Factors Influencing Mobile Payment Adoption and Its Role in Promoting Financial Inclusion: An Integrated Reflective Model with Theory of Planned Behavior

Abstract

AbstractThis paper investigates the factors influencing mobile payment adoption and its contribution to financial inclusion, which seems sparse and lacking in the literature. Over 75% of Palestinian adults are excluded from financial services by banks and other non-bank financial institutions, so mobile payment is expected to bridge this gap. A quantitative approach was employed using 307 questionnaires designed based on the theory of planned behaviour and reflective model for measuring financial inclusion. In data analysis, a structural equation modelling in AMOS was applied to data elicited. It was found that all direct paths within the model were supported, except for the paths between subjective norm and mobile payment intention. The proposed model supports the mediation role of attitude, subjective norm, and perceived behavioural control between beliefs and mobile payment intention. Additionally, with successive increases in mobile payment usage, financial inclusion moved further to increase. Precisely, the growth of mobile payment usage by 1% can improve financial inclusion by 0.60%. Taken together, the structural model can explain 36% of covariance in financial inclusion for mobile payment. The originality of this research lies in empirically investigating the potential role of mobile payment in fostering financial inclusion in Palestine, which would contribute to the efforts that intended to overcome the financial exclusion faced by the majority of Palestinian, which benefits the researchers, public, business community, and policymakers.KeywordsMobile paymentFinancial inclusionTheory of planned behavior