The Effect of Perceived Risk on Value and Adoption of Proximity Mobile Payments

Zumae Barnard; Michael Humbani

doi:10.25159/1998-8125/9989

Authors

Zumae Barnard Department of Marketing Management University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa
Michael Humbani Department of Marketing Management University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa

DOI:

https://doi.org/10.25159/1998-8125/9989

Keywords:

perceived risk, psychological risk, time risk, social risk, privacy risk, adoption intention, proximity mobile payments, m-payments

Abstract

Purpose/objectives: The purpose of this study was to explore the influence of risk dimensions on the perceived value and adoption of proximity mobile payments (m-payments) through the perspective of the perceived value theory.

Design/methodology/approach: A quantitative approach was adopted, and a convenience sample of 261 adults participated in this study.

Findings: The findings of this study indicate that psychological risk has the most significant influence on perceived value of m-payment adoption, followed by time risk; whereas social and privacy risks are insignificant factors. Perceived value also emerged as a significant predictor of adoption.

Practical implications: M-payment service providers can enhance perceived value and increase adoption by addressing psychological and time-risk concerns by offering clear information about the features and functions of the application, as well as creating calibrated payment systems that shorten the payment process. The study provides some insights to service providers on how to improve their value propositions so as to attract more users.

Originality/value: Limited studies have used the perceived value theory in emerging markets, especially pertaining to the sub-dimensions of risk in the context of proximity m-payments. The study identifies the salient risks that influence adoption of proximity mobile payments, and recommendations to management are made to that effect.

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Author Biographies

Zumae Barnard, Department of Marketing Management University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa

Zumae Barnard was a Masters student in the department of marketing management during 2020. She conducted and completed her research as part of the fulfilment of the Master’s degree in Marketing Management under the supervision of Dr Michael Humbani.

Michael Humbani, Department of Marketing Management University of Pretoria, Lynnwood Road, Hatfield, Pretoria, South Africa

Dr Michael Humbani is a senior lecturer in the department of marketing management at the university of Pretoria. His research focus area is mobile marketing and his research works can be found in the International Journal of Bank Marketing, International Review of Retail, Distribution and Consumer research, and Journal of African Business.

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