Drivers of mobile payment acceptance: The impact of network externalities

Abstract

Mobile payment is an attractive option that has recently boomed because of the advent of smart phones and their applications. Despite the great potential of such technology in simplifying our lives, its uptake remains limited. As the technology acceptance fails to meet expectations, this study aims at providing a better understanding of the factors influencing mobile payment acceptance. Through an empirical investigation that couples the traditional technology acceptance factors with Bnetwork externalities^effect. This study hypothesized that performance expectancy, effort expectancy; social influence, trust, and network externality are major factors that influence the intention to use mobile payment. Results indicated that while the traditional acceptance drivers still impact customers' willingness to adopt mobile payment, network externalities was the most influential driver of mobile payment acceptance. Results also failed to support the influence of effort expectancy. Conclusions and future work propositions are stated at the end.

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

“…The above mobile payment definitions refer to some kind of monetary value transfer with three main entities: the mobile service provider (e.g., Standard Bank's SnapScan), the mobile payment vendor (e.g., the merchant), and the mobile technology in use (e.g., 3G network) (Qasim & Abu-Shanab, 2015). For the purpose of this study, mobile payment is defined as the ability of a mobile phone user to initiate, authorise, and complete a financial transaction, in which money or funds are transferred over the mobile network, or via the wireless communication technologies to the receiver through the use of a mobile device (Slade et al, 2014).…”

“…Proximity payments are also referred to as mobile pointof-sale (mPOS) payments to represent payments that take place when the customer is in close proximity to the merchant (GSMA, 2015). In this type of payment, the credentials of the transaction are stored on the mobile phone and exchanged within a small distance by using barcode scanning or radio frequency identification (RFID) technology (Qasim & Abu-Shanab, 2015).…”

Factors Influencing Malaysian Consumers’ Intention to Use Quick Response (QR) Mobile Payment

“…Mobile payment refers to the integration of mobile technology and online payment system which allows consumers to make payment for goods and services (Qasim & Abu-Shanab 2015) in which they have the ability to initiate, authorise, and complete a financial transaction either through mobile network or wireless communication technologies (Slade et al 2015). There are two types of mobile payment which include proximity mobile payment (PMP) and remote mobile payment (RMP) (Zhou 2013).…”

“…There are two types of mobile payment which include proximity mobile payment (PMP) and remote mobile payment (RMP) (Zhou 2013). Proximity mobile payment requires consumers to be in a close proximity to the merchant (Humbani & Wiese 2017) in which credentials of the transactions are stored on the mobile phone and exchanged within a small distance by using barcode scanning or radio-frequency identification (RFID) technology (Qasim & Abu-Shanab 2015). This means that there is a direct interaction between a buyer and a seller who are physically near each other.…”

“…The importance of mobile payment has been recognised by many and yet the uptake of this technology remains limited (Qasim & Abu-Shanab 2015). As such, it has come to no surprise that extensive number of studies have been conducted regarding mobile payment adoption (Dahlberg et al 2015).…”