Abstract
The way of payment has changed in recent years: people have turned away from physical payment methods to virtual payment methods. The traditional banking industry is facing challenges brought by new technologies. The main purpose of this study is to investigate customer trust and loyalty transferring from physical banks to mobile payments because mobile payment platforms are a self-service technology. The goal is to create an eco-platform to facilitate transition from a cash-based economy to a cashless economy. This study is the first attempt to integrate platform management, electronic marketing (online trust and online loyalty), and relationship marketing (offline trust and offline loyalty) into one model. We theoretically and empirically take certain factors into consideration to further explore the transfer impact of physical to mobile payments, which is not discussed in literature. The SEM (structural equation modelling) analysis from the 353 respondents in this study found that trust from both the physical and mobile contexts has positively influenced loyalty. Additionally, customers’ trust and loyalty transfer from the physical to the mobile environment has had a significantly positive effect between the physical and mobile environment. Corporate reputation and structure assurance have also significantly positively affected physical trust and mobile trust, respectively. The findings also reveal that the structure assurance plays an essential role in mobile payment. Users may have certain concerns about the procedure of transactions and their personal information. Theoretical and practical implications are provided.
Highlights
In order to discuss the impact between four pre-factors and two-sided trusts, two-sided trusts and loyalties, and the transfer between two-sided trusts and loyalties, we examined several relationships: (1) the influence of corporate reputation, structure assurance, perceived risk, and perceived quality on physical trust and mobile trust; (2) the influence of physical and mobile trust on physical and mobile loyalty; (3) the transfer from physical trust to mobile trust and from physical loyalty to mobile loyalty
This study has focused on the trust transfer between the physical domain and the mobile domain in which the physical issuing bank provides a physical cards to the users, and people will embed physical cards to the mobile payment platform as virtual cards for engaging in the mobile payment
There could be emerging issues more related to trust, loyalty, and perceived risk as the rate of usage and volume of transactions expands over time
Summary
Mobile payment is a trending topic which has been discussed and used in recent years, despite the fact that mobile payment has been around since the millennium [1,2,3]. Mobile payment is defined as a combination of mobile device and payment platform that enables users to make payments through mobile devices [6,7] and is utilized to initiate, authorize, and confirm a commercial transaction [8,9]. Some scholars define m-payments as use of an application-enabled mobile phone as a payment form, substituting for a check, cash, or a card, to eventually create a mobile wallet [10,11]. Despite the concept of non-monetary platforms having a long history, it is only the advancement of technology and support for such platforms that make mobile payments prevalent
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
