Adoption of Mobile Peer-to-Peer Payment : Enabling Role of Substitution and Social Aspects

Abstract

Despite the growing amount of mobile peer-to-peer (P2P) payment applications available on mobile app stores, these applications are still in their infancy and have yet to see mass adoption. This study aims to explore the factors that influence the adoption of such mobile P2P payment applications by using a large-scale data set based on the tracking of users’ actual mobile application usage behavior. Our main findings reveal that the duration of each session that users use of traditional bank application has a significant relationship with their adoption of mobile P2P payment applications. In addition, we explore the social aspect of such mobile P2P payment applications by analyzing their social network applications usage and found that the amount of social network service applications used and usage duration positively impacted one’s adoption of mobile P2P payment applications. These findings have important theoretical and practical implications for stakeholders of mobile P2P payment solution providers as well as intermediaries/banks who provide their own payment applications to their customers.