Enablers and disablers for contactless payment acceptance among Malaysian adults

Abstract

While a body of knowledge on contactless payment acceptance exists, a comprehensive understanding of the core motivations underpinning such acceptance, particularly in developing countries, is lacking in the literature. This study identified the predictors for contactless payment acceptance in Malaysia by constructing a Contactless Payment Acceptance model using the Technology Readiness Index 2.0 and the Unified Theory of Acceptance and Use of Technology 2 models. Employing a cross-sectional research design, this study utilized survey research as its primary method, administered self-reporting questionnaires through online channels, and garnered 434 valid responses. Structured Equation Modeling identified perceived usefulness, perceived ease of use, lack of awareness, and discomfort as the most influential factors affecting customers’ acceptance of contactless payment systems, with an R-squared value of 71.2%. These results have implications for service providers and can guide future research endeavors, thus facilitating the development and implementation of effective strategies to encourage wider adoption of contactless payment systems among individuals in developing countries.