Understanding Proximity Mobile Payments Adoption in South Africa: A Perceived Risk Perspective

Charlene Eksteen () and Michael Humbani ()
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Charlene Eksteen: Department of Marketing Management, University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa
Michael Humbani: Department of Marketing Management, University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa

Journal of Marketing and Consumer Behaviour in Emerging Markets, 2021, vol. 2, issue 13, 4-21

Abstract: Although existing literature claims that consumers are ready for proximity mobile payments, the reality is that adoption is still low in South Africa. Service providers’ attempts to translate this potential into profi t is hindered by consumers’ perception of risks associated with proximity mobile payments. The purpose of this study was to investigate the perceived risk dimensions as possible inhibitors of proximity mobile payment adoption, as well as to investigate the role of gender diff erences, drawing from the perceived risk and push-pull theories. Using a convenience sample, data was collected from South African smartphone users, from whom 284 valid online surveys were obtained. The standard regression analysis reveals that fi nancial-security and performance risk are predictors of proximity mobile payment adoption, and that product risk is not a signifi cant predictor, at least in the South African context. The fi ndings also reveal that both genders feel more or less the same about the infl uence of risk factors on the adoption of mobile proximity payments, except for performance risk. The results also show that females are more concerned about the performance of proximity mobile payments than males. The study provides tangible insights that service providers and marketers can use to guide application development and communication with consumers. A contribution is also made to the limited empirical research on the infl uence of proximity mobile payment risks on adoption during crisis times.

Keywords: financial-security risk; performance risk; product risk; proximity mobile payments; adoption intention; perceived risk theory (search for similar items in EconPapers)
JEL-codes: L81 M31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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