Mobile Payment Systems and Impulsive Buying: A Conceptual Paper

Introduction

Consumers’ buying behavior has been significantly transformed by modern developments in financial technology. One such development is the use of mobile payment systems. Thus, studies in psychology and consumer behavior have accordingly given increased scholarly consideration to the psychological (cognitive, affective, and conative) influences of various payment methods like credit/debit cards, cash and mobile payment methods (Xu et al., 2022). Also, the development of the World Wide Web has led to tremendous changes in the financial technology landscape which has facilitated payment for consumers of diverse products and services (Xu et al., 2022). Despite the numerous benefits of mobile payment systems, there are massive dark sides that pose certain dangers to consumers. For instance, impulsive buying is a major unintended consequence of the growth of mobile payment systems and it is of growing concern for scholars and practitioners (Halim, 2021; Um et al., 2022; Yang et al., 2021).

Impulsive buying is viewed as an unplanned purchase or making purchase decisions on the spot (Zheng et al., 2019). Impulse purchases are usually done in a sudden, robust and sustained manner. These behaviors offer a fun boost and make buyers more emotional rather than rational in their purchase decisions (Halim, 2021). Impulse purchases are often done without regard to their consequences. Since mobile payment systems perform the role of physical wallets and permit consumers to reload electronic cash with mobile devices, they have become major promoters of impulse buying. Other major drivers of impulse buying include factors such as age, gender, emotions, product attributes, social factors and media promotions (Um et al., 2022; Yang et al., 2021; Zheng et al., 2019).

Impulse purchases are prevalent in both brick-and-mortar contexts as well as online settings. Particularly, with the advancements in financial technology, prior studies have found about 30 to 50% of all retail sales to come from impulse purchases (Liu et al., 2013). Also, about 90% of consumers buy on impulse occasionally (Hausman, 2000). Other studies have also revealed that almost 40% of all money spent on e-commerce sites are from impulse purchases (Verhagen & van Dolen, 2011).

Impulse buying is problematic for consumers for diverse reasons. First, individuals mostly involve in impulse buying for mood-repair and mood-enhancement (Spiteri Cornish, 2020). Yet this enhanced mood is fleeting and they do not end up being happier beyond the temporary emotional states linked with the purchase experience. Also, the positive feelings linked to impulse buying is normally partly deflated if consumers assess the functional and economic benefits of the item purchased when they get home. This is an indication that there is a shift of focus from the product itself to the consumption of the product (Spiteri Cornish, 2020). Furthermore, past research suggests that consumers experience regret concerning the items purchased, especially, if they are of a low quality, bad value for money or unsuited. They also experience regret as a result of self-recrimination when the buying decision is unreasonable and indefensible (Banning, 2015; Um et al., 2022). Impulse purchases can also cause buyers to experience post-purchase regret arising from owning a product that is not needed and remain unused.

Despite the wide prevalence of impulse buying both in the online and offline contexts, rather limited reviews have been done on the link between mobile payment systems and impulse buying. Prior studies on consumer buying behavior suggest that consumers’ form decisions consciously and deliberately. Thus, theories of conscious behavior like theory of reasoned action and the theory of planned behavior have widely been applied as vital theoretical lenses. Inspired by current advances in financial technology and recent advances in consumer psychology on automatic and impulse purchases, this conceptual study examines impulse buying and its linkages with mobile payment systems. The study intends to contribute to the growing body of literature on the dark side of financial technologies and its implications for consumers and practitioners.