Content area
Full Text
ABSTRACT
The mobile payment adoption in India has not grown at the rate of growth of the mobile phone industry. There is a need to examine the underlying factors among consumers, which influence behavioral intention towards adoption of mobile payments. Six constructs, Perceived ease of use, perceived usefulness, trust, risk, social influence, facilitating conditions are studied to understand attitude and behavioral intention of consumers towards mobile payments adoption. Exploratory factor analysis is conducted on primary responses. The associations between constructs and dependent variables are explored through structural equation modelling. Trust, social influence and perceived usefulness are seen to influence attitude towards adoption. Attitude, trust and perceived risk are seen to have significant associations with behavioral intention towards adoption of mobile payments.
Introduciton
The indian mobile phone market comprises of a whopping 1 billion users, majority of whom are users of smartphones. The penetration of adoption of mobile payments is only by a meagre 3.6% of the Indian population. The market has many old players and new players competing to understand the magic factor which will boost consumer adoption behavior. Some players in this space are Paytm, Vodafone Mpesa, Airtel money, Ultracash, PayU, Mobikwik, Oxigen, Freecharge, Chillr, Citruspay, Novopay and Momoe. There are certain hurdles in the consumer adoption space which is not effectively addressesed by service providers till date. The successful identification of the factors boosting consumer adoption has the potential for disruptive innovation in the mobile payments market.
Mobile payments have the potential to redefine payments methodology and optimize customer shopping experience. Mobile shopping is seen as "a green field opportunity "and "game changing innovation". Consumers and retail outlets is seen to have a consensus on the fact that in time of one or two years, the mobile based payment space will have dominated the market (Taylor 2016).(Goeke and Pousttchi, 2010) defines mobile payments as "a type of payment transaction processing in which the payer uses mobile communication techniques in conjunction with mobile devices for initiation, authorization, or completion of payment". Mobile transactions in the developing world enable users, to store value in account accessible using mobile handset. In the presence of bank account, the account is linked to bank account. In absence of bank account, a pseudo bank account is created by...