The effect of government regulations on continuance intention of in-store proximity mobile payment services

Abstract

Purpose

This study proposed and tested three comprehensive models of the usage intention of proximity mobile payment services after a government regulation, by integrating the theory of planned behaviour (TPB) and the norm-activation model (NAM). The purpose of this paper is to investigate the effects of moral norms, merchant pro-activeness and perceived government regulation (demonetisation) on users’ continuance intention of proximity mobile payment services.

Design/methodology/approach

In total, 387 users of proximity mobile payment services in India were surveyed using a structured questionnaire. This study was carried out with shoppers in the Mumbai Metropolitan Region and New Delhi because of the diverse and large population of these cities.

Findings

The results of this study indicated that: integrating the variables of NAM into the original TPB model enhanced the prediction effect; perceived demonetisation regulation exerted a direct determinant effect as well as moderate effect on continuance usage intention of mobile payment services; also, extended TPB model with perceived demonetisation regulation as moderator could satisfactorily predict the continuance usage intention.

Research limitations/implications

The results provided insightful evidence for the government and policymakers to outline more effective mandatory regulation policies.

Originality/value

This investigation attempts to enhance the theoretical understanding of the antecedents of in-store proximity mobile payment services after government regulation (demonetisation) in India.

Citation

Verma, S., Chaurasia, S.S. and Bhattacharyya, S.S. (2020), "The effect of government regulations on continuance intention of in-store proximity mobile payment services", International Journal of Bank Marketing, Vol. 38 No. 1, pp. 34-62. https://doi.org/10.1108/IJBM-10-2018-0279