Beyond cash: a user-centric approach to mobile payment growth, service failure tolerance and continuance intention

Abstract

Mobile payment systems in developing economies face challenges in adoption and engagement, owing to infrastructural constraints, cultural affinity towards cash, and limited financial literacy. This study delves into the role of user-perceived co-production equity, which is a sense of fairness and influence in service development, in shaping user behaviour in mobile payment systems. We conducted the study on 436 mobile payment users through online and offline surveys, applying PROCESS and fuzzy set qualitative comparative analyses. The findings of this study underscore the importance of a fair co-production process, which positively influences service recommendations, resilience to disruptions, and sustained usage over time. User relationship satisfaction partially mediates these relationships, whereas service credibility strengthens them. Fuzzy set qualitative comparative analysis confirms that co-production equity is a necessary condition for user advocacy and continuance intention. We propose a strategic framework for service providers and policymakers, advocating for a shift towards genuine user co-production characterised by transparency, robust feedback mechanisms, and community engagement initiatives. This user-centric approach not only fosters trust and drives adoption but also significantly mitigates churn rates, navigates cultural barriers, and fosters sustained user engagement, thereby advancing financial inclusion in developing countries.