Abstract
Mobile payment refers to a payment method by which a consumer pays a bill for goods or services through a mobile terminal. mobile payment users can send payment instructions directly or indirectly to a bank financial enterprise via mobile devices or proximity sensing devices, thereby enabling currency payments and funds transfers. It realizes the integration of terminal equipment, Internet, application providers and financial institutions, and completes financial business such as currency payment. However, the adoption rates of this payment method are relatively low in Malaysia. This paper analyzes the factors that affect the willingness of Malaysian college students to use mobile payment. Three well-established theories, Unified Theory of Acceptance and Use of Technology (UTAUT), theory of Perceived Risk (PR), and Diffusion of Innovations Theory (DIT) are applied to investigate user acceptance of mobile payments. An empirical model for acceptance of mobile payment in Malaysia is established in this paper. Survey data from mobile payments users will be used to test the proposed hypothesis and the model. The result of data analysis shows that Malaysian consumers’ perceptions of cost has no statistically significant relationship with acceptance of mobile payment. On the other hand, the factor of perceived risk, personal innovativeness, performance expectancy, subjective norm and effort expectancy play important roles.
 
 JEL: M10; M15; D12
 
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Highlights
The payment method used by consumers will have a significant impact on the future of a country's financial system and business model
Consumers' perceived risk may affect their refusal to provide personal information to mobile payment providers, and consumers may feel more insecure about conducting wireless transactions when money, products and recipients are not visible
This paper reports a study on the acceptance of young people to adopt mobile payment in Malaysia
Summary
The payment method used by consumers will have a significant impact on the future of a country's financial system and business model. Mobile payment system is becoming more and more popular in the financial field. It has great potential to replace cash and become the most popular means to complete transactions in the near future (OECD, 2012; Cocosila & Trabelsi, 2016). Bank Negara Malaysia (BNM) has launched a blueprint for the financial sector (2011-2020) to develop and manage the future of Malaysia's financial markets and payment systems (Ooi Widjaja, 2016). The development of mobile payment is still in the infant stage in Malaysia, its uptake remains limited (Qasim & Abu-Shanab, 2016). Statistic shows that the number of mobile payment users in Malaysia is only 3.2 million, and penetration is only 9.9% (Statista-MCMC, 2018)
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