Examining consumers’ usage intention of contactless payment systems

Abstract

Purpose The purpose of this paper is to develop and test a conceptual model that combines the modified Unified Theory of Acceptance and Use of Technology (UTAUT2) with a consumer brand engagement (CBE) model to predict consumers’ usage intentions toward contactless payment systems in a developed country. Design/methodology/approach The authors cooperated with a contactless payment service provider in Finland and reached out to 22,000 customers, resulting in 1,165 usable responses. The collected data were analyzed using structural equation modeling. Findings The study shows that the UTAUT2 and the CBE model together explain approximately 70 percent of the variance in usage intention. Of the predictors, habit and consumers’ overall satisfaction have the strongest influence on usage intentions. The model also confirms the positive relationship between intention and use. Practical implications Understanding the reasons for both the intention to use and the continued use of contactless payments is important for merchants, banks and other service providers. This study shows which technology adoption factors drive both the intention and the use of contactless payments. The finding that intention is mainly driven by habit and overall satisfaction and not by hedonic reasons indicates that such behaviors are difficult to change. Originality/value This study is among the first to examine contactless payment usage in a developed market, where over half of all point-of-sale transactions are executed using contactless payment cards and/or cell phones.

Digital Financial Inclusion Sustainability in Jordanian Context

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Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts

“…Further, Marous ( 2013 ) identified that encouraging customers to change the current banking channel is a difficult venture. Similarly, Karjaluoto et al ( 2019 ) asserted that customers’ intention to use contactless payment systems is highly influenced by habit and it is hard to change such behaviours. The best alternative at this stage that the bank could have is to set up an optimal channel mix to meet customers banking needs.…”