Investigation of the NFC technology for mobile payments and the development of a prototype payment application in the context of marginalized rural areas

Both communication, and the methods and tools of commerce have evolved over time through the invention of new technologies. The latest of these technologies are mobile devices and electronic commerce respectively. The combination of these two technologies has resulted in the creation of electronic commerce which also enables mobile payments. Mobile payments (mpayments) are enabled by many technologies with Near Field Communication (NFC) being the most recent one. NFC is a wireless technology that enables mobile devices in close proximity to exchange data. The mobile device has already been enthusiastically accepted by the customers and they carry it with them wherever they go and this makes it a good device for providing a payment method alternative. This research looks at contactless mobile payment as a payment method. Customers in marginalized rural areas lack a payment alternative to cash hence in this research we are investigating and proposing the use of a NFC enabled mobile payment application for Marginalized Rural Areas. This research extensively evaluates and assesses the potential of using NFC enabled m-payments in Marginalized Rural Areas in South Africa by carrying out an investigation of the technology and its acceptance by customers. The investigation of the technology included implementation of a prototype application which was used to introduce the technology to the consumers. The customer acceptance of the NFC enabled mobile payments was evaluated using the Technology Acceptance model (TAM). The model was modified to suit the context of this study by adding more constructs. This research concluded that Near Field Communication enabled m-payments have great potential to be used and accepted by people in the marginalized rural areas