The key success factors to mobile commerce for Arab countries in Middle East

Hosni, Noura Al; Ali, Saqib; Ashrafi, Rafi

doi:10.1145/1967486.1967615

“…Thus, despite the rapid growth of e-commerce and mobile services, consumers in the Middle East have not completely understood the mechanism of mobile payments. In addition, they are most likely not willing to use mobile commerce out of their fear of their personal privacy and financial security being compromised (Al-Hosni et al , 2010). Reviewing the relevant literature, this paper will build on past studies (e.g.…”

Section: Introductionmentioning

confidence: 99%

A model of mobile payment usage among Arab consumers

Ramadan

¹

,

Aita

²

2018

IJBM

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Purpose The purpose of this paper is to investigate the impact of perceived satisfaction with mobile payment applications based on use experience, and subsequent stated expectations on brand loyalty and future use behavior using a theory-based research integrative model of factors that influence Arabs’ intentions to use mobile payment application(s). Design/methodology/approach A conceptual model was developed using the mixed research method approach. The focus group approach was used for the qualitative study and structural equation modeling for the quantitative study. Primary data were collected online. Participants were 305 Arab consumers from nine countries in the Middle East. Findings Satisfaction with the quality of mobile payment application(s) increased use experience and enhanced consumers’ expectations, which in turn positively affected loyalty and purchase intentions. Research limitations/implications The study encompassed mobile payment application(s) in nine countries rather than focusing on one market, or on one product type and business. The paper did not perform a comparative study between sampled Arab countries, but rather it sees all countries and respondents just as Arabs. Practical implications Service providers should build mobile application(s) based on the features of usability, availability, reliability, adaptability, accessibility, responsiveness and security. Originality/value This study is one of the first studies that empirically examines mobile payment consumer’s usage behavior from nine countries of the Arab world where there is scarce research on the topic in the region.

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“…There had also been limited coordination between private and public sectors to provide m-commerce services. However, many Middle Eastern countries have recently been starting to open their mobile markets to new operators to create more mature markets (Alhosni et al, 2010). For instance, in 2012, PayPal partnered with Aramex to launch its operations in the Middle East (Farhat, 2014).…”

Section: M-payments In the Middle East And Arab Countriesmentioning

confidence: 99%

Factors Influencing Consumer Trust in Mobile Payments in the United Arab Emirates

Shuhaiber¹

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<p>While mobile payments have been adopted by a huge number of businesses, the body of knowledge regarding user trust in mobile payments shows that trust is a major issue in its adoption and development. The purpose of this study was to better understand the factors that influence consumer trust in mobile payments in one significant country in this region; The United Arab Emirates (UAE) as the research region. The UAE is one of the leading economies in the Middle East Arab region, and mobile technology is well advanced and widely utilised. An analysis of relevant literature provided the basis for the development of a conceptual model. The model, classified into five logical groups (consumer characteristics, environmental influences, provider characteristics, perceived risks and mobile-device characteristics), was further explored, validated, extended and tested through a mixed-method methodology, combining both qualitative (phase one) and quantitative (phase two) approaches, with semi-structured interviewing in exploratory focus groups and an online survey being used respectively. The findings of the qualitative phase were used to clarify the appropriateness of the preliminary Consumer Trust in Mobile Payments (CTMP) model, which was accordingly revised and extended. The second phase (the quantitative approach) was based on a survey of 340 respondents in the UAE. The collected data were analysed by using Structural Equation Modelling with the Partial Least Squares (PLS-SEM) approach. Many of the factors in the qualitative CTMP model were successfully validated and statistically significant. The resulting, quantitatively weighted CTMP model shows that users‟ awareness and provider‟s trustworthiness are the most positive influential factor, followed by perceive security levels and device-design suitability. Customers‟ uncertainty avoidance, on the other hand, is the most negatively influential factor on trust, followed by perceived privacy risks associated with m-payments. The model contributes towards better acceptance and usage of mobile payments. The findings also provide a number of theoretical implications for academic research and useful information for practitioners.</p>

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“…Significantly, Middle Eastern Arab countries 2 , which are considered the second fastest growing region (after the US and Canada) in mobile and telecommunication adoption, have been experiencing m-payments services and applications since 2003 through different marketing and technological strategies (Alhosni et al, 2010). However, no sufficient level of consumer satisfaction has yet been achieved (Alhosni et al, 2010;and others), and many m-commerce applications have failed to meet consumers" expectations (Bhatti, 2008). Although several studies indicated the importance of trust for consumers to accept and use m-payments in the Middle Eastern Arab region (e.g.…”

Section: Research Introduction and Motivationmentioning

confidence: 99%

“…Although several studies indicated the importance of trust for consumers to accept and use m-payments in the Middle Eastern Arab region (e.g. Alhosni et al, 2010;and others), trust in m-payments in this region has not yet been sufficiently empirically studied.…”

Section: Research Introduction and Motivationmentioning

confidence: 99%

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Factors Influencing Consumer Trust in Mobile Payments in the United Arab Emirates

Shuhaiber¹

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<p>While mobile payments have been adopted by a huge number of businesses, the body of knowledge regarding user trust in mobile payments shows that trust is a major issue in its adoption and development. The purpose of this study was to better understand the factors that influence consumer trust in mobile payments in one significant country in this region; The United Arab Emirates (UAE) as the research region. The UAE is one of the leading economies in the Middle East Arab region, and mobile technology is well advanced and widely utilised. An analysis of relevant literature provided the basis for the development of a conceptual model. The model, classified into five logical groups (consumer characteristics, environmental influences, provider characteristics, perceived risks and mobile-device characteristics), was further explored, validated, extended and tested through a mixed-method methodology, combining both qualitative (phase one) and quantitative (phase two) approaches, with semi-structured interviewing in exploratory focus groups and an online survey being used respectively. The findings of the qualitative phase were used to clarify the appropriateness of the preliminary Consumer Trust in Mobile Payments (CTMP) model, which was accordingly revised and extended. The second phase (the quantitative approach) was based on a survey of 340 respondents in the UAE. The collected data were analysed by using Structural Equation Modelling with the Partial Least Squares (PLS-SEM) approach. Many of the factors in the qualitative CTMP model were successfully validated and statistically significant. The resulting, quantitatively weighted CTMP model shows that users‟ awareness and provider‟s trustworthiness are the most positive influential factor, followed by perceive security levels and device-design suitability. Customers‟ uncertainty avoidance, on the other hand, is the most negatively influential factor on trust, followed by perceived privacy risks associated with m-payments. The model contributes towards better acceptance and usage of mobile payments. The findings also provide a number of theoretical implications for academic research and useful information for practitioners.</p>

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The key success factors to mobile commerce for Arab countries in Middle East

Cited by 8 publications

References 11 publications

A model of mobile payment usage among Arab consumers

A model of mobile payment usage among Arab consumers

Factors Influencing Consumer Trust in Mobile Payments in the United Arab Emirates

Factors Influencing Consumer Trust in Mobile Payments in the United Arab Emirates

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