The mediating role of perceived security: An empirical study of mobile wallet adoption in USA

Abstract

Because the USA is introducing ‘chip and pin’ card standards in 2015, payment terminals are being implemented that have the capability of reading plastic cards that are simply waved in proximity to the terminal. With the aid of a ‘mobile wallet’ app, smartphones are able to substitute for the physical card and complete contactless payments. The transaction flows through an ecosystem that is comprised of the smartphone manufacturers, software developers, mobile network providers and financial institutions. However, consumer adoption has been slow and, in order to help practitioners with their investment decisions, this study seeks to explain the factors that influence intention to use. Theory extends the technology acceptance model with the constructs of perceived security and personal innovativeness. An empirical study supports the hypotheses and explains the mediating role of perceived security.