Barriers towards the adoption of mobile payment services : An empirical investigation of consumer resistance in the context of Germany

Abstract Purpose – Technological innovations continuously impact the daily routines of consumers. In the case of mobile devices, their multifunctionality revolutionizes possibilities for consumers, for example by conducting mobile payments at a point of sale (proximity payments). Despite the advantages of mobile payment services, the number of users of these services is very low among German consumers. Therefore, the purpose of this paper is to examine barriers which impede German consumers from adopting proximity mobile payments by applying the theory of innovation resistance. More specifically, this paper analyzes these obstacles regarding the usage barrier, value barrier, risk barrier, tradition barrier, image barrier and the added information barrier. Methodology – By utilizing a quantitative research approach with online self- completion questionnaires, 152 answers from German consumers were collected and statistically analyzed in order to empirically test the model of innovation resistance. In addition, the characteristics age and smartphone usage behavior of the participants were analyzed for examining further characteristics of the consumers. Findings – The results indicate that out of the examined six barriers, the tradition, risk and value barrier have proven to be significant in influencing the adoption intention of the questioned German consumers towards mobile payment services. Additionally, a connection between the characteristics age and smartphone usage behavior and the adoption intention could be detected. Research implications – A key finding is that an innovation resistance behavior among German consumers towards mobile payment exists according to this study. This paper provides recommendations for service providers for reducing the identified barriers and the consumer resistance for a successful breakthrough of the innovation of mobile payment. Originality/Contribution – This paper contributes to theory by applying the less studied perspective of innovation resistance to the research field of mobile payment, which is a novelty. Furthermore, insights into German consumers were given helping service providers to develop effective marketing strategies to meet the need of the consumers. Keywords – Mobile payment, proximity mobile payment, innovation resistance, adoption barriers, German consumers, smartphones