Mobile Payment Research Articles

Trust and Satisfaction in Digital Banking in the Philippines - Integrating Delone and Mclean Information System Success Model

Trust and satisfaction are difficult to develop with mobile payments. Several papers have revealed and explained the benefits of using online payments. Despite this, mobile payment procedures in the Philippines remain low. This is the problem that this study wishes to address. The study validated and evaluated the Delone and Mclean model and the relationship between the dimensions that make up the success of IS implementation. Processes were completed by conducting a survey, collecting and analysing data, testing the validity of hypotheses, and providing interpretation thereof. The study proves that customers’ demographic variables, such as education, have a significant impact on trust. Also, education and No. of Years with the Bank is the only variable that has a significant impact on satisfaction. When the effect of the Delone and Mclean Model on trust and satisfaction is examined, it is observed that all three quality dimensions significantly impact trust and user satisfaction. This finding highlights the importance of continuous monitoring and enhancing the quality associated with these factors. This shows that the characteristics of a system from a technical perspective are especially of significant importance for enhancing the trust and satisfaction users feel towards mobile banking. When considering the effects of the three quality dimensions on trust and satisfaction, it is important to foster system, information, and service quality. In this vein, banks need to continuously monitor and initiate improvements in the associated aspect of quality. The Philippines is an Archipelago, which makes it difficult to build structures in other parts of the country. The government and the private sectors should kindly consider how to progress the digital infrastructure soon. Any substantial efforts to improve the prices or deliver improved rates of online contributions would have a great effect on affordability and, hence, access.

Revisiting Mobile Payment Risk-Reduction Strategies: A Cross-Country Analysis

ABSTRACT Mobile payment risk has become a critical cybersecurity factor in the cashless society. The outbreak of COVID-19 helped proliferate mobile payments that also bring significant risks to users. Using AI methods, this study analyzed six dimensions of mobile payment risks (financial, privacy, performance, psychology, time, and security) in a survey of 748 respondents from three countries (UK, Taiwan, and Mozambique). The decision tree method was employed to identify and analyze critical perceived risks. The ANOVA test provided insights on the perceived risks between countries. The ANOVA test showed that UK users were concerned about financial and time risks; those in Mozambique were concerned about performance, psychological, and security risks; and those in Taiwan were concerned about privacy risks. The results revealed that decision trees outperformed other methods (such as neural networks, logistic regression, support vector machine (SVM), random forest, and Naïve Bayes models). Performance risk (Taiwan and Mozambique) and security risk (UK) are the most significant factors. Cultural differences influence mobile payment risk perception in different countries. The risk-reduction strategies were also matched to the critical factors by the decision tree. This showed that simplification and risk-sharing strategies were the major tactics in all three countries. The clarification strategy works for Taiwan and Mozambique, which focuses on the benefits of using mobile payments. The results suggest that enterprises should improve and simplify the mobile payment process and collaborate with the third parties to reduce and share cybersecurity risk.

Factors influencing customers’ adoption of mobile payment in Pakistan: application of the extended meta-UTAUT model

Factors influencing customers’ adoption of mobile payment in Pakistan: application of the extended meta-UTAUT model

THE ROLE OF ECONOMIC DATA ANALYSIS IN MANAGING MEDIUM AND SMALL COMPANIES TO MAKE STRATEGIC DECISIONS AND IMPROVE PERFORMANCE: AN ANALYTICAL STUDY

Economic analysis plays a pivotal role in managerial decision-making processes. This analysis is predicated on deeply understanding economic forces and market factors influencing corporate strategies and decisions. This paper delves into the role of economic data analysis in managing small and medium-sized enterprises (SMEs) to make strategic decisions and enhance performance. The study underscores the significance of this approach and its impact on corporate outcomes. The research analyzes annual reports from three companies: Al-Mahfaza for Mobile and Internet Financial Payment and Settlement Services Company Limited, Al-Arab for Electronic Payment Company, and Iraq Electronic Gateway for Financial Services Company. The paper concludes by drawing key findings from this analysis.

Exploring the Influence of Financial Literacy on Mobile Financial Service Usage: An Ordered Probit Analysis

Mobile financial service, an emerging form of financial services that has developed alongside the internet and mobile devices, are becoming increasingly significant in the global financial market. Financial literacy is crucial for safely and effectively using these services, as it equips individuals with the necessary knowledge and skills to navigate the digital financial landscape, make informed decisions, and manage their finances responsibly. This study explores the link between financial literacy and the use of mobile financial services, aiming to promote financial inclusion and help users benefit from mobile banking technologies. The results indicate that the impact of objective financial literacy varies significantly across different types of mobile financial services. It boosts the utilization of mobile banking services, with coefficient 0.025 (p<0.01), while simultaneously reducing the frequency of mobile payments and transfers, with coefficients -0.041 and -0.012 respectively (p<0.01). The results also show that subjective financial literacy always positively relate to the use of mobile banking, mobile payments and mobile transfers, with coefficients 0.038, 0.044 and 0.03 respectively (p<0.01). Further, this paper investigates how financial literacy miscalibration affects the use of mobile financial services. The results show that individuals who over-evaluated their financial literacy are more likely to use mobile financial services than individuals who under-evaluated or correct-evaluated their financial literacy. The results serve as decisive evidence for policymakers to enhance consumer financial literacy, thereby improving their use of mobile financial services. Future studies could delve deeper into the underlying reasons for the differential impact of objective financial literacy on various MFS types.

A Comparative Study on Digital Financial Literacy and E-Banking Adoption

Abstract: In this research paper I have thoroughly described about the topic “A Comparative Study on Digital Financial Literacy and E-Banking Adoption”. The rapid expansion of digital technology has altered money. Thus, digital financial literacy and ebanking are more crucial than ever. The opening of this paper discusses the relationship between digital financial literacy and ebanking and their importance in the current world. Digital financial literacy is having the knowledge, skills, and trust to manage your money online. E-banking services are increasing, therefore people must grasp online transfers, mobile payments, and safety. The purpose of this research is to determine whether digital financial knowledge affects e-banking usage. E-banking is popular since it's simple and provides financial services. To be extensively utilized, individuals must comprehend and accept digital technologies. This research assumes that individuals who understand digital finances would utilize e-banking more since they grasp its advantages and hazards. Mixed-methods research will test this notion. This means quantitative surveys and qualitative interviews will be utilized to learn about individuals' attitudes, challenges, and motives for utilizing e-banking. The research seeks to determine which aspects of digital financial literacy most impact online bankers. This work has wide-ranging impacts. Financial organizations, politicians, and schools may utilize its findings to develop targeted initiatives to increase digital financial literacy and encourage confident e-banking. Filling knowledge gaps and addressing anxieties may help society reap the advantages of digital banking while minimizing hazards. This research contributes to the digital financial literacy and e-banking discussion. It intends to reveal how people's digital financial abilities impact their propensity to utilize e-banking services, paving the way for an open, information-based digital financial future.

The Importance of Corporate Culture, Governance Structure, and Laws and Regulations in the Fintech Ecosystem

With rapid technological development, technologies such as artificial intelligence, blockchain, cryptocurrency and mobile payment are constantly promoting changes in the traditional financial industry and deriving the emerging ecosystem of financial technology. This article mainly discusses how corporate culture, governance structure, laws and regulations in the financial technology ecosystem affect financial technology companies to maintain a certain competitiveness in the relevant ecosystem. Among them, a strong cultural atmosphere can help fintech companies stabilize their position in the system, and a stable governance structure can help fintech companies and enterprises avoid risks and make correct strategic decisions, thereby promoting the development of the entire fintech industry. Laws and regulations are mainly reflected in fintech companies' compliance with financial regulations in different regions, such as anti-money laundering, anti-terrorist financing, and the protection of customer data and privacy, thereby enhancing customers' trust in fintech companies. These three aspects jointly stabilize the position of financial technology companies in the financial technology ecosystem and promote the continuous development of the financial technology ecosystem.

Exploring the Influence of Social Media Marketing on Brand Trust, Brand Image, and Brand Loyalty for Fore Coffee

Indonesia's utilization of digital services such as mobile payments, paid digital content, online transportation, and food delivery has been amplified due to the rise in internet and smartphone usage. The digitalization of the food and beverage (F&B) industry has experienced significant growth since 2015, particularly accelerated by the COVID-19 pandemic. According to McKinsey's research conducted in 2020, there was a significant 34% surge in the number of individuals using food delivery services during the pandemic. Fore Coffee, a coffee startup established in 2018, employs digital marketing strategies to enhance sales and promote brand recognition. Fore Coffee has successfully pleased customers using social media and mobile applications. This study utilizes the concept of brand trust to investigate the impact of social media marketing on brand image and customer loyalty. Research utilizes PLS-SEM. A digital survey was distributed to a total of 301 individuals who are customers of Fore Coffee within the previous six-month period. Studies indicate that social media marketing has a positive and significant influence on brand trust, leading to a positive impact on brand image and customer loyalty. A well-executed digital marketing strategy has the potential to enhance brand trust, image, and loyalty Keywords: Brand Image; Brand Loyalty; Brand Trust; Social Media Marketing

Effect of the COVID-19 Lockdown on Mobile Payments for Maternal Health: Regression Discontinuity Analysis.

The COVID-19 pandemic resulted in the unprecedented popularity of digital financial services for contactless payments and government cash transfer programs to mitigate the economic effects of the pandemic. The effect of the pandemic on the use of digital financial services for health in low- and middle-income countries, however, is poorly understood. This study aimed to assess the effect of the first COVID-19 lockdown on the use of a mobile maternal health wallet, with a particular focus on delineating the age-dependent differential effects, and draw conclusions on the effect of lockdown measures on the use of digital health services. We analyzed 819,840 person-days of health wallet use data from 3416 women who used health care at 25 public sector primary care facilities and 4 hospitals in Antananarivo, Madagascar, between January 1 and August 27, 2020. We collected data on savings, payments, and voucher use at the point of care. To estimate the effects of the first COVID-19 lockdown in Madagascar, we used regression discontinuity analysis around the starting day of the first COVID-19 lockdown on March 23, 2020. We determined the bandwidth using a data-driven method for unbiased bandwidth selection and used modified Poisson regression for binary variables to estimate risk ratios as lockdown effect sizes. We recorded 3719 saving events, 1572 payment events, and 3144 use events of electronic vouchers. The first COVID-19 lockdown in Madagascar reduced mobile money savings by 58.5% (P<.001), payments by 45.8% (P<.001), and voucher use by 49.6% (P<.001). Voucher use recovered to the extrapolated prelockdown counterfactual after 214 days, while savings and payments did not cross the extrapolated prelockdown counterfactual. The recovery duration after the lockdown differed by age group. Women aged >30 years recovered substantially faster, returning to prelockdown rates after 34, 226, and 77 days for savings, payments, and voucher use, respectively. Younger women aged <25 years did not return to baseline values. The results remained robust in sensitivity analyses using ±20 days of the optimal bandwidth. The COVID-19 lockdown greatly reduced the use of mobile money in the health sector, affecting savings, payments, and voucher use. Savings were the most significantly reduced, implying that the lockdown affected women's expectations of future health care use. Declines in payments and voucher use indicated decreased actual health care use caused by the lockdown. These effects are crucial since many maternal and child health care services cannot be delayed, as the potential benefits will be lost or diminished. To mitigate the adverse impacts of lockdowns on maternal health service use, digital health services could be leveraged to provide access to telemedicine and enhance user communication with clear information on available health care access options and adherence to safety protocols.

The path to cashless transaction: A study of user intention and attitudes towards quick response mobile payments

This study explores the factors influencing users' behavioral intentions, attitudes and actual adoption of quick response (QR) mobile payment in the least developed country (LDC) of Bangladesh, by extending the original unified theory of acceptance and use of technology (UTAUT) model. The study conducts a mixed-methods investigation by combining the partial least squares (PLS) and focus group discussion (FGD) methods to empirically evaluate the research model and cross-validate the findings. Using purposive sampling, data were gathered from 412 respondents, followed by 10 respondents who took part in the FGD, who all met the sample criteria. The study findings indicate that performance expectancy, effort expectancy, and social influence significantly positively influence users' behavioral intention, while self-concept, perceived self-efficacy, and habit substantially influence their attitudes towards using QR mobile payments. The findings also confirm a positive effect of users’ attitudes toward using QR mobile payment on both behavioral intention and actual use, and a positive effect of behavioral intention on the actual use of QR mobile payments. These findings offer several important theoretical and managerial implications.

Unveiling the Path to Mobile Payment Adoption: Insights from Thai Consumers

Mobile payment, replacing traditional methods like cash and cards, offers users convenience and accessibility, benefiting individuals, businesses, and governments. However, most research on mobile payment adoption has primarily focused on developed countries, leaving a gap in understanding the adoption factors in developing nations. This study addresses this gap by investigating the determinants of mobile payment adoption in Thailand, an emerging economy experiencing significant smartphone adoption and e-commerce growth. Through a quantitative approach and a survey of 475 Thai consumers, this research applies an extended Unified Theory of Acceptance and Use of Technology (UTAUT) model as a theoretical foundation to examine Thai consumers’ mobile payment adoption. Data analysis using SPSS 28.0 and AMOS 28.0 identifies key factors influencing Thai consumers to adopt mobile payment. By offering a comprehensive research model and considering evolving smartphone technology, this study aims to guide policymakers and stakeholders in promoting mobile payment adoption, ultimately enhancing Thailand’s economic development and tourism industry.

Financial Technology Innovation and Business Growth of Small and Medium-Scale Enterprises in Port Harcourt, Rivers State, Nigeria

This study empirically examined the relationship between financial technology (FinTech - proxied by Internet Banking and Mobile Payment) innovation and business growth (proxied by productivity and operational efficiency) of Small and Medium-Scale Enterprises (SMEs) in Port Harcourt. The study was underpinned by the theory of Technology Acceptance Model (TAM) and the Diffusion of Innovation Theory (DIT). The study adopted a cross-sectional research design and the population was the 1016 registered SMEs in Port Harcourt with a sample size of 287. Spearman’s Rank Correlation and Partial Correlation were used to test the five hypotheses that guided the study. The findings showed a positive and significant relationship exists between financial technology innovation and business growth. Based on these findings, the research concluded that financial technology innovation is a business solution and a formidable management strategy that SMEs can deploy to improve their business growth. It recommends therefore that SMEs who want to improve their business growth should invest more in FinTech innovations such as Internet banking and mobile payment, as these digital solutions have a significant impact in improving productivity and operational efficiency (business growth).

The Development of the Smartphone Proficiency Questionnaire for Chinese Older Adults (SPQ-COA).

While mobile technology is rapidly evolving, it remains a challenge for some older adults to use smartphones worldwide. To address this issue through tailored skill training and product design, this study developed a questionnaire to assess the smartphone proficiency of older adults. The Smartphone Proficiency Questionnaire for Chinese Older Adults (SPQ-COA) assessed proficiency based on 30 up-to-date tasks (e.g., mobile payment), that covered common operations in daily life of Chinese older adults. The questionnaire was distributed to 452 older adults (age ≥60), as well as 100 young adults (age: 18-30) as a control group. The questionnaire performed well in terms of reliability, difficulty, and discrimination. Among older adults, higher scores were associated with lower age, longer daily use duration, more years of use, higher monthly income, and higher education level, further validating the questionnaire. Overall, the SPQ-COA is a valid tool for evaluating Chinese older adults' smartphone usage skills.

Competitive dynamics in a multi-sided mobile payment platform market: an agent-based modeling perspective

PurposeThe purpose of this research is to develop a comprehensive model to better understand competitive dynamics between mobile payment providers in a multi-sided market featuring customers and merchants. This is undertaken by modeling customers performing financial transactions with merchants while two mobile payment systems (MPS) providers deploy different strategies to compete for market share.Design/methodology/approachThe authors developed an agent-based simulation model using the NetLogo environment. The simulation featured two competing platform providers, 1,000 customer agents and 50 merchant agents. Past research, interviews and surveys were conducted to accurately model the behavior of the agents. Each simulation run lasted for 50 time periods. A total of 1,024 experimental conditions were designed to model different competitive environments, and 50 replications were conducted for a total of 51,200 experiments.FindingsThe simulation model provides insight into MPS platform providers’ competitive strategies by simultaneously modelling socioeconomic interactions between customers, merchants and MPS.Research limitations/implicationsFrom a methodological perspective, the paper contributes a comprehensive model that can be used to study competitive dynamics between competing platforms in a multi-sided market. From the perspective of competitive strategies, the results show that pricing alone is not sufficient to influence MPS diffusion. Interactions between pricing, customers’ risk perception, perceived security and ease of use of the platform create unexpected same-side and cross-side network effects, which affect MPS diffusion.Practical implicationsWhile pricing remains a crucial lever for MPS to compete for market share, they should focus on enhancing customers’ and merchants’ trust and reduce their risk perception. This can be done through the improvement of the user experience of their platform, development of educational materials and marketing campaigns that address concerns around security, data breaches and perceived risk.Originality/valueThe paper is a direct response to a recent call for action on studying competition between MPS platforms by simultaneously modelling the socio-economic behavior of heterogeneous consumers and merchants. The proposed agent-based simulation model can be used to provide insights into competitive strategies and as a building block for subsequent research in this area.

Mobile payment, digital inclusive finance, and residents' consumption behavior research.

Based on the data of multiple Chinese household finance surveys, the interactive relationship between mobile payment, inclusive digital finance, and household consumption is discussed. It is found that mobile payment can directly and effectively improve household consumption, and the impact on hedonistic and developmental consumption is greater than survival consumption, which is conducive to upgrading household consumption. At the same time, mobile payment can indirectly promote basic and developmental consumer spending through digital inclusive financial mechanisms and weaken hedonistic consumer spending. The heterogeneity analysis found that the impact of mobile payment on household consumption was affected by income level, dependency structure, and regional attributes, and the low-income and high-income groups benefited more significantly, and the consumption promotion effect in the eastern and central regions was greater than that in the western and northeastern regions. Further research finds that with the improvement of income status, the promotion effect of mobile payment on consumption shows a marginal decreasing trend. It is recommended to continue to promote the popularization and application of mobile payment, accelerate the matching of supply and demand in the consumer market, formulate financial inclusion policies according to local conditions, and form a good interaction mechanism between mobile payment, digital finance, and household consumption.

Mobile payments and money technologies in sustainable development: a systematic literature review and computer-assisted interpretive analysis

ABSTRACT Mobile Money (MM) and Mobile Payments (MP) have become levers of growth. They drive economic, social, and Sustainable Development (SD). Despite the rich literature on MM and MP, we need more synthesis that cover their contributions as forms of Information and Communications Technologies for Development (ICT4D). We explored MM/MP as ICT4D through a systematic literature review coupled with a Latent Dirichlet Allocation (LDA) approach. The data analyses revealed that publications have increased significantly since 2018. Financial inclusion is the most studied area. It's studied for its contribution to SD. We also need to study these technologies’ effects on SD. This includes their effects on society and the environment. We propose a research agenda regarding these technologies at individual, organizational, country, regional, and global levels of analysis. It can help to find how these ICT4D improve people’s lives and foster sustainable development.

Impact of Fintech on Economic Development of Third World Countries: A Focus on Nigeria

The digital age has ushered in a transformative shift in the financial industry, permitting financial institutions to reach previously "unbanked" consumers in emerging economies while keeping current traditional bank customers (Saal et al., 2017). The integration of technology into daily life has given rise to various technology acceptance models and unique user interactions. This study assessed the impact of FinTech on the economic development of developing countries, with a specific focus on Nigeria, to understand its contributions and identify areas for improvement. Data for this study was collected from the Central Bank of Nigeria, Macrotrends, and Statista, covering data from the past ten years, 2010 to 2020. Regression analysis was used in executing the data analysis. The selected FinTech services—ATM, PoS, and mobile payments—showed a fluctuating but generally upward trend in production and popularity, peaking in 2020, likely due to the COVID-19 pandemic. Among these, ATMs were the most popular, although PoS and mobile payments have seen significant growth since 2017 and 2019, respectively. The study concludes that FinTech has a limited impact on GDP per capita, it significantly influences consumer price index and the unemployment rate, indicating its critical role in shaping Nigeria's economic landscape.

The development history and future prospects of artificial intelligence in facial recognition technology

In recent decades, with the fast development of various algorithms and the rapid improvement of computer hardware performance, the development of facial recognition technology has been very rapid. This technology used to only appear in science fiction movies, but now it has been widely used in mobile payments, identity recognition, and other fields, and it also has very reliable performance. This article introduces the different facial recognition methods used in different periods of facial recognition technology from the 1960s and 1970s to the present day, to help people understand the development process of facial recognition technology. Among them, the focus is on early methods based on geometric features, grayscale information, and feature extraction, as well as recent applications based on deep learning and convolutional neural networks. In response to some challenges faced by current technology, some speculations on possible future development directions are proposed.

How consumers' privacy perceptions influenced mobile payment acceptance during the COVID-19 pandemic

PurposeOur research investigated how the perceived effectiveness of privacy, perceived privacy risk, and perceived security influenced consumers' behavioral intention to use mobile payment applications during the COVID-19 pandemic.Design/methodology/approachWe applied a quantitative method using a cross-sectional online survey conducted over three years. We collected a sample of 1,471 survey responses focused on ages 18–39. Using descriptive statistics, confirmatory factor analysis, and structural equation modeling, we tested our hypotheses with SPSS 27 and AMOS 27.FindingsResults of the study indicate that the perceived effectiveness of privacy positively influences perceived privacy risk, perceived security, and behavioral intention. Moreover, perceived privacy risk has a positive effect on perceived security. We found no significant relationship between perceived privacy risk and behavioral intention, although perceived security has a positive effect on behavioral intention. Further mediation analyses showed that perceived privacy risk and perceived security mediate the relationship between the perceived effectiveness of privacy and behavioral intention.Originality/valueThis research sheds new light on the role of perceived privacy effectiveness in mobile payment adoption in Hungary, particularly during the COVID-19 pandemic. Our research also explains why and how perceived privacy effectiveness influences consumers' perceived privacy risk, perceived security, and behavioral intention.

Impact of COVID-19 pandemic on online consumption share: Evidence from China's mobile payment data

This study investigates the impact of the COVID-19 pandemic on the online retail market in China and explores the mechanisms underlying this relationship. By developing a theoretical model based on utility theory and consumer risk perception theory and utilizing monthly mobile payment consumption data along with the number of people diagnosed with COVID-19 at the city level in 2020, this study finds that the COVID-19 pandemic has driven an increase in the share of online consumption, thereby changing the structure of the retail market. The primary mechanism is that the pandemic boosts e-commerce activity while concurrently reducing the service quality for consumers shopping offline. Furthermore, this study confirms that online consumption has mitigated the negative impact of the pandemic on overall consumption expenditure. Heterogeneity analyses suggest that the COVID-19 pandemic has significantly increased the online share of necessity and upgraded consumption. For city heterogeneity, the effects of the pandemic on online and offline consumption structures are more pronounced in regions with larger consumption scales and lower urbanization rates. Thus, the pandemic has accelerated the development of the online retail market and strengthened consumer inertia for online channels. According to consumer inertia theory, this trend may continue even as the pandemic gradually weakens. The applicability and effectiveness of this study's conclusions and methods provide a new perspective for future research on online retail and e-commerce markets.