Evaluating the Role of Trust in Consumer Adoption of Mobile Payment Systems: An Empirical Analysis

Consumer adoption of mobile payment (m-payment) solutions is low compared to the acceptance of traditional forms of payments. Motivated by this fact, we propose and test a “trust-theoretic model for consumer adoption of m-payment systems.” The model, grounded in literature on “technology adoption” and “trust,” not only theorizes the role of consumer trust in m-payment adoption, but also identifies the facilitators for consumer trust in m-payment systems. It proposes two broad dimensions of trust facilitators: “mobile service provider characteristics” and “mobile technology environment characteristics.” The model is empirically validated via a sample of potential adopters in Singapore. In contrast to other contexts, results suggest the overarching importance of “consumer trust in m-payment systems” as compared to other technology adoption factors. Further, differential importance of the theorized trust facilitators of “perceived reputation” and “perceived opportunism” of the mobile service provider, and “perceived environmental risk” and “perceived structural assurance” of the mobile technology, are also highlighted. A series of post-hoc analyses establish the robustness of the theorized configuration of constructs. Subsequent, sub-group analyses highlight the differential significance of trust facilitators for different user sub-groups. Implications for research and practice emerging out of this study are also discussed.