Value Added Services and Adoption of Mobile Payments

ABSTRACT

In this paper, we investigate the role of Value Added Services (VAS) in consumers' adoption of mobile payments. VAS are supplementary digital services offered in connection with mobile payments; in this study exemplified by receipts, loyalty cards, and coupons. A research model is derived from existing literature and empirically tested through an experimental design survey, in which the experimental group is exposed to a mobile payment solution with VAS, including receipts, loyalty cards, and coupons, and the control group is exposed to a mobile payment solution without VAS. Our findings show that intention to adopt mobile payments increases as VAS are introduced and that this increase comes from a positive change in Perceived Usefulness, compatibility, and Convenience.

References

1. Accenture. 2013. Driving Value and Adoption of Mobile Payments -- Consumers Want More. http://bit.ly/1mZ5sBg
2. Chen, L.D. 2008. A Model of Consumer Acceptance of Mobile Payment, International Journal of Mobile Communications, 6, 1, 32--52.
3. Dahlberg, T., Mallat, N., Ondrus, J., and Zmijewska, A. 2008. Past, present and future of mobile payments research: a literature review. Electronic Commerce Research and Applications. 7, 2, 165--181.
4. Davis, F. D. 1989. Perceived Usefulness, Perceived Ease of Use, and user acceptance of information technology. MIS Quarterly. 13, 3, 319--340.
5. Davis, F. D., Bagozzi, R. P., and Warshaw, P. R. 1989. User acceptance of computer technology: a comparison of two theoretical models. Management Science. 35, 8, 982--1003.
6. Gartner. 2013. http://www.information-age.com/technology/mobile-and-networking/123457094/mobile-payments-growing-slower-than-expected--gartner-says
7. Goyal, A. 2004. Role of supplementary services in the purchase of credit card services in India, Asia Pacific Journal of Marketing and Logistics. 16, 4, 36--51
8. Gwinner, K. P., Swanson, S. R. and Larson, B. V. 2008. Image Transfer in Corporate Event Sponsorship: Assessing The Impact of Team Identification and Event-Sponsor Fit, International Journal of Management and Marketing Research, 2, 1.
9. Hayashi, F. 2012. Mobile Payments: What's in It for Consumers?, unpublished paper, Mobile Payments' Cashless Utopia Is Not Coming Anytime Soon.
10. Kim, C., Mirusmonov, M., and Lee, I. 2010. An empirical examination of factors influencing the intention to use mobile payment. Computers in Human Behavior. 26, 3, 310--322.
11. Kim, K. K., Shin, H. K. and Kim, B. 2011. The role of psychological traits and social factors in using new mobile communication services, Electronic Commerce Research and Applications. 10, 4, 408--417.
12. Lovelock, C. H., and Wirtz. J. 2007. Services Marketing: People, Technology, Strategy. Upper Saddle River, NJ: Pearson/Prentice Hall
13. Lu, Y., Yang, S., Chau, P., and Cao, Y. 2011. Dynamics between the trust transfer process and intention to use mobile payment services: A cross-environment perspective. Information & Management. 48, 8, 393--403.
14. Mallat, N. 2007. Exploring consumer adoption of mobile payments--A qualitative study. The Journal of Strategic Information Systems. 16, 4, 413--432.
15. Mallat, N., Rossi, M., Tuunainen, V. K., & ÖÖörni, A. 2009. The impact of use context on mobile services acceptance: The case of mobile ticketing. Information & Management. 46, 3, 190--195. doi: DOI: 10.1016/j.im.2008.11.008
16. Naipaul and Parsa. H. G. 2000. Supplementary Services as a Differentiation Strategy, Journal of Quality Assurance in Hospitality & Tourism. 1, 1, 67--80.
17. Nysveen, H., Pedersen, P., E. and Thorbjørnsen, H. 2005. Intentions to Use Mobile Services: Antecedents and Cross-Service Comparisons. Journal of the Academy of Marketing Science. 33, 3, 330--346. doi: 10.1177/0092070305276149
18. Ondrus, J., and Pigneur, Y. 2009. Near Field Communication: An Assessment for Future Payment Systems. Information Systems and e-Business Management. 7, 3, 347--361.
19. Pousttchi and D. Wiedemann. 2007. What influences consumers' intention to use mobile payments?. LA Global Mobility Round table.
20. Rogers, E. M. 1995. Diffusion of Innovations. Free Press, New York, NY.
21. Schierz, P. G., Schilke, O., and Wirtz, B. W. 2010. Understanding consumer acceptance of mobile payment services: An empirical analysis. Electronic Commerce Research and Applications, 9, 3, 209--216. doi: DOI: 10.1016/j.elerap.2009.07.005
22. Shin, D. (2010). Modeling the Interaction of Users and Mobile Payment System: Conceptual Framework. International Journal of Human-Computer Interaction. 26, 10, 917--940.
23. Tornatzky, L. G. and Klein, K. J. 1982. Innovation characteristics and innovation adoption-implementation: A meta-analysis of findings. Engineering Management, IEEE Transactions on, 1, 28--45.
24. van Riel, A., Liljander, V. and Jurriens, P. 2001. Exploring consumer evaluations of e-services: a portal site, International Journal of Service Industry Management. 12, 3/4, 359--77.
25. Venkatesh, V. and Davis, F. D. 2000. A theoretical extension of the technology acceptance model: four longitudinal field studies. Management science. 46, 2, 186--204.
26. Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. 2003. User acceptance of information technology: Toward a unified view, MIS Quarterly. 27, 3, 425--478.
27. Xiao, X., Hedman, J. and Runnemark, E. 2013. Why Do People Pay the Way They Do: The Case of Cards, Cash, and Internet Banking in the Context of Danish Society, http://www.cfir.dk/Dokumenter/Documents/Fremtidens%20Penge%20-%20Why%20do%20people%20pay%20the%20way%20they%20do.pdf.pdf
28. Yang, S., Lu, Y., Gupta, S., Cao, Y., and Zhang, R. 2011. Mobile payment services adoption across time: An empirical study of the effects of behavioral beliefs, social influences, and personal traits. Computers in Human Behavior. 28, 1, 129--142

Index Terms

• Applied computing

  • Electronic commerce