Payment Adoption Research Articles

Digital Payments Adoption in Emerging Markets: The Context of China’s Digital Currency Electronic Payment

There are still significant gaps in our knowledge of the factors that influence the acceptance and use of digital wallets as well as their transformative effects on payment behaviours in China, even though digital wallets are anticipated to grow in line with the global trend towards cashless payment solutions and despite the quick development of mobile payment platforms. With the aim of providing relevant advice to stakeholders and contributing to the continuing conversation on technology adoption, payment behaviour, and socioeconomic dynamics in China, this research investigates trends in the acceptance and use of digital wallets in the Chinese area.
 Additionally, it intends to provide insightful information on the function of digital wallets inside the mobile payment system and their influence on China's socioeconomic environment. The research model was experimentally briefed using a questionnaire survey of 405 digital wallet-based users in China. Hedonic motivation and perceived risk, both of which were found to have an influence on the usage of digital wallets, were included to the study in this work. The Unified Theory of Acceptance and Use of Technology (UTAUT) paradigm served as a guide for the study, which was based on existing academic research. The main contributions of this research are to highlight the critical roles that perceived delight and perceived risk play in the adoption of digital wallet technology and to investigate how Chinese individuals perceive the use of digital wallets. The study surfaced the following influences performance expectation (H1), effort expectation (H2), social influence (H3), social impact (H4), facilitation conditions (H5), behavioural intention (H6), and perceived risk (H7).social influence (H3), social impact (H4), facilitation conditions (H5), behavioural intention (H6), hedonic motivation (H7), and perceived risk (H8 ). All have an impact on the use of digital wallets.

A Conceptual Framework of Mobile Payment System Adoption and Use in Southeast Asia

The research aims to investigate the factors affecting consumers' adoption and use of Mobile Payment Systems (MPS) in Southeast Asia. Extant theoretical models need to be extended to cover the unique features of mobile payment technology. A Systematic Literature Review (SLR) is conducted to analyse theoretical models utilized to predict the adoption and use of mobile payment. A total of 60 studies about adoption and use of MPS is analysed. The results of the investigations employ the Technology Acceptance Model (TAM), Unified Theory of Acceptance and Use of Technology (UTAUT), and Diffusion of Innovation model (IDT). It reveals that there are inconsistencies in determinants of behavioral intention to adopt and use MPS. Among them are performance expectancy, effort expectancy, and social influence. The review also unveils the use of other determinants to predict behavioral intention to adopt and use MPS, such as perceived security, perceived risks, perceived trust, attitude, and financial incentives to lure new users. The researchers propose a conceptual framework for MPS adoption and use that includes four moderators: gender, age, educational level, and income level. The research contributes to the theory and practice by explicating relevant factors predicting behavioral intention to adopt and use mobile payment in the ASEAN region. Moreover, the SLR offers opportunities for future investigations.

Effects of motivated consumer innovativeness on facial recognition payment adoption in the restaurant industry: A cross-cultural study

The aim of this study is to examine the importance of motivated consumer innovativeness (MCI) in the context of facial recognition payment within the restaurant domain. The data was collected from 345 Korean consumers and 338 U.S. consumers. The results of the structural equation analysis revealed that all the sub-factors of MCI positively influenced attitude except social MCI. Subjective norm had a significantly positive effect on personal norm. In addition, attitude, subjective norm, perceived behavioral control, and personal norm significantly affected behavioral intentions. Lastly, cultural differences between Korean and U.S. consumers moderated the relationships between (1) functional MCI and attitude, (2) hedonic MCI and attitude, and (3) social MCI and attitude. In terms of the relationship between functional MCI and attitude and hedonic MCI and attitude, the path coefficient for the Korean group was higher than the path coefficient for the U.S. group. Regarding the relationship between social MCI and attitude, the path coefficient for the U.S. group was higher than the path coefficient for the Korean group. Based on the findings, restaurant companies and technology providers can improve customers’ attitude toward facial recognition payments as well as their intention to use it, which helps to enhance the development and commercialization of this payment method in the restaurant industry as well as other sectors.

Merchant adoption intention of mobile payment platforms in Malaysia

PurposeIn recent years, Malaysia has seen a dramatic change in the landscape of financial transactions due to the fast growth of mobile payment systems. This study aims to examine the technological, organisational and environmental (TOE) factors of merchants’ adoption intention to use mobile payment platforms essential for the continuing development and profitability of these cutting-edge payment options.Design/methodology/approachThe research model was developed from the TOE framework and tested with the data collected from 120 merchants in Malaysia. The partial least squares structural equation modelling technique was used in analysing the collected data.FindingsTechnology readiness and competitor pressure were directly related to merchants' mobile payment adoption intention and indirectly through perceived strategic value. Also, perceived ease of use and perceived strategic value were significant predictors of the adoption intention of mobile payment.Originality/valueThis model demonstrates the relevance of TOE in explaining merchants' mobile payment adoption intention, with implications for policy and strategy to support the broader adoption of mobile payment platforms in Malaysia.

Eco-Friendly Transactions: Exploring Mobile Payment Adoption as a Sustainable Consumer Choice in Taiwan and the Philippines

This study looks into eco-friendly transactions via mobile payment (MP) adoption in the context of a global emphasis on responsible innovation and sustainable consumption. Focusing on MP adoption in Taiwan and the Philippines and utilizing SPSS and PROCESS tools, we uncover distinct patterns. The Philippines highlights the impact of social factors on hedonic motivations driving MP adoption, whereas Taiwan emphasizes functional aspects, underlining the need for region-specific strategies. By analyzing the interplay between hedonic and utilitarian motives, our research contributes to discussions on environmentally conscious transactional choices in diverse cultural contexts. We emphasize the seamless integration of FinTech innovation and ethical consumer decisions, advocating for sustainable practices in everyday financial transactions. Our findings address contemporary concerns about business ethics, environmental sustainability, and responsibility, offering a roadmap for fostering greener consumer behaviors.

Impact of Digital Payment Adoption on Small Businesses in India: A Comprehensive Survey

This research paper delves into the burgeoning realm of digital payment systems and their impact on small businesses in Pune City, Maharashtra, India. With the rapid evolution of financial technology, digital payments have become a pivotal aspect of commerce, especially for small enterprises. This study, through a comprehensive survey analysis, explores how the adoption of digital payment methods is reshaping the operational dynamics and economic performance of small businesses in this region.

Adoption of Electronic Cash Payment among Students: A Case Study of Siem Reap Build Bright University

This research aimed to assess students' awareness and adoption of electronic cash and analyze the factors influencing their attitudes towards this payment method. The study was conducted in Siem Reap province, Cambodia, with 211 students from Build Bright University. Findings indicated that the majority of respondents had knowledge and understanding of electronic cash, highlighting a positive level of familiarity. Convenience and ease of use influenced students' adoption of electronic cash. Students valued the seamless experience, quick transactions offered by electronic cash, and prioritizing security and privacy. Technological appeal and innovation also played a crucial role in shaping students' preferences. Trust in the payment system and perceived benefits such as rewards and discounts were influential factors.

Understanding the factors of mobile payment continuance intention: empirical test in Saudi Arabia

Purpose: The objective of this study is to explore the determinants of individuals' intentions to continue utilize mobile payment services by examining integrated model of the constructs of the Technology Acceptance Model (TAM) (perceived ease of use and perceived usefulness) and the Theory of Planned Behavior (TPB) (attitude, subjective norm, and perceived behavioral control). Furthermore, the study investigates the relationship between user satisfaction and their intention to persist in using mobile payment. Methodology: In this quantitative investigation, a sample of 474 mobile e-wallet users was surveyed online. Partial least squares structural equation modeling was employed for data analysis. Findings: The study reveals that the constructs from the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and user satisfaction collectively influence users' intentions to use e-wallet services. Notably, the model demonstrates its ability to elucidate 59.1% of the variance in behavioral intention to continue utilizing e-wallets. Additionally, both user satisfaction and perceived behavioral control significantly impact the decision to persist in using e-wallets. The insights gleaned from this study can be leveraged by e-wallet stakeholders to inform strategic decisions within the e-wallet ecosystem. Practical implications: The inclusion of TAM and TPB constructs enhances our understanding of e-wallet service utilization. These findings offer valuable insights for service providers, enabling them to tailor their marketing strategies more effectively, thereby ensuring customer satisfaction and continued e-wallet usage. Originality: This study introduces a comprehensive and integrative approach to elucidate the factors influencing the sustained use of e-wallet services. By amalgamating two foundational adoptions above theories, it extends our understanding of mobile payment adoption dynamics.

Digital Payments in Urban Odisha: Insights from a Primary Survey

This study discusses the insights derived from a primary survey conducted in urban centres in the Indian state of Odisha located in the eastern region of India, which is generally perceived as less developed than other regions of the country. There is evidence that Odisha is catching up with the digital revolution, and the survey reveals significant achievements in terms of people’s general awareness of various digital payment systems and access to smartphones. The use of digital payments has increased with increasing education and income levels, and the proportion of cash transactions has declined post-COVID-19. Major barriers to the wider adoption of digital payments in the state include network issues such as poor internet connectivity, low internet speed and lack of acceptability. The empirical findings of this study establish that receiving incomes into bank accounts instead of in cash increases the affinity towards paying digitally.

Perceived Privacy Risks and Trust Dynamics: Rethinking Mobile Payment Adoption in Indonesia

Purpose: This research aimed to explore and understand the intricacies of mobile payments within the Indonesian context, particularly focusing on the dynamic relationship between perceived privacy risks, trust, and the intention to adopt mobile payment services. 
 Design/methodology/approach: The study employed a hybrid research methodology, integrating qualitative and quantitative analyses. Specifically, this research utilized Confirmatory Factor Analysis (CFA) model that evaluated the alignment of the proposed model with the observed data. The mobile payment privacy policies were analyzed through the identification of key textual features.
 Findings: The study revealed a revealed positive relationship between certain perceived risks (psychological and financial) and trust, suggesting that certain perceived risks might inadvertently foster trust. Conversely, time risk and performance risk negatively influence trust. This research also emphasized the pivotal role of trust in shaping user intentions toward mobile payments. Further findings highlighted the complex nature of privacy risks in the context of mobile payments and the significant surge in adoption rates during the COVID-19 pandemic.
 Research limitations/implications: This research was bound by a limited dataset size, which could influence the derived results. Potential inaccuracies from incomplete questionnaires might introduce non-statistical errors. With the ever-evolving nature of mobile payments, future studies could benefit from refining the research framework and incorporating additional variables.
 Originality/value: This study uniquely delves into the mobile payment scenario in Indonesia, challenging traditional views of risk and trust and offering fresh perspectives on consumer behavior. The innovative approach to analyzing mobile payment privacy policies and the spotlight on the role of perceived risks and trust in adoption intention set it apart. Its findings serve as a blueprint for both academics and practitioners in the mobile payment domain.

Informal sector in India and adoption of digital technologies

PurposeAccording to the Government of India’s Ministry of Labour and Employment Report (2015), almost 90% of the Indian workforce can still be categorized as informally employed, generating approximately 50% of the national product. Challenges with data availability have made a rigorous analysis of the informal economy in India often difficult and inadequate for policy formulations. This study aims to fill the gap by providing an empirical analysis of the informal economy in India using micro-data from the World Bank’s Informal Enterprise Surveys.Design/methodology/approachThe authors contribute by empirically testing the association between the adoption of digital technology (payments) and firm performance proxied by firm sales. Matching models are used to mitigate sample selection bias arising out of simultaneous sample selection.FindingsThe results suggest that the participation in digital platforms, namely, use of digital payment instruments, is associated with higher sales for firms. The results of this study also show that adoption of digital payments helps in both situations – whether a firm has been using digital technology or has just started using it since the outbreak.Research limitations/implicationsMore in-depth data over time, spanning across more cities of India, is needed to conduct a further detailed investigation.Social implicationsThe results should allow policymakers in India to reconsider youth-centric and women-centric business needs, even within the informal sector, which does not often enter the purview of the government but remains responsible for the growth and sustenance of 90% of the country’s workforce. If further research on this issue could engage with the impact of demonetization of currency in 2016 as a lagged shock on sales and reestimate subsequent growth, it would perhaps offer a wider spectrum of how the performance of the informal economy in India affects the entire economy, which has over the last four years and before the onset of Covid reported slower growth.Originality/valueProductivity is measured in terms of sales of informal firms in India in a regular month or in recent period like last month. Adoption of technology such as making payments using digital platforms can enhance productivity of firms by lowering standard transaction costs and time spent for visiting banks or financial institutions. Albeit not extensively, the literature has investigated digital technology adoption in the context of firms achieving comparative advantage (D’Ippolito et al. 2019; Scuotto et al. 2017), firms generating value creation (Magistretti, Dell’Era and Petruzzelli, 2019), and in helping with strategic initiatives and agility of firms (Ghezzi and Cavallo, 2018; Piccoli and Ives, 2005). Nonetheless, it would incur certain fixed costs, including acquiring skills and awareness, to manage digital platforms. In addition, physical access to instruments such as smartphones or computers and internet connectivity are prerequisites for productivity enhancements. Firms belonging to the informal sector in India generally face these challenges but may also benefit significantly following successful adoption. To the best of the authors’ knowledge, this is the first study to conduct a preliminary empirical analysis of the impact of digital technology adoption on the performance of informal sector firms in India.

E-payment adoption and utilization among micro-entrepreneurs: a comparative analysis between Indonesia and Malaysia

Purpose The development of financial technology (fintech), especially digital payments (e-payments), aims to increase the efficiency and effectiveness of economic transactions. This study aims to see the extent to which microentrepreneurs in Indonesia and Malaysia take advantage of the existence of e-payments in developing their business and the factors that influence the adoption of e-payments. Design/methodology/approach This study uses qualitative and quantitative approach. For quantitative approach, partial least squares structural equation modeling (PLS-SEM 4.0) was used to analyze the data. Using the nonprobability convenient sampling technique, this study collected 400 respondents from microenterprises in Indonesia and Malaysia in various regions. Findings Most of the microentrepreneurs in Indonesia and Malaysia have used fintech platforms, especially e-wallet and ATM debit. However, for quick response code-based fintech for business transactions, most microentrepreneurs have not taken advantage of the platform. Then the results of the digital payment adoption factor also differ for each country. Research limitations/implications This study is valuable for decision-makers and regulators. These results can be used to find a roadmap for regulators to build a digital economy, especially digital payments for microenterprises in both countries. In addition, these results can be used as a basis for making policies regarding digital payments. Originality/value To the best of the authors’ knowledge, this is the first study to compare e-payment adoption by microentrepreneurs in Indonesia and Malaysia. Indonesia and Malaysia are two countries in the Southeast Asia region that have great attention in fintech development. This study provides new insights about fintech, especially digital payments as a strategic approach in the digitalization era.

Adoption of Digital Payment System among the Youths in Pokhara Metropolitan City

Effective payment systems are crucial components of any nation's financial infrastructure. In recent years, Nepal has witnessed a significant surge in the utilization of digital payment systems. The examination of the adoption of digital payment methods in Nepal is of paramount importance as it sheds light on behaviors related to financial technology that can shape the future of the country's financial system and contribute to its economic development. This study aims to explore the factors influencing the adoption intention of digital payment systems in Pokhara Metropolitan City, Nepal. The study population consists of the youth of Pokhara, with 400 respondents selected using a purposive sampling technique. Data analysis encompasses frequency distribution, exploratory factor analysis, and structural equation modeling. The exploratory factor analysis extracted six factors, which include effort expectancy, performance expectancy, security and privacy, social influence, facilitating conditions, and adoption intention. The structural equation modeling reveals that security and privacy, performance expectancy, and facilitating conditions have a significant positive impact on the adoption intention, whereas effort expectancy and social influence do not significantly affect the adoption intention of digital payments. In conclusion, the study suggests that the use of digital payment systems can be increased by providing secure digital payment systems, enhancing access to resources that support digital payments, and raising awareness about the benefits of digital payments among the youth in Pokhara Metropolitan City. These findings can guide policymakers in developing strategies and policies to promote the adoption of digital payments.

A Comparative Study on the Adoption of Cashless Payment: Malaysia and China

A Comparative Study on the Adoption of Cashless Payment: Malaysia and China

Determinants of the Adoption of Digital Payments among UiTM Machang Students

The FinTech sector has experienced significant disruptions due to the Covid-19 pandemic, driving the need for technological advancements to replace physical interactions and fostering the growth of FinTech in Malaysia. This evolution has extended beyond banking and has transformed payment methods, with digital payments becoming increasingly popular, replacing traditional physical transactions. This study aims to explore the influence of user expectations on the performance of digital payments in their adoption. Using the UTAUT theoretical model, the research questions seek to identify the amount of digital payments among students at UiTM Machang and examine the relationship between performance expectancy and adoption of digital payments. This study employs a questionnaire with three sections, covering demographic profiles, performance expectancy, and other variables. Descriptive analysis provides insights into the respondents' characteristics, indicating a positive perception towards digital payments as a beneficial service in day-to-day activities. The results also reveal a significant association between performance expectancy and the adoption of digital payments among UiTM Machang students, demonstrating that a higher perception of efficiency and effectiveness leads to greater adoption. This study sheds light on the factors influencing the acceptance of digital payments among higher education students, emphasizing the importance of addressing performance expectations in promoting the adoption of digital payment methods.

Modelling the mass adoption of mobile payment for e-hailing services using SEM-MGA.

Secured financial transactions can now be conveniently made via mobile devices for various products and services, such as e-hailing. However, limited research exists on the factors influencing the adoption of mobile payments specifically for e-hailing services, despite the growing interest in mobile payments in China. This cross-sectional study quantitatively assessed the influence of perceived usefulness, perceived ease of use, social influence, facilitating conditions, perceived security, and lifestyle compatibility on the intention to adopt and the actual adoption of mobile payment for e-hailing services. An online self-administered survey was conducted, involving 413 respondents from China. The results revealed a significant positive influence of perceived ease of use, social influence, facilitating conditions, and perceived security on the intention to adopt mobile payment. Additionally, the study found that the intention to adopt mobile payment positively influenced the actual adoption of mobile payments. Meanwhile, perceived usefulness and lifestyle compatibility demonstrated an insignificant influence on the intention to adopt mobile payments. Subgroup analysis further revealed gender-based differences, indicating that the influence of the intention to adopt mobile payment on the adoption of mobile payment for e-hailing services varied significantly between male and female respondents. Furthermore, the influence of facilitating conditions on the intention to adopt mobile payment for e-hailing services also differed significantly among respondents of different age groups. These findings contribute to a better understanding of the factors influencing the adoption of mobile payment for e-hailing services and provide insights for service providers and policymakers in promoting its adoption.

The Factors Influencing Youngsters’ Acceptance of Digital Payments in Sri Lanka

Purpose: The payment which is made by the consumers using the online medium using credit or debit card or Mobile applications is called digital payments. The Digital payment adoption in Sri Lanka is seems comparatively low. This study explores the factors affecting the adoption of digital payments. Theoretical framework: By using the theories such as Unified Theory of Acceptance and Use of Technology (UTAUT) and Perceived Risk theory the study is carried out to find out the factors influencing the adoption of Digital payment in Sri Lanka. Design/Methodology/Approach: Survey Data is used to test the hypothesis and the model was tested with the data. Findings: The study results reveals that the Sri Lankan youths’ Social Influence has no relationship with the adoption of Digital payment. At the same time the Perceived risk, effort expectancy and performance expectancy are shown considerable impact on the adoption of Digital payments. Research, Practical & Social implications: The study results will support the decision makers and the policy makers to understand the consumer’s stand and it will give an idea for the organizations for the implementation of digital money concepts in their business entities. Also, the consumers can be educated and encouraged with the facts revealed in this study. Originality/Value: This study full fills the knowledge gap about the of Digital currency adoption in Sri Lanka. These results will support the business entities to understand the issues of adopting Digital Currency in Sri Lanka among youths.

The adoption of digital payments in emerging economies: challenges and policy responses

Purpose This paper aims to present a comprehensive overview of the emergence and significance of digital payments, focusing on their impact on competitiveness and the need for policy interventions. In addition, it explores the design of policies that promote the adoption of digital payments, highlighting the benefits they offer to providers and users. Design/methodology/approach The paper examines the technological advances that have driven the growth of digital payment systems. It identifies key requirements for successful adoption and discusses the associated risks, along with potential strategies to mitigate these risks. Findings The findings emphasize the importance of responsible implementation and safeguarding the well-being of end users to fully realize the benefits of digital payment adoption. Understanding the inherent risks and establishing effective risk mitigation mechanisms are crucial. This necessitates the development of appropriate infrastructure to support the provision of digital payment services. Research limitations/implications More research is needed to gain deeper insights into how emerging global trends in financial technology should be analyzed and understood by policymakers, service providers and users. Practical implications The findings of this study can guide policymakers, private sector managers and consumers in comprehending the effects of emerging digitalization trends and determining their adoption responses accordingly. Originality/value This paper stands out as one of the few research contributions that provide comprehensive and actionable policy recommendations to facilitate a smooth transition to a digital payments ecosystem that benefits all stakeholders.

Cashless Vietnam: a study on intention and adoption of cashless payment

Purpose This study aims to identify factors that affect the intention and actual adoption of cashless payment (ACP) among Vietnamese youths. Extending the unified theory of acceptance and use of technology (UTAUT) model with two impelling factors (perceived trust [PTR] and lifestyle compatibility [LCM]), this study also examined the mediating effect of intention to adopt cashless payment (ICP) on the relationships of UTAUT model components with the actual ACP. Design/methodology/approach All data were collected online from 422 Vietnamese youths through online survey, and partial least squares structural equation modelling was performed to analyse the data. Findings The study’s results illustrated the positive and significant effects of performance expectancy, effort expectancy, facilitating conditions, LCM and PTR on ICP. However, social influence was found to exhibit a negative effect on ICP. Furthermore, ICP was found to contribute no mediation effects on the relationships of any of the components with the actual ACP. Practical implications This study’s findings are widely useful for marketers and managers to plot their promotional and campaigning strategies, emphasising factors that motivate consumers to adopt cashless payment. The obtained findings also benefit architects and designers in designing products and services by consolidating lifestyle standards and other requirements of consumers. Policymakers should implement policies and strategies to enforce rules and educate the public to widely adopt cashless payment across various sectors. Originality/value This study extended the UTAUT model with two new variables, i.e. PTR and LCM.

Factors Influencing Consumer Acceptance of Mobile Payment during the COVID-19 Pandemic & Usage Continuance Intent: A Quantitative Study

The presence of COVID-19 has transformed the business sector’s paradigm and prompted a speedy consumption of mobile payment software systems of diverse ranges. Corporate sectors and businesses across the globe brought a shift to offer mobile payment methods; consequently, consumers were urged to maximize the use of mobile payment throughout the pandemic. The present research aims to investigate the factors that might influence consumers' intent to accept mobile payments and their relationships during COVID-19. The technology adoption model and the unified theory of acceptance and use of technology were employed in this proposed mobile payment adoption framework. A quantitative research approach was identified as a suitable method for this research. An online survey was administered, and 304 participants responded to the questionnaire. The results of the data analysis revealed statistically significant relationships and a positive impact of the factors perceived performance, social influence, consumers’ satisfaction, and perceived usefulness on consumers’ usage continuation intention. However, the results identified that factors such as transaction risk didn’t affect perceived usefulness, and financial transaction transparency didn’t affect consumers’ usage intention. This study makes a substantial contribution to the consumers’ technology acceptance literature in terms of validating a proposed theoretical framework that highlights the factors that influence consumers’ mobile payment usage intentions. As this study was conducted at a later stage of the COVID-19 pandemic, it adds value to the existing literature by providing insights to business managers on the factors influencing mobile payment usage. Considering the practical perspective, this study offers evidence of the essential elements that mobile payment service designers and marketers should consider. Doi: 10.28991/ESJ-2023-07-05-07 Full Text: PDF