Cash,credit, or phone? An empirical study on the adoption of mobile payments in the United States

The purpose of this study is to investigate the effects of consumer factors on behavioral intention to adopt mobile payments. We focus on the proximity mobile payment, which is made feasible by the near-field communications (NFCs) technology. Building upon the theory of reasoned action and technology acceptance model (TAM), a behavioral intention model was established consisting of enhanced cognitive antecedents as well as affective and social antecedents. Cognitive antecedents encompass the factors including relative advantage, perceived usefulness and ease of use in the TAM, and technology characteristics (e.g., responsiveness and mobility); affective antecedents focus on positive and negative emotions associated with using NFC mobile payments. Both antecedents are expected to affect attitudes. In addition, social antecedents examine subjective norms and the influence of network externalities. Data were collected from 394 adult nonusers of NFC mobile payments in the United States via an online survey. The research model was tested using structural equation modeling. The results showed that all three antecedents significantly affected individual consumers’ intention to adopt NFC mobile payments, explaining a significant amount of variance. Both theoretical and marketing implications are discussed in the context of NFC mobile payments.     

支付结算体系的前沿理论研究

本文考察了有关支付结算体系的微观和宏观理论，认为国外的研究热点主要集中在以下五个领域：支付体系的成本与效率；消费者的支付选择行为；支付体系的技术安全与创新；跨境支付结算体系；支付结算体系的危机扩散；并对每个领域的前沿理论进行了重点剖析。     

The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay

Extant literature on payment methods has focused on comparing cash and credit cards and emphasized the lower pain of paying (i.e., fewer negative consequences) for the latter. This finding, in turn, explains why consumers express higher willingness to pay (WTP) when paying with credit cards. The current study introduces mobile technology as a new payment method to this literature. Specifically, it highlights convenience as a positive driver of increased WTP for mobile payment. However, for consumers to perceive mobile payment as convenient, a personal adoption (enabled through an existing system in the respective country market) is necessary. A set of three studies across several country markets tests these assumptions empirically. Convenience emerges as a new mediator between mobile payment and increased WTP, contingent on personal adoption. These findings thus extend extant literature on the mechanisms consumers use with different payment methods, and they offer differentiated recommendations regarding payment channels for country managers.     

Exploring factors influencing US millennial consumers’ use of tap-and-go payment technology

ABSTRACT

Although mobile payment (MP) represents a possibility for traditional brick-and-mortar US retailers to enhance the quality of customer service, mobile payment adoption in the US has lagged, with research regarding this phenomenon in the US seemingly in its embryonic stage. The current study contributes to the literature on mobile payment adoption in the US by investigating the factors on US millennial consumers’ use of mobile payment technology, operationalized in the study as tap-and-go payment systems. The study mirrors a study of the acceptance of mobile shopping technology among German consumers, with some extension. The study incorporated mobile payment risk perception, system trust, and socio-cultural influence into an extended technology acceptance model (TAM) to explore this issue. Results from a survey conducted among 357 US Millennials indicate that perceived ease of use of MP (PEOUMP); perceived usefulness (PUMP); and risk perception all influence attitude toward mobile payment (AttMP). System trust, socio-cultural influence, and AttMP all influence MP use intention. The paper discussed the limitations of the study and future research directions.     

Influencing factors of customer loyalty in mobile payment: A consumption value perspective and the role of alternative attractiveness

The rapid development of mobile payment has attracted many competitors and made customer retention a crucial issue for mobile payment service providers. This study examines the influencing factors of mobile payment loyalty from a multi-dimensional value perspective by extending and integrating the Cognitive-Affective-Behaviour (C-A-B) model and the Theory of Consumption Values (TCV). We also incorporate alternative attractiveness as a moderating variable to reveal the potential influence of the competitive market environment. This study collected 427 questionnaires from mobile payment users in China. The empirical study results show that customers’ loyalty is determined by satisfaction, and satisfaction is influenced by functional, emotional, epistemic, and monetary value. The findings also demonstrate that satisfaction has mediated the consumption values and loyalty relationship, and alternative attractiveness has weakened the influence of satisfaction on loyalty. This study shifts the focus in mobile payment research from adoption to the post-adoption stage and establishes a new research model by integrating two fundamental theories in explaining customer behaviour. Our study could guide mobile payment providers to cultivate customer satisfaction and loyalty by determining the values that are worth investing in their marketing strategies and help them notice and neutralise the weakening effect of competitor attractiveness.     

The moderating influence of brand image on consumers' adoption of QR-code e-wallets

In a post-pandemic era marked by thriving digital payments and e-commerce transactions due to physical distancing norms, the growth of mobile payments or E-wallets is expected to expand in tandem with the global trend toward cashless payment solutions. However, it is unclear whether this momentum would be sustained for over-the-counter (OTC) retail payments, particularly QR-code E-wallets, that are more affordable and accessible to merchants and customers than NFC-based (near field communication) systems in emerging markets. This study aims to model the interaction effects of brand image in shaping consumers’ E-wallet usage intentions. Incorporating a consumer-brand relationship element (i.e., brand image) should improve the understanding of consumers’ digital service experiences in proximity-based retail encounters. The research model was empirically tested using 305 responses from QR-based E-wallet users in the Klang Valley, Malaysia. Statistical analysis was performed using structural equation modeling (SEM) to test the hypotheses. An empirical examination of the model revealed effort expectancy, social influence, hedonic motivation, and perceived value as significant positive predictors of consumer usage intention. Furthermore, brand image was found to significantly strengthen the positive effect of perceived value and weaken the positive impact of hedonic motivation on the outcome. The study’s key contributions include reaffirming the crucial contingent role of brand image in consumer technology adoption studies and investigating consumer perceptions of QR-based E-wallets, which are expected to gain traction, especially in emerging markets. E-wallet providers should reinforce their value propositions by providing seamless, engaging, and easy-to-use experiences that improve users' brand perceptions.     

A replication study of the credit card effect on spending behavior and an extension to mobile payments

Prior research has shown that credit cards increase spending behavior as measured by the willingness to pay (WTP) or basket value. This research aims to replicate the credit card effect and to extend this effect to mobile payments. In four empirical studies, of which three online studies and one lab study (total n = 692), we manipulated payment methods (i.e., cash, credit cards, and mobile payments) and measured spending behavior (i.e., WTP and basket value). Across four studies, we did not replicate the credit card effect on either measure of spending behavior, suggesting the effect in the literature may be inflated or may have been fading away. A meta-analysis of the relevant literature revealed the expected credit card effect but also showed that the credit card effect has become weaker through the years and that this effect is contingent on the location of data collection. We also did not find evidence that the credit card effect extends to mobile payments on either measure of spending behavior in the three online studies. However, we found a significant difference between mobile payments and cash on the basket value measure (but not for the WTP measure) in the lab study. This paper also explored whether the pain of payment or payment convenience may be a mechanism underlying the relationship between payment methods and spending behavior. Although the pain of payment tended to be lower and the payment convenience tended to be higher for mobile payments, these effects did not translate into more spending behaviors.     

Improving Supply Chain Efficiency Through Electronic Payments: The Case of Micro-Entrepreneurs in Kenya and Tanzania

Research suggests that one possible key to development may be the growth of micro-entrepreneurial firms. The current work suggests that improving supply chain efficiency may help these very small enterprises grow. Specifically, it examines the role played by the use of mobile payments to facilitate transactions with suppliers. The study contrasts Kenya, which has widespread adoption of mobile payments by both consumers and small business, with neighboring Tanzania, where adoption, although substantial, has occurred at a much slower rate and achieved far less penetration. Findings support the idea that positive business outcomes such as increased income and increased hiring are related to mobile payment usage.     

Drivers and barriers of mobile payment adoption: Malaysian merchants' perspective

The Malaysian market consists of a large consumer-base carrying mobile phones. However, the adoption and proliferation of mobile (m-) payments remain dismal. Evidence from the literature necessitates the need for elucidating the adoption barriers and drivers from multiple perspectives. There has been much research on consumer adoption and usage of mobile payment systems, but there is a lack of research on this subject from the merchants' perspective. Taking into account the critical role merchants play in promoting a sustainable m-payment ecosystem, this work elucidates the perspective of merchants in Malaysia vis-à-vis m-payment systems. In-depth interviews with merchants from multiple retail categories were conducted to gain insight into their motivational drives, barriers, and challenges in the context of the adoption and implementation of m-payment systems in Malaysia. The results confirmed that the relative advantage of decreasing payment processing time and fees, convenience, and enhanced payment security features are some of the factors motivating merchants to adopt m-payment, while technological incompatibility, complexity, the cost of investment, and the lack of critical mass and knowledge are some of the factors discouraging merchants from doing so. Our findings further expand the limited knowledge of m-payment systems in the context of Malaysian merchants, which is valuable for industries and policymakers. The results of this study can be generalised to other m-payment systems in other countries - Apple Pay, Samsung Pay, and Android Pay, with Apple Pay, Alipay, and WeChat.     

Mobile payment and online to offline retail business models

Mobile payments are services that use mobile devices to make payments. When digitalization moves across channel boundaries, online to offline channel retail will expand. Online to offline retailing will become the future retail owner stream and retail operators will move from cross-channel or multi-channel to omni-channel. This study investigates a market survey in Taiwan developing a data mining analytics including clustering analysis and association rules based on a snowflake schema database design. The role of mobile payment is determined in terms of new retail payment mechanism that promotes a better consumer purchase experience in an online to offline business environment.     

What drives customers toward proximity payment services? An integrated theory of planned behavior perspective

Proximity mobile payment (PMP) services facilitate mobile payments between payer and payee who are at same location thorough a proximity technology such as QR codes, Bluetooth, and near-field communication. It has potential to drastically change consumers' payment methods in developing countries where traditional finance infrastructure is lacking. However, there are various challenges to adopting PMP in such countries. This study aims to explore users' opinions on and motivations for using PMP by proposing an extended theory of planned behavior (TPB) model. It also seeks to resolve inconsistencies in PMP adoption studies regarding the role of user's trust in PMP services. A survey instrument was used to collect data from PMP users in a developing country. The data were analyzed using structural equation modeling. This study highlights trust as a mitigator of the negative effect induced by the perceived risk of using PMP services. It also validates that the TPB, coupled with other contextual factors, explains the adoption of PMP services in developing countries.     

A Cashless Society for All: Determining Consumers’ Readiness to Adopt Mobile Payment Services

ABSTRACT

The technology readiness index was applied to determine consumers’ readiness to adopt mobile payment services and the moderating effect of gender. Gender has been identified as a key variable in adoption and its vital role in market segmentation and gender empowerment obliges its inclusion. The results of the regression analysis indicate that convenience and compatibility drive consumers’ adoption whereas risk, cost and insecurity are inhibitors. Furthermore, gender moderates only the relationship between convenience and the adoption of mobile payment services. Given the moderating effect of gender, companies should initiate advertising campaigns targeting women opinion leaders in advertisements, which can in turn encourage and educate other women to enjoy the convenience of mobile payments. Results provide insights on how to increase adoption and reduce the gender gap in mobile payment services.     

Evolution of the Payment Systems of London Clearing Banks

The London Clearing Banks (LCBs) have successfully used payment systems to establish a customer franchise, through which they have gained cheap retail deposits and provided lending and other services. Yet they have failed to price the service rationally. Market growth has dramatically increased the volume of payments, exacerbating the cost problem. To counter this, the LCBs have introduced additional payment mechanisms such as credit cards and Bankers' Automated Clearing Service (BACS); are introducing electronic fund transfer at point of sale (EFTPOS); and are further automating the existing cash and cheque-based system. The development of the clearing house, BA CS and EFTPOS demonstrates how payment systems impose co-operative policies to facilitate the transfer of funds and reduce costs, but such enforced co-operation ten& to lead to perfect competition, with uniform pricing policies. Competitors are in a strong position to operate more efficient and less expensive payments media for their customers. The dilemma facing the LCBs is therefore how to match this challenge and maintain their market position through further investment in payments technology, while maintaining their existing less efficient and more expensive payments media.     

User acceptance of ‘near field communication’ mobile phone service: an investigation based on the ‘unified theory of acceptance and use of technology’ model

Near-field communication (NFC) is a technology with service applications that include location-based service, mobile payment, peer gaming, and targeted advertising. Using the unified theory of acceptance and use of technology model, this study explores the factors that affect consumer acceptance of mobile phones with built-in NFC capability. The results indicate that Effort Expectancy has a positive effect on Performance Expectancy. Also, Performance Expectancy and Social Influence have a positive effect on Attitude Toward Use of Technology, but Anxiety has a negative effect on it. Finally, Attitude Toward Use of Technology is more significant than Facilitating Conditions in affecting Behavioral Intention.     

移动电子商务的发展与应用

移动通信技术的发展为移动电子商务的开展创造了条件,在此基础上阐述移动电子商务的具体应用如房产中介、人才市场、婚庆整合、旅游业、餐饮业等领域,虽然用户使用习惯有待改变,移动支付支撑系统还需完善,但移动电子商务的发展前景广阔。     

Why do stored value systems fail?

Stored value systems are the most recent form of electronic payment technology. They are meant to coexist with credit and debit technology, by primarily targeting the low value area of the transaction market. Being targeted at low value transactions, they are designed to have very low transaction cost. Stored value systems rely on creating a form of electronic value, on smart cards or as computer files. Such value can be bought (withdrawn) at any one time, and spent in arbitrary fractions at later times. When the technology emerged for its first implementations in the first half of the 1990s, it was much celebrated as a replacement for cash with many benefits over existing payment technologies. Many of these systems have subsequently been set up as trials, and the commercial rollout of some systems has started. However, actual usage of stored value systems is still low, much lower than was expected by the operators of the systems. Several years after the first trials were implemented, it is still unclear whether and when they will play a relevant role in the payments system market. And none of the trials that have been run can be considered a commercial success. This makes it necessary not only to assess the technology, but also the commercial future and user uptake of these systems. This revised version was published online in June 2006 with corrections to the Cover Date.     

The dark side of consumer life in the age of virtual and mobile technology

ABSTRACT

This study extends the nascent stream of research that investigates the contributions of mobile and virtual technology to consumer misbehaviour and dark side of consumer life. Using a qualitative approach, the present research explores the nature of consumer–technology relationship, specifically virtual and mobile technology, at the level of lived experience. The findings reflect eight important facets of technology-related dark-side consumer behaviour that, in one way or another, cause harm to the individual user, other consumers or society at large. These themes showcase human entrapment in mobile and virtual technology. The findings have significant implications for marketing managers as well as consumer well-being.     

中国地方政府财政赤字成因分析

基于1996—2010年中国大陆省级政府的相关数据,利用面板模型,对地方政府财政赤字成因进行分析。结果显示,对于东中西部三个地区来讲,中央政府对地方政府的财力性转移支付、中央政府对地方政府的专项转移支付、地方政府预算内非税收入、地方政府预算外非税收入和地方政府各税种收入对地方政府财政赤字的影响程度和方向具有差异性。要缩减地方政府财政赤字规模,需完善财力性转移支付制度等相关财税制度。     

Why do people use and recommend m-wallets?

In recent years, mobile wallets (m-wallets), a special form of mobile payment, have garnered much attention in various emerging markets. M-wallets were designed to offer customers swiftness, ease of use, efficiency, effectiveness, transparency, and accessibility. Despite these benefits, usage intentions and adoption of m-wallets in most emerging markets have been low, and they have not received widespread acceptance. Notably, existing research related to intentions to use (IUs) mobile payments has largely focused on developed economies and mobile payments in general. Additionally, few studies have examined intentions to recommend (ITRs), even though researchers have recognized that word-of-mouth is an important driver of consumer behavior. In the present study, we addressed the lack of specific findings on use and recommendation intentions in the context of m-wallets by conducting a large cross-sectional survey of 1256 smartphone users based on diffusion of innovation theory (DOI). Results revealed that relative advantage, compatibility, complexity, and observability were significantly associated with participants' intentions toward m-wallets. However, trialability had no association with participants’ intentions to use and recommend m-wallets to others.     

Point of adoption and beyond. Initial trust and mobile-payment continuation intention

Initial trust represents the trust that develops upon first use of a product. It is built on the basis of the net effect of factors that stimulate as well as inhibit it. Future transactions require less consumer effort after initial-trust formation. Despite being recognized as an important factor affecting the adoption of innovations, initial trust has been not been greatly explored by prior scholars. The present study remedies this gap by invoking the information systems success (ISS) model, transaction cost economics (TCE) theory, and the IT continuance model to propose a two-step framework that includes the antecedents of a pre-adoption factor, such as initial trust, and post-adoption factors, such as confirmation, perceived usefulness, satisfaction, and continuation intention toward mobile-based payments. Cross-sectional data of 954 first-time mobile-wallet users are analyzed to test the framework. The study findings suggest that information and service quality positively influence initial trust, which, in turn, has a positive association with confirmation and perceived usefulness. Results also reveal a positive relationship between perceived usefulness and continuation intention. These results pave the way for making useful recommendations for future researchers. The study also discusses various inferences that can improve managerial efficacy in promoting the use of mobile-based payment methods.