Going cashless in Japan: Using exchange benefit and cost approach to study continuance intention of mobile wallet

Japan has been a leading country introducing mobile wallet technologies. The Japanese government and related industries have tried to widely diffuse the mobile wallet among Japanese consumers. This paper addresses the issue of "Cashless Japan" by asking what factors will enable Japanese consumers to use the mobile wallet to a greater extent in society. We used the Dual Factor Model framework to explore the causal relationships between exchange benefits (including perceived value and perceived enjoyment) and exchange costs (including security concerns and privacy) with related factors (consumer attitudes and perceived risks) on the continuance intention to use mobile wallet apps. Based on our empirical study in Japan, we found that perceived value and enjoyment affect a consumer's continuance intention through consumer attitudes. Perceived enjoyment has a direct effect on consumer's continuance intention. Privacy and security concerns affect consumer's continuance intention through perceived risk, while privacy concerns also affects consumer attitudes. We found that perceived risk mediates the path from security concerns to continuance intention while consumer attitudes mediates the path from perceived enjoyment to continuance intention.