Adoption Of Mobile Payment Systems Research Articles

Following the herd? An empirical investigation into the adoption of mobile payment systems

PurposeThe adoption of mobile payment remains low in certain regions, highlighting the need to identify the factors that enable and inhibit its adoption. This study aims to address this gap by investigating the role of information security, loss aversion and the moderating influence of the herd effect on Inertia and behavioral intentions in the adoption of mobile payment systems.Design/methodology/approachA structural equation model was developed and tested with 332 valid questionnaires to examine the proposed hypotheses.FindingsThe empirical results reveal that information security plays a significant role as an enabler, while loss aversion acts as an inhibitor of mobile payment adoption. Furthermore, the study uncovers the moderating influence of the herd effect on the relationship between Inertia and behavioral intentions.Research limitations/implicationsThis study was conducted in a specific region and may not be generalizable to other regions. Future studies could expand the sample size and scope to enhance the external validity of the findings.Practical implicationsThis study offers practical implications for mobile payment service providers. Understanding the key enabling and inhibiting factors identified in this study can guide providers in designing and improving their services. Strengthening information security measures can help build trust among potential adopters, while offering incentives can mitigate the impact of loss aversion and encourage early adoption.Social implicationsThe findings of this study have social implications as they contribute to promoting the adoption of mobile payment systems. Increased adoption can enhance financial inclusion and stimulate economic development.Originality/valueThis study provides novel insights into the enabling and inhibiting factors of mobile payment adoption and highlights the moderating role of the herd effect. By shedding light on the influence of social norms on individual behavior in the context of mobile payment adoption, this study contributes to the existing literature and advances our understanding of this phenomenon.

Biometric m-payment systems: A multi-analytical approach to determining use intention

Although mobile payment systems offer countless advantages, they do present certain drawbacks, mainly associated with security and privacy concerns. The inclusion of biometric authentication technologies seeks to minimise such drawbacks. The aim of this article is to examine the effect of key antecedents of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) and perceived risk on the intention to use a mobile payment system featuring biometric identification. A new hybrid analytical approach is taken. A sample of more than 2500 smartphone users was obtained through an online panel-based survey. Two techniques were used: first, structural equation modelling (PLS-SEM) was conducted to determine which variables had a significant influence on the adoption of the mobile payment system, and second, an artificial neural network (ANN) model was used, taking a deep learning approach, to rank the relative influence of significant predictors of use intention obtained via PLS-SEM. The study found that the most significant variables affecting use intention were performance expectancy, effort expectancy, facilitating conditions, hedonic motivation and risk. In contrast, subjective norms, price value and habit were found to be weak predictors of use intention. The results of the ANN analysis confirmed almost all SEM findings but yielded a slightly different order of influence among the least significant predictors. A review of the extant scientific literature revealed a paucity of published studies dealing with the adoption and use of mobile payment systems featuring biometric identification. The conclusions and managerial implications point to new business opportunities that can be exploited by firms through the use of this technology.

B2B Adoption of Mobile Payment Systems: Manager Insights Using a Qualitative Approach

Mobile payments have become one of the most disruptive financial instruments in the B2C (Business-to-Consumer) market this decade by revolutionizing the consumer shopping experience. Despite the technology’s success in the B2C model, it has not brought a similar adoption experience for B2B (Business-to-Business) applications. Research in this area has been limited to identifying the resistance to adoption in the B2B environment. This exploratory research identified that while barriers exist, there are opportunities to increase the adoption of mobile payment technologies within B2B organizations. There is a large amount of misinformation about the processes associated with adoption that need further investigation. The application of the technology could flow naturally into the B2B sector, but internal organizational struggles could prevent exploring the options. The future of adoption may instead rest on the concept of “reverse adoption,” whereby clients would need to request mobile payment options, otherwise, investments in the technology would not be considered by the organization.

FACTORS AFFECTING THE ADOPTION OF MOBILE PAYMENT SYSTEM AMONG MILLENNIALS AND GENERATION X IN MALAYSIA

This study investigates factors affecting the adoption of mobile payment systems among Millennials and Generation X in Malaysia by applying the Theory of Reasoned Action (TRA), the Theory of Planned Behaviour (TPB), the Technology Acceptance Model (TAM), and the Unified Theory of Acceptance and Use of Technology (UTAUT). The online questionnaire was conducted to collect data from 103 respondents. By using the regression analysis, the findings show that effort expectation and social influence are significant to adopting a mobile payment system among Millennials and Generation X in Malaysia. In contrast, performance expectations, perceived risk, and perceived cost are insignificant. The study has improved the understanding of Millennial and Generation X’s perception on mobile payment systems in Malaysia. Some recommendation to enhance the usage of mobile payment system among the Millennials and Generation X in Malaysia is provided at the end of the study.

Go Cashless! Mobile Payment Apps Acceptance in Developing Countries: The Jordanian Context Perspective

Despite the expanding global usage of mobile phones in money transactions, the adoption of mobile payment systems in Jordan remains slow. This study employed the technology acceptance model (TAM) to identify the factors with a potential impact on mobile payment systems acceptance. The impact of perceived privacy (PP) and the mediating function of perceived certainty (PC) on the behavioral intention (BI) of mobile payment systems among Jordanian ministries were examined. Data obtained from 270 respondents were analyzed using partial least-squares structural equation modeling (PLS-SEM). The empirical findings show a positive link between perceived usefulness (PU) and PC on the BI of mobile payment systems. The mediation analysis demonstrated that PC partially mediated the association of PP with the BI of mobile payment systems. The final section concluded the paper by presenting the key theoretical and practical ramifications, as well as the research’s limitations and future directions.

Investigating antecedents of mobile payment systems’ decision-making: a mediated model

PurposeThe increase in mobile telephone penetration has offered new opportunities for technology to improve payment operations all over the world. Little research has examined the issues related to the decision-making (DM) of mobile payment systems usage in the Jordanian context. The purpose of this study is to examine the factors that may have an influence on the adoption of mobile payment systems. This study has empirically tested the expanded unified theory of acceptance and use of technology (UTAUT2) together with awareness (AW), trust (TR), security (SE) and privacy (PR) as independent variables to explain the mobile payment system adoption in Jordan.Design/methodology/approachIn total, 270 employees participated in a field survey questionnaire from the public sector in Amman city, the capital city of Jordan. Data were analyzed through a quantitative approach of partial least squares–structural equation modeling.FindingsThe results mainly showed that the determinants of DM to use mobile payment system are price value, social influence, performance expectancy, AW and TR. All of these determinants explained 60.2% of the variation of DM. In total, 72.2% has been explained as the TR to use m-payment system by SE and PR. Furthermore, the results revealed that TR mediates the association between SE as well as PR and the DM to use mobile payment system.Originality/valueInterestingly, these new variables were found to be important and contribute to the UTAUT2 model. Consequently, the decision-makers in the Central Bank of Jordan should consider all these factors when re-upgrading a Jordan Mobile Payment system in the near future.

Adoption of Mobile Payment Systems during COVID-19 in India

Adoption of Mobile Payment Systems during COVID-19 in India

User Trust levels and Adoption of Mobile Payment Systems in China: An Empirical Analysis

The technology acceptance model (TAM) has been regarded as a promising model for understanding technology adoption and can be extended to different situations. Currently, mobile payment services have been widely applied in people’s daily lives in China, and understanding their critical success factors is becoming important. Mobile payments are a complex system, and a large number of factors affect their success. Since mobile payments are directly related to financial issues, their wide adoption relies heavily on people’s trust. We developed a model based on the TAM to investigate the most influential factors in building trust within the mobile payment context. We conducted an empirical survey and 373 samples were collected using a valid questionnaire from the users of the popular payment platforms in China—Alipay and WeChat payment. We found that government monitoring is the most significant factor of customer trust, followed by reputation, and security. Government monitoring directly influenced behavioral intention, was negatively associated with perceived risk and positively affected behavioral intention. Moreover, mobility, subjective norms, usefulness, ease of use, and perceived enjoyment impacts customer behavioral intention.

Factors influencing the adoption of mobile payment systems in Indonesia

PurposeThis empirical study aims to determine factors that influence an individual’s intention to use mobile payment (MP) systems. The study investigates direct, indirect and total effects as well as factors that mediate or moderate effects on intention.Design/methodology/approachA theoretical model is derived from previous studies and combines factors from technology acceptance model and unified theory of acceptance and use of technology (perceived usefulness, perceived ease of use, social influence, facilitating conditions, behavioral intention) with factors relevant to MP (perceived security, uncertainty avoidance, trust, network externalities and self-efficacy). Gender, age, MP experience and income are included as moderators of direct effects on behavioral intention. The sample includes 736 participants from the four large cities in Indonesia. Structural equation modeling is used to analyze and develop the theoretical model.FindingsSelf-efficacy has the greatest total effect on behavioral intention, followed in decreasing order of importance by perceived usefulness, perceived ease of use, social influence, trust, network externalities and uncertainty Avoidance. only gender and MP experience have significant moderating effects whereby the direct effects of self-efficacy and network externalities on behavioral intention are influenced by gender and MP experience, respectively. Trust, perceived usefulness and perceived ease of use have important mediation effects.Originality/valueThis study fills the gap in the limited theoretical understanding of MP adoption in Indonesia. New theoretical findings related to mediating and moderating effects, direct, indirect, and total effects are used to discuss important practical implications of the findings.

Study of Merchant Adoption in Mobile Payment System Based on Ensemble Learning

To explore the influencing factors of the adoption of mobile payment systems from the perspective of merchants, this study builds a data analysis model based on three different ensemble learning algorithms, Adaboost model, random forest and XGBoost model, where static social-economic attributes, dynamic trading behavior and clustering effect variables of merchants are used as independent variables. Moreover, this paper establishes the prediction models and analyzes the prediction accuracy of different models. The results of the study indicate that: 1) Merchants in the housing industry, health hospitals and retail industries are more willing to adopt mobile payment systems; 2) The average daily transaction volume and the average amount of each consumer significantly affect the merchant mobile payment adoption behavior; 3) The adoption of mobile payment systems by neighboring merchants significantly positively affected the adoption behavior of merchants; 4) On the basis of the social-economic attributes of merchants, the hit rate and accuracy of the prediction model were greatly improved after adding transaction data.

Influence of Demographic Factors on Security and Privacy Concerns in Mobile Payments

Mobile payment systems are rapidly surpassing traditional payment options due to their ease of use and efficiency. Their convenience, however, raises the question – how secure are these systems? There is a great deal of insecurity and risk for consumers as mobile payments involve a lot of financial information. Past research indicates that when involved in online activities and e-payments, consumers are specifically concerned about privacy and security. This study aims to understand influence of demographic variables on security and privacy concerns of consumers by conducting a survey of 1087 respondents in 4 major cities of the state of Gujarat, India. The results indicate that demographic variables age, occupation, annual income and city have significant relationship with security and privacy concerns of consumers towards mobile payments. The findings of this study can benefit mobile service providers, system developers and m-payment vendors to have an actionable segmentation of different target groups based on demographic variables. Practitioners can formulate relevant strategies to address security and privacy concerns which will ultimately facilitate adoption of mobile payment systems.

Mobile payment is not all the same: The adoption of mobile payment systems depending on the technology applied

This study compares the factors that determine consumer acceptance SMS (Short Message Service), NFC (Near Field Communication) and QR (Quick Response) mobile payment systems, in addition to determining the principal factors which influence the adoption of these mobile payment systems as means payment. A comprehensive review of the scientific literature has justified the development of a behavioral model that explains intention to use of mobile payments. The results and novelty of this research lies in the formulation of a different behavior according to the use given by users to each of the proposed payment tools. The conclusions and implications for management provide alternatives for companies.

Predictive and explanatory modeling regarding adoption of mobile payment systems

Commercial activities have evolved during the past decade from a single-channel focus and perspective on business opportunities to a multiple-channel approach, with mobile phones playing a major role in the most recent and latest business opportunities. Even if mobile payment systems are still under development and steadily becoming available worldwide, many experts have already pointed to them as the potential payment system of choice taking into account its high penetration level within our society, its accessibility and ease of use. This paper explores the adoption of mobile payment systems from the point of view and perspective of the merchants. In order to provide a comprehensive analysis, this research extensively reviewed existing literature and determined the main factors influencing the adoption of mobile payment systems approaching a methodology involving both a logistic regression modeling and a neural network analysis. Results of these different analyses show that the neural network analysis is the most precise tool in this research when predicting the use of mobile payment systems in certain business. According to these results, some suggestions are proposed to incentive and encourage the intention to use of these mobile payment systems regarding each participant in the adoption process. Finally, this paper discusses some factors regarding future research opportunities.

Adoption of mobile payment systems: a study on mobile wallets

This study aims to understand the factors contributing to consumer attitude development towards and intention to use mobile payment systems. One of major mobile network operators’ mobile wallet application in Turkey was used as a proxy of the mobile payment systems. Survey methodology is used to collect data from subscribers by stratified random sampling among two distinct groups (users and nonusers). A total of 1395 questionnaires were collected from subscribers and analyzed using partial least squares structural equation modeling. The findings highlight the importance of ease of use and usefulness in attitude development. On the other hand, security concerns were found to have low level of effects on attitudes and use intentions. Effect of social influence was found to be insignificant among the users. There were differences between users’ and non-users’ perceptions and beliefs indicated by significant differences in the majority of the constructs employed in the study.

Factors Affecting the Adoption of Mobile Payment Systems: An Empirical Analysis

The world witnessed a rapid growth in the e-commerce in the recent years. Widespread use of mobile devices in the e-commerce has a role in this augmentation. Associated with growth of trading volume and the introduction of new devices, new products and solutions emerge and they diversify concerning online payments. Consumer attitudes and behaviors may change according to these developments. The purpose of this study is to investigate the factors effecting adoption of mobile payment systems by the consumer. 225 individuals were surveyed online through convenience sampling method. A research model was developed and proposed relationships were tested using structural equation modeling. The empirical findings point out that perceived trust, perceived mobility and attitudes positively affect the adoption of MPS; perceived usefulness and perceived ease of use have no effect on adoption of MPS. Furthermore perceived reputation positively related to perceived trust and finally environmental risk negatively related to perceived trust.

Customer Adoption of Mobile Payment Services by Professionals across two Cities in India: An Empirical Study Using Modified Technology Acceptance Model

The purpose of this paper is to investigate the factors involved in adoption of a new innovation by consumers specifically in the mobile payment services context. With the mobile penetration of nearly 70% in India, mobile payments services have huge potential in the country; however, customer adoption of mobile payment systems is very low. Therefore, there is a need for research to identify the factors affecting consumer intention to use mobile payment systems. To get meaningful comprehensive insights on customers' perception and usage intention of mobile payment systems, current research validates a model based on Technology Acceptance Model (TAM) using a sample of urban population from two metros in India. The empirical findings indicate that the constructs of performance expectancy, effort expectancy, social influence and facilitating conditions have significant impact on mobile payment services adoption among the consumers. This study provides insights into mobile payment services in India which has not been investigated well. Also, there is lack of studies which connect consumer attitudinal factors like performance expectancy, effort expectancy, social influence and facilitating conditions in the e-finance and mobile finance context especially in India.

Building a Research Model for Mobile Wallet Consumer Adoption: The Case of Mobile Suica in Japan

The growth of mobile commerce, or the purchase of services or goods using mobile technology, heavily depends on the availability, reliability, and acceptance of mobile wallet systems. Although several researchers have attempted to create models on the acceptance of such mobile payment systems, no single comprehensive framework has yet emerged. Based upon a broad literature review of mobile technology adoption, a comprehensive model integrating eleven key consumer-related variables affecting the adoption of mobile payment systems is proposed. This model, based on established theoretical underpinnings originally established in the technology acceptance literature, extends existing frameworks by including attractiveness of alternatives and by proposing relationships between the key constructs. Japan is at the forefront of such technology and a number of domestic companies have been effectively developing and marketing mobile wallets for some time. Using this proposed framework, we present the case of the successful adoption of Mobile Suica in Japan, which can serve as a model for the rapid diffusion of such payment systems for other countries where adoption has been unexpectedly slow.

Evaluating the Role of Trust in Consumer Adoption of Mobile Payment Systems: An Empirical Analysis

Consumer of payment (m-payment) solutions is low compared to the acceptance of traditional forms of payments. Motivated by this fact, we propose and test a trust-theoretic model for of m-payment The model, grounded in literature on adoption and trust, not only theorizes the role of trust in m-payment adoption, but also identifies the facilitators for trust in m-payment systems. It proposes two broad dimensions of trust facilitators: mobile service provider characteristics and mobile technology environment characteristics. The model is empirically validated via a sample of potential adopters in Singapore. In contrast to other contexts, results suggest the overarching importance of consumer trust in m-payment systems as compared to other technology factors. Further, differential importance of the theorized trust facilitators of perceived reputation and perceived opportunism of the service provider, and perceived environmental risk and perceived structural assurance of the technology, are also highlighted. A series of post-hoc analyses establish the robustness of the theorized configuration of constructs. Subsequent, sub-group analyses highlight the differential significance of trust facilitators for different user sub-groups. Implications for research and practice emerging out of this study are also discussed.

Exploring Merchant Adoption of Mobile Payment Systems: An Empirical Study

The growth of mobile commerce depends on widely accepted mobile payment systems. Although new mobile payment systems have been increasingly introduced in Asia, Europe and the United States, their adoption has remained modest. Little research has been conducted to examine and explain adopters' views on the new payment technology. In this article, we explore merchant adoption of mobile payment systems empirically and discuss factors that drive and inhibit their adoption. Our results suggest that the main adoption drivers are related to the means of increasing sales or reducing the costs of payment processing, whereas the barriers to adoption include complexity of the systems, unfavorable revenue sharing models, lack of critical mass, and lack of standardization. Based on our findings, we propose a conceptual framework of adoption enablers, drivers and barriers with propositions to guide future research in this emerging area. Implications for practice and means to overcome the barriers are suggested.