Abstract
Purpose The purpose of this paper is to identify the factors affecting user acceptance for NFC mobile wallets in both Korean and US markets. Design/methodology/approach The proposed model extends the UTAUT2 model with new constructs of credibility (CR) and service smartness (SS). This study was analyzed using partial least square structural equation modeling on data collected from 701 college students between the ages of 18 and 29. Findings The results of this study demonstrate that performance expectancy (PE), effort expectancy (EE), CR, SS and habit (HB) have strong positive relationships with a user’s behavioral intention to use NFC mobile wallets. Comparing the results of the USA and South Korea, there are different results regarding PE and CR. Research limitations/implications This study shows that all factors except social influence (SI) have significant positive relationships with the intention to adopt NFC mobile wallets: Among the original UTUAT2 factors, PE, EE and HB are important determinants of NFC mobile wallet adoption and the new constructs, CR and SS, are significant determinants that influence BI. However, the target respondents are limited to college students of South Korea and the USA Thus, caution should be used when applying the results of this study towards less ICT developed countries and towards different age groups. Practical implications This study provides multiple practical contributions. First, this study emphasizes HB as the strongest factor for adopting NFC mobile wallets in both South Korea and the USA Second, this study also highlights the importance of SS. Third, this study reveals that SI is not associated with the adoption of NFC mobile wallets. Fourth, nationality differences between the USA and South Korea account for the differences in consumer behaviors. Originality/value This study has two main contributions: First, this study introduces a modified UTAUT2 model with two new variables (CR and SS) useful for NFC mobile wallets. Second, this study compares the results of partial least square structured equation models (PLS-SEM) of the two nationality groups, South Korea and the USA
Highlights
Since Apple announced its first smartphone in 2007, smartphone payment apps, i.e. mobile wallets, have been available in the mobile payment service market (Shin, Lee, & Odom, 2014)
Research limitations/implications – This study shows that all factors except social influence (SI) have significant positive relationships with the intention to adopt Near Field Communication (NFC) mobile wallets: Among the original UTUAT2 factors, performance expectancy (PE), EE and HB are important determinants of NFC mobile wallet adoption and the new constructs, CR and SS, are significant determinants that influence behavioral intention (BI)
All three providers’ adoption rates were less than 6% in 2017. In their 2018 survey, Apple pay has increased to 13%, but Samsung pay and Android pay were still 5% and 7%. It is because each NFC mobile wallet is dependent on a specific smartphone, which is known as a walled garden model
Summary
Since Apple announced its first smartphone in 2007, smartphone payment apps, i.e. mobile wallets, have been available in the mobile payment service market (Shin, Lee, & Odom, 2014). Once Apple accepted NFC technology with its iPhone 6 in 2014, “Apple pay” has been a hot issue in the mobile payment service (MPS) industry. All three providers’ adoption rates were less than 6% in 2017 In their 2018 survey, Apple pay has increased to 13%, but Samsung pay and Android pay were still 5% and 7%. It is because each NFC mobile wallet is dependent on a specific smartphone, which is known as a walled garden model. According to a 2018 survey by eMarketer (Garcia, 2018), a US digital market research company, the primary payment methods in the USA are debit cards (47%), cash (26%), credit cards (23%) and mobile payments (1%). Even if the US NFC mobile payment adoption rate seems to grow because it is measured by mobile wallet experience (not by usage frequency), payment by NFC mobile wallets is not mainstream in the USA
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