The factors that affect consumers intention to adopt near field communication mobile payment in supermarkets

Abstract

The emergence of mobile technologies has changed the consumer’s life in many ways, especially the way they perform payment. This thesis examines the core drivers of using Near Field Communication (NFC) mobile payment in the supermarket industry from the consumer’s perspective. Based on the Technology Acceptance Model (TAM) and Innovation Diffusion Theory (IDT), the author developed a sevenfactor model to reveal the determinants of consumers’ intention to use Near Field Communication (NFC) mobile payment. Relative advantage, speed of transaction, compatibility with consumers’ lifestyles, security and awareness were added to the two-factor TAM model (usefulness and ease of use). Author evaluated the proposed model empirically, applying survey data gathered from supermarket consumers respect to their perceptions on Near Field Communication (NFC) mobile payment. Six significant factors found in this research can serve as guideline to encourage consumer adoption of Near Field Communication (NFC) mobile payment in supermarkets. Among which most of the respondents reported that relative advantage was not their primary reason in their decision to adopt the system. More over ease of use was significantly influenced by awareness of consumers and perceived usefulness influenced by speed of transaction which can be best explained by the fact that consumers would find the system useful if it provides them means to avoid long checkout lanes. Based on the findings of this research, marketing of new technologies must focus on creating awareness and gaining consumers trust to enable consumers to be easily familiarized with the Near Field Communication (NFC) mobile payment system.