A Digital Exclusion Approach to Cashless Transaction Adaptation Among the Elderly in Peri-Urban Areas

Abstract

The digitalization of Indonesia's payment system through QRIS and digital wallets has grown rapidly, yet this has not been matched by even readiness across all segments of society, particularly among the elderly in peri-urban areas who face a double vulnerability: age-related limitations compounded by infrastructural constraints. This study aims to identify the forms of digital exclusion experienced by the elderly in adapting to cashless transactions, analyze the individual, social, and infrastructural factors that influence this exclusion, and formulate policy implications for stakeholders. The study employs a descriptive qualitative design with a phenomenological approach, using in-depth semi-structured interviews, non-participant observation at transaction sites, and documentary study involving elderly individuals, family members/caregivers, and payment service providers as informants, analyzed thematically following the Miles and Huberman interactive model. The findings show that digital exclusion is multidimensional, encompassing access, skills, psychological, and service exclusion, with the skills and psychological dimensions being the most dominant, and is shaped primarily by family/community social support and the quality of infrastructure rather than by age alone. These findings imply the need for age-friendly payment service design, strengthened community-based digital literacy programs, equitable distribution of network infrastructure in peri-urban areas, and legal protection of cash option for vulnerable groups.