The The Effect of User Experience on Customer Loyalty of E-Wallets with Trust as an Intervening Variable in Generation Z on Madura Island

Abstract

This study aims to analyze the effect of user experience on customer loyalty of the DANA e-wallet, with trust as an intervening variable, among Generation Z in Madura Island. A quantitative causal approach was used, with primary data collected through an online questionnaire using a five-point Likert scale. The sample consisted of 100 DANA users aged 17–28 years who had used the application for at least three months, selected through purposive sampling, with the sample size determined using the Slovin formula. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that user experience has a positive and significant effect on trust (β = 0.460; p = 0.003) and on customer loyalty (β = 0.149; p = 0.026), although the direct effect on loyalty is weak. Trust has a positive and significant effect on customer loyalty (β = 0.738; p < 0.001) and partially mediates the effect of user experience on customer loyalty (indirect effect β = 0.339; p = 0.004). The model explains 21.1% of the variance in trust and 66.8% of the variance in customer loyalty. These findings indicate that improving the application interface must be accompanied by strengthening user trust to build long-term loyalty among Generation Z in non-urban areas.