Going Cashless? Elucidating Predictors for Mobile Payment Users’ Readiness and Intention to Adopt

Abstract

This study identifies the predictors for mobile payment readiness and intention to adopt among Malaysians. Data were collected using self-reporting questionnaires (n = 434) that were developed by partially adopting factors from the Unified Theory of Acceptance and Use of Technology 2 and Technology Readiness Index 2.0 and extended using constructs from existing literature. An Exploratory Factor Analysis was conducted, followed by Confirmatory Factor Analysis. Structured equation modeling revealed Perceived Effort and Usefulness, Optimism, Intrinsic Motivation and Lack of Awareness to significantly predict users’ readiness to go cashless (R2 = 89.7%; predictive relevance = 88%). Perceived Effort and Usefulness, Intrinsic Motivation, and Perceived Risk significantly predicted intention to adopt mobile payment (R2 = 23.9%; predictive relevance = 19.3%). Findings revealed significant predictors that affect mobile payment intention to adopt and users’ readiness, therefore provide useful insights to government agencies, policy makers and financial institutions to understand the current landscape of mobile payment adoption in the country, and subsequently help in the formulation of appropriate strategies to improve the uptake of mobile payments.