Abstract
Mobile payment refers to a payment method by which a consumer pays a bill for goods or services through a mobile terminal. mobile payment users can send payment instructions directly or indirectly to a bank financial enterprise via mobile devices or proximity sensing devices, thereby enabling currency payments and funds transfers. It realizes the integration of terminal equipment, Internet, application providers and financial institutions, and completes financial business such as currency payment. However, the adoption rates of this payment method are relatively low in Malaysia. This research aims to identify and explore key factors that affect the decision of whether to use mobile payments. Qualitative and quantitative research are the main methodology in this research. The well-established theories, Technology Acceptance Model (TAM), the theory of Perceived Risk, the Compass Acceptance Model for the analysis and evaluation of mobile service (CAM) are applied to investigate user acceptance of mobile payments. An empirical model for acceptance of mobile payment in Malaysia is established in this paper. Survey data from mobile payments users are used to test the proposed hypothesis and the model. The result of data analysis shows that Malaysian consumers’ perceptions of cost has no statistically significant relationship with attitude to adopt mobile payment. On the other hand, the factors of Perceived Usefulness, Perceived Ease of Use, Subjective Norm and Consumer Trust play significant roles. The results of this study also have some practical implications for the spread and management of mobile payment industry in Malaysia and some suggestions are offered to mobile payment platform. At the end of this paper, the limitations and future research directions are listed.
 
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Highlights
The payment method used by consumers will have a significant impact on the future of a country's financial system and business model
The results show that the two constructs of Technology Acceptance Model (TAM), perceived usefulness (PU) and perceived ease of use (PEOU) may influence consumers’ acceptance of mobile payment
Mobile payments assist many people to gain profits, including making it easier to carry out financial transaction activities so that many people adopt the system in their daily activities (Oliveira et al, 2016)
Summary
The payment method used by consumers will have a significant impact on the future of a country's financial system and business model. Mobile payment system is becoming more and more popular in the financial field. It has great potential to replace cash and become the most popular means to complete transactions in the near future (OECD, 2012; Cocosila & Trabelsi, 2016). Bank Negara Malaysia (BNM) has launched a blueprint for the financial sector (2011-2020) to develop and manage the future of Malaysia's financial markets and payment systems (Widjaja, 2016). The development of mobile payment is still in the infant stage in Malaysia, its uptake remains limited (Qasim & Abu-Shanab, 2016). Statistic shows that the number of mobile payment users in Malaysia is only 3.2 million, and penetration is only 9.9% (Statista-MCMC, 2018)
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