Perceived risks toward mobile payment adoption: A three-country analysis

Mobile payment adoption has been a growing phenomenon ever since the introduction of Apple Pay in 2014 with exponential growth of cashless and contactless payment methods forecasted for the next five years. Past literature has investigated factors that negatively affect perceived risks in mobile banking and online shopping but details about consumers’ attitudes towards these risks, differences among consumers, and the link between perceived risks and types of consumers remained understudied. To fill in this research gap, we have used a C4.5 decision tree learning algorithm with data surveyed from Taiwan, China and Japan to match the most used attributes of perceived risk - financial, privacy, performance, psychological, time, and security - with type of consumer according to the innovation adoption curve: innovators, early adopters, early majority, late majority, and laggards. Results allowed us to raise the following three propositions: (1) Innovators, early adopters, and early majority are concerned about the performance risk of mobile payment adoption, (2) Innovators, early adopters, and late majority are concerned about the security risk of mobile payment adoption, and (3) Culture of cashless economy is the key factor in mobile payment adoption