The key drivers and barriers to the use of Mobile Payments from consumer's perspective

The nearly ubiquitous presence and the continually expanding capabilities of the mobile devices as well as the evolution of the smartphones provide an additional channel for payments, improve the shopping experience and present cutting-edge opportunities for merchants to involve consumers, and drive sales. Despite the positive prediction in past years in relation to the growth, mobile payment services have failed to seduce consumers. The problem of the mass adoption of mobile payments in general including the new payment gadget such as Near Field Communication (NFC) enabled mobile devices is investigated in this study. This research aims to determine the key drivers and barriers to the use of mobile payments from consumers' perspective. It is generally known that good security positively influence the trust factor, and this perception will increase the use of mobile payment services. Convenience has also been identified as a key factor influencing the growth of mobile payments. Using the technology acceptance model (TAM), this study proposes a research model to analyze the adoption behavior which delineates the three aforementioned determinants, as well as the effects of these factors on the use of mobile payment systems. The research model has been evaluated by applying survey and interviews data collection methods to understand the consumers' perception on mobile payments. The results show that perceived usefulness and perceived ease of use are strong predictors of the intention to use mobile payment services. In addition, security was reported to be the major determinant to the use of mobile payment services by all respondents. Interestingly, the findings of this study indicate that communication by the financial institutes has a massive influence on the intention to use from respondents' perspective. The study recommends that banks and financial institute should create a customer payment experience transformation roadmap to introduce and promote the mobile payment services as consumers have a security concerns and apparently satisfied with the current payment methods