FACTORS INFLUENCING CONSUMERS’ PERCEPTION TOWARDS MOBILE PAYMENT USAGE IN MALAYSIA
Keywords:
Mobile Payment, Consumer Perception, Ease of Use, Trust, Security.
Abstract
The advancement of smartphone technologies has led to many promising services such as payment through mobile or smartphone itself. In Malaysia, mobile payment usage is still low because consumers prefer to make payment transactions using other devices like laptops, computers, and credit card machines. Even though the adoption is still low but it shows an increasing trend. The purpose of this paper is to find factors influencing consumers’ perceptions of mobile payment usage. This study proposes three factors which are ease of use, trust, and security for the measurement. This quantitative study employed convenience sampling as the sampling technique and a total of 259 consumers as the respondents. All three factors were found could influence the consumers’ perception of mobile payment usage. Since this study is only limited to only three factors, there should be other factors to be included in future studies such as perceived cost, perceived benefits, cashback, rewards and many more. The conduct of this study will be beneficial to both service providers as well as the businesses using the services for improving their business models and business strategies.
References
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McKnight, D.H., V. Choudhury, and C. Kacmar (2002) “Developing and Validating Trust Measures for E-Commerce: An Integrative Typology”, Information Systems Research (13)3, pp. 334–359
Shao, Z., Zhang, L., Li, X., & Guo, Y. (2019). Antecedents of trust and continuance intention in mobile payment platforms: The moderating effect of gender. Electronic Commerce Research and Applications, 33, 100823.
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Siao, K., & Shen, Z. (2003). Building customer trust in m-commerce. Communications of the ACM, 46(4), 91-94.
Sohrab Khan, Nor Zairah Ab Rahim, & Nurazean Maarop. (2019). A review on antecedents of citizen’s trust in government social media services. 3C Tecnología_Glosas de Innovación Aplicadas a La Pyme, 7(4). https://doi.org/10.17993/3ctecno.2019.specialissue.10
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Taylor, S., Todd, P.A., 1995. Understanding information technology usage: a test of competing models. Information Systems Research 6, 144–176.
Urban, J. M., Hoofnagle, C. J., & Li, S. (2012). Mobile phones and privacy. BCLT Research Paper Series.
Wang, L., & Yi, Y. (2012). The impact of use context on mobile payment acceptance: An empirical study in China. In Advances in computer science and education (pp. 293-299). Springer, Berlin, Heidelberg.
Wendy Ming-Yen Teoh, Siong Choy Chong, Binshan Lin, & Jiat Wei Chua. (2013). Factors affecting consumers’ perception of electronic payment: An empirical analysis. Internet Research, 23(4), 465–485. https://doi.org/10.1108/IntR-09-2012-0199
Xu, G., & Gutiérrez, J. A. (2006). An exploratory study of killer applications and critical success factors in M-commerce. Journal of Electronic Commerce in Organizations (JECO), 4(3), 63-79.
Yeow Pooi Mun, Haliyana Khalid, & Devika Nadarajah. (2017). Millennials’ Perception on Mobile Payment Services in Malaysia. Procedia Computer Science, 124, 397–404. https://doi.org/10.1016/j.procs.2017.12.170
Anderson, E., & Weitz, B. (1989). Determinants of continuity in conventional industrial channel dyads. Marketing science, 8(4), 310-323.
Chandra, S., Srivastava, S. C., & Theng, Y.-L. (2010). Evaluating the role of trust in consumer adoption of mobile payment systems: An empirical analysis. Communications of the Association for Information Systems, 27(561-588).
Chen, L.-d. (2008). A model of consumer acceptance of mobile payment. International Journal of Mobile Communications, 6(1), 32-52.
Davis, F. D. Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13, 3, 1989, 319–340
Eriksson, N., Gökhan, A., & Stenius, M. (2021). A qualitative study of consumer resistance to mobile payments for in-store purchases. Procedia Computer Science, 181(2019), 634–641. https://doi.org/10.1016/j.procs.2021.01.212
Eze, U. C., Gan, G. G. G., Ademu, J., & Tella, S. A. (2008). Modelling user trust and mobile payment adoption: a conceptual Framework. Communications of the IBIMA, 3(29), 224-231.
Farhan Gazi. (n.d.). What Is An E-Wallet And How Is It Different From A Credit Card? Retrieved April 22, 2021, from https://www.imoney.my/articles/choosing-e-wallet
Gefen, D. (1997). Building users' trust in freeware providers and the effects of this trust on users' perceptions of usefulness, ease of use and intended use of freeware. Georgia State University.
Hampshire, C. (2017). A mixed methods empirical exploration of UK consumer perceptions of trust, risk and usefulness of mobile payments. International Journal of Bank Marketing.
Jarvenpaa, S. L., Tractinsky, N., & Saarinen, L. (1999). Consumer trust in an Internet store: A cross-cultural validation. Journal of Computer-Mediated Communication, 5(2), JCMC526.
Karnouskos, S., Hondroudaki, A., Vilmos, A., & Csik, B. (2004, July). Security, trust and privacy in the secure mobile payment service. In 3rd International Conference on Mobile Business (Vol. 35).
Kourouthanassis, P. E., Giaglis, G. M., & Karaiskos, D. C. (2010). Delineating “pervasiveness” in pervasive information systems: a taxonomical framework and design implications. Journal of Information Technology, 25(3), 273–287. doi:10.1057/jit.2009.6
Liébana-Cabanillas, F., Sánchez-Fernández, J., & Muñoz-Leiva, F. (2014). Antecedents of the adoption of the new mobile payment systems: The moderating effect of age. Computers in Human Behavior, 35, 464-478.
Lim, B., Lee, H., & Kurnia, S. (2007). Exploring the reasons for a failure of electronic payment systems: A case study of an Australian company. Journal of Research and Practice in Information Technology, 39(4), 231–243.
Litan, R. E., & Baily, M. N. (Eds.). (2009). Moving money: the future of consumer payments. Brookings Institution Press.
Madureira, A. (2017). Factors that hinder the success of SIM-based mobile NFC service deployments. Telematics and Informatics, 34(1), 133–150. https://doi.org/10.1016/j.tele.2016.05.003
Malaysian Communications and Multimedia Commission, & Malaysian Communications & Media Commision. (2018). E-Commerce Consumers Survey 2018. In Malaysian Communications and Multimedia Commission.
Maureen Nelloh, L. A., Santoso, A. S., & Slamet, M. W. (2019). Will users keep using mobile payment? It depends on trust and cognitive perspectives. Procedia Computer Science, 161, 1156–1164. https://doi.org/10.1016/j.procs.2019.11.228
McKnight, D.H., V. Choudhury, and C. Kacmar (2002) “Developing and Validating Trust Measures for E-Commerce: An Integrative Typology”, Information Systems Research (13)3, pp. 334–359
Shao, Z., Zhang, L., Li, X., & Guo, Y. (2019). Antecedents of trust and continuance intention in mobile payment platforms: The moderating effect of gender. Electronic Commerce Research and Applications, 33, 100823.
Shin, S., Lee, W. J., & Odom, D. O. (2014). A Comparative Study Of Smartphone Users Perception And Preference Towards Mobile Payment Methods In The US And Korea. Journal of Applied Business Research (JABR), 30(5), 1365-3176.
Siao, K., & Shen, Z. (2003). Building customer trust in m-commerce. Communications of the ACM, 46(4), 91-94.
Sohrab Khan, Nor Zairah Ab Rahim, & Nurazean Maarop. (2019). A review on antecedents of citizen’s trust in government social media services. 3C Tecnología_Glosas de Innovación Aplicadas a La Pyme, 7(4). https://doi.org/10.17993/3ctecno.2019.specialissue.10
Tan, J. (2020). Mastercard: Malaysia Has Highest Mobile Wallet Usage In Southeast Asia. RinggitPlus. https://ringgitplus.com/en/blog/e-wallet/mastercard-malaysia-has-highest-mobile-wallet-usage-in-southeast-asia.html
Taylor, S., Todd, P.A., 1995. Understanding information technology usage: a test of competing models. Information Systems Research 6, 144–176.
Urban, J. M., Hoofnagle, C. J., & Li, S. (2012). Mobile phones and privacy. BCLT Research Paper Series.
Wang, L., & Yi, Y. (2012). The impact of use context on mobile payment acceptance: An empirical study in China. In Advances in computer science and education (pp. 293-299). Springer, Berlin, Heidelberg.
Wendy Ming-Yen Teoh, Siong Choy Chong, Binshan Lin, & Jiat Wei Chua. (2013). Factors affecting consumers’ perception of electronic payment: An empirical analysis. Internet Research, 23(4), 465–485. https://doi.org/10.1108/IntR-09-2012-0199
Xu, G., & Gutiérrez, J. A. (2006). An exploratory study of killer applications and critical success factors in M-commerce. Journal of Electronic Commerce in Organizations (JECO), 4(3), 63-79.
Yeow Pooi Mun, Haliyana Khalid, & Devika Nadarajah. (2017). Millennials’ Perception on Mobile Payment Services in Malaysia. Procedia Computer Science, 124, 397–404. https://doi.org/10.1016/j.procs.2017.12.170
Published
2021-11-29
How to Cite
Roseli, N. H. M., Azhar, N. H. N., Sauid, M. K., Hasan, Z., & Othman, Y. (2021). FACTORS INFLUENCING CONSUMERS’ PERCEPTION TOWARDS MOBILE PAYMENT USAGE IN MALAYSIA. International Journal of Small and Medium Enterprises, 4(1), 26-34. https://doi.org/10.46281/ijsmes.v4i1.1472
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2021 Nur Hazwani Mohamad Roseli, Nurul Huda Najihah Azhar, Muna Kameelah Sauid, Zuhairah Hasan, Yuhanza Othman
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