The moderating influence of brand image on consumers' adoption of QR-code e-wallets

Abstract

In a post-pandemic era marked by thriving digital payments and e-commerce transactions due to physical distancing norms, the growth of mobile payments or E-wallets is expected to expand in tandem with the global trend toward cashless payment solutions. However, it is unclear whether this momentum would be sustained for over-the-counter (OTC) retail payments, particularly QR-code E-wallets, that are more affordable and accessible to merchants and customers than NFC-based (near field communication) systems in emerging markets. This study aims to model the interaction effects of brand image in shaping consumers’ E-wallet usage intentions. Incorporating a consumer-brand relationship element (i.e., brand image) should improve the understanding of consumers’ digital service experiences in proximity-based retail encounters. The research model was empirically tested using 305 responses from QR-based E-wallet users in the Klang Valley, Malaysia. Statistical analysis was performed using structural equation modeling (SEM) to test the hypotheses. An empirical examination of the model revealed effort expectancy, social influence, hedonic motivation, and perceived value as significant positive predictors of consumer usage intention. Furthermore, brand image was found to significantly strengthen the positive effect of perceived value and weaken the positive impact of hedonic motivation on the outcome. The study’s key contributions include reaffirming the crucial contingent role of brand image in consumer technology adoption studies and investigating consumer perceptions of QR-based E-wallets, which are expected to gain traction, especially in emerging markets. E-wallet providers should reinforce their value propositions by providing seamless, engaging, and easy-to-use experiences that improve users' brand perceptions.