Understanding Chinese Millennials' Adoption Intention Towards Third-Party Mobile Payment

Understanding Chinese Millennials' Adoption Intention Towards Third-Party Mobile Payment

Xuechun Lu, Hui Lu
Copyright: © 2020 |Pages: 24
DOI: 10.4018/IRMJ.2020040103
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Different user groups will tend to value different third-party mobile payment offerings differently, and so make different adoption decisions. Millennials are regarded as creative, socially conscious and more willing to provide opinions on the advantages and disadvantages of new technologies. Therefore, it is important to investigate the key factors that affect Chinese Millennials' adoption behavior of third-party mobile payments as they grow in popularity in China. This study establishes a new conceptual model based on the Technology Acceptance Model incorporating additional variables such as perceived risk, personal innovativeness, compatibility, and social influence. This research collected quantitative data by questionnaire (N=380). The data was analyzed by SPSS. This study suggests that social influence and attitude directly affect adoption intention towards third-party mobile payments, whereas perceived usefulness, compatibility, perceived ease of use and personal innovativeness only indirectly affect adoption intention towards third-party mobile payments.
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With the promotion and popularization of telecommunication, smartphones have been converted from a simple communication tool to a multi-functional device with functions such as web browsing, mobile commerce and online gaming (Leong et al., 2013). Among various mobile services, mobile payment has become a popular topic in the area of business and academic research (Chong, 2013; De Kerviler et al., 2016). Mobile payment refers to the commercial transaction through wireless telecommunication networks (Dahlberg et al., 2015).

Mobile payment also promotes economic development for developing countries (Chong et al., 2012). In China, the availability of 4G and wireless technology has stimulated the development of mobile payment (Yang et al., 2012). Third-party mobile payment, as one of the solutions of mobile payment has experienced substantial growth since the development of electronic commerce in China. According to results from National Bureau Statistics, in 2018, there were 490 million internet users in China, an increase of 16.7% compared to 2017. In addition, the number of third-party mobile payment users was 440 million, an increase of 22.2% compared to 2017. The revenue of Chinese third-party mobile payment reached RMB41.7 billion, with an increase of 42.3% compared to 2017.

The above data shows that third-party mobile payment is growing rapidly in China. However, only 31% of the total Chinese population use third-party mobile payment (iResearch Data, 2019). Therefore, it is important to investigate key factors that affect the adoption of third-party mobile payment to accelerate its popularity in China (Yang et al., 2012). Furthermore, diverse user groups may consider third-party mobile payment differently and decide whether to adopt this technology. Millennials are regarded as creative, socially conscious and willing to adopt new technologies (DeVaney, 2015). They are more likely to provide opinions on the advantages and disadvantages of third-party mobile payment compared to the old (DeVaney, 2015). Given limited studies on user groups’ technology adoption in China, this research chooses Chinese Millennials whose age is between 18 and 40 as a target to fill this information gap.

This research aims to identify the key factors that influence Chinese Millennials’ adoption intention towards third-party mobile payment. The objective is threefold. First, this paper attempts to test the applicability of the Technology Acceptance Model in different technologies and user groups. Second, four additional constructs (social influence, perceived risk, compatibility, and personal innovativeness) are added to the Technology Acceptance Model to examine their effects on Chinese Millennials’ adoption behavior towards third-party mobile payment. Third, recommendations are given to third-party mobile payment business in China to understand customer behaviors based on the research results.

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