Racial/ethnic differences in mobile payment usage: what do we know, and what do we need to know?

Abstract

PurposeThe purpose of this study is to investigate the racial/ethnic differences in mobile payment use and to explore the contributing factors to the differences.Design/methodology/approachThis study used the 2018 National Financial Capability Study (NFCS) dataset to examine racial/ethnic disparities in mobile payment use. Logistic regression analyses were conducted to confirm racial/ethnic differences, and Blinder–Oaxaca decomposition analyses were performed to identify which factors explain the differences among the groups.FindingsThe authors discovered that Whites use mobile payment less than Blacks, Hispanics and Asians/others. The results revealed that prior experiences with mobile financial services, including transfer, banking and budgeting applications, all play considerable roles in explaining the disparities between Whites and other racial/ethnic groups.Originality/valueThis is one of the few studies to examine racial/ethnic disparities in mobile payment use with a particular focus on the influence of users' past experience with technology. The results provide insights for researchers, professionals, educators and policymakers into ways to promote future use of mobile payment.