Understanding the impact of financial incentives on NFC mobile payment adoption

Abstract

Purpose The purpose of this paper is to investigate the effects of financial incentives on consumers’ intention to adopt near field communication (NFC) mobile payment. Design/methodology/approach An online experiment was conducted crossing two levels of incentive types (cash back and discount), two levels of incentive amounts (5 and 10 percent), and two levels of incentive promotion periods (one and three months). A total of eight treatment conditions plus one control group comprised the 2×2×2 factorial design. A sample of 463 subjects with no prior experience with NFC mobile payment was recruited using a Qualtrics panel. Findings This study found that: the availability of financial incentives had a positive effect on intention to adopt NFC mobile payment; financial incentives indirectly affected intention through perceived risk; and while different types, amounts or promotion periods did not seem to matter for those in the low perceived risk group, the main effect of promotion period and the interaction effect between amount and promotion period were significant for those in the high perceived risk group. Research limitations/implications The study sample was limited from 18 to 35 age group, which could have affected the varied effect of the different attributes of incentives that were examined. Originality/value This study is the first to give some empirical evidence about the impact of financial incentives on NFC mobile payment adoption. The results provide insight to providers as well as retailers offering the incentive payment option.

Understanding the Determinants of Wearable Payment Adoption: An Empirical Study

“…In the m-payment context, researchers (e.g., Alaeddin et al, 2018;Kalinic et al, 2019a;Liébana-Cabanillas et al, 2014bMatemba & Li, 2018;Ramos de Luna et al, 2016;Su et al, 2018;Zhao et al, 2019) have used TAM. UTAUT/UTAUT2 were used by other researchers (e.g., Gupta & Arora, 2019;Madan & Yadav, 2016;Oliveira et al, 2016;Shaw, 2015;Wang & Yi, 2012;Widodo et al, 2019).…”

“…However, perceived trust, social value, and convenience were insignificant in influencing users' satisfaction. Zhao et al (2019) extended TAM with financial incentives and perceived risk to investigate the factors which identified consumers' intention to adopt NFC m-payments. Their study found that the availability of financial incentives did not have a direct effect on intention to adopt NFC m-payment; however, financial incentives indirectly affected consumers' intention through perceived risk.…”

“…Second, examining the adoption of wearable payments in the State of Kuwait, where to date no similar research study has been conducted, is an important contribution. Third, while previous studies primarily investigated positive factors that influence users' behavioral intention to adopt m-payments (e.g., Bailey et al, 2017;Chawla & Joshi, 2019;Hampshire, 2017;Lee et al, 2020;Zhao et al, 2019), inhibiting factors received little attention (e.g., Leong et al, 2020;Liu et al, 2019). However, inhibiting factors can play a vital role in preventing users from adopting a new technology (Hoehle et al, 2012).…”

Analisis Faktor-Faktor yang Mempengaruhi Niat untuk Menggunakan Mobile Payment pada Masyarakat Kota Batam

“…Penelitian oleh Ma et al (2018) menemukan bahwa resiko keuangan memiliki efek negatif pada niat pengguna untuk menggunakan mobile payment, dikarenakan ketika pengguna merasakan adanya resiko kerugian finansial pada penggunaan mobile payment, niat pengguna untuk menggunakan mobile payment tersebut akan melemah. Ini mendukung hasil beberapa studi termasuk penelitian oleh Zhao et al (2019).…”

“…Hasil pengujian ini didukung oleh beberapa penelitian yang telah dilakukan oleh Pauchard (2019), Reith et al (2019), Zhao et al (2019) dan Ma et al (2018) yang menemukan bahwa adanya pengaruh signifikan negatif dari persepsi resiko keuangan terhadap niat penggunaan mobile payment. Bisa diambil kesimpulan bahwa persepsi resiko keuangan merupakan faktor penentu yang berpengaruh terhadap intensi penggunaan mobile payment.…”