Fostering Mobile Payment Adoption: A Case of Near Field Communication (NFC)
DOI:
https://doi.org/10.33736/ijbs.5180.2022Keywords:
Technology Acceptance Model, Near-Field Communication, consumers’ technology readiness, technology availability, perceived ease of use, perceived usefulness, intention to adoptAbstract
This study aims to investigate the adoption intention of NFC mobile payment services among consumers in Malaysia. Data collected from 218 respondents were analysed using Partial-Least-Square. The results reveal that consumers’ technology readiness is positively related with perceived usefulness, perceived ease of use and intention to adopt NFC. Technology availability has also provided similar results regarding its relationship with perceived ease of use and intention to adopt NFC. The results also show the mediation effects of perceived ease of use and perceived usefulness of the technology in the relationship between technology availability and perceived usefulness, as well as between perceived ease of use and intention to adopt NFC, respectively. The findings of this study suggest the need for the industrial player to target the group of consumers who are innovative. It is also important for banking institutions to reinvent the card system to support NFC infrastructure, so that mass adoption could be created. This study fills the research voids by integrating the established mobile technology acceptance model with two constructs – consumers’ technology readiness and technology availability.
References
Abrahãoa, R. D., Moriguchib, S. N., & Andradeba, D. F. (2016). Intention of adoption of mobile payment: An analysis in the light of the unified theory of acceptance and use of technology (Utaut). RAI Revista de Administração e Inovação, 13(3), 221-230. https://doi.org/10.1016/j.rai.2016.06.003
Alam, M. M., Awawdeh, A. E., & Muhamad, A. I. B. (2021). Using e-wallet for business process development: Challenges and prospects in Malaysia. Business Process Management Journal, 27(4), 1142-1162. https://doi.org/10.1108/BPMJ-11-2020-0528
Al-Aulamie, A. (2013). Enhanced technology acceptance model to explain and predict enhanced technology acceptance model to explain and predict [Unpublished doctoral dissertation]. University of Bedfordshire.
Albabidi, M. H. A. (2021). Hype or hope: Digital technologies in auditing process. Asian Journal of Business and Accounting, 14(1), 59-86. https://doi.org/10.22452/ajba.vol14no1.3
Aji, H. M., Berakon, I., & Md Husin, M. (2020). COVID-19 and e-wallet usage intention: A multigroup analysis between Indonesia and Malaysia. Cogent Business & Management, 7(1), 1804181. https://doi.org/10.1080/23311975.2020.1804181
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411. https://doi.org/10.1037/0033-2909.103.3.411
Barrena-Figueroa, R., & Garcia-Lopez-de-Meneses, T. (2012). The effect of consumer innovativeness in the acceptance of a new food product. An application for the coffee market in Spain. Spanish Journal of Agricultural Research, 11(3), 578-592. https://doi.org/10.5424/sjar/2013113-3903
Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator distinction in social psychological research: Conceptual, strategic, and statistical consideration. Journal of Personality and Social Psychology, 51(6), 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88(2), 207-218. https://doi.org/10.1037/0021-9010.88.2.207
Busu, S., Karim, N. A., & Haron, H. (2018). Factors of adoption intention for near field communication mobile payment. Indones J Electr Eng Comput Sci, 11(1), 98-104. https://doi.org/10.11591/ijeecs.v11.i1.pp98-104
Chan, S., & Lu, M. (2004). Understanding internet banking adoption and use behaviour: A Hong Kong perspective. Journal of Global Information Management, 12(3), 21-43. https://doi.org/10.4018/jgim.2004070102
Cheung, R., & Vogel, D. (2013). Predicting user acceptance of collaborative technologies: An extension of the technology acceptance model for e-learning. Computer Education, 63, 160-175. https://doi.org/10.1016/j.compedu.2012.12.003
Chew, B. C., Shen, X., & Ansell, J. (2020). Alipay entered Malaysia: A closer look at the new market entry strategy driven by Chinese tourists. Qualitative Research in Financial Markets, 12(4), 561-577. https://doi.org/10.1108/QRFM-06-2019-0069
Choi, B. N., & Yang, H. C. (2018). A study on revitalization of revenue through difference of consumer perception of characteristics of mobile social commerce. The East Asian Journal of Business Management (EAJBM), 8(1), 31-38. https://doi.org/10.13106/eajbm.2018.vol8.no1.31
Davis, F. (1986). A technology acceptance model for empirically testing new end-user information system: Theory and result [Unpublished Doctoral Thesis]. MIT Sloan School of Management.
Davis, F., Bagozzi, R., & Warshaw, P. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982-1003. https://doi.org/10.1287/mnsc.35.8.982
de Luna, I. R., Liébana-Cabanillas, F., Sánchez-Fernández, J., & Munoz-Leiva, F. (2019). Mobile payment is not all the same: The adoption of mobile payment systems depending on the technology applied. Technological Forecasting and Social Change, 146, 931-944. https://doi.org/10.1016/j.techfore.2018.09.018
Dutot, V. (2015). Factors influencing near field communication (NFC) adoption: An extended TAM approach. Journal of High Technology Management Research, 26(1), 45-57. https://doi.org/10.1016/j.hitech.2015.04.005
Department of Statistics Malaysia. (2015). Population and demography. Department of Statistics Malaysia.
Ezzaouia, I., & Bulchand-Gidumal, J. (2020). Factors influencing the adoption of information technology in the hotel industry. An analysis in a developing country. Tourism Management Perspectives, 34, 100675. https://doi.org/10.1016/j.tmp.2020.100675
Farahat, T. (2012). Applying the technology acceptance model to online learning in the Egyptian universities. Procedia Social Behavioural Science, 64, 95-104. https://doi.org/10.1016/j.sbspro.2012.11.012
Fornell, C., & Larcker, D. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
Goodhue, D. L., Lewis, W., & Thompson, R. (2012). Does PLS have advantages for small sample size or non-normal data. MIS Quarterly, 36(3), 891-1001. https://doi.org/10.2307/41703490
Grassie, K. (2007). Easy handling and security make NFC a success. Card Technology Today, 19(10), 12-13. https://doi.org/10.1016/S0965-2590(08)70134-8
Hair, Jr. J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks: Sage publications.
Hng, C. Y., Foo, P. Y., Lim, A. F., & Nair, R. K. (2020). The forefront of mobile shopping: An emerging economy's perspective. International Journal of Services, Economics and Management, 11(1), 21-47. https://doi.org/10.1504/IJSEM.2020.107793
Hong, W., Thong, J., Wong, W., & Tam, K. (2002). Determinants of user acceptance of digital libraries: An empirical examination of individual differences and system characteristics. Journal of Management Information System, 18(3), 97-124. https://doi.org/10.1080/07421222.2002.11045692
Hossain, M. A., Hossain, M. S., & Jahan, N. (2018). Predicting continuance usage intention of mobile payment: An experimental study of Bangladeshi customers. Asian Economic and Financial Review, 8(4), 487. https://doi.org/10.18488/journal.aefr.2018.84.487.498
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2), 195-204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.0.CO;2-7
Ismail, K., Isa, C. R., & Mia, L. (2018a). Evidence on the usefulness of management accounting systems in integrated manufacturing environment. Pacific Accounting Review, 30(1), 2-19. https://doi.org/10.1108/PAR-04-2015-0010
Ismail, K., Isa, C. R., & Mia, L. (2018b). Market competition, lean manufacturing practices and the role of management accounting systems (MAS) information. Jurnal Pengurusan, 52, 47-61. https://doi.org/10.17576/pengurusan-2018-52-04
Kang, J. Y. M., Mun, J. M., & Johnson, K. K. (2015). In-store mobile usage: Downloading and usage intention toward mobile location-based retail apps. Computers in Human Behavior, 46, 210-217. https://doi.org/10.1016/j.chb.2015.01.012
Karaarslan, M. H., & ŞükrüAkdoğan, M. (2015). Consumer innovativeness: A market segmentation. International Journal of Business and Social Science, 6(8), 227-237.
Kuo, K. M., Liu, C. F., & Ma, C. C. (2013). An investigation of the effect of nurses' technology readiness on the acceptance of mobile electronic medical record systems. BMC Medical Informatics and Decision Making, 13(1), 88. https://doi.org/10.1186/1472-6947-13-88
Lee, S., & Kim, B. (2009). Factors affecting the usage of intranet: A confirmatory. Computer Human Behaviour, 25(1), 191-201. https://doi.org/10.1016/j.chb.2008.08.007
Lee, W., Xiong, L., & Hu, C. (2012). The effect of Facebook users' arousal and valence on intention to go to the festival: Applying an extension of the technology acceptance model. International Journal of Hospitality Management, 31(3), 819-827. https://doi.org/10.1016/j.ijhm.2011.09.018
Leong, L. Y., Hew, T. S., Tan, G. W., & Ooi, K. B. (2013). Predicting the determinants of the NFC-enabled mobile credit card acceptance: A neural network approach. Expert Systems with Applications, 40(14), 5604-5620. https://doi.org/10.1016/j.eswa.2013.04.018
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. https://doi.org/10.1016/j.chb.2014.03.022
Liébana-Cabanillas, F., Japutra, A., Molinillo, S., Singh, N., & Sinha, N. (2020). Assessment of mobile technology use in the emerging market: Analyzing intention to use m-payment services in India. Telecommunications Policy, 44(9), 102009. https://doi.org/10.1016/j.telpol.2020.102009
Lin, H. F., & Lin, S. M. (2008). Determinants of e-business diffusion: A test of the technology diffusion perspective. Technovation, 28(3), 135-145. https://doi.org/10.1016/j.technovation.2007.10.003
Lin, H. H., Lin, S., Yeh, C. H., & Wang, Y. S. (2016). Measuring mobile learning readiness: Scale development and validation. Internet Research, 26(1), 265 - 287. https://doi.org/10.1108/IntR-10-2014-0241
Luna, I. R., Montoro-Ríos, F., Liébana-Cabanillas, F., & Luna, J. G. (2016). NFC technology acceptance for mobile payments: A Brazilian perspective. Review of Business Management, 19(63), 83-103. https://doi.org/10.7819/rbgn.v0i0.2315
Madan, K., & Yadav, R. (2016). Behavioural intention to adopt mobile wallet: A developing country perspective. Journal of Indian Business Research, 8(3), 227-244. https://doi.org/10.1108/JIBR-10-2015-0112
Malik, A. N. A., & Annuar, S. N. S. (2021). The effect of perceived usefulness, perceived ease of use, reward, and perceived risk toward e-wallet usage intention. In M. H. Bilgin, H. Danis, E. Demir (Eds.), Eurasian Business and Economics Perspectives: Vol. 17. Eurasian Studies in Business and Economics (pp. 115-130). Springer, Cham. https://doi.org/10.1007/978-3-030-65147-3_8
Marangunic, N., & Granic, A. (2015). Technology acceptance model: A literature review from 1986 to 2013. Universal Access in the Information Society, 14(1), 81-95. https://doi.org/10.1007/s10209-014-0348-1
Marcoulides, G. A., & Chin, W. W. (2013). You write, but others read: Common methodological misunderstandings in PLS and related methods. In H. Abdi, W. Chin, V. Esposito Vinzi, G. Russolillo, L. Trinchera (Eds.), New Perspectives in Partial Least Squares and Related Methods: Vol. 56. Springer Proceedings in Mathematics & Statistics (pp. 31-64). Springer. https://doi.org/10.1007/978-1-4614-8283-3_2
Mia, L., & Clarke, B. (1999). Market competition, management accounting systems and business unit performance. Management Accounting Research, 10(2), 137-158. https://doi.org/10.1006/mare.1998.0097
Nasri, W., & Charfeddine, L. (2012). Factors affecting the adoption of internet banking in Tunisia: An integration theory of acceptance model and theory of planned behaviour. Journal of High Technology Management Resources, 23(1),1-4. https://doi.org/10.1016/j.hitech.2012.03.001
Nath, R., Bhal, K. T., & Kapoor, G. T. (2013). Factors influencing IT adoption by bank employees: An extended TAM approach. Vikalpa: The Journal for Decision Makers, 38(4), 83-96. https://doi.org/10.1177/0256090920130406
Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behaviour, 61, 404-414. https://doi.org/10.1016/j.chb.2016.03.030
Ooi, K. B., & Tan, G. W. H. (2016). Mobile technology acceptance model: An investigation using mobile users to explore smartphone credit card. Expert Systems with Applications, 59, 33-46. https://doi.org/10.1016/j.eswa.2016.04.015
Pai, F. Y., & Huang, K. I. (2011). Applying the technology acceptance model to the introduction of healthcare system. Technology Forecast of Social Change, 78(4), 650-660. https://doi.org/10.1016/j.techfore.2010.11.007
Pal, D., Vanijjab, V., & Papasratorn, B. (2015). An empirical analysis towards the adoption of NFC mobile payment system by the end user. Procedia Computer Science, 69, 13-25. https://doi.org/10.1016/j.procs.2015.10.002
Parasuraman, A. (2000). Technology readiness index (TRI) a multiple-item scale to measure readiness to embrace new technologies. Journal of Service Research, 2(4),307-320. https://doi.org/10.1177/109467050024001
Parasuraman, A., & Colby, C. L. (2015). An updated and streamlined technology readiness index: TRI 2.0. Journal of Service Research, 18(1), 59-74. https://doi.org/10.1177/1094670514539730
Park, N., Lee, K., & Cheong, P. (2008). University instructors' acceptance of electronic courseware: An application of the technology acceptance model. Journal of Computer Mediating Communication, 13(1), 163-186. https://doi.org/10.1111/j.1083-6101.2007.00391.x
Poushter, J. (2016). Smartphone ownership and internet usage continues to climb in emerging economies. Pew Research Center. http://www.pewglobal.org/2016/02/22/smartphone-ownership-and-internet-usage-continues-to-climb-in-emerging-economies/
Pham, T. T., & Ho, J. C. (2015). The effects of product-related, personal-related factors and attractiveness of alternatives on consumer adoption of NFC-based mobile payment. Technology in Society, 43, 159-172. https://doi.org/10.1016/j.techsoc.2015.05.004
Phillips, T. (2021, June 23). Thai and Malaysian central banks roll out real-time cross-border QR payments. NFCW. https://www.nfcw.com/whats-new-in-payments/thai-and-malaysian-central-banks-roll-out-real-time-cross-border-qr-payments/
Povera, A. (2020, March 27). RM25 million set aside for vulnerable groups. New Straits Times. https://www.nst.com.my/news/nation/2020/03/578706/rm25-million-set-asidevulnerable-groups
Serenko, A. (2008). A model of user adoption of interface agents for email notification. Internet computer, 20(4), 461-472. https://doi.org/10.1016/j.intcom.2008.04.004
Son, H., Park, Y., Kim, C., & Chou, J. (2012). Toward an understanding of construction professionals' acceptance of mobile computing devices in South Korea: An extension of the Technology Acceptance Model. Automation Construction, 28, 82-90. https://doi.org/10.1016/j.autcon.2012.07.002
Son, M., & Han, K. (2011). Beyond the technology adoption: Technology readiness effects on post adoption behaviour. Journal of Business Research, 64, 1178-1182. https://doi.org/10.1016/j.jbusres.2011.06.019
The Star. (2016, July 22). A smarter way to pay Maybank introduces first mobile wallet for smartphone users. The Star Online. http://www.thestar.com.my/news/nation/2016/07/22/a-smarter-way-to-pay-maybank-introduces-first-mobile-wallet-for-smartphone-users/
Tan, G. W., Ooi, K. B., Chong, S. C., & Hew, T. S. (2014). NFC mobile credit card: The next frontier of mobile payment? Telematics and Informatics, 31(2), 292-307. https://doi.org/10.1016/j.tele.2013.06.002
Venkatesh, V., & Davis, F. (2000). Theoretical extension of the technology acceptance model: Four longitudinal field studies. Management Science, 46(2), 186-204. https://doi.org/10.1287/mnsc.46.2.186.11926
Walczuch, R., Lemmink, J., & Streukens, S. (2007). The effect of service employees' technology readiness on technology acceptance. Information & Management, 44(2),206-215. https://doi.org/10.1016/j.im.2006.12.005
Wold, H. (1985). Systems analysis by partial least squares. In P. Nijkamp, H. Leitner, & N. Wrigley (Eds.), Measuring the unmeasurable (pp. 221-252). Martinus Nijhoff Publisher. https://doi.org/10.1007/978-94-009-5079-5_11
Wordpopulationreview.com. (2016). Kuala Lumpur Population 2016. World Population Review.
Downloads
Published
How to Cite
Issue
Section
License
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
