Mobile Payment Services, Government Involvement, and Mobile Network Operator Performance

Problem definition: Recent developments in mobile payment services (MPS) have shown an increasing role of mobile-government (m-government) initiatives in improving the market performance of mobile network operators (MNOs) and financial inclusion. High costs and operational challenges have discouraged MNOs from fully committing to the development of MPS, but government involvement under m-government may increase MNO user bases by providing the scale and scope necessary to incentivize MNOs. Academic/practical relevance: Extant research on mobile payment has ignored the role of governments as important stakeholders in the mobile financial ecosystem. Our research contributes to the literature by examining the role of governments as business partners in MPS launches and the effect of government involvement on MNO user bases. Methodology: Using a unique proprietary data set from the mobile network industry, we design a quasi-experiment to examine the causal effects of government involvement in MPS on MNOs’ total mobile connections. More importantly, we adopt a changes-in-changes (CIC) estimation approach to further establish nonlinear treatment effects of government involvement based on MNO size and MPS type. Results: We find that government involvement expands MNO user bases beyond MPS launches. Such effects increase with MNO size and MPS variety, favoring larger MNOs and, to a certain degree, MNOs with diverse offerings of government-involved MPS. Government involvement in MPS launches also directly benefits MNOs with microloan services. In addition, government regulations and policies to encourage financial inclusion can also expand MNO user bases. Managerial implications: Governments play a critical role in promoting technologies and financial services both as a regulator and as a business partner. To improve market performance, MNOs should take advantage of the scale and scope of government services by partnering with government agencies in launching MPS. MNOs should also embrace government policies and regulations to increase user bases.

An Artificial Intelligence-Based Approach to Model User Behavior on the Adoption of E-Payment

The growth of internet usage during the COVID-19 pandemic creates a new business avenue on e-payment for organizations to expand their business horizon. However, challenges on user-related factors arise with this new avenue. This study aims to investigate the association of these factors on the adoption of e-payment services using machine learning inference. An artificial intelligence-based analysis pipeline is established to study the impact of individual items of the dependent factors on the usage of e-payment. In the analysis pipeline, the important items were extracted using a hybrid artificial intelligence method, and the relationships of these items were inferred using the tree algorithm. The results show that items related to expectancy, facilitating conditions, user attitude, and performance expectancy affect usage of e-payment services. Participants below 25 years old require a gamification solution to adopt e-payment, and participants above 40 years old need social support.

I Am too old for this! Barriers contributing to the non-adoption of mobile payment

PurposeSince its inception, mobile payment is rapidly gaining popularity over the years, and starting to replace traditional modes of payment. The usage of mobile payments has further escalated following various precautionary measures (i.e. social distancing) in curbing the transmission of the COVID-19 outbreak. However, most of the elderlies are still sceptical about the usage of mobile payment services. The current study was set to investigate the impact of functional, psychological and risk barriers that resulted in elderlies' resistance towards using such services. The impact of stickiness to cash was also examined as a moderator on the investigated relationships.Design/methodology/approachOnline survey questionnaires were used to collect the responses from 400 elderly consumers at the age of 60 and above. Data analysis was then performed using the SPSS and AMOS statistical software packages.FindingsFindings obtained acknowledged the significance of functional (i.e. perceived complexity, perceived incompatibility and perceived cost), psychological (i.e. lack of trust, inertia, and technological anxiety) and risk (i.e. privacy risk, security risk, financial risk and operational risk) barriers in influencing resistance towards mobile payment services among the elderlies. Consequently, resistance would influence their attitude and non-adoption intention; with attitude as the mediator between resistance and non-adoption intention. Finally, moderation analysis also confirmed the moderating effect of stickiness to cash towards elevating the correlation between resistance and non-adoption intention.Originality/valueThis study is one of the very few studies that explored the minimally investigated territory on the consequential importance of mobile payment usage among the elderlies, specifically, through extending the literature on the impact of functional, psychological and risk barriers towards the individuals' resistance. Besides, this study also successfully contributed to existing body of knowledge by highlighting the mediating role of attitude and moderating role of stickiness to cash in the interrelationships between resistance, attitude and non-adoption intention.

Factors affecting usage of mobile payments by youth in Kazakhstan

Mobile payments are developing at a rapid pace in the modern world, affecting most areas of business, economics, and consumer life. Mobile payment services in Kazakhstan have emerged recently driven mostly by young and tech-savvy consumers. The current study applies the modified Technology Adoption Model to investigate the factors that influence the usage of mobile payments by young consumers in Kazakhstan. The data were collected from 351 respondents through an online survey using a structured questionnaire. The results of the multiple regression analysis revealed that perceived usefulness, perceived ease of use, transaction security, and trust are important determinants of mobile payment usage intention. These findings call for improvements in the technological development of mobile payment services to deliver usefulness, ease of use, and security, as well as marketing communications to build trust. On the other hand, no support was found for the effects of usage cost and availability of alternatives on behavioral intention to use mobile payments in Kazakhstan.

The Use of Mobile Payment Systems in Post-COVID-19 Economic Recovery: Primary Research on an Emerging Market for Experience Goods

This study investigated whether mobile payment services could drive post-COVID-19 pandemic recovery in the ‘experience goods’ sector (e.g., tourism) utilising Bandura’s self-efficacy or social cognitive theory. It explored the factors influencing the intention to continue using mobile payment services and the intention to recommend these to others. An empirical survey was conducted to assess the study variables, and the data obtained therefrom were analysed using the industry-standard Cross-Industry Standard Process for Data Mining method. The study results suggest that personal innovativeness and perceived trust influence consumers’ intention to continue using mobile payment services and that perceived trust, personal innovativeness and outcome expectancy influence consumers’ intention to recommend the use of such services to others. The research findings have filled a research gap in emerging markets and can serve as the basis for formulating a winning marketing and operational strategy for nascent technologies such as mobile payment services. It would be naïve to extract findings from mature markets such as East Asia, the European Union and the United States and to apply these to developing markets. In addition, this study’s investigation of the variables that can influence the intention to continue using mobile payment services and to recommend the use of these to others goes into the heart of the sustainability issue because the study’s findings can help mobile payment service providers sustain the use of their applications and thus also sustain the advantages as such.

Which Variables could Enhance Indonesian Consumers’ Intention in Adopting e-Payment as Consumers’ Main Payment Method?

This study was commenced to fully understand the impact that was given by both Security Risk and Perceived Usefulness in strengthening or enhancing Consumers' Intention to adopt or use E-Payment services as their main payment method every time consumers are conducting any buying or transactional activities toward any stores (either online stores or offline store) which they've visited. Implementing survey method, questionnaires were chosen and implemented as the main tools to collect and gather all of the required data from the respondents. A total of 200 respondents participated in this study, which, all of the respondents who participated in this study are those who've chosen and used E-Payment as their main payment method when they're conducting any transactional buying activities on any stores at least 5 times for the past 1 year. All of these data then were further analyzed, in which author would like to conclude that all of these data were valid, reliable, and usable to be further processed in this study. Using PLS-SEM as the main method in analyzing and processing all of the data gathered in this study, the author would like to conclude that both Security Risk and Perceived Usefulness have a significant impact on Indonesian Consumers' Intention to adopt E-Payment services as their main payment method for any transactional activities conducted by the consumers. Studi ini dilakukan guna mengetahui bagaimana pengaruh yang diberikan oleh Security Risk dan Perceived Usefulness terhadap Intensi Konsumen Indonesia di dalam mengadopsi serta menggunakan E-Payment sebagai metode pembayaran yang dipilih setiap kali konsumen melakukan transaksi pembelian produk ataupun jasa pada suatu toko tertentu. Adapun dengan menggunakan ataupun mengimplementasikan metode survei, penelitian ini menggunakan Kuesioner sebagai alat yang akan digunakan untuk mengumpulkan seluruh data yang diperlukan dari seluruh responden yang berpartisipasi pada studi ini. Sebanyak 200 responden berpartisipasi pada studi ini, yang dimana, seluruh responden merupakan Konsumen Indonesia yang pernah menggunakan E-Payment sebagai metode utama mereka di dalam melakukan berbagai aktivitas pembayaran atas transaksi yang dilakukan paling sedikit 5 kali dalam kurun waktu 1 tahun terakhir. Adapun setelah melakukan pengecekan secara menyeluruh terhadap seluruh data yang terkumpul, peneliti dapat menyimpulkan bahwa seluruh data yang terkumpul pada penelitian ini merupakan data yang valid, reliable serta dapat diproses secara lebih lanjut pada studi ini. Dengan menggunakan PLS-SEM sebagai metode pengolahan data yang dipilih pada studi ini, peneliti dapat menyimpulkan bahwa kedua variabel, yaitu Security Risk serta Perceived Usefulness berpengaruh signifikan terhadap Intensi Konsumen Indonesia di dalam mengadopsi serta menggunakan sistem E-Payment sebagai metode pembayaran utama yang dipilih ketika konsumen melakukan transaksi pembelian.

A Comparative Evidence of Income Levels Reflecting Gen Z’s Digital Payments Intention and Usage

The study investigating e-payment services intention and use behavior of generation Z – knowing as the digital native cohort. To better understand the effect of financial volatility, the present study has categorized the study groups into low-income and high-income levels in accordance with Thai minimum wages. The UTAUT theory has been adopted to examining Gen Z’s intention and behavior toward using e-payment services. The factors comprising of performance expectancy, effort expectancy, social influence expectancy, facilitating conditions affecting behavioral intention and use behavior. Thus, there was five main hypothesizes have developed based on the utilized theory. The findings illustrate the significant differences between the two study groups. The behavior of using e-payment services is significantly distinct by the high-income level of Gen Z would rather using the services than the low-income. For Gen Z who earn a low income, there is one hypothesis that is rejected – effort expectancy affecting behavioral intention. On the other hand, for the higher-income, two hypotheses have not been confirmed which are performance expectancy and social influence expectancy positively influence behavioral intention. Among those supported hypotheses, the effect of intention on use behavior is the strongest path relationship for both low-income (β = 0.761) and high-income levels (β = 0.576).