The factors affecting the use of contactless payments

Abstract

Mobile technology has become a significant part of our everyday life. The technology develops rapidly and in the past few years numerous of companies have made payments possible trough mobile equipments. The most used technology for conducting such a payments is called near field communication (NFC), which enables fast and convenient payments using countless of different instruments for paying. The objective of this research is to shed light on the use of contactless payments via NFC. To achieve the objective we explored the factors that might have influence on intention to use and use of contactless payments. Thus, the research questions are: Is there significant relationship between the chosen factors and continuous use of contactless payments? How do the chosen factors affect the continuous use of contactless payments? The theoretical background of this research lies strongly on the UTAUT2 model by Venkatesh et al. (2012). In our research we modify the initial UTAUT2 by adding there constructs that are noticed in prior literature to have influence on customer’s behaving. The added constructs are perceived risk, overall satisfaction, affective engagement, cognitive engagement and commitment. The constructs adopted from UTAUT2 model are habit, effort expectancy, performance expectancy, hedonic motivation, intention to use and use. Because we wanted to explore the relationships between the constructs, a quantitative research method was used. The data of 1165 respondents was first analyzed in SPSS Statistic 22 program and the further and deeper analysis was made via SmartPLS 2.0. The questionnaire was developed by using existing and according to the prior literature relevant questions and scaling. The results of the study indicate that habit has very strong influence on the use of contactless payments. The findings of prior literature in technology acceptance context in general have also discussed about the strong role of habit. Hence, our research supports such statements. However, if habit is removed from the model, the impact of intention to use grows significantly. Overall, the study enhances the understanding of customer technology acceptance in payment context.