A STUDY OF ADOPTION INTENSION AND MARKET PENETRATION OF ONLINE WALLETS

Abstract

The widespread use of smartphones and technological advances in near-field communication technologies are quickly transforming mobile payment systems. These technologies have made it possible for consumers to use their smartphones to pay for their purchases through various payments systems such as PayTm, Freecharge and Mobikwik. These mobile payment systems, commonly referred to as mobile wallets, are designed to eliminate the need for consumers to carry multiple credit cards or cash in their wallets, thereby making it more convenient for consumers to shop. Mobile wallets is a major innovation in mobile marketing because they are another major channel through which marketers can better reach and serve customers in a very personalized way. Realizing the potential benefits of mobile wallets for both marketers and consumers depends on the speed of adoption of this new technology. This study examines the factors that influence consumers’ decision to adopt mobile wallets. Drawing on the theoretical technology adoption and diffusion literatures, a model of the factors that influence mobile wallet adoption is proposed and tested with data collected from 530 respondents. The results show that mobile wallet adoption is driven by factors such as trialability, perceived usefulness of the technology and perceived ease of use. Interestingly, privacy and security and social norms did not influence adoption decisions. However, social norm is significant only though peer pressures.