Interpreting the evolution of mobile payments: trends, customer adoption and potential risks

Abstract

In the digital era, mobile payment applications have drawn people’s attention. Along with the popularization of mobile phones and the rise of customer demand, the profound, marked, essential changes about payment methods are taking place in the world. However, potential issues have begun to emerge that will affect its long-term development. This thesis aims to interpret the main factors that influence user’s willingness and adoption towards mobile payments. To collect the primary data, the author designed an online questionnaire and the sample group contains 150 respondents in WKU. The author applies the modified unified theory of acceptance and use of technology (UTAUT2) to illustrate the relationship between customer behavior adoption and other four factors. The multiple regression model is used to test the hypotheses. The results find that performance expectancy, effort expectancy and social influence have significant relationship with customer behavior adoption; while, perceived technology security has no impact on users’ intention. Moreover, the results also show the positive correlation between performance expectancy and effort expectancy. For further researches, this thesis sheds light on the risks of data theft and other security issues of mobile payments happened in recent days. Therefore, developers of mobile payments should consider how to diversify the functions and services provided by this technology to protect their customers in a more secured way.