Is the Convenience Worth the Risk? An Investigation of Mobile Payment Usage
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Is the Convenience Worth the Risk? An Investigation of Mobile Payment Usage Abhipsa Pal 1
&
Tejaswini Herath 2 & Rahul De’ 3 & H. Raghav Rao 4
Accepted: 25 September 2020 # Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract The popularity of mobile payment services lies in the convenient transactions they offer to users. In the age of growing cybercrime, however, mobile payment transactions carry risks of financial and data losses. It thus becomes critical to understand how risk and convenience have contrasting impacts on users’ intention to use mobile payments. To investigate this, we consider various dimensions of perceived risk and perceived convenience to understand the net effect of their negative and positive influences on the intention to use. We also examine the actual use behavior predicted by intention along with the influence of habit. The research model, tested using survey responses from a sample of 215 users along with the descriptive answers from the survey respondents, helps us draw crucial insights. The study contributes to the field in a significant manner by providing insights into the balancing effect of risk and convenience on mobile payment service usage, as well as the development of the multidimensional scales for the key variables of risk and convenience. Keywords Perceived risk . Facets of risk . Convenience . Mobile payment usage . Mobile payment services
1 Introduction With the diffusion of mobile devices across the globe, mobile payment services are emerging as a new form of banking, allowing users to carry out financial transactions across people
* Abhipsa Pal [email protected] Tejaswini Herath [email protected] Rahul De’ [email protected] H. Raghav Rao [email protected] 1
Information Systems, Indian Institute of Management Kozhikode, Kozhikode, India
2
Information Systems, Goodman School of Business, Brock University, St. Catharines, ON, Canada
3
Information Systems, Indian Institute of Management Bangalore, Bengaluru, India
4
Department of Information Systems and Cyber Security, College of Business, The University of Texas at San Antonio, San Antonio, TX, USA
and businesses completely electronically (Luo et al. 2010). Mobile payment services include apps that enable fast and easy payments from user’s app-based wallets or bank accounts, without the need to carry wallets or cash to make purchases at stores (Mallat 2007; Zhou 2013). The payment apps function either through electronic wallets with cash stored in the form of mobile money or through direct bank account transfers (Carr 2007). Online shoppers are also inclined to pay through mobile payments due to the fast checkout and one-click payment on repeat purchases (Business Wire 2019). The influence of the convenience offered by mobile payments to its users is massive, but, as the reach of the technology expands, there is also an increasing fear of risks (Saleem 2017). With an upsetting 300% spike in the number of malware attacks in the year 2019, there is a constant threat of financial loss
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