An investigation of mobile payment (m-payment) services in Thailand

Abstract

Purpose – Despite the significant efforts by the Thai Government to promote the use of mobile payment (m-payment) services, this new mode of financial payment has had limited consumer interest. Indeed, whilst it is seemingly desirable to facilitate the uptake of m-payment services given government promotion, limited research has been undertaken to examine the factors that might promote adoption. The purpose of this paper is to address this research gap. Design/methodology/approach – The study developed a conceptual model based on elements of innovation diffusion theory and technology acceptance. The model was empirically validated using structural equation modelling analysis using the responses gained from 529 Thai mobile phone users. The intercept interview/survey across eight different locations was the instrument used for data collection. Findings – The empirical results indicate that consumer adoption of m-payment services in Thailand was determined by four factors – compatibility, subjective norm, perceived trust, and perceived risk. Surprisingly, the construct of perceived usefulness, perceived ease of use, and perceived cost were found not to have a direct effect on behavioural intention. Research limitations/implications – The results regarding electronic payments highlight the importance of four factors that are fundamental in understanding consumer behaviour in regards to financial m-payments. The conceptual model developed in the study is well suited as a primary research framework to explore other aspect of technological innovation in a Thai context. Even though the model is not generalisable, it has the potential to be refined for use in other countries. The findings from the research contribute to the small, but growing number of studies focusing on technological business innovation in Thailand. Practical implications – The results of this study will be of value to various groups associated with m-payment services such as mobile network operators, financial institutions, and payment service providers. The findings will potentially inform appropriate service strategies and business models in order to improve the uptake of this type of financial payment by Thai consumers. The factors identified are significant in informing how the capacity of the Thai Government’s investment in electronic infrastructure could be more fully utilised. Originality/value – This study adds to the literature by bridging the gap in explaining consumer intentions to adopt new technological services amongst people who know about the service but have not adopted it as yet. Moreover, this paper is a pioneer study about the adoption of m-payment services in Thai setting.

A Comparative Study of Current and Potential Users of Mobile Payment Services

“…SN is another important factor that influenced the uptake of m-payment services among current and potential users. Previous work has indicated that SN reflects the influence of work colleagues, friends, and family as a critical determinant in an individual's decision-making process regarding the use of m-payment services (Keramati et al, 2012;Nguyen et al, 2016;Phonthanukitithaworn et al, 2016;Schierz et al, 2010;Shin, 2010;Yan et al, 2009;S. Yang et al, 2012).…”

“…COM has been identified as an important factor with regard to the adoption of m-payment services (L. Chen, 2008;Mallat & Tuunainen, 2008;Phonthanukitithaworn et al, 2015Phonthanukitithaworn et al, , 2016Schierz et al, 2010;Wu & Wang, 2005). For instance, L. Chen (2008) proposed that m-payment services are likely to be highly desirable when people find that using such services is compatible with their lifestyle and social image.…”

“…Many studies that investigate m-payment service adoption have selected the TAM over other theories because it allows a causal validation of variables (M. Chen & Teng, 2013;J. B. Kim, 2012;Phonthanukitithaworn et al, 2015Phonthanukitithaworn et al, , 2016, an exploration of the adoption of m-payment services (Goeke & Pousttchi, 2010;Keramati et al, 2012;C. Kim et al, 2010;Koenig-Lewis, Palmer, & Moll, 2010;Nguyen et al, 2016;Schierz et al, 2010;Shin, 2010;Yan et al, 2009;Zhou, 2011), and a comparison through multi-group analysis (C. Kim et al, 2010;Liébana-Cabanillas et al, 2014a, 2014bLu et al, 2011;G.…”

“…However, the findings of these studies tend to be reported from the perspective of a single group, such as potential m-payment users (Garrett et al, 2014;Keramati et al, 2012;Schierz et al, 2010;Shin, 2010), people who make online payments (Lu et al, 2011), Internet users (Liébana-Cabanillas, Sánchez-Fernández, & Muñoz-Leiva, 2014a, 2014b, mobile phone owners (Bamasak, 2011;L. Chen, 2008;Nguyen et at., 2016;Phonthanukitithaworn et al, 2016;G. E. Tan et al, 2014;Zhou, 2011Zhou, , 2013, and specific m-payment users (Arvidsson, 2014;C.…”

“…1 Mahidol University International College, Nakhon Pathom, Thailand 2 Victoria University, Melbourne, Australia associated with m-payment services in terms of convenience and flexibility (Phonthanukitithaworn, Sellitto, & Fong, 2016).…”