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