Abstract
In the hustle and bustle of modern life, everyone wants to enhance and advance their working and personal life and mobile phones have become the favoured technology to achieve that aim. In light of this trend, most financial service providers have taken steps to meet this new lifestyle demand by developing mobile applications so that people can manage their financial matters on the go. This movement has also motivated many merchants around the world to adopt mobile technology as part of their aspiration to provide a better experience for their customers. This study explores the factors influencing Malaysian merchants’ acceptance of mobile payment as an additional payment method to the traditionally accepted payment methods of cash and credit/debit cards. The aim of this study is to figure out the factors affecting merchants’ decision to use mobile payments to help the provider companies shape their own marketing plans and consider the weak points that may turn the merchants against this marktet. This empirical study uses a survey method and AMOS to test and analyse the perceptions of a sample of 125 food and beverage providers located in food courts in 10 shopping malls at the Klang Valley in Malaysia. The study found that perceived usefulness has a significant positive impact on mobile payment acceptance, while the perceived ease of use has no significant impact on the merchants’ decision to offer this payment method, which is not compatible with the technology acceptance model (TAM). In addition, this study added a further two factors to the TAM to investigate their effects on merchants’ acceptance of mobile payments and found a significant positive effect for compatibility with customers’ needs but no significant effect for perceived risk, which can be justified by the nature of this industry. This study, therefore, provides invaluable insights into the factors affecting merchants’ acceptance of mobile payments, especially food and beverages providers in food courts located in shopping malls of Malaysia.
Highlights
Nowadays, the phrase ‘lack of cash is no longer an obstacle’ is one of the most popular welcoming tags used by merchants to convince their customers to use the mobile payment option while buying products or services
In the fourth consumer payment attitude survey undertaken by Visa Inc., which has focused on engaging consumers in Southeast Asia, it has been reported that 43 percent of consumers believe that their country will go completely cashless by 2024 (VISA, 2017)
In Malaysia, the report highlights that 73 percent of the respondents have stated that they shop on their mobile at least once a month and that the percentage of device-initiated payments, as a total of all transactions, stands at 69 percent. (VISA, 2017) 17 percent of the respondents in Malaysia have stated that they use physical banking; whereas, 64 percent have reported that they use mobile banking
Summary
The phrase ‘lack of cash is no longer an obstacle’ is one of the most popular welcoming tags used by merchants to convince their customers to use the mobile payment option while buying products or services. Given the growth already seen in this market and its potential to grow further, the banks as payment service providers (PSPs) need to work in harmony with merchants to offer the best possible mobile user experience. The same report shows that 61 percent of the respondents are confident about going cashless for 24 hours, while 42 percent of them have the confidence to go completely cashless for three days. In Malaysia, the report highlights that 73 percent of the respondents have stated that they shop on their mobile at least once a month and that the percentage of device-initiated payments, as a total of all transactions, stands at 69 percent. Malaysia is ranked sixth in Southeast Asia in terms of the percentage of mobile banking usage with Thailand coming first with more than 80 percent of respondents using mobile banking (VISA, 2017)
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