An Empirical Analysis towards the Adoption of NFC Mobile Payment System by the End User

Abstract

Abstract With the introduction of new technologies like the Near Field Communication (NFC), payment today can be done very easily and conveniently using any NFC enabled mobile phone. Although the potential of NFC mobile payment system is tremendous, yet its use is still not widespread and popular. In general, the mobile payment system allows the users to pay for the goods and services purchased using their own mobile phones anytime and anywhere. In this paper, we provide relevant literature reviews related to the mobile payment ecosystem in general with a special emphasis on cutting edge technologies like the NFC mobile payment system. We try to analyze the adoption behavior of the users towards such a new technology, and suggest a proper path for the future that can make this technology a success. To analyze the adoption effect we propose a research model that includes two user-oriented factors and four system oriented factors in general. The proposed model is evaluated empirically by collecting relevant data through proper surveys. We also try to segment the users into two groups viz. early adopters and late adopters and try to find out the factors that can affect the user's intention towards using such a system. The results indicate that perceived ease of use and perceived usefulness are the two strongest predictors for user adoption of NFC mobile payment system. The early adopters view the perceived ease of use to be an extremely important factor towards the success of the system, whereas for the late adopters perceived usefulness is the single most important factor. The research provides useful insights that can not only help the business managers to choose an appropriate business model but also enable the mobile phone manufacturers, bankers, software developers and government agencies device their own marketing, administrative and financial strategies for the future.