Will proximity mobile payments substitute traditional payments? Examining factors influencing customers' switching intention during the COVID-19 pandemic
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 17 January 2022
Issue publication date: 8 June 2022
Abstract
Purpose
The objective of this study is twofold: first, to investigate the determinants of customers' switching intention from traditional payments to proximity mobile payments (PMPs) during the COVID-19 pandemic for specific insight on how these factors shape customers' switching intentions; second, this study discusses the relationship between traditional payments and PMP services.
Design/methodology/approach
The study data were collected from individual customers who used both traditional payments and PMP in a physical store during the COVID-19 pandemic. Structural equation modeling (SEM) was applied to analyze the validity of the variables and the causal relationships among variables based on 305 valid data.
Findings
The results show that the factor of traditional payments, that is, dissatisfaction positively and significantly influenced customers' switching intention. Factors of PMP, namely perceived usefulness (PUF) and perceived ease of use (EOU), positively and significantly impacted switching intention. In addition, the relationship between traditional payments and PMP, that is, low perceived substitutability was found to negatively influence switching intention, PUF and EOU.
Research limitations/implications
First, the study targets are customers with experience in using PMP after the COVID-19 pandemic. It is suggested to compare customers who had experience using PMP before and after the COVID-19 pandemic. Second, although cash and bank cards belong to the category of traditional payments, they have different degrees of contact when transactions occur. The contact rate of bank cards is lower than that of cash. This study did not differentiate between cash and bank cards, which is the main limitation.
Originality/value
First, this study provides a reference to examine mobile payment usage from the perspective of both incumbent and alternative services conjointly under emergency situations, especially during the COVID-19 pandemic. Second, the application of migration theory to the context of mobile payment extends existing research on mobile payment. Third, this study is among the first to investigate the relationship between traditional payments and PMP.
Keywords
Acknowledgements
Funding: This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
Citation
Mu, H.-L. and Lee, Y.-C. (2022), "Will proximity mobile payments substitute traditional payments? Examining factors influencing customers' switching intention during the COVID-19 pandemic", International Journal of Bank Marketing, Vol. 40 No. 5, pp. 1051-1070. https://doi.org/10.1108/IJBM-06-2021-0284
Publisher
:Emerald Publishing Limited
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