Consumer Acceptance Of Mobile Payments Essay

As technology advances over the years, we have experienced and noticed that the trend in how payment are received have shift tremendously. Twenty years ago, check was the preferred way of payment. In today’s world, more and more payments are done by credit cards. Credit card transactions are instance that provides a faster payment method.

This approach as proposed by Benbasat and Barki [28] for the technology acceptance model is believed to be able to help generate actionable information on how to “create” the antecedents to the desired success of information technology artifacts. Some applicable theories that can be reverse-engineered are:

Although major retailers have had credit card breaches, which devastated consumer trust in credit, Mobile payment systems stay efficient, but risk personal and financial data fraud similar to plastic credit card usage theft. Patrons fear merchants can track your shopping habits, location and financial records using a mobile GPS signal. Nevertheless, worries that someone can steal their information when sent wirelessly therefore consumer confidence remains low. Thorough safety measures will help give customers composure and regain assurance. (Busby, 2014) (Sapienza, 2013)

In 2016, e-Marketer estimates that 37.5 million people in the U.S. (19% are smartphone users) will transact using their phones, by the end of 2016, mobile payments are expected to exceed $27 billion. Predictions are that by 2017, U.S. mobile commerce will have increased so much in popularity that it will account for 50% of U.S. total digital commerce revenue (Mobile ecommerce, 2016).

Mobile payments are defined as payment services operated under financial regulation and performed from or via a mobile device, namely a cell phone. The use of mobile payment is a substitute for traditional forms of payments. The idea to use non-coin-based currency systems has been developing for years yet it is only now becoming popular. Nowadays, most phones are produced from three or four companies due to economies of scale. This has meant that having five or six mobile payment apps is feasible and profitable due to network effects. If there were a hundred mobile payment apps, less people would use them because it is likely that no two people will have the same app, and thus it cannot be used for

. Mobile payment users >190 MM in2012, which is over3 % of total mobile users worldwide a level considered as "mainstream”

More and more people before deciding to purchase goods used to check offers via smartphones or tablets. The world 's total number of sales of such devices exceeded the number of desktops.[1] Technological development and high availability of new solutions contributed to the increase in customer expectations to its relations with the bank. The ability to use the money anywhere, anytime in an easy and convenient way for customers has become natural. Mobile payments is big innovation which has some a lot of good coins but it has some threats and limitations about which I will consider and analyze in my literature review.

In January 2014, SmoothPay was first launched in Toronto, Ontario offering mobile payments with integrated functions such as customizable loyalty programs and solutions. In addition, this company’s network has reached over 5,000 users and 100 merchants in their well connected partnerships and community in less than two years. Despite this achievement, only a low percentage of consumers are using their smartphones to make their daily purchases across Canada creating difficulty in further promoting SmoothPay’s business. However, SmoothPay has focused in highly populated areas, such as universities. Therefore, this strategic decision has increased some brand awareness. Since this product let consumers to easily connect with their payment accounts, such as Visa, MasterCard, and PayPal, many have benefited from using SmoothPay’s quick and

TPB originated from Theory of Reasoned Action (TRA). But TRA held some limitations like it emphasized on behavioral intentions rather than on attitude. Therefore, a new theory TPB emerged and a new constituent was added to it “Perceived Behavioral Control” (Technology Acceptance Model : A Literature Review). Technology Acceptance Model (TAM) was introduced from the derivations of TRA and TPB. It reflects the behavior of people in accepting or rejecting any technological model. In TAM, subjective norms were removed and

Almost daily a new information technology is introduced into our personal, professional, or educational lives. Studying acceptance of new technologies has become a focus of industry as well as academia. Application developers realize that lack of user acceptance of their technology can lead to loss of money, resources, and the failure of their product. In studying this key factor of user acceptance and use of technology, the Technology Acceptance Model (TAM) is one of the most cited models.TAM was developed by Fred Davis and Richard Bogazzi to explain computer technology user decisions. The theoretical basis of the TAM model was from Fishbein and Ajzen’s Theory of Reasoned Action (TRA).

In this scenario, consumers are recognized by the signals they emit, most likely from their wireless phones or PDAs, and they can purchase goods and services from vending machines and businesses without having to use a checkbook, credit card or cash. But making the wireless wallet a reality will require an evolution of both technology and consumer attitudes that is still far in the distance. Moreover, at the commerce phase, in which consumers should realize that using wireless devices to purchase real goods in the physical world does not necessarily deliver those goods to their wireless device. It will be a challenge to convince consumers to leave their credit cards at home and let their phones do the purchasing. In addition to this, consumers will need easy-to-carry wireless devices that they will always have with them, and terminals will have to be available at stores or in vending machines. Both of these devices must have the necessary infrastructure to enable transactions. Last, and most difficult, there must be a worldwide standards initiatives. However, the most important aspect is to explain to the consumers, what is their bennefit to use the services of m-commerce, instead of the brick-and-mortal

I’m start off by telling you about an entrepreneur who made this mobile payment application possible for others to use. Lee Byung-chul, the founder of Samsung Electronics is responsible for South Korea’s largest business corporation. Recently his company has came up with a new cutting edge feature that is created for android phones. The technology is very innovative and creative mobile application that will change how people purchase items in the future.The mobile application is called Samsung Pay.

Mobile banking changed the landscape of personal banking. As the Internet became more ubiquitous and smartphone and tablet use is increasing, the desire for consumers to conduct their banking on the go grew exponentially. Financial institutions are expanding the services offered through mobile banking to attract younger customers as well as reduce costs. In an effort to reduce costs, banks are investing in technologies to change the banking landscape with do-it-yourself banking, teleconferencing with customers, eliminating paper, and reducing branch size.

The last decade has witnessed a lot of growth of mobile communication devices and wireless technologies across the globe. This has led to a change in the way many activities are conducted and opened the way for m-commerce, which is e-commerce's next evolutionary stage. The significant power of m-commerce is primarily as a result of the ability to connect wireless devices anytime, anywhere (The Future of Mobile Payment Systems : Rise of the Mobile Wallet 2012-2017 [Electronic version], 2011).

transforming the mobile phone into a mobile wallet with digital cash that supports both as real cash and security [1]. It is a type of mob ile payment technology in which instead of paying with cash, checks or cred it cards, a consumer can use a mobile phone to pay for wide range of services and digital or goods such as: