Factors Influencing Consumer Trust in Mobile Payments in the United Arab Emirates

Abstract

<p>While mobile payments have been adopted by a huge number of businesses, the body of knowledge regarding user trust in mobile payments shows that trust is a major issue in its adoption and development. The purpose of this study was to better understand the factors that influence consumer trust in mobile payments in one significant country in this region; The United Arab Emirates (UAE) as the research region. The UAE is one of the leading economies in the Middle East Arab region, and mobile technology is well advanced and widely utilised. An analysis of relevant literature provided the basis for the development of a conceptual model. The model, classified into five logical groups (consumer characteristics, environmental influences, provider characteristics, perceived risks and mobile-device characteristics), was further explored, validated, extended and tested through a mixed-method methodology, combining both qualitative (phase one) and quantitative (phase two) approaches, with semi-structured interviewing in exploratory focus groups and an online survey being used respectively. The findings of the qualitative phase were used to clarify the appropriateness of the preliminary Consumer Trust in Mobile Payments (CTMP) model, which was accordingly revised and extended. The second phase (the quantitative approach) was based on a survey of 340 respondents in the UAE. The collected data were analysed by using Structural Equation Modelling with the Partial Least Squares (PLS-SEM) approach. Many of the factors in the qualitative CTMP model were successfully validated and statistically significant. The resulting, quantitatively weighted CTMP model shows that users‟ awareness and provider‟s trustworthiness are the most positive influential factor, followed by perceive security levels and device-design suitability. Customers‟ uncertainty avoidance, on the other hand, is the most negatively influential factor on trust, followed by perceived privacy risks associated with m-payments. The model contributes towards better acceptance and usage of mobile payments. The findings also provide a number of theoretical implications for academic research and useful information for practitioners.</p>

Analisis Faktor-Faktor Penggunaan Aplikasi Dompet Digital Melalui Techonology Acceptance Model (Tam)

“…Perceived trust dapat diartikan bahwa individu menaruh kepercayaan pada aplikasi dompet digital untuk melakukan transaksi finansial dengan aman. Kepercayaan terjalin di antara dua pihak, yakni trustor dan trustee, dan didasarkan pada kejujuran dan kebajikan untuk mencapai saling menguntungkan (Shuhaiber, 2016). Kepercayaan di arena dompet digital ini, trustee adalah pengguna sementara trustor adalah developer atau pemegang industri dompet digital.…”

Analysis of Demand and Supply for Mobile Payments in the UAE during COVID-19

“…Indeed, with the progression in technology and the development of intelligent mobile payment systems, this has changed with a younger generation keen on online shopping and using the mobile wallet as a payment instrument. Engagement levels can be used to assess e-commerce and the increase in digital wallet use in the UAE (Shuhaiber 2016). The importance of a cashless society and mobile payment systems became very popular, and the market experienced various new players, both local and international (Pal et al 2021).…”