[PDF] Determinants for Consumer Adoption of Mobile Payment Technology | Semantic Scholar (2024)

FAQs

What are the determinants for consumer adoption of mobile payment technology? ›

Results – The results show that factors relating to Performance Expectancy, Social Influences, Facilitating Condition, Perceived Enjoyment, and Trust significantly affect the Behavioral Intention to use mobile payments to conduct online transactions. Effort Expectancy shows no significant effect.

A variety of models have been proposed to explain the factors affecting consumers' adoption of EPS. The customers' perception of EPS is mostly influenced by factors such as flexibility of the payment system, functionality, data management, privacy, and security of the system (Harris et al. 2011).

The detailed analysis of the related past studies has identified organization, trust and security, financial inclusion, consumer preferences, and government support as the primary determinants that impact mobile payment adoption.

Research results reveal that performance expectancy, social influence, and perceived information security have direct significant effects on consumer's behavioral intention to adapt the MPD. It is also found that effort expectancy has indirect effect on intention through performance expectancy.

Situational factors, personal factors, and psychological factors influence what you buy, but only on a temporary basis.

Way back in 1962, Everett Rogers, fondly known as the father of the Diffusion of innovations theory, listed five attributes which affect the rate of adoption: relative advantage, compatibility, complexity, trialability and observability.

Perceived value, trust, compatibility, and social influence were all found to have a substantial influence on behavioral intention; however, consumers are less likely to use an M-wallet on the basis of perceived enjoyment.

It is found that both perceived security and trust have positive impact on using e-payment systems. The results insist on technical and transaction procedures, and access to security guidelines being the most influential factors on perceived trust of customers.

Mobile payment can have a significant impact on consumer behavior, as it can affect how, when, where, and why they shop. For instance, it increases the impulse and frequency of purchases since consumers can pay with a tap or a scan without cash or cards.

What are the challenges facing mobile payment systems? ›

Challenges Faced at Mobile Payments

This lack of connectivity means funds cannot be seamlessly transferred or used across different apps, reducing convenience.

The group with the highest adoption were young Americans, with 82 percent of 25-34 year-olds saying they were likely to use mobile payment apps. Wearable contactless payment types were popular among survey respondents despite concerns over their security.

Positive reviews and recommendations from friends or family members can increase consumers' confidence in a particular smartphone, while negative reviews or negative social media attention can have the opposite effect. Marketing and advertising campaigns can also influence consumers' purchase intentions.

The 4 independent variables are price, quality, product features, brand, and social influences. Based on the previous studies, many factors influence consumers' purchasing decisions in choosing a mobile phone.

"System Availability" positively impacted satisfaction, while "Reliability" had a slight negative effect. Other factors like convenience, security, and trust, and accuracy also played significant roles.

There are various determinants or factors which are influencing the acceptability of EPS i.e. usefulness, trust, ease of use, security, cost, benefit, awareness, IT skills, flexibility and convenience [1].

The study to examine some factors that determine the e-banking service adoption such as trust, cost, privacy and security the other factors are not included in this study, the scope of the study is only from perspective of customers.