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TopBackground
The retail services sector is reliant on the efficient application of financial payment systems that benefit retailers, financial institutions and customers. Indeed, enhancements to the retail payment system through innovative use of technology have been shown to be important for consumers where such payment systems are to meet the growing expectations of consumers (Chenault, 2009). Notably, it is argued that financial payment system improvements through technological innovation can be an important contributor to a country’s economic development (Weichert, 2008). Balakrishnan (2009) indicates that cash-based payment systems in developing economies are associated with up to seven per cent of a country’s gross domestic product (GDP). Furthermore, by shifting from a paper-based payment system, to an electronic payment system, can equate to saving a full one per cent of the GDP. Therefore, electronic payment innovation should be a strategic priority for all stakeholders in the financial payment industry at all levels of operation.
M-payment is a recent form of payment innovation that has emerged as a result of the widespread adoption of wireless technology, as reflected in the rapid uptake of mobile devices (Zhang & Dodgson, 2007). M-payment refers to the use of a mobile device, such as a mobile phone or a personal digital assistant (PDA), to electronically transfer funds from one party (payer) to another (receiver), either directly or via an intermediary (Mallat & Tuunainen, 2008; Zhang & Dodgson, 2007). An efficient m-payment system can create a significant multiplier effect across a financial value chain, potentially creating more jobs for a country’s economy. Arguably, with the recent transformation to a mobile-enabled world, m-payments will become an important lynchpin in economic activities and growth for countries where this technology is a common mode of payment (Weichert, 2008). Consequently, as already indicated, the advent of m-payment services highlights the importance of understanding factors influencing user adoption, particularly in countries that may have high mobile device use, but are lagging in the adoption of important value-added services such as m-payments (Mallat, 2007)— a situation encountered in Thailand.
Key Terms in this Chapter
Perceived trust: The level of trust that a person has in another entity to perform expected activities without taking advantage.
Behavioural Intention: A measure of an individual’s intention to behave in a specific manner.
Perceived usefulness: An individual’s perception of the usefulness of using a particular technology.
Perceived Cost: The extent to which an individual believes that using a particular technology will cost money.
Mobile Payment: The use of mobile devices, such as mobile phones or personal digital assistants (PDA) to transfer funds electronically from one party (payer) to another (receiver), either directly or via an intermediary.
Subjective norm: The influence of peers and/or other social groups such as friends, parent, and colleagues on an individual’s behaviour.
Compatibility: An individual’s evaluation of the extent to which a new technology will be consistent with his/her needs and lifestyle.
Perceived risk: The uncertainties that people have with regard to the possible negative consequences of using new technology.
Perceived ease of use: An individual’s perception of the difficultly or ease of using a particular technology.
Mobile commerce: A marketplace that allows people to purchase goods or services through their mobile devices.