User Intention to Adopt Mobile Payment Services in Macau

On the basis of residents’ interviews to obtain information on different perceptions and the use of mobile payment services,, this research will demonstrate the extent to which Macau residents have embraced the idea of adopting mobile payment services in their daily and business endeavors in their daily business as well as other payments services. The study is performed on a comprehensive interview and other research models based on reviewing the acceptance of new technologies. Through the use of a model built on the basis of constructs brought in by TAM literature combined with interviews and observations of different effects of mobile payment services on consumers, we were able to find that many consumers in Macau view Perceived Security to be crucial in their intention to adopt Mobile Payment technology.

The new expertise under associated with this platform is termed “M. wallet + will transform e-commerce sector due to its solid adoption by the clients in Macau and the whole world by extension. The background of the participant. Case study 17 Chapter 4: Data Analysis and discussion 18 Chapter 5: Findings 27 References 30 Appendix A: interview questions 33 Appendix B: Participant’s invitation letter 35 Appendix C: Participant’s consent form 36 Appendix D: interview responses 36 Chapter 1: Introduction 1. The context of mobile payment service in Macau Background information of mobile payment in Macau Mobile Payment Service (MPS) is a recent technology that has gained popularity in China and the world. It is estimated that 12 million consumers in China currently utilize this method of payment (IPSOS, 2017). The adoption of mobile banking in Macau has posed a paradigmatic shift in the operations of the banks and other financial institutions due to a business partnership with mobile service providers and telecommunication companies.

The origin of Mobile Payment Service is thought to have resulted from the transactions of service providers and investors. Samsung, a market team member has offered to involve itself in the mobile payment market through creating a system termed as Samsung Pay. Many customers and investors are benefiting from this system because it is strategically positioned in the market. Other payment platforms such as Alipay, TNH Wallet, as well as O! ePay and Global Money Transfer are constructively competing to change the perceptions of customers in accepting mobile payment technology. MoCTM Ltd is the dominating mobile operator in Macau and is experiencing an ever-increasing quantity of subscribers since it launched the “M. CTM Ltd also putting more efforts to encouragingly impact the user intent to accept mobile payment service via the use of “M.

wallet +”. As much as this application is still a new technology in Macau, there is a steady increase of the users since it was first launched. The statistics below shows how users and consumers have responded towards mobile payment service. Year The population of Mobile Device Users Mobile Payment Service Providers 2007 500,631 201,000 2009 559,846 259,000 2010 567, 957 280,900 2016 597,425 433,752 Fig 1. Regardless of the sluggish adoption, mobile payment technology is progressively becoming more acceptable. CTM Ltd anticipates surpassing all other mobile payment service providers in the immediate future. CTM’s mobile payment expertise has several services as listed below; i. Online payment as well as shopping ii. Booking tickets or travel documents for different purposes iii. While China is improving in technology, Macau which is a section of China will also experience the same motivation.

Many individuals in Macau are involved in commerce and therefore mobile payment technology services are very crucial to them as they utilize in their routine business transactions. 2 Problem statement. Economy development in the world and China or Macau is dependent on largely dependent on banks. Banks use mobile technology to extend its services to customers hence increasing the accessibility of funds which eases transactions as well as the economy of China. Whether mobile payment service in Macau has a comparative advantage compared to other methods of payment. iii. Whether the acceptance of cell phone payment technology is influenced by trust, convenience, and perceived risks iv. Whether cost and effectiveness influence the utilization of mobile payment technology. Chapter 2: Literature review The rate at which consumers adopt the new technology determines the rate at which they will start benefiting from efficient money transfer mobile services.

According to Burbules (2018), most individuals evaluate risks before making a choice on whether to accept a particular technology. The consumers evaluate the security and privacy as well as convenience of the product and accept it if has more benefits than demerits. According to Dineshaw and Munion (2013), a study conducted in Mauritius using the quantitative approach in line with TAM models revealed that convenience and compatibility greatly affected the consumers’ intention to adopt mobile payment service. However, salary, age, and gender did not pose significant effects. Further, perceived risk emerged to be a great impediment to mobile payment technology. The study of Lian et al (2012) and Kuisma et al (2007) investigated factors that resist consumers from adopting e-commerce, online banking, and mobile payment service.

The study revealed Perceived Ease of Use as a key element that restricts consumers from adopting mobile payment service. Another research was done in Germany by Koening, Palmer, and Moll, (2010) which examined impediments towards the adoption of mobile payment technology. The study was purely based on the Technology Acceptance Model (TAM) where responses were analyzed from 155 questionnaires that were administered. The validation of the hypothesis was done using Structure Modeling Design which indicated that risk, compatibility or perceived usefulness were the significant factors influencing banking adoption in Germany. According to history the origin of the mobile payment services in Finland is approximated to have started in 1997 by finish Telecom organization (Dahlberg, Mallat & Oorni, 2003). The company was dealing with services involving purchasing specific items from vending machines which were incorporated in the mobile phone devices systems and could be paid in cooperation with the services bills of the operator.

The devices that were part of the process entailed mobile phones, as well as wires tablets and other electronic devices which could be used in the transmission of a signal in the internet web to enable communication and cash transfer in online payment termed as mobile payment. Karsiko (2015), describes mobile payment as a means of payment through which the instructions or raw information, also known as commands, are generated and portrayed through the use of mobile phone devices. Further, the author states that the digital commands transfer can be used in online as well as offline transactions, hence proving beneficial for use by those in remote places. The framework of performing mobile payment is based on a well established technological platform (Mutalemwa & Dismas 2014).

The technology is a complicated information technicality that is centered on automating services in offline as well as online markets. The framework used to demonstrate that the researcher is centered on planned behavior theory as well as technology acceptance model for the purposes of empirically testing the influencers of user attention to the adoption of mobile service technology in Macau. Below is the model. Fig 2. Further, the records were kept were kept in a room far away and separate location and no participants are allowed to access the information. The interviewer was expected to adjust themselves to the occurrences happening during the interview. The number of interviews that were conducted in various café shops in localities like Taipa was ten. The participants were invited according to their age, occupation, and skill.

As the research was purposed on studying the intention of the mobile payment technology based on the consumer’s side, the participants were individuals and not business groups. Further, the interviewer was permitted to ask for clarification in areas where the responses were not clear. One advantage of the semi-structured method of interviewing used is that the interview was able to get deeper into the conversion and get details that are meant to solve the objectives of the research topic. The researcher was able to rephrase the wording in the questions but remains within the scope of the predetermined questions for the key themes. The drawbacks of the method are that unskilled researchers may fail to ask clarification or detailed questions hence failing to obtain relevant information.

The advantages of using the confidential interviews with well-structured questions were to ensure that facts about the topic were explored deeply and obtain the maximum information needed for the conclusion of the research. The background information as presented in table A is comprised of different elements such as education, gender as well as age and other relevant information of the Macau residents who took part in this research. The total numbers of participants were 11 and within the age bracket of between 27 and 58 years, six were in the age bracket of 27 to 33 years, three in the age bracket of 38 to 45 years while the last two were in the age bracket of 56 to 58 years. There were five males as well as five females all been Chinese participating in the research interview due to the fact that Chinese is the most dominant race in Macau.

Gender Age Occupation Nationality Education Background Smartphone user since Mobile Payment User F 27 Administration Macau Bachelor 2007 YES F 29 Sales & Marketing China MBA 2010 YES F 28 Banquet Marketing China MBA 2002 YES M 32 Engineer Macau Bachelor 2002 YES M 58 Retired Hong Kong Bachelor 2000 YES F 56 Retired Hong Kong High School 2000 YES M 45 Director Macau Master 2003 YES M 40 Senior Manager China Master 2001 YES F 38 Training Manager China Bachelor 2004 YES F 33 Public Relations Manager Macau Bachelor 2005 YES M 33 Senior Manager of Strategy and Business Macau Bachelor 2000 YES Table 5. 1 Participants Background 3. In this study, more focus is on quantitative research which refers to a logical empirical investigation of raw information from a huge population. The data were obtained from different areas such as statistics, mathematical and computational techniques.

Quantitative data refers to information in a numerical form and is it significant in the provision of basic link between experimental and mathematical expression of quantitative relations (Guerrero, 2010). The framework of this research will be centered on the augmentation of TAM (technology acceptance model) with specific theories. Chapter 4: Data Analysis and discussion The research interviewed 11 participants from various professions in Macau in an attempt to reveal their perspectives on the intent to embrace the mobile payment use. The results of the three processes that are described here are passed via a coding scheme that performs the interpretation to provide conclusive results of the study. The content analysis process starts with the utilization of audio chips to create textual scripts. In order to keep the references associated with their initial interview, alphanumeric identifiers that are composed of question number, as well as interview identifiers, are utilized as demonstrated: 1/I1 which represents question 1 asked by interviewee 1.

The descriptive analysis of this process is tabled below illustrating the manner in which the occurrences of units or codes that were generated are linked to the research questions. The table demonstrates that the codes that were obtained represent the consumer’s intent, therefore, attaching meaning to the research questions which address the aims of the research. In this case, the analysis of the collected data is performed in a skillful manner and the right findings are drawn. After drawing the findings, interpretive coding is performed via the use of coding scheme as well as Nvivo 9. Interpretive coding starts by loading the response coding schemes into Nvivo 9 which groups the Nodes into CI (consumer intent). Meaning is then extracted from the unit sentences through the subjection of the coding scheme to the context template.

In this case, the codes are taken as the true representatives of the customers’ intent to embrace the mobile payment plan and are analyzed in order to obtain a contextual meaning. The preceding evaluation has substantially confirmed the elements that are affecting intent to adopt mobile price service in Macau. The elements that have proven a high-quality impact on the subject of study consist of effectiveness, performance, convenience, perceived profits, age, earnings reputation and influence from close friends and family. These are the fundamental drivers of customers to embrace mobile payment technology services in Macau. The reactions to RQ1-3 make it clear that mobile payment service is very efficient as well as convenient. The effectiveness of this service is evident in its ability to carry out financial transactions fast and timely.

Education emerges to be one of the great determinants of that motivate the users to adopt the technology. Education exposes an individual to the chances of using mobile services more as compared to the uneducated. The skills acquired in education are evident when it comes to utilization of mobile payment technology service as the educated fellows find it effective and efficient (RQ2- It is very convenient to me and feeling that it is the “high-tech” trend, the best thing is that I can use mobile phone for payment settlement when I forgot to bring my wallet out-See Appendix D). In RQ2&3 the consumers concur with the fact that convenience is associated with the mobile payment service. The method is also realized to be faster as compared with others.

Hence, the hypotheses stated below are true. H1: There is a positive effect on consumers’ intention to use mobile payment. H3: Perceived trust has a negative impact towards consumers’ acceptance of mobile payment service. H5: Perceived compatibility will have a positive impact on the intention to adopt mobile payment service. Chapter 5: Findings Managerial findings The aim of the study is to clearly examine and illustrate the factors influencing consumers’ intent to adopt mobile payment technology service in Macau. They have trust in it. Marketers should, therefore, employ managerial schemes by creating incentives on the usage of mobile payment service especially in areas dominated by young people. This can create a link hence providing an opportunity for reinforcing the adoption of mobile payment technology.

Theoretical findings The main aim of this study was to look into the factors affecting the consumers’ intent to the adoption of mobile payment technology in Macau. The analysis demonstrates that the user intent to the adoption of mobile payment technology in Macau is encouraging as many individuals considering the expertise as effectual, proficient and convenient payment mode and also useful in other financial transactions. Once more, the interviewees were probably going to answer questions inaccurately. Notwithstanding this, the interviewee may have decidedly deciphered the discoveries of the study to make it correct in spite of the predispositions. The other limitation is the kind of individuals who were interrogated. The study was only centered on educated individuals and the views of the uneducated were not considered.

Such an omission happened due to the fact that the interview questions were prepared in English which the illiterate cannot understand hence diminishing the sample size. Routledge. Dahlberg, T. et al. Trust Enhanced Technology Acceptance Model-Consumer Acceptance of mobile payment solutions. Yehonatan: Swedish School of Economics Davis, F. R. Factors Influencing the Usage of Mobile Banking: Incident from a Developing Country. World Review of Business Research. Vol. No. Based on the Decomposed Theory of Planned Behavior. International journal of academic research. Vol 23(3) pp. Koening-Lewis, N. , Palmer, A. S. , Lee, H. S. , and Kim, S. Y. M. Williams (Ed. ), Annual Review of Information Science and Technology (1993) (Vol. 31, pp. Medford, NJ: Information Today) Makongoro G. Finnish Mobile ID: A lesson in interoperability. Finland: Finnish Ministry of Environment.

Mutalemwa D. and Anthony D. Factors Influencing the Use of Mobile Payments in Tanzania: Insights from Zantel’s Z-Pesa Services. MIS quarterly (1914), pp - 561-570. Wang J. Factors Affecting Mobile Payment. Malaysia: Pertanika World Factbook (2015). Central Intelligence Agency. What is the requirement of using mobile payment? • Advertisement / promotion from retail or online shop / requestthe by a third party…etc Perceived Trust 7. What are the challenges facing mobile payment service? • What is your concern of not using mobile payment? Do you believe in these challenges 8. Do you think Macau government provides appropriate support on using mobile payment? Subjective Norm 9. What is your opinion about mobile devices being the future “wallets”? • Good thing? Why is it good? • Bad thing? What is your concern? 10.

Do you think mobile payment in Macau is popular use in Macau? Why or why not? Perceived Compatibility 11. Your experience and encounters the in the business world are highly needed in this project to make it a reality. I will gather data for this research through interviewing participants. The interview will be a structured one touching on many questions and lasting for 20 minutes only. Your consent will play a great role in answering questions. To save time, the responses will be recorded in an audio tape for analysis thereafter. Participant’s Name: ……………………………………………………………………. Participant’s Contacts………………………………………………………………………… Appendix D: interview responses Interview questions General information Gender: Female Age: 27 Occupation : Administrator Education background: Bachelor's Smartphone user since: 2007 1. What do you know about mobile payment service? Feeling that technology development is too fast and the device is user friendly for the user.

How can mobile payment assist in your daily life? Why? It is very convenient to me and feeling that it is the “high-tech” trend, the best thing is that I can a use mobile phone for payment settlement when I forgot to bring my wallet out 2. How did you know the significance of mobile payment method? Did it affect your choice or intention of using mobile payment? I normally hear the service from social media such as Facebook, online advertisement and newspaper, but I heard that the security and privacy issue will be the main concern when I use mobile payment because I heard that the data will be easily to stolen when wrongly clicking the website 3. Does level of education and skills of using mobile phone affect the intention to adopt mobile payment service? It is used majorly by those who are educated.

No skills of using the phone are required to adopt mobile payment service. Does income status affect the intention to adopt mobile payment service? Yes. Does income status affect the intention to adopt mobile payment service? I am not sure whether income status affects intention to adopt mobile payment service. What is the advantage of mobile payment in comparison with other payment method and technologies? It is a faster method of doing transactions and not affected by location or barriers of distance 16. What makes you using mobile payment? Have special discount and sometimes have refunded money to the bank 4. Will mobile payment enhance your daily life experience? Please provide example Not too much, Macau is not comment for using mobile payment.

What is the requirement of using mobile payment? It is not safe and secure 6. What are the challenges facing mobile payment service? Cannot use it everywhere, there are limited by what store will accept. Do you think Macau government provides appropriate support on using mobile payment? Some supermarkets are already using the service. Those who are educated understands it much 13. Does income status affect the intention to adopt mobile payment service? Yes. Many people adopt this payment method because they have a lot of money 14. Does income status affect the intention to adopt mobile payment service? Adoption of mobile payment is not directly proportional to income status. What is the advantage of mobile payment in comparison with other payment method and technologies? Mobile payment is not affected by distance or location.

And whether it is commonly used in the city. What are the challenges facing mobile payment service? Security again. Do you think Macau government provides appropriate support on using mobile payment? Not at this moment, they do not have sufficient support for this technology yet. What is your opinion about mobile devices being the future “wallets”? It is the big trend, however, security is the biggest issue before it can be used worldwide 10. Do you think mobile payment in Macau is popular use in Macau? Why or why not? It is not popular because when I visit the shop that I normally do, it doesn’t have any mobile payment transaction method for me to choose, I can only a use credit card or cash when I settle the payment 11.

Is it a better method of payment compared to other methods? Mobile payment is prone to risks of theft. Interview questions General information Gender: Male Age: 32 Occupation: Engineer Education background: Bachelor’s Smartphone user since: 2002 1. What is the first impression about mobile payment? It is a very effective mode of payment 2. How can mobile payment assist in your daily life? Why? It is as efficient as it solves day to day business transactions at hand. How did you know the significance of mobile payment? Did it affect your choice or intention of using mobile payment? I knew the significance of mobile payment through its convenience which made me to fully adopt it. Does adoption of mobile payment technology affected by gender? No.

any person can use the technology 13. Does level of education affect the intention to adopt mobile payment service? Yes. The learned are much flooded in the mobile payment service because they understand its convenience and technology behind it. Does income status affect the intention to adopt mobile payment service? Yes. What is the requirement of using mobile payment? • Advertisement / promotion from retail or online shop / request by a third party…etc Smartphone and subscriber SIM Card 7. What are the challenges facing mobile payment service? • What is your concern of not using mobile payment? Security threats from frauds 8. Do you think Macau government provides appropriate support on using mobile payment? Yes. They are supporting mobile payment technology because they control telecommunication companies.

What is your opinion about mobile devices being the future “wallets”? • Good thing? Why is it good? • Bad thing? What is your concern? It is a good service because of its mobility 10. How can mobile payment assist in your daily life? Why? It is effective in doing a fast transaction from one point to another. How did you know the significance of mobile payment? Did it affect your choice or intention of using mobile payment? Mobile payment is efficient 4. What makes you use mobile payment? It is a new technology of payment 5. Will mobile payment enhance your daily life experience? Please provide example Not really 6. What is the requirement of using mobile payment? • Advertisement / promotion from retail or online shop / request by a third party…etc 7.

Those who earn high income frequently use a mobile payment method 15. What is the advantage of mobile payment in comparison with other payment method and technologies? Mobile payment is done at one’s disposal without necessarily moving to the bank hence somehow convenient. Is it a better method of payment compared to other methods? There are better methods of payment than mobile payment service. Some payment methods such as direct withdrawal from the bank are authentic and credible. Interview questions General information Gender: Female Age: 38 Occupation: Training Manager Education background: Bachelor’s Smartphone user since: 2004 1. Do you think Macau government provides appropriate support on using mobile payment? The support Macau Government is doing is very negligible Subjective Norm 9. What is your opinion about mobile devices being the future “wallets”? • Good thing? Why is it good? • Bad thing? What is your concern? It is not but very risky when it comes to financial privacy 10.

Do you think mobile payment in Macau is popular? Why or why not? Not popular. Because many consumers have not appreciated it much. Is there a relationship between age and intention to adopt mobile payment? Yes. I think it is the best method of payment and cannot be matched with any digital method of transaction. Interview questions General information Gender: Male Age: 40 Occupation: Senior Manager Education background: Bachelor’s Smartphone user since: the year 2004 1. What is the first impression about mobile payment? New technology but the security is reliable or not 2. How can mobile payment assist in your daily life? Why? It can improve our daily life. Can help to paid fast 3. Do you think mobile payment in Macau is popular use in Macau? Why or why not? I think it is popular.

Globe environment trend 11. Is there a relationship between age and intention to adopt mobile payment? Yes. It is dominated by young people 12. Does adoption of mobile payment technology affected by gender? No. How did you know the significance of mobile payment? Did it affect your choice or intention of using mobile payment? The major significance of mobile payment technology is efficiency 4. What makes you use mobile payment? Its popularity as a mode of payment 5. Will mobile payment enhance your daily life experience? Please provide example No. It doesn’t enhance my life 6. What is the requirement of using mobile payment? • Advertisement / promotion from retail or online shop / request by a third party…etc Subscriber Sim Card 7. Does income status affect the intention to adopt mobile payment service? Yes.

Those with high income are majorly doing transactions through mobile devices. What is the advantage of mobile payment in comparison with other payment method and technologies? Mobile payment technology is an easy to use the platform 16. Is it a better method of payment compared to other methods? It is better than any other form of payment due to its speed and convenience Interview questions General information Gender: Female Age: 56 Occupation: Retired Education background: High School Smartphone user since: 2000 1. What is the first impression about mobile payment? Very convenient method of payment 2. Young people are flooded in mobile payment 12. Does adoption of mobile payment technology affected by gender? No 13. Does level of education affect the intention to adopt mobile payment service? Yes 14.

Does income status affect the intention to adopt mobile payment service? Yes 15. What is the advantage of mobile payment in comparison with other payment method and technologies? I don’t like mobile payment because it is prone to theft 16. What is your opinion about mobile devices being the future “wallets”? • Good thing? Why is it good? • Bad thing? What is your concern? It will promote theft 10. Do you think mobile payment in Macau is popular? Why or why not? I am not sure on the popularity of mobile payment service in Macau. Is there a relationship between age and intention to adopt mobile payment? Yes. The method is liked by young people 12. Does adoption of mobile payment technology affected by gender? No 13.