Abstract
The authors investigate how the adoption of a digital wallet affects adopters’ shopping app usage. Specifically, the authors focus on the adoption of KakaoPay and examine its effect on KakaoCommerce usage time using panel data of individuals’ mobile logs. Combining the difference-in-differences approach with propensity score matching, our study finds that adopting the digital wallet increases shopping app usage time. Moreover, this positive effect of digital wallet adoption is moderated by customers’ status: consumers in their 50s and residing in non-metropolitan areas are less affected by digital wallet adoption. Also, the positive effect is strengthened with new customers whereas it is attenuated among the heavy consumers of KakaoCommerce and other mobile shopping platforms. The authors contribute to digital wallet literature and offer practical implications for digital wallet providers.
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