Environment factors affecting individual’s continuance usage of mobile payment technology in Indonesia

Abstract

This study aims to determine the factors that influence an individual’s continuance usage of mobile payment. This study proposed a research model that combines two well-known theories, namely Technological Personal Environmental (TPE) model and Technology Continuance Theory (TCT) to examine the impact of environmental factors in mobile payment continuance usage. The data were obtained empirically from 443 respondents by using an online questionnaire. Then, the data were used to test the research model by using covariance-based SEM (CB-SEM). The results of data processing showed that user satisfaction was a factor that positively influenced the continuance usage of mobile payment. Furthermore, user satisfaction was directly influenced by environmental factors, consisting of Additional Value (VA), Payment Culture (PC), Lifestyle Compatibility (LC), and Facilitating Conditions (FC). Thus, this research is useful for mobile payment service providers in Indonesia to help them engage with their customers to use mobile payment for the long term. This research provides an explanation of the relationship among environmental aspects used as research models to understand the phenomenon of mobile payments sustainable use in Indonesian customers who have a cultural tendency to use cash as the payment method. By understanding factors that influence continuance usage of mobile payment in Indonesia, the mobile payment providers can evaluate then improve their services and determine the right strategy by emphasizing various environmental aspects in developing and promoting mobile payment services.