Will Users Keep Using Mobile Payment? It Depends on Trust and Cognitive Perspectives

Abstract

The rapid growth of mobile payment as the part of Financial Technology (FinTech) could lead to empirical problems (e.g. hacker attacks, privacy violation, etc) that results low cognitive based trust and lower loyalty among users. Hence, there are some proclivities for users’ continuance intention on trust and its cognitive perspective regarding their funds that has been transferred to mobile payment platform. In order to understand the proclivity, we collect primary data from 165 users of mobile payment platform in Jakarta Indonesia and develop the hypotheses regarding the continuance intention that depends on trust and cognitive perspectives. To test the hypotheses, this study employs Partial Least Square – Structural Equation Modeling (PLS-SEM). The findings show that the cognitive based trust dimensions such as information quality and privacy are insignificant on continuance intention. On the other hand, perceived security protection shows positive influence. Simultaneously, only information quality and security protection have significantly and positive influence on trust, while privacy perception are insignificant on trust and continuance intention. This study also shows that trust has more determining role toward continuance intention than the cognitive perspective. This study contributes in specifying cognitive dimension and trust on continuance intention. Therefore, it suggests the mobile payment companies to improve quality, reliability, and information updates. Furthermore, they also need to improve the security protection that refers to personalization among users of the mobile payment to gain more trust and achieve customers’ retention.