Consumer attitudes on mobile payment services - results from a proof of concept test

Purpose - A society's potential economic gains from replacing cash-based payments with electronic payments are large, and mobile payments may help this transition. The purpose of this paper is to understand consumers' attitudes on start using mobile payment services. Design/methodology/approach - The study builds on quantitative data from a proof of concept test of a mobile payment service that was done in Sweden in 2011. The theoretical foundation rests on technology adoption models (TAM) and diffusion of innovation theories. Findings - The study finds that the most important factor explaining whether consumers are likely to use a mobile payment service is ease of use. In addition, relative advantage, high trust, low perceived security risks, higher age and lower income were associated with a positive view on adopting the service. Research limitations/implications - The results leads to the conclusion that studies of innovation in the payment industry cannot rely on TAM and innovation diffusion theory alone. Theories on learning, network economies and value-creation must also be included if change processes in payment systems are to be fully understood. Practical implications - Companies aiming to launch mobile payment services must understand that consumers' put high importance on reliability of such services and that trust in services is built via learning process. If consumers learn to use the service, the probability they also start to trust it increases. This means that the launch of services must be designed as learning processes for consumers and merchants. Originality/value - The newness in this paper is, first, that the TAM model is tested quantitatively in a regression analysis using data from Sweden, and, second, that the traditional theories used to explain consumers' use of new types of payment services are discussed and suggestions for additional, complementary theories are proposed.