Role of risk perception and situational factors in mobile payment adoption among small vendors in unorganised retail

Abstract

This article focuses on studying the inter-relationships among various types of perceived risk and assessing the degree of perceived risk (PR) in the Adoption of MPS by Retailers in India. After digging into the extensive literature, it was found that situational factors are overlooked in literature. To overcome mentioned limitations, a model to suit a developing country context is presented. Moderating impact of demographic and situational/contextual variables (age, gender, facilitating conditions, user context and customer attribute) have been examined. A quantitative methodology to investigate the correlational paths was used. The data was collected from a sample of 349 small vendors using a cross-sectional survey. Hypothetical relationships were examined using structural equation modelling (SEM) based on the covariance-based analysis, i.e., analysis of moment structures (AMOS). The effect of the moderators was examined using the Interaction effect and multi-group analysis (MGA) method. The findings of moderating factors revealed that subjects, regardless of gender, older in age are influenced by perceived risk. From the situational/contextual perspective, customer attribute does not affect the relation of PR and BI as much as facilitating condition and use context do. Supplementary Information The online version contains supplementary material available at 10.1007/s10660-022-09657-2.

Cash holding by consumers: The role of the perceived characteristics of money

“…An important strand of discussion on the relative perception of payment channels concerns the perceived risk (Karoubi et al, 2016; Kosse, 2013; Park et al, 2019; Ramtiyal et al, 2022). However, the discussion of risk perception when making card or mobile payments has thus far been dominated by issues related to theft and robbery (Karoubi et al, 2016; Kosse, 2013).…”

Small businesses and FinTech: a systematic review and future directions

“…Due to the nature and certain constraints of small businesses, the adoption of mobile payment services is mainly motivated by technological characteristics like accessibility and ease of use [ 33 , 126 ], cost of technology [ 33 , 120 , 122 , 169 ], usefulness/utility [ 104 , 160 , 169 ]. The very nature of payment technology and its complexity [ 56 , 122 , 174 ], compatibility with technology [ 56 , 160 ], and risk with technology [ 145 ] influence the adoption decisions. Transaction time [ 122 , 126 ] and transaction security [ 56 , 120 , 122 ] also influence the adoption decision of small businesses.…”

“…Personal factors like previous experience with technology [ 104 ], trust in technology [ 101 , 169 ], demographic factors like age, gender, and education [ 33 , 145 , 168 ], innovativeness, and awareness of merchants [ 120 ] influence their decision while adopting mobile payment services.…”

“…The decision to use these services is not limited to internal factors; external factors like a critical mass of customers and customer pressure [ 168 , 174 ], competitive pressure from the industry environment [ 56 , 168 ], assistance by payment platform [ 174 ] and facilitating conditions [ 145 ] as the macro environment at ecosystem level like technical infrastructure [ 56 ], regulatory and policy environment [ 56 , 120 , 174 ], promotion of technology by the non-regulatory actor of the ecosystem [ 120 ] are some of the critical factors which govern the adoption and usage of mobile payment in small businesses.…”