The Mobile Payment Technology in Australia - Research Paper Example

Research - Phase Background and Literature Review Contents Executive Summary 3 Background information 3 Research question/research objectives 4 Literature review 5 Innovation adoption theory 5 Perception of usefulness toward m-payment adoption 6 Perception of ease of use toward m-payment adoption 7 Perception of trust toward m-payment adoption 8 References 9 Executive Summary The report is related to the way the mobile payment technology has developed in Australia and the amount of various factors that have played a major role in creating the perception among the people regarding the mobile payment technology. In this report the factors like innovation adoption , the perception of people with related to the usefulness, ease and trust towards using a technology which is into money transaction are been studied using various reviews of the reports of various analysts. Background information The mm-payment services could be explained as the services offered under the purview of financial regulation that facilitates the payment and transfer of money using mobile devices through the use of internet. The m-payment services provide the scope of maintaining a mobile wallet for using mobile money and mobile transfers. The aspect of non-coin based transaction has a long historical background. After the use of plastic money in financial transactions through the use of debit cards, credit cards, etc., the technological applications have been used to develop the m-payment services. The launch of mobile phones has been rapidly accepted by the customers all over the world. The mobile phones and accessories have huge market shares in the developed as well as the developing economies (HUMPHREY, MOSHE and BENT, 2001, p.225). However, the developing countries have quickly adopted the m-payment services in comparison to developed countries like Australia in order to take opportunities of the worldwide business in the age of globalization. However, the m-payment services have now started to develop in the advanced economies like Australia with a difference from the models used in the developing countries. The reason for undertaking this research is to reveal the various factors that have led to the adoption of the m-payment services in Australia. The divergence of the m-payment model adopted in Australia explains the appropriateness of the various types of m-payment services in Australia that have appealed the customers to use the electronic payment services. The research work is important as the previous research studies on m-payment services have not addressed the areas of divergence in the m-payment model used in Australian markets. The research contributes to provide useful insights to the business entities for promoting the m-payment services to the customers in order to be in the same line with the changes in the Australian markets. The findings of the research also provide recommendation to the customers on the appropriateness of choosing various types of m-payment services that would address the needs under different circumstances and situations. Research question/research objectives The objectives of the research are fulfilled with the help of the research questions that have been developed in this work. The research questions include: Identify the various factors that have influenced the adoption of m-payment services by the customers in Australia. Discuss the behavioural intent of the customers in the Australian markets that have led to the adoption of electronic payment services. Explain the initiative of the business entities in promoting the use of m-payment services by the customers. Discuss the rationale behind promotion of m-payment services by the business entities in the market. Identify and analyze the appropriateness of the various payment types in the m-payment services used by the customers in Australia. The research questions could be answered to determine the causes and the effects of the m-payment services launched by the business and used by the customers in Australia in context to the socio-economic changes. Literature review The empirical theories related to the research work have been discussed which explains the influence of various factors that led to the adoption of m-payment services by the customers. Innovation adoption theory The innovation adoption theory explains the reason, process and the rate at which the innovative applications are adopted in the societies. The innovative applications like the m-payment services are not adopted by all the customers at the same point of time. The users who have pioneered the implementation of the m-payment services are the innovators. Based on the relative advantages of the m-payment services as compared to other modes of financial transaction, the diffusion of the new idea takes place in the market (Hancock, Humphrey and Wilcox, 1999, p.395). The groups of customers who have subsequently adopted the m-payment services are the early adopters, early majority, late majority and the laggards. The increase in adoption of the m-payment services have led to the increase in market share of m-payments as shown by the yellow curve given above. The review of literature reveals that the m-payment services are beings used in financial and commercial or business transactions as it matches the needs of the customers under various circumstance. The advent of globalization has led to the emergence of the middle class of people. The increasing investments, engagement in international trade and less availability of time have resulted in the change of lifestyle and habits of the customers. The various types of payments available through the m-payment service have addressed the needs of the customers according to the demand of situation and circumstance. This has appealed the behavioural intention of the customers in adopting the m-payment services by which they could carry out economic transactions through the electronic mode as per the time based demands (Humphrey, Pulley and Vesala, 1996, p.62). Perception of usefulness toward m-payment adoption Perception among the customers is very important factor and it depends more on the social psychology which is related to the way people think, their feelings about a particular thing, and also the behaviours which does influences a lot on the buying decision of the customers. According to the German psychologist German psychologist Wilhelm Wundt there are two types of psychology over which the customer’s behaviour depends which are social psychology which implies with the social environment in which the people is living and second being the physiological psychology which is related with the way people think about a particular company o product in the market. In 1908, two different aspects were explained by psychologist William McDougall who explained the individual perception and sociologist Edward Ross explained about the group-mind, the surrounding perspectives which affect the way the company thinks or has perception. In 1983 Rogers explained five different stages of adoption based on the five adoption categories and the rate at which the adoption is done. According to Mallat and Tuunainen in 2008 the perception among the merchants got from the service availability, new services, from new customers and low cost which will help in adopting mobile payment system to reduce costs and also has improved the sales and services to the customers from any locations. Perception of ease of use toward m-payment adoption In 2007, Dahlberg found out the major factors that does affects the perception in using mobile payments which were basically costs, usefulness, ease of use, security, social compatibility and trust. According to Carton in 2012 with the accessibility of mobile phones anywhere at any time the payee access to specific location players have increased as a result the sales opportunities has gone up because of which it does not creates any kind of value to other players. In 2011 Olsen and Chen found out that the learning ability on screen is more important as people tend to spend less time in searching for learning-information and also that on-screen feedback regarding the transaction helps in giving the information properly and correctly without any confusion (Mallat and Tuunainen, 2008, Pp. 24-32). In 2002 Dahlberg and Mallat found out that the ease of using is the most important factor for the success of mobile payments. Looking at the various literature reviews from the theories found out it is understood that the thinking of person towards the easiness in the use of the technology helps them like a particular technology more over the others. Thus the easiness in the use of mobile payments is one of the major perceptions among the customers which make them take up this facility and like it. Perception of trust toward m-payment adoption Security and trust are one of the most important factors that are involved in transactions. Trust and security are the logical concern with places where money transaction is there. In 2003, Dahlberg identified that security risk does affects the attitude of people towards using mobile payments. This concept was even been supported by Van der Heijden in 2002, he founded that the perception towards the trust or risk is one of the three major factors that influences adoption of mobile payment. In 2008 Chen found out that the concerns with regards to the theft and hacking make the customers think more before taking up the mobile payment technology (Mallat, Rossi and Tuunainen, 2004, Pp. 42-46). In 2002 Dahlberg and Mallat also found that consumers look to trust mobile payments through banks more than mobile network operators and other service providers were not considered to be trustworthy. In 2006 Dahlberg and Öörni found the role of trust as a strong point in making the perception about mobile payments, this was supported by Poutsttchi and Wiedemann who in 2007 said that the level to which the individual has faith that the use of the personal data and the payment details is consistent and safe, affects a lot in the way he thinks about mobile payments. Thus the factor of having trust over a particular technology and medium for transaction purpose does affects a lot on the customers’ percetion towards the product in the same way for the perception in the mind of the customers about the mobile payments trust has an important role. References Hancock, D., Humphrey, D. B. and Wilcox, J. A. 1999. Cost reductions in electronic payments: The roles of consolidation, economies of scale, and technical change. Journal of Banking & Finance. 23(2), pp.391–421. HUMPHREY, D. B., MOSHE, K. and BENT, V. 2001. Realizing the Gains from Electronic Payments: Costs, Pricing, and Payment Choice. Journal of Money, Credit & Banking. 33(2), pp.216-234. Humphrey, D. B., Pulley, L. B. and Vesala, J. M. 1996. Cash, paper, and electronic payments: a cross-country analysis. Journal of Money, Credit and Banking. 28(4), pp.55-62. Mallat N and Tuunainen, V. 2008. Exploring merchant adoption of mobile payment systems: An emperical study. 6(2). pp. 24-32. Mallat, N. Rossi, M. and Tuunainen, V. 2004. Mobile Banking Services, Communication of the ACM. 47(5). pp. 42-46 Read More