Limitations to the rapid adoption of M-payment services: Understanding the impact of privacy risk on M-Payment services

M-payment services offer many advantages over traditional payment services and analysts have predicted their explosive growth for years. However, despite touted advantages, adoption has been slow. Recent announcements of m-payment services by high-profile providers such as Apple, Google, and PayPal, along with increased vendor support, may spark renewed interest. However, it is unclear whether this will be enough to trigger the long anticipated large-scale adoption. We present a study based on diffusion of innovation theory to investigate the impact of factors influencing m-payment service adoption. In addition, we explore the impact of perceived ubiquity, security, and privacy risk. A sample of 270 survey responses were collected using crowdsourcing and analyzed using SmartPLS. Results of the study indicated that ease of use, relative advantage, visibility and perceived security positively influence the individual's intention to use m-payment services. In addition, ubiquity and trialability positively influence the individual's perception of security while concerns over privacy risks negatively influences perceptions of security. We also discovered that over 46% of those responding to the survey identify as being current users of m-payment services which may suggest a renewed interest on the part of the consumer. Ease of use, relative advantage, visibility and perceived security impact usage.Ubiquity and trialability positively impacts perceived security.Perceived privacy risk negatively impacts perceived security.Study utilized crowdsourcing using Mechanical Turk.46.3% of respondents identified themselves as current users of m-payment services.

[1]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[2]  Per E. Pedersen,et al.  Intentions to use mobile services: Antecedents and cross-service comparisons , 2005 .

[3]  Jorgen P. Bansler,et al.  Corporate Intranet Implementation: Managing Emergent Technologies and Organizational Practices , 2000, J. Assoc. Inf. Syst..

[4]  Tiago Oliveira,et al.  Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology , 2013, Comput. Hum. Behav..

[5]  P. Pavlou,et al.  Perceived Information Security, Financial Liability and Consumer Trust in Electronic Commerce Transactions , 2002 .

[6]  Ritu Agarwal,et al.  A Conceptual and Operational Definition of Personal Innovativeness in the Domain of Information Technology , 1998, Inf. Syst. Res..

[7]  Fred D. Davis.  Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology , 1989, MIS Q..

[8]  Tara S. Behrend,et al.  The viability of crowdsourcing for survey research , 2011, Behavior research methods.

[9]  E. Rogers.  Diffusion of Innovations , 1962 .

[10]  Bernd W. Wirtz,et al.  Understanding consumer acceptance of mobile payment services: An empirical analysis , 2010, Electron. Commer. Res. Appl..

[11]  Todd M. Gureckis,et al.  CUNY Academic , 2016 .

[12]  Panagiotis G. Ipeirotis,et al.  Running Experiments on Amazon Mechanical Turk , 2010, Judgment and Decision Making.

[13]  Michael Massoth,et al.  Performance of Different Mobile Payment Service Concepts Compared with a NFC-Based Solution , 2009, 2009 Fourth International Conference on Internet and Web Applications and Services.

[14]  H. Proshansky,et al.  Some analytic dimensions of privacy , 1973 .

[15]  Niina Mallat,et al.  Exploring consumer adoption of mobile payments - A qualitative study , 2007, J. Strateg. Inf. Syst..

[16]  Margaret Tan,et al.  Factors Influencing the Adoption of Internet Banking , 2000, J. Assoc. Inf. Syst..

[17]  Tao Zhou,et al.  The effect of initial trust on user adoption of mobile payment , 2011 .

[18]  Christine Hallier Willi,et al.  Virtual brand-communities using blogs as communication platforms and their impact on the two-step communication process : a research agenda , 2013 .

[19]  C. Goodwin.  Privacy: Recognition of a Consumer Right , 1991 .

[20]  Torsten Hägerstrand,et al.  Innovation Diffusion As a Spatial Process , 1967 .

[21]  Donald L. Amoroso,et al.  Building a Research Model for Mobile Wallet Consumer Adoption: The Case of Mobile Suica in Japan , 2012, J. Theor. Appl. Electron. Commer. Res..

[22]  Shuiqing Yang,et al.  Dynamics between the trust transfer process and intention to use mobile payment services: A cross-environment perspective , 2011, Inf. Manag..

[23]  Juan Sánchez-Fernández,et al.  Antecedents of the adoption of the new mobile payment systems: The moderating effect of age , 2014, Comput. Hum. Behav..

[24]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[25]  Icek Ajzen,et al.  From Intentions to Actions: A Theory of Planned Behavior , 1985 .

[26]  Fiona Fui-Hoon Nah,et al.  The Impact of Security Cues on User Perceived Security in e-Commerce , 2016, HCI.

[27]  H. Harman.  Modern factor analysis , 1961 .

[28]  Swathi S. V. P. Rayala,et al.  I Don't Use Apple Pay Because It's Less Secure ...: Perception of Security and Usability in Mobile Tap-and-Pay , 2017 .

[29]  Nilmini Wickramasinghe,et al.  Security of a Mobile Transaction: A Trust Model , 2004, Electron. Commer. Res..

[30]  Carl Adams,et al.  Short-range wireless technologies with mobile payments systems , 2004, ICEC '04.

[31]  T. Bhatti,et al.  Journal of Internet Banking and Commerce , 2022 .

[32]  Rolph E. Anderson,et al.  Multivariate Data Analysis (7th ed. , 2009 .

[33]  K. Sheehan,et al.  An Analysis of Data Quality: Professional Panels, Student Subject Pools, and Amazon's Mechanical Turk , 2017 .

[34]  Michael D. Buhrmester,et al.  Amazon's Mechanical Turk , 2011, Perspectives on psychological science : a journal of the Association for Psychological Science.

[35]  A. Palmer,et al.  Enjoyment and social influence: predicting mobile payment adoption , 2015 .

[36]  John Leubsdorf,et al.  Privacy and Freedom , 1968 .

[37]  Saleem Kadhiwal,et al.  Analysis of mobile payment security measures and different standards , 2007 .

[38]  Manoj A. Thomas,et al.  Mobile Payment , 2013, Springer Fachmedien Wiesbaden.

[39]  Matti Rossi,et al.  The impact of use context on mobile services acceptance: The case of mobile ticketing , 2009, Inf. Manag..

[40]  Fergal Carton,et al.  Framework for Mobile Payments Integration , 2012 .

[41]  Pin Luarn,et al.  AIS Electronic Library (AISeL) , 2017 .

[42]  Dong-Hee Shin,et al.  The effects of trust, security and privacy in social networking: A security-based approach to understand the pattern of adoption , 2010, Interact. Comput..

[43]  Tamara Dinev,et al.  An Extended Privacy Calculus Model for E-Commerce Transactions , 2006, Inf. Syst. Res..

[44]  Izak Benbasat,et al.  Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation , 1991, Inf. Syst. Res..

[45]  Thomas F. Stafford,et al.  Perceived critical mass and the adoption of a communication technology , 2007, Eur. J. Inf. Syst..

[46]  Aniket Kittur,et al.  Crowdsourcing user studies with Mechanical Turk , 2008, CHI.

[47]  Xianhao Xu,et al.  Drivers and barriers in the acceptance of mobile payment in China , 2011, 2011 International Conference on E-Business and E-Government (ICEE).

[48]  Lei-da Chen,et al.  Enticing online consumers: an extended technology acceptance perspective , 2002, Inf. Manag..

[49]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[50]  Lei-da Chen,et al.  Mobile Payment Adoption in the US: A Cross-industry, Crossplatform Solution , 2005 .

[51]  Kenneth L. Kraemer,et al.  Innovation diffusion in global contexts: determinants of post-adoption digital transformation of European companies , 2006, Eur. J. Inf. Syst..

[52]  Collin Mulliner,et al.  Vulnerability Analysis and Attacks on NFC-Enabled Mobile Phones , 2009, 2009 International Conference on Availability, Reliability and Security.

[53]  Denis Dennehy,et al.  Developing a framework for mobile payments integration , 2012 .

[54]  Konstantin Hyppönen,et al.  Utilizing national public-key infrastructure in mobile payment systems , 2008, Electron. Commer. Res. Appl..

[55]  H. Raghav Rao,et al.  A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents , 2008, Decis. Support Syst..

[56]  Chin-Lung Hsu,et al.  Adoption of the mobile Internet: An empirical study of multimedia message service (MMS) , 2007 .

[57]  George Parisis,et al.  An open financial services architecture based on the use of intelligent mobile devices , 2008, Electron. Commer. Res. Appl..

[58]  Hal G. Gueutal,et al.  A Field Experiment Comparing Information-Privacy Values, Beliefs, and Attitudes Across Several Types of Organizations , 1983 .

[59]  Gerhard P. Hancke,et al.  Practical NFC Peer-to-Peer Relay Attack Using Mobile Phones , 2010, RFIDSec.

[60]  Gordon B. Davis,et al.  User Acceptance of Information Technology: Toward a Unified View , 2003, MIS Q..

[61]  William D. Stuart.  Influence of sources of communication, user characteristics and innovation characteristics on adoption of a communication technology , 2001 .

[62]  Tomi Dahlberg,et al.  Past, present and future of mobile payments research: A literature review , 2008, Electron. Commer. Res. Appl..

[63]  Suhuai Luo,et al.  Evaluating the utilisation of mobile devices in online payments from the consumer perspective , 2010 .

[64]  J. Colquitt,et al.  TRENDS IN THEORY BUILDING AND THEORY TESTING: A FIVE-DECADE STUDY OF THE ACADEMY OF MANAGEMENT JOURNAL , 2007 .

[65]  P. Donnelly,et al.  A Fine-Scale Map of Recombination Rates and Hotspots Across the Human Genome , 2005, Science.

[66]  Niklas Arvidsson.  Consumer attitudes on mobile payment services : results from a proof of concept test , 2014 .

[67]  Jesse J. Chandler,et al.  Inside the Turk , 2014 .

[68]  Steinar Kristoffersen,et al.  Users' perception of mobile payment , 2008 .

[69]  In Lee,et al.  An empirical examination of factors influencing the intention to use mobile payment , 2010, Comput. Hum. Behav..

[70]  J KauffmanRobert,et al.  The economics of mobile payments , 2008 .

[71]  A. Hayes.  Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium , 2009 .

[72]  Dong-Hee Shin,et al.  Modeling the Interaction of Users and Mobile Payment System: Conceptual Framework , 2010, Int. J. Hum. Comput. Interact..

[73]  Vess Johnson,et al.  A Survey of Core Research in Information Systems , 2013, SpringerBriefs in Computer Science.

[74]  Babak Akhgar,et al.  Establishing Mobile NFC Payment Systems and Future Prospect , 2008, IKE.

[75]  Harry Bouwman,et al.  An assessment of advanced mobile services acceptance: Contributions from TAM and diffusion theory models , 2008, Inf. Manag..

[76]  R. Steele,et al.  Classifying m-Payments: A User-Centric Model , 2004 .

[77]  I. Ajzen,et al.  Attitudinal and normative variables as predictors of specific behavior. , 1973 .

[78]  Shuo Zhou,et al.  Analyze on Mobile Payment Based on RFID , 2011 .

[79]  Hao Zhou,et al.  Smart phone for mobile commerce , 2009, Comput. Stand. Interfaces.

[80]  A. W. Roscoe,et al.  The Missing Link: Human Interactive Security Protocols in Mobile Payment , 2010, IWSEC.

[81]  Leonard Kleinrock,et al.  Nomadicity: Anytime, Anywhere in a Disconnected World , 1996, Mob. Networks Appl..

[82]  Lei da Chen,et al.  A model of consumer acceptance of mobile payment , 2008, Int. J. Mob. Commun..

[83]  David J. Ketchen,et al.  Addressing Common Method Variance: Guidelines for Survey Research on Information Technology, Operations, and Supply Chain Management , 2011, IEEE Transactions on Engineering Management.

[84]  Michelle Rowe,et al.  Diffusion of Innovation - The Adoption of Electronic Commerce by Small and Medium Enterprises (SMES)- A Comparative Analysis , 2005, Australas. J. Inf. Syst..

[85]  Tao Zhou,et al.  User Adoption of Location-based Services , 2011, Ind. Manag. Data Syst..

[86]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[87]  Al-Dala'in Thair,et al.  Consumer acceptance of mobile payments: An empirical study , 2010, 4th International Conference on New Trends in Information Science and Service Science.

[88]  Slade Emma.  Mobile payment adoption: Classification and review of the extant literature , 2013 .

[89]  Robert J. Kauffman,et al.  The economics of mobile payments: Understanding stakeholder issues for an emerging financial technology application , 2008, Electron. Commer. Res. Appl..

[90]  Ritu Agarwal,et al.  The Role of Innovation Characteristics and Perceived Voluntariness in the Acceptance of Information Technologies , 1997 .

[91]  Ming-Chien Hung,et al.  An Examination of the Determinants of Mobile Shopping Continuance , 2012, Int. J. Electron. Bus. Manag..

[92]  Lien Fu Lai,et al.  Fuzzy Knowledge Management through Knowledge Engineering and Fuzzy Logic , 2010, J. Convergence Inf. Technol..

[93]  Jung P. Shim,et al.  Factors influencing corporate web site adoption: a time-based assessment , 2001, Inf. Manag..

[94]  Ibrahim M. Al-Jabri,et al.  Mobile Banking Adoption: Application of Diffusion of Innovation Theory , 2012 .

[95]  Rudolf R. Sinkovics,et al.  The Use of Partial Least Squares Path Modeling in International Marketing , 2009 .

[96]  Thair Al-Dala,et al.  Evaluating the Utilisation of Mobile Devices in Online Payments from the Consumer Perspective , 2010, J. Convergence Inf. Technol..