Consumer Adoption of Offline M-Payment: The Chinese Case

Purpose: Understanding consumers’ preferences and reasons for adopting new particular technology is crucial to provide the available services that create value for stakeholders and consumers. This study researched offline m-payment adoption in the Chinese market based on consumers’ point of view. It aims to investigate (1) which key factors determine whether consumers will adopt and use offline m-payments in the Chinese market’s context, and (2) whether the individual traits have any moderating effects on consumers’ intentions to adopt offline m-payments. Design/methodology/approach: An empirical research on determinants for offline m-payment adoption has been conducted. The direct influences of the factors determining offline m-payment adoption are explored with an integrated model based on TAM model, the most widely implemented model of user acceptance and utilization of information technology in scientific and technical literature. Perceived usefulness, perceived enjoyment, and habit were used as independent variables. Two important individual traits (self-efficacy and self-expression) were used as moderating variables. Additionally, the perceived ubiquity of consumers, a unique attribute of m-payments, was used as a mediating variable. Findings: Perceived usefulness, perceived enjoyment, and habit all were found to have a positive effect on behavioral intention. Self-efficacy doesn’t moderate the effect consumer’s perception of usefulness has on use intention but has a negative moderating effect on the relationship between perceived enjoyment and behavioral intention, as well as between habit and behavioral intention. Additionally, the current study shows that self-expression has no moderating effect on the process of adoption. Finally, the analysis showed that perceived ubiquity is a mediating variable in the relationships between perceived usefulness and behavioral intention and perceived enjoyment and behavioral intention. Third, it may be useful to integrate promotions and targeted ads from merchants. Research limitations/implications: First implication is that because perceived usefulness and perceived enjoyment positively affect consumers’ behavioral intentions to use offline m-payment, service providers should improve the adoption and retention rate by enhancing those perceptions. Second, since perceived ubiquity was found to mediate influence of consumers’ perceived usefulness and perceived enjoyment on behavioral intention to use offline m-payments, service providers and retailers should present ubiquitous payment services to consumers, and make consumers realize that by using offline m-payment they can conduct transactions from anywhere at any time by any mobile device. This study has several limitations. First, the research has targeted only offline m-payment adopters. It would be useful to check how factors differ in their importance for adopters and non-adopters. Second, the paper explored the determining factors of offline m-payment adoption only in China. Compare several market ecosystems for better understanding of the differences in characteristics may be useful. Third, the process of adoption may vary depending on which technology was applied. Also, the technical capabilities and preferences of businesses while adopting offline m-payment methods are some of the important factors. Originality/value: The study contributes to the body of research on adoption of new technologies, and specifically mobile services. From a managerial standpoint, it provides new entrants and service providers with a better understanding of Chinese customers’ needs and wants from offline m-payment services.