An empirical analysis on the factors affecting mobile payments adoption.

1. Consumer Attitudes
on
M O B I L E
PAYMENTS
SOLUTIONS
An Empyrical Analysis
MSc Marketing Management Dissertation
Alessio Aristide Di Salvo - 1656719
12-12-2014
Relator Prof.ssa Deborah Carolina Raccagni
Corelator Prof.ssa Lei Wang

2. Agenda c
Research Process 3
Literature Review 4
Research Model 5
Data Analysis 7
Implications 9
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014 2

3. 1. Observation 2. Qualitative Analysis 3. Literature Review
3
7 months as Business
Developer @ Payleven*
Two Semi-Structured
Focus Groups
1. 5 students @ Bocconi
Library
2. 3 Merchants already
using Payleven mPOS
@ payleven HQ
Obtaining more information
from past research
• Matching up insights
from qualitative research
to generate constructs
and hypotheses
4. Research Model
Generating various
adoption hypotheses to be
tested quantitatively:
Proposed
Effect
Relative Advantage
Perceived Cost
Compatibility (Pr. + Ex.)
Effort Expectancy
Trust/Perceived Risks
Age
Income
5. Quantitative Analysis
Questionnaire
CAWI (Payleven Newsletter)
#Questions
• 5 Constructs
• 5 Demographics
• NetPromoterScore
• DSI
5
+
-
+
+
+
-
+
[10]
[5]
[1]
[2]
The Journey Research Process
c
*Mobile POS provider, part of Rocket Internet GmbH
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

4. 4
Existing Research
Percentage of Mobile Payments Publications By
Focus Of Research
c
The number of research in this field began increasing in 20071,
Research Question focusing mainly on three streams of knowledge
38%
9%
53%
Literature Review
Merchants as key players in the diffusion
of mobile payments solutions
Merchants play a significant role in mobile payment market as both
adopters and promoters of the new system. More research is
needed to examine the power and participation of merchants in the
mobile payments market.
“
’’
Dahlberg, Past Present and Future of mPayments
Adoption/Acceptance Analyses
Ecosystems Characterization
Business Model Analyses
Their role in the diffusion studies of Mobile
POS t e c h n o l ogy h a s be e n widely
underestimated
1: Dahlbergh et. al., Past Present and Future of mPayments, 2012
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

5. 5
Effects On Adoption c
Relative
Advantage
Perceived Costs
Compatibility
(Existing Practices)
Compatibility
(Prior Practices)
Age Income Previous Use Innovativeness
Effort Expectancy
Proposed Research Model
Result of qualitative research and
review of existing literature
+
-
+
+
Trust
Adoption
Research Model
- + + + +
Moderating Effect
Direct Effect
+
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

6. 6
Relative
Advantage
Perceived Costs
Compatibility
(Existing Practices)
Compatibility
(Prior Practices)
Effort
Expectancy
Adoption
Measures the degree to which an
innovation is perceived better than its
precursor. Adapted from UTAUT
Comprises smartphone, POS, fees and
added value services.
Measures the extent to which technology
fits with existing and prior values and
practices. Adapted from IDT
Measures the degree to which an
innovation is perceived better than its
precursor. Adapted from UTAUT2
Trust Age Income Previous Use
H1 +
UTAUT: Unified Theory of Acceptance and Use of Technology, Venkatesh et. al.
IDT: Innovation Diffusion Theory, Rogers
TAM: Technology Acceptance Model, Rogers
H7 -
Constructs and Hypotheses
H5 - H4 - H4 - H2 -
H6 - H8 - H9 -
Technological Behavioral/Social
c
Effects On Adoption Research Model
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

7. 7
Descriptive Statistics c
The Sample
[Target: Payleven’s newsletter subscribed customers]
544 completed questionnaires
54% of respondents have been using Payleven for more than 1 year
Turnover
Occupation <50k 50-100k 100-500k 500k+ Total
Lawyers/Notaries 0 0 0 100% 8
Consultants 100% 0 0 0 8
Architects/Engineers 60% 40% 0 0 7
Doctors/Veterinaries 70% 30% 0 0 54
Craftsmen 78% 11% 11% 0 72
Merchants (No mobility) 56% 19% 17% 15% 190
Trade Agents 50% 50% 0 0 16
Peddlers 77% 0 23% 0 31
Drivers/Taxis 83% 7% 0 0 48
Vacation Rentals 94% 6% 0 0 88
Total 387 87 47 23 544
Figure 1 - Age Distribution (y.o.)
18-25
1%
Figure 2 - Type Of Company
3%
3%
7%
12%
75%
Sole Proprietorship
Partnerships
Corporations
Cooperatives
Others
51+
25%
41-50
43%
31-40
24%
26-30
7%
Table 1 - Turnover*Occupation
Data Analysis
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

8. 8
Multivariate Statistics c
Table 2 - Cronbach’s Analysis* Table 4 - Linear Regression Results
Construct Score Adj R2 60%
Relative Advantage .89
Perceived Costs .72
Compatibility (Existing) .76
Compatibility (Prior) .72
Effort Expectancy .89
Table 3 - Factor Analysis
* Constructs are reliable at .6 - .7
√ Convergent Validity
√ Discriminant Validity
Construct
Relative Advantage 1 component
Perceived Costs 1 component
Compatibility (Existing) 1 component
Compatibility (Prior) 1 component
Effort Expectancy 1 component
Reference (Venkatesh) Adj R2 70%
Table 4.1 - Beta Scores
Construct ß Weights
Relative Advantage 37%
Compatibility (Prior) 31%
Compatibility (Existing) 16%
Effort Expectancy 11%
Perceived Costs 5%
√ High level of reliability
√ Linear relations
Hypotheses Summary
H1 - Relative Advantage
H2 - Perceived Costs
H3 - Compatibility (prior & existing)
H4 - Effort Expectancy
H5 - Trust and perceived risks
H6 - Age
H7- Income Level
H8 - Previous use of POS systems
√
X
√
√
√
X
X
X
Data Analysis
Obtained
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

9. 9
Marketing Activities Managerial Implications
Relative
Advantage
H1
Perceived Costs H2
Compatibility
(Ex. Practices)
Compatibility
(Pr. Practices)
H3-4
Effort
Expectancy
H5
Trust & Perceived
Risks
H6
Innovativeness √
Age
Income
Previous Use
H7
H8
H9
The growth of mobile payments
can’t be based on emphasizing convenience (H2).
Consistent and rewarding User experience (H1, H5)
together with
opportunities for businesses’ revenue growth (H6)
and deep knowledge
of customers’/users’ (Inn.) behavioral patterns
could truly influence changes in behavior.
Confirmed
Not Confirmed
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

10. 10
Future Trends Managerial Implications
Three trends
that will make the difference for mobile payments solutions
Service Before And
After Transactions
“Cards on file”
Data-analytics driven added value services and tools
such as price comparison addons, location-based
gratification tools, ad-hoc service/product discovery
platforms.
Increased Security
“Cards on file” has emerged as a key enabler of
transactions being initiated on the mobile devices. This
will makes payment seamless and more transparent to
consumers
Industry-wide initiatives, such as “tokenization” could
significantly increase the perceived level of security.
Questionnaire Results
Value Added Services
Ranked higher than device
costs and service fees
57% of respondents
used the mPayment solution as
the main payment gateway
Security is the main concern
preventing consumers from
adopting mobile payments
solutions
MSc Marketing Management Dissertation - Alessio Aristide Di Salvo - 12/12/2014

11. 11
Thank
you.