Exploring the Factors that Have Impact On Consumers’ Trust in Mobile Payment Systems in Australia

Abstract

Trust plays a vital role in the adoption of a new payment system in so far as people need to trust that the prevailing currency, or in other words, money, is recognized by all stakeholders. With the evolution of the payment methods, shifting from paper-based to electronic-based, building consumer trust has become a vital element for the success of businesses involved in the mobile payment systems sector. In this context, the aim of this study was to delve deeper into the factors that have impact on consumers trust in mobile payment systems (MPS) in Australia. A quantitative approach through a questionnaire survey was conducted to measure the data collected. The data of 200 participants were gathered using SurveyMonkey and the Excel spreadsheets was imported into SPSS (Statistical Package for the Social Sciences) system, where the data were organised. Besides, this study adopted the Partial Least Square Structural Equation Modeling (PLS-SEM), where the data analysis took place. The findings of PLSSEM analysis pointed out that behavioural factors and organisational factors have significant impact on consumers’ trust, and this, as a consequence, have influence on MPS adoption. On the other hand, this research found that the technological factors, governmental factors and personal factors have no significant impact on Australian consumers’ trust and this, as a result, has no influence on MPS adoption.

Analysis of the Effect of Financial Literacy, Practicality, and Consumer Lifestyle on the Use of Chip-Based Electronic Money Using SEM

“…Changes in the value of R-Square can be used to explain whether certain latent variables on the dependent variable have a substantive effect. R-Square values of 0.75, 0.50, and 0.25 can be concluded that the model is strong, moderate, and weak [28,30]. The summary of the evaluation criteria for the structural model can be seen in Table 3.…”

“…The software used is Smart PLS 3.0. In general, two main stages must be carried out in testing the SEM method, namely: evaluation of the measurement model and evaluation of the structural model [28,30].…”

“…In addition, the element presents a direct influence on the variable st in the variable η. It is assumed that st is not correlated with ζ and 1 − B is nonsingular [30,33]. The form of the structural model is obtained in the following order:…”

“…A similar analysis was also carried out by Gerrans et al (2013) [29]. Mondego and Gide (2020) [30] conducted a study to identify more deeply the factors that influence consumer confidence in the mobile payment system (MPS) in Australia. The study used a quantitative approach based on data from a questionnaire survey of 200 respondents.…”

“…Based on the description above, the research in this paper was carried out by referring to Yang, et al (2021) [28], Mondego and Gide (2020) [30], and Khatimah et al (2019) [33], although their research did not specifically analyze the factors that influence financial literacy, practicality, and consumer lifestyle on the use of electronic money. Therefore, this paper intends to analyze the effect of financial literacy, practicality, and consumer lifestyle on the use of chip-based electronic money.…”