment, and spending/expenditure control, [12].

Family financial management is

managing/regulating family finances to meet the

needs of daily family life, minimizing costs, and

ensuring the availability of funds for daily needs,

household expenses, emergency conditions, savings,

and investments, [13]. Past research has shown that

good financial management skills are associated

with lower borrowing and higher levels of well-

being. In this case, credit card users are also

expected to have good financial management

knowledge to be able to pay for their credit card

expenses.

Social factors affect consumer beliefs,

personality, attitudes, and lifestyles. Social factors

themselves have a very large impact on the banking

industry, [14]. Consumers determine their lifestyle

through the choice of goods and services they make,

[15]. There is a difference in consumption between

high-level consumers compared to low level

consumers. Consumer lifestyle will affect the

pattern of credit card use, [16].

The coronavirus first spread from China’s Hubei

province to become a global pandemic that affected

the world economy. Market volatility started to

decrease in late March 2020 as the spread of the

coronavirus increased and by the end of April, it had

fallen sharply but remained well above pre-

pandemic levels, [17].

The covid 19 pandemic continues to be analyzed,

where the impact is affecting production, disrupting

supply chains, and unsettling financial markets,

[18].

According to [19], five aspects influence

financial management behavior, namely:

 Consumption, namely the costs incurred by

households on the purchase of various goods

and services. How is the consumption pattern of

a person/household related to what is purchased

and why the goods are purchased. Make notes

of expenses and income, which are needs and

which are wants. Do not indulge in desires that

are not important, like shopping for clothes too

much. Problems arise if expenses are greater

than income.

 Cash-flow Management, healthy finances are

indicators of the ability to pay all expenses,

manage cash flow properly so that there is a

balance between income and expenses.

Problems will arise if calculations are not done

correctly so that income is smaller than

expenses.

 Savings and Investments, Savings are income

that is not used for some time, to anticipate

unexpected future events. While investment is

storing and managing current assets/resources to

gain future profits. Useful as reserve or

emergency funds and for long-term funds.

Problems arise when funds are needed to make

payments but the allocated funds are not

available.

 Credit Management is the ability of a

person/household to manage their debts so that

they do not experience bankruptcy, or in other

words to take advantage of debt to obtain

increased welfare. Immediately pay obligations

every month to avoid too much debt that

burdens the family's finances.

 Insurance, a method of transferring risk to other

parties. Insurance is needed as a short-term

emergency fund, because each person cannot

predict what will happen in the future. So, there

will be problems with risks that arise suddenly.

Poor financial management causes difficulties

for consumers in managing their budget in relation

to credit card payments.

H1: The better a person's financial management

behavior, the lower the level of credit card

usage.

Along with the development of people's

consumption patterns, especially in urban areas, the

development of transactions in daily life also

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

149

Volume 20, 2024

continues to increase and changes the conditions of

the payment system in economic transactions. The

high pattern of public consumption is supported by

the availability of various kinds of goods and

services with a variety of attractive choices. Current

economic transactions are not only facilitated with

cash but have penetrated using non-cash electronic

instruments. Non-cash payments are generally not

made using money as a means of payment, but can

be made using an ATM card, electronic money,

debit card, or by using credit card, [20].

Credit card usage becomes more complicated by

the existence of lifestyle driven conditions which

mean that the use of credit cards is not intended for

basic or important things.

H2: The higher the consumer's lifestyle, the greater

the influence on the level of credit card use.

In the condition of the COVID-19 pandemic, it is

important for the community to prepare financial

planning and manage the assets they have, so that

they will always be active and profitable assets.

Regulating financial conditions and targets,

managing debt, preparing emergency funds, savings,

and investments, and finding other sources of

income, are important to do during this covid-19

pandemic, [21]. Not all people understand the 40-

30-20-10 formula, where 40% is used for daily

needs, 30% for repaying loans, 20% is allocated for

savings and investment, and 10% for community

social needs. With the increasing number of

COVID-19 cases, consumers are starting to change

their spending patterns according to their category

of needs. In this case, there are significant changes

related to the allocation of financial expenditures

made by the community. Initially spending

increased sharply, especially in retail, credit card

shopping and food. This was followed by a sharp

decline in overall household spending that was

affected and responded the most strongly to this

pandemic. The implementation of social distancing

causes a decrease in spending, especially in the

restaurant and retail sector.

COVID-19 causes consumers to limit their

consumption needs. Social distancing rules increase

limitations and reduce consumer spending, which

ultimately strengthens the influence of COVID-19

on credit card use through existing aspects of

financial management behavior.

H3: The COVID-19 pandemic affects the

relationship of consumer financial management

to the use of credit cards.

During the COVID-19 pandemic, people's

activities are limited to suppress the spread of the

virus so that space for movement is reduced and

ultimately affecting the economy. Human activities

are limited and even recommended to always be in

the house. At the time, this strategy is one of the

policies that are considered good and effective to

break the chain of the spread of the COVID-19 virus

pandemic. Large-Scale Social Restrictions (PSBB)

to suppress the spread of this virus have been

carried out in several big cities in Indonesia, [22].

As a result of the PSBB, there have been major

changes in people's lifestyles, which previously

were active and open, now their movement is very

limited. The impact felt was quite significant where

the wheels of the economy that were moving

quickly became greatly reduced due to the influence

of the PSBB. The credit card industry in Indonesia

is no exception. The value of credit card

transactions as of February 2020 was recorded at

only Rp. 25.87 trillion, grew slightly by 0.21% year

on year. While the transaction volume was recorded

at 27 million, only increased by around 3.52% year

on year (Bank Indonesia).

Social distancing during the COVID-19

pandemic reduced community activity which

ultimately reduced consumer spending related to

credit card use.

H4: The COVID-19 pandemic has affected the

relationship between consumer lifestyles and

credit card use.

Consumers who think that cash is currently not

clean and can be an intermediary medium for the

transmission of the covid-19 virus makes people

turn to digital payments. The shift of society from

using cash to digital transactions has recently

become interesting to study. To what extent is the

impact of COVID-19 on consumer behavior in

using digital services, one of which is using a credit

card as a means of payment. Consumer behavior

literature shows that fear is a negative consequence

of certain events that can cause changes in consumer

behavior and attitudes, [23]. In this regard, the

COVID-19 pandemic has changed consumer buying

behaviour because of the consumer's fear of

contracting the disease, [24]. At the same time, low-

income, asset-holding households rely on unsecured

credit for their consumption to offset income losses

caused by unemployment, [25]. Unsecured loans

include unsecured credit (KTA) and credit cards.

COVID-19 affects consumer spending in various

categories of goods and services.

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

150

Volume 20, 2024

Financial

Management

Credit Card

Usage

Covid-19

Lifestyle

Expenditure categories such as recreation, travel

and entertainment costs decreased significantly,

while expenditures such as utilities, food and

childcare fell only slightly. The pandemic has also

caused economic uncertainty and an increase in the

use of credit cards from the side of borrowers who

are less eligible for credit as well as a decrease in

the use of credit cards from consumers with

borrower profiles that are more creditworthy, [26].

The COVID-19 pandemic has made consumers

afraid to use cash as a means of transaction and has

shifted to using credit cards. Consumer spending on

tertiary and basic needs decreased with tertiary

needs dropping significantly.

H5: The higher the COVID-19 pandemic, the lower

the level of credit card usage.

To determine the level of consumer credit card

usage, this study seeks to examine the variables that

influence consumers to use credit cards as a means

of payment. Based on previous research, a research

formulation was formed to make it easier to analyze

any influence variables that affect the level of credit

card use. How is the influence of each variable on

the use of credit cards coupled with the involvement

of the moderator variable, namely the COVID-19

pandemic. To what extent this covid-19 variable

also affects the level of credit card use after the

relationship between each influence variable and the

moderator variable. This study intends to examine

the significant effect of consumer financial

management (MK), lifestyle (GH) on credit card use

(PK), moderated by the COVID-19 (C) pandemic

variable in Indonesia. The following Figure 1 is a

research concept framework based on the exposure

of the above conditions with several variables built

by the research hypothesis.

Fig. 1: Research Model

In addition, analysis can also be carried out to

explore research models with demographic factors

to obtain a better picture between the dependent and

independent variables. Demographic factors are one

of the most studied factors for their influence on

credit card usage behavior. Age, gender, income

level, education level and marital status are

demographic characteristics that are used as the

basis for grouping credit card users in Indonesia,

[27].

3 Results

This study uses a quantitative research model with a

moderator variable analysis model using structural

equation modeling - partial least square (SEM –

PLS). This method is used because SEM can carry

out direct analysis between several dependent

variables and independent variables. SEM is also a

statistical technique used to test statistical models in

the form of causal models and an analysis technique

that is quite strong because it considers interaction

modelling, nonlinearity, correlated independent

variables, measurement errors, correlated errors, and

several independent and dependent variables where

each is measured by many indicators. SEM with

PLS can analyse two conditions, namely

undetermined factors and unacceptable solutions.

SEM with PLS consists of three components,

namely the structural model, measurement model,

and weighting scheme.

The research sample is consumer credit card

users in Indonesia based on age, gender, income

level, education level, and marital status. The

number of samples taken was 250 people in

accordance with research needs and sample

fulfilment standards based on Non-Probability

Sampling with a purposive sampling approach. The

data collection technique uses a questionnaire via

google form.

The validity test uses the Pearson product

moment formula, where from the results of testing

the validity of a total of 32 indicator questions from

each variable used in the operational variables, all

indicators are declared valid because the validity

coefficient value is > 0.361 (R table value).

Meanwhile, the reliability test using Cronbach's

Alpha formula on all variables was declared

reliable, because the reliability coefficient value was

> 0.7 (critical point). This study uses 4 variables,

namely financial management and lifestyle as

independent variables, COVID-19 pandemic as

moderator variable, and use of credit cards as the

dependent variable. The following are the results of

testing the validity of the variable indicators and the

reliability of the variables used in the study:

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

151

Volume 20, 2024

Table 1. Validity Test Results

Source: Data processing with SmartPLS 3.0

Table 2. Reliability Test Results

Source: Data processing with SmartPLS 3.0

To test the measurement (outer model) the

validity (Table 1) and reliability (Table 2) of the

indicators used in the study were tested. To obtain

accurate calculation results, testing the validity and

reliability of this study using the SmartPLS 3.0

software. The outer model is one of the steps taken

to test the research construct model from the

question indicator side which is part of the research

variable. Based on the operational variables, there

are a total of 32 indicators which are questions used

for each variable. Figure 2 represents the model and

the indicators made in SmartPLS 3.0 for the outer

model test.

The validity test carried out, namely Convergent

Validity, has been fulfilled because the Factor

Loading value of each indicator is > 0.5. In addition,

the outer model test that needs to be done is

Discriminant Validity where all indicators in this

study have met Discriminant Validity because each

indicator in one variable has a greater value than the

other latent variables.

To determine the reliability of each construct of

the research variable, a test was conducted by

looking at the Composite Reliability and Cronbach’s

Alpha values of each construct. It is known that all

research variable constructs have Composite

Reliability values above 0.7 and Cronbach Alpha

above 0.6 so it can be concluded that all variable

constructs in this study are declared reliable because

they have met the reliability requirements. It can be

concluded as shown in Figure 2 below that all

indicators and variable constructs such as types of

financial planning and budgets owned, saving

activities, investment activities, credit/debt, and bills

(financial management); activities, interest and

opinion (lifestyles); knowledge and behavior

(COVID-19); also services, quality, facilities and

information (credit card usage) used in this study are

valid and reliable so that they can be used for testing

the inner model (testing the relation between

independent and dependent variable/credit card

usage).

Fig. 2: Path Diagram Outer Model with SmartPLS

3.0

Source: Data processing with SmartPLS 3.0

Table 3 below shows the results of the

calculation of composite reliability and Cronbach’s

alpha:

Table 3. Composite Reliability and Cronbach’s

Alpha

Source: Data processing with SmartPLS 3.0

Variable Reliability Coefficient Critical Point Remark

Financial Management 0,707 0,7 Reliable

Lifestyle 0,81 0,7 Reliable

Covid-19 0,715 0,7 Reliable

Credit Card Usage 0,775 0,7 Reliable

Varabel Questions Validity Coefficient R Value Table Remark

MK1 0,576 0,361 Valid

MK2 0,620 0,361 Valid

MK3 0,551 0,361 Valid

MK4 0,515 0,361 Valid

MK5 0,568 0,361 Valid

MK6 0,652 0,361 Valid

MK7 0,526 0,361 Valid

MK8 0,577 0,361 Valid

GH1 0,625 0,361 Valid

GH2 0,889 0,361 Valid

GH3 0,554 0,361 Valid

GH4 0,790 0,361 Valid

GH5 0,714 0,361 Valid

GH6 0,523 0,361 Valid

GH7 0,609 0,361 Valid

GH8 0,505 0,361 Valid

C1 0,636 0,361 Valid

C2 0,515 0,361 Valid

C3 0,585 0,361 Valid

C4 0,669 0,361 Valid

C5 0,553 0,361 Valid

C6 0,503 0,361 Valid

C7 0,696 0,361 Valid

C8 0,457 0,361 Valid

PK1 0,484 0,361 Valid

PK2 0,744 0,361 Valid

PK3 0,437 0,361 Valid

PK4 0,630 0,361 Valid

PK5 0,724 0,361 Valid

PK6 0,643 0,361 Valid

PK7 0,577 0,361 Valid

PK8 0,738 0,361 Valid

Financial Management

Lifestyle

Covid-19

Credit Card Usage

Variable Construct Composite Reliability Cronbachs Alpha Conclusion

Financial Management 0,953 0,944 Reliabel

Lifestyle 0,913 0,892 Reliabel

Covid-19 0,923 0,904 Reliabel

Credit Card Usage 0,907 0,883 Reliabel

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

152

Volume 20, 2024

The Inner Model is a test on the structural model

that is carried out to test the relationship between

the latent variable constructs. In this study, testing

of the inner model was carried out by paying

attention to the value of R2 on the construct of the

endogenous latent variable. The value of R2 can be

used to measure the level of variation of changes in

the independent variable to the dependent variable.

The higher the R2 value, the better the prediction

model of the proposed research model. The

following are the R2 results obtained using

SmartPLS 3.0:

Table 4. R2 Value on Endogenous Latent Variable

Construct

Source: Data processing with SmartPLS 3.0

Based on Table 4 above, it is known that the R2

value in the variable construct of credit card use is

0.729 which indicates that the use of credit cards is

influenced by 72.9% by financial management,

lifestyle and covid-19, while the remaining 27.1% is

influenced by other factors not included in this

study. So, it can be said that the determination of the

research variables is quite good even though there

are many other variables that influence the use of

credit cards outside the construct of this research.

In this study, it is necessary to determine the

characteristics of respondents as a description of the

respondent's profile which is the primary data

source. Characteristics of respondents used in this

study include age, education level, income level,

and occupation. Based on data from 250

respondents, the majority of respondents are aged

31-35 years, the majority are female, have a

bachelor's level of education, have an income level

of Rp. 5.000,001 – Rp. 7,000,000, and the majority

of respondents are married. The determination to

use 250 respondents was based on the principle that

a sample size of more than 30 and less than 500 is

appropriate for most research. Apart from that, in

multivariate research including SEM-PLS, the

sample size should be at least 10x larger than the

number of variables in the research. In this research,

there are 4 variables used. Table 5 describes the

demographic factors of the respondents for this

research.

Table 5. Respondent Characteristic

Source: Processed data

Hypothesis testing is done by looking at the t-

statistics as measured by the t-table. If the value of

t-statistics > t-table, the relationship between latent

variables can be declared significant. Hypothesis

testing in PLS is done by bootstrapping the sample.

The following Figure 3 below is the result of

bootstrapping the inner model path diagram using

SmartPLS 3.0:

Fig. 3: Bootstrapping Path Diagram Inner Model

Results

Source: Data processing with SmartPLS 3.0

Variable Construct R2 Value

Credit Card Usage 0,729

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

153

Volume 20, 2024

The summary of path coefficient values and t-

values of variable constructs in this study is

presented in Table 6 below:

Table 6. Path Coefficient Value and t-value of

Research Variable Construct

Source: Data processing with SmartPLS 3.0

The summary of the path coefficient and t-value

variables in this study can be seen in the Table 6

above where the hypothesis testing in this study uses

a one-tailed test with an error rate of 5%, with a

critical value that must be met, namely 1.64.

Positive or negative influence between constructs of

exogenous latent variables and endogenous latent

variables seen from the path coefficient value. The

variables of financial management and covid-19 are

inversely proportional to the use of credit cards,

where the higher the financial management

expertise and the covid-19 pandemic, the lower the

level of credit card use, and vice versa. Based on the

results of bootstrapping in Table 2, the variable MK

 PK, GH  PK, C  PK has a value of T-

Statistic > T-table which is 7,433; 5,965; and 6,218;

so that the variable is declared significant.

In this study, moderator variable used is COVID-

19. It will be tested to determine the relationship

between the constructs of the independent and

dependent variable. Table 7 shows the results of

bootstrapping involving the moderator variables of

customer engagement:

Table 7. Bootstrapping results involving moderator

variables

Source: Data processing with SmartPLS 3.0

From the results of the calculation of the

moderated t-value, variable MK*C  PK and

GH*C  PK has a t-statistic value < ±1.96. Thus,

the Covid-19 variable does not have a significant

effect in increasing the relationship between

financial management and credit card use and the

relationship between lifestyle and credit card use.

That is, the presence of covid-19 does not affect the

increase or decrease in the use of credit cards due to

financial management and consumer lifestyles.

From the previous description, this paper

proposes 5 hypotheses related to the variables built

on the research model. Several stages have been

carried out, starting from testing the validity of the

data, samples, indicators, and variables. The

statistical method of structural equation modelling –

partial least squares was run to test the 5 hypotheses

that have been described previously in the

introduction section.

Of the 5 hypotheses that were built, the

moderator variable for COVID-19 did not

significantly affect the independent variables of

financial management behavior and consumer

lifestyle. In addition, other variables have a

significant effect on the use of credit cards. These

results are built through the measurements and

testing stages that have been carried out. Table 8

below shows a recapitulation of the results of

hypothesis testing in this study:

Table 8. Hypothesis Testing Results

Source: Processed data

In this case, good financial management skills

related to the low use of credit card loans are in

accordance with the statement that good financial

knowledge makes customer financial behavior in

using credit cards better. In line with previous

research the impact of COVID-19 pandemic, the

high lifestyle with the use of credit cards as non-

cash payment instruments is currently also in

accordance with the research hypothesis. The

COVID-19 pandemic has made less significant

changes to the types of expenditures such as

utilities, food, and child care while expenditures

such as recreation, travel, and entertainment have

decreased significantly according to [28], accepted

and in accordance with the research hypothesis that

the high rate of spread of covid-19 is inversely

proportional to the level of credit card use.

Variable Construct

Relationship

Path Coefficient T Statistics (|O/STERR|) T-Tabel

MK -> PK -0,464 7,433 1,64

GH -> PK 0,259 5,965 1,64

C -> PK -0,445 6,218 1,64

Construct Relationship Path T Statistic T-Tabel

MK*C -> PK -0,022 0,510 1,96

GH*C -> PK 0,029 0,654 1,96

No Hypothesis Result

The better a person's financial management behavior, the

lower the level of credit card usage.

Hypothesis accepted

The higher the consumer's lifestyle, the greater the

influence on the level of credit card use.

Hypothesis accepted

The COVID-19 pandemic affects the relationship of

consumer financial management to the use of credit cards.

Hypothesis not accepted

The COVID-19 pandemic has affected the relationship

between consumer lifestyles and credit card use.

Hypothesis not accepted

The higher the Covid-19 pandemic, the lower the level of

credit card usage.

Hypothesis accepted

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

154

Volume 20, 2024

4 Discussion

After going through the stages of testing methods on

the variables used, including hypothesis testing, the

research results related to credit card use have been

completed with several acceptable hypotheses.

The main idea of the research is to examine the

use of credit cards during the COVID-19 pandemic,

where in the period before the pandemic, according

to Bank Indonesia data, credit card use was at a high

level, both in terms of volume and frequency of use.

Summarizing the results of hypothesis testing, it

is known that the better the financial management

behavior, the lower the level of credit card use,

especially for non-basic needs. Likewise, the higher

the spread of the COVID-19 virus (pandemic), the

lower the use of credit cards for non-basic needs.

Then the use of credit cards will increase with the

increasing lifestyle of consumers. Meanwhile, after

the COVID-19 pandemic went through the testing

stages, it turned out that it did not affect the

relationship between financial management

behavior and lifestyle on the level of credit card use.

This research is in line with previous research

[29], where age, income level, and marital status

influence credit card use. Good knowledge

regarding financial matters also helps responsible

credit card usage behavior regarding credit card

usage limits and payment patterns. However,

COVID-19, which was thought to be a moderating

factor in the relationship between lifestyle and

financial management on credit card use, apparently

did not have a significant effect as a strengthening

or weakening factor in the relationship between

these variables.

5 Conclusion

Based on the results of the study, once again it can

be concluded that financial management and

lifestyle greatly affect the use of credit card

consumers of credit card users in Indonesia, with

characteristics of age between 31-35 years, the

majority are female, have a bachelor's education

level, have an income level of Rp. 5.000,001 – Rp.

7,000,000, and most consumers are married. In this

case, COVID-19 did not have a significant effect in

relation to financial management with credit card

use and the relationship between lifestyle and credit

card use. The two variables do not have a significant

relationship in influencing the increase or decrease

in credit card use in the presence of COVID-19.

Furthermore, it can also be said that the COVID-19

pandemic has affected the level of community credit

card usage in Indonesia, especially for those who

are aware of financial arrangements. The principle

of prudence, given the uncertain economic

conditions, makes consumers not too often use their

credit cards for shopping/consumption.

Through this writing, it is expected to provide

benefits and can be the basis for the development of

science and further research in the field of

management in general as well as financial

management, lifestyle, and the COVID-19

pandemic on the use of credit cards. The

information and knowledge obtained through this

paper is expected to become an input and

consideration for companies and regulators in

making strategic plans related to factors that can

affect the level of credit card use, as well as for the

public so that they can regulate the use of credit

cards.

This study has limitations, namely the variables

used to measure the use of credit cards only consist

of financial management and lifestyle. While there

are still other variables such as financial literature

which is suggested to be used for further research in

accordance with the opinion of [30].

Other research can be conducted using different

variables or influencing factors such as credit card

features and attitudes toward money itself.

According to [31], factors that influence the use of

credit cards can include credit limits, interest rates,

shopping discounts, cash cards, and overdraft

capability. This can be the basis for further research

according to the demographic scope of each

country.

Acknowledgement:

I would like to thank Mr. Syahputra, a lecturer at

Telkom University who has helped me in the

process of publishing this article. I also want to

thank my family who have provided moral support

during the process of writing this article.

References:

[1] Joyce, E. J. (2014), Associate Professor,

Department of Design, Extension Specialist,

Personal Finance, [Online].

www.nelliemae.com/library/research.html

(Accessed Date: July 25, 2021).

[2] Shui, Haiyan and Ausubel, Lawrence M.,

Time Inconsistency in the Credit Card Market

(May 3, 2004), SSRN,

http://dx.doi.org/10.2139/ssrn.586622.

[3] Kim, J. Impact of the perceived threat of

COVID-19 on variety-seeking. Australasian

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

155

Volume 20, 2024

Marketing Journal (AMJ), 2020, 28, 108–116,

https://doi.org/10.1016/j.ausmj.2020.07.001.

[4] Kotkowski, R.; Polasik, M. COVID-19

pandemic increases the divide between cash

and cashless payment users in Europe. Econ.

Lett. 2021, 209, 110139.

[5] Velananda, Yashoda. (2020), Factors

Influencing the Use of Credit Cards Usage

among Sri Lankan Working Adults, Asian

Journal of Economics, Finance and

Management. Article no. AJEFM.184.

[6] Mohamed, Suhana., Shahdon, Norsuridah.,

Rohana Sham, Rohana., Omar, Nooririnah.,

Zainuddin, Aznilinda., Raja Zuraidah Rasi,

Raja Zuraidah. (2016), A Case Study on

Factors Influencing Credit Card Usage,

Journal of Applied Environmental and

Biological Sciences. pp. 38-42.

[7] Nofario, Purwanto, Edi., Hendratono, Tonny.,

(2020), The Moderating Role of Credit Card

Usage on The Relationship Between Money

Power Prestige, Money Distrust, and Money

Anxiety with Compulsive Buying,

Technology Report of Kansai University,

ISSN: 04532198, Vol. 62.

[8] Gawior, Barbara, Polasik, Michal, Lluis,

Josep., (2022). “Credit Card Use, Hedonic

Motivations, and Impulse Buying Behaviour

in Fast Fashion Physical Stores during

COVID-19: The Sustainability Paradox”.

MDPI Journal,

https://doi.org/10.3390/su14074133.

[9] Chen, Fuzhong, Yu, Di, Sun, Zijun., (2023).

“Investigating The Associations of Consumer

Financial Knowledge and Financial

Behaviours of Credit Card Use. Heliyon,

Science Direct,

https://doi.org/10.1016/j.heliyon.2022.e12713.

[10] Ming Wendy, Chong S. C., Yong Mid.,

(2013). “Exploring The Factors Influencing

Credit Card Spending Behavior Among

Malaysians. International Journal of Bank

Marketing, Vol. 31 No. 6. Emerald,

https://doi.org/10.1108/IJBM-04-2013-0037.

[11] French, D., & McKillop, D. (2016), Financial

literacy and over-indebtedness in low-income

households. International Review of Financial

Analysis, 48, 1–11.

https://doi.org/10.1016/j.irfa.2016.08.004.

[12] Godwin, D. D., & Koonce, J. C. (1992). Cash

flow management of low-income newlyweds.

Financial Counselling and Planning, 3

(January 1992), 17–43.

[13] Garman, E. T. & Forgue, R. (2000), Personal

finance (6th ed.). Boston: Houghton Mifflin.

[14] Bhukya, Ramulu, Paul, Justin. (2023), “Social

influence research in consumer behavior:

What we learned and what we need to learn?

– A hybrid systematic literature review”.

Elsevier, Journal of Business Research, Vol.

162,

https://doi.org/10.1016/j.jbusres.2023.113870.

[15] Ahmed, Z.U., Ismail, I., Sohail, M.S., Tabsh,

I. and Alias, H., (2010). Malaysian

consumers’ credit card usage behavior. Asia

Pacific Journal of Marketing and Logistics,

Vol. 22 No. 4, pp. 528-44.

[16] Wickremasinghe, V., & Gurugamage, A.

(2012). “Effects of social demographic

attributes, knowledge about credit cards and

perceived lifestyle outcomes on credit card

usage”. International Journal of Consumer

Studies, 36 (1), 80-89.

[17] Scott R. Baker, R.A. Farrokhnia, Michaela

Pagel, Constantine Yannelis, Steffen Meyer.

(2020), The unprecedented stock market

impact of COVID-19, National Bureau of

Economic Research, April 2020.

[18] Bachman, D., (2020). “Covid-19 could Affect

Global Economy in Three Main Ways”.

Deloitte.

[19] Xiao, J.J, Dew, J., (2011), The financial

management behavior scale: development and

validation, Journal of Financial Counselling

and Planning, 22(1): 49-53.

[20] Pramono, Bambang. Yanuarti, Tri.

Purusitawati, Pipih D. Emmy, Yosefin Tyas.

(2006), “The Impact of Non-Cash Payments

on the Economy and Monetary Policy”,

Working Paper Bank Indonesia, Nomor 11.

[21] Handayani. (2020), Seminar FEB UI, Nov

2020.

[22] Large-Scale Social Restrictions, [Online].

https://peraturan.bpk.go.id/Details/135059/pp-

no-21-tahun-2020 (Accessed Date: January 6,

2024).

[23] Solomon, M. R. (2017), “Consumer

Behaviour, Buying, Having and Being”.

England: Pearson Ecational.

[24] Laato, S., Islam, A.K.M.N., Farooq, A., Dhir,

A. (2020). “Unusual purchasing behavior

during the early stages of the COVID-19

pandemic: the stimulus-organism-response

approach”. J. Retailing Consume. Serv. 57,

102224,

https://doi.org/10.1016/j.jretconser.2020.1022

24.

[25] Sullivan, James X. (2008), Borrowing during

unemployment: Unsecured debt as a safety

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

156

Volume 20, 2024

net, Journal of Human Resources, 43, 383–

412.

[26] Herkenhoff, Kyle F. (2019), “The Impact of

Consumer Credit Access on Unemployment”.

The review of Economic Studies, Vol. 86,

Issue 6, Nov 2019, pp.2605-2642,

https://doi.org/10.1093/restud/rdz006.

[27] Coibion, Olivier, Yuriy Gorodnichenko, and

Michael Weber. (2020a), The cost of the

Covid-19 crisis: Lockdowns, macroeconomic

expectations, and consumer spending, Covid

Economics, 20, 1–51.

[28] Di Maggio, Marco, Amir Kermani, Rodney

Ramcharan, and Edison Yu. (2017),

Household credit and local economic

uncertainty, Federal Reserve Bank of

Philadelphia, Working Paper 17-21.

[29] Kotler, Philip & Keller, Kevin Lane. (2009),

“Marketing Management”, Thirteenth Edition,

Vol. 1 & 2. Jakarta: Erlangga.

[30] Lusardi, A., & Tufano, P. (2015). “Debt

literacy, financial experiences, and over

indebtedness”. Journal of Pension Economics

& Finance, 14(4), 332.

[31] Lin, L., Revindo, M. D., Gan, C., & Cohen,

D. A. (2019), Determinants of credit card

spending and debt of Chinese consumers.

International Journal of Bank Marketing.

https://doi.org/10.1108/IJBM-01-2018-0010.

Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

- Sugesko, create research formulations and

concepts, and complete the creation of articles.

- Agus Rahayu reviewing the problem formulation

and research concept.

- Disman review research methods and analysis

techniques.

- Chairul Furqon ensure literary sources and

editorial.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflict of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en

_US

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2024.20.16

Sugesko Sugesko, Agus Rahayu,

Disman Disman, Chairul Furqon

E-ISSN: 2224-3496

157

Volume 20, 2024