AN EMPIRICAL STUDY OF FACTORS INFLUENCING CONSUMER ADOPTION INTENTION FOR MOBILE PAYMENT IN MALAYSIA

Abstract

The interest in mobile payments is evolving in today’s society as a new e-payment mode instead of the conventional cash, check, or credit cards. To this end, the current study investigated the acceptance of mobile payment services in Malaysia, whereby the technology acceptance model (TAM) was extended. This was performed by considering perceived risk factors, perceived value, perceived ease of use, perceived usefulness, and attitude in explaining consumer intention to adopt mobile payment. A sample size of 285 smartphone users was collected through a self- administered questionnaire. The data and subsequent hypotheses were tested by applying the partial least square structural equation modelling technique. The results showed that perceived ease of use, perceived usefulness, perceived value, and attitude were significant components in explaining user behavioural intention to adopt mobile payment services. Of the five facets denoting perceived risk, only perceived privacy risk influenced perceived value and eventually affected user adoption intention significantly. The mediating role of perceived usefulness and attitude towards mobile payment adoption was also identified as significant in the study. In sum, mobile technology usefulness renders the payment process faster and more convenient as users are only required to scan the QR code. Accordingly, mobile service providers should work towards increasing consumer confidence in their client privacy protection policies.