Barriers toward the adoption of mobile payment for Vietnamese consumers in rural areas

Abstract

The study aimed to assess the impact of barriers on the intention to use mobile payment services among rural residents in various provinces of Vietnam. Barriers were categorized into two groups: "Functional barriers" and "Psychological barriers," which play crucial roles in shaping decisions regarding behavioral innovation. The research was conducted through an online survey of 484 rural residents in three provinces: Son La, Da Nang, and An Giang, representing the Northern, Central, and Southern regions of Vietnam. These provinces also represent the mountainous, coastal, and delta regions of the country. Data were processed using Smart PLS 4.1 software, applying the Partial Least Squares Structural Equation Modeling (PLS-SEM) method to test the proposed hypotheses in the study. The research findings indicate that factors, including barriers such as usage, value, risk, and tradition, exert counteractive effects on the intention to use mobile payment services. Specifically, functional barriers like perceived usage complexity and value concerns were found to significantly reduce the likelihood of adopting mobile payments. Psychological barriers related to traditional practices also hindered adoption, highlighting the deep-rooted cultural influences in rural areas. However, there is no evidence to support the impact of image barriers on the intention to use mobile payment services among rural residents. This suggests that concerns about social perception and status may be less relevant in rural contexts compared to functional and psychological considerations. Based on the research results, the authors propose managerial implications aimed at fostering the intention to use mobile payment services. These recommendations include enhancing user education and training to reduce functional barriers, as well as culturally sensitive marketing strategies to address psychological barriers. By addressing these barriers effectively, it is possible to increase the adoption of mobile payment services, thereby contributing to the attraction and development of new technology-driven service applications in commercial transactions.