Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


What Makes People Actually Adopt the Mobile Payment Services in Pakistan?

Author(s): Anjum Ilyas Siddiqui, Amna Mumtaz & Muhammad Ashfaq

Mobile phones are not only used as a communication gadget in these days but they are also used to make payments. It is necessary for telecommunication companies and banks to understand the factors which consumer consider while adopting mobile payment services. Hypotheses were developed to understand and analyze the factors effecting the adaptation of Mobile payments in Pakistan. The questionnaires were distributed using convenience sampling where the response rate from the participants was 93%. The study results using Smart-PLS concluded that perceived ease of use, mobile payment relative advantage, trust and security, cost and perceived usefulness have significant effect on the customers’ behavior of mobile payments. The study could not find mediating role of perceived usefulness in the behavioral intention of mobile payments adaptation. Furthermore; security was partially mediating the relationship between cost and behavioral intention of adopting the mobile payment service. Relationship between compatibility and mobile payment service adoption was found as highly insignificant. This study is valuable for cellular companies and financial institutions to design and improve their services and products. This study also contributes to the diffusion of innovation theory and technology acceptance model.

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