Will Mobile Payment Change Germans’ Love of Cash? A Comparative Analysis of Mobile Payment, Cash and Card Payment in Germany

Abstract

AbstractDespite a global pandemic, it positively increases the intention to use contactless payments. MP usage still falls behind existing alternative payment methods like cash and card. Thus, this paper aims to explore the drivers and inhibitors of MP usage in relation to cash and card payment, which is still an underresearched area in MP. For this, we conducted an online survey (n = 227) in Germany and ran a partial least squares path modelling approach. The results reveal that relative advantage and compatibility drive the intention to use MP compared to cash and card payment. Especially, the result for relative advantage indicates that MP needs some “good” arguments to convince card-preferring users to switch to MP. Interestingly, users regard the disadvantages of MP differently. For instance, perceived switching costs are significantly stronger for MP compared to cash payment but data threat is significantly stronger for MP compared to card payment. The results of the disadvantages of MP confirm Germans’ strong “love” for cash payment and that German consumers regard MP as more similar to the card than to cash payment.KeywordsMobile paymentSwitching costDiffusion of innovationRiskMobile payment adoptionCash and card payment