Reconnoitering the Effects of Risk and Knowledge on Use Intention for E-money Services Among Saudi Arabian Residents

Abstract

Technology impacts human life in multiple ways, and the internet offers the facility to perform traditional money transactions instantly. However, technology adoption is risky, and numerous risks hinder the intention formation from using e-money services. The current work investigates four types of associated risks (financial, service, time, and psychological risk) impacting the use intention for e-money services among Saudi Arabian and estimating the effect of e-money services knowledge on the use intention. For the existing cross-sectional study, quantitative data were collected in Saudi Arabia on social media. Analysis was executed with 328 valid sample data with the partial least square structural equation modeling software SmartPLS 3.3. Results revealed that e-money services’ financial, time, and service risks insignificantly influence the e-money usage intention. However, psychological risk and knowledge about e-money services significantly influence the use intention for e-money services. E-money services firms reduce financial, time, and service risk perceptions. Improving knowledge of e-money services and reducing the psychological risk build a favorable usage intention. The results help develop appropriate management and policy guidelines to facilitate Saudi Arabia to become a cashless society by 2030. The study’s limitations and future research options are stated at the end.

Investigating the Components of Perceived Risk Factors Affecting Mobile Payment Adoption

“…Öztürk (2022) also reported a significant relationship between psychological risk and attitudes towards halal products. However, these findings contrast with those by Salameh et al (2024) and Zhu et al (2022), who found no significant relationship between psychological risk and the intentions to use e-money services and mobile payments, respectively, among Thai consumers. These mixed results underscore the importance of addressing psychological barriers to enhance the acceptance of mobile payment systems.…”

“…These findings align with those of Yang et al (2015) and Masoud (2013), who observed no significant impact of time risk on the intentions to use mobile payments and online shopping, respectively. Similarly, Salameh et al (2024) found no significant relationship between time risk and the intention to use e-money services. However, this study's results contrast with those of Almousa (2011), Zhu et al (2022), and Munikrishnan et al (2023, who identified a significant influence of time risk on online shopping and mobile payment attitudes.…”

“…Agárdi and Alt (2022) observed no significant impact of financial risk on NFC mobile payment intentions among Generation Z. Similarly, Zhu et al (2022), Munikrishnan et al (2023), Nguyen et al (2021), andSalameh et al (2024) all reported no significant relationship between financial risk and various types of online payment intentions. Contrarily, Masoud (2013) found a significant negative relationship between financial risk and online shopping intention, indicating that the influence of financial risk might vary across different contexts and payment technologies.…”

“…Therefore, in the mobile payment environment, the following hypothesis is proposed: Perceived risk is a significant factor influencing consumer behavior (Nguyen et al 2020;Widyanto et al 2022) and comprises component risks such as performance, financial, time, psychological, and social risks. The impact of these component risks on consumer behavior varies depending on the nature of the goods and services involved in the transaction (Salameh et al 2024).…”