This document summarizes a research study on Chinese travelers' use of mobile payments. It begins with an introduction on the growth of mobile payments in China, with 71% of money transfers now occurring via mobile. The study aims to understand travelers' dependence on mobile payments, awareness of potential issues, and flexibility if payments break down. A literature review covers benefits and risks of mobile payments as well as crisis management frameworks. The method section describes a survey of Chinese travelers who have used mobile payment apps in the past year. Key findings relate to travelers' dependence on mobile payments in different travel contexts and their awareness and flexibility. Implications for theory and practice are discussed, along with recommendations for future research.

1. ENTER 2018 Research Track Slide Number 1
Chinese travelers’ mobile payments:
Market disruption and risk
management
Rob Lawa,
Sunny Suna,
Markus Schuckerta, and
Dimitrios Buhalisb
aSchool of Hotel and Tourism Management
The Hong Kong Polytechnic University, Hong Kong
15901578r@connect.polyu.hk, rob.law@polyu.edu.hk, markus.schuckert@polyu.edu.hk
bBournemouth University, United Kingdom
dbuhalis@bournemouth.ac.uk

2. ENTER 2018 Research Track Slide Number 2
2

3. ENTER 2018 Research Track Slide Number 3

4. ENTER 2018 Research Track Slide Number 4
Mobile Payment Concepts
Year
(roll-out)
Types of Mobile
Payment
Lead Market
(Pilot)
2008 Alipay China
2011 Google wallet United States
2013 Google wallet United Kingdom
2014 Wechat Pay China
2016 Wechat Pay Hong Kong
2016 Apple Pay China/HK/Korea
2016 Samsung Pay Korea/China
(Sun, 2016)
4

5. ENTER 2018 Research Track Slide Number 55Source: totemmedia (2015)

6. ENTER 2018 Research Track Slide Number 66Source: totemmedia (2015)

7. ENTER 2018 Research Track Slide Number 7
Introduction
• Mobile payment: a new commercial format
• In 2016, mobile payment occupied 71% of the
total money transfer (CCTV, 2017).
• Chinese travelers heavily depend on mobile
payment (China Internet Watch, 2017).

8. ENTER 2018 Research Track Slide Number 8
Introduction
• Definition of mobile payment in the
present study:
“Third-party mobile payment via smartphones
through mobile networks or wireless technologies
under financial regulations in China.”
mobile payment fails during the transaction
process?

9. ENTER 2018 Research Track Slide Number 10
Objectives
• to identify the degree of dependence on
mobile payment of Chinese travelers,
• to analyze the awareness of Chinese
travelers toward the breakdown of mobile
payment systems, and
• to investigate the flexibility of Chinese
travelers when mobile payment breaks
down.

10. ENTER 2018 Research Track Slide Number 11
Literature review
• Benefits of mobile payment determine the user
intention to adopt it (Liébana-Cabanillas et al.,
2017).
• Mobile payment brings immense convenience,
risks are involved in the meantime (Khalilzadeh et
al., 2017; Lu et al., 2017) .
• IT-related problems: long-standing effect on the
tourism industry (Lu & Law, 2007).

11. ENTER 2018 Research Track Slide Number 12
Literature review
Mitigation of
mobile payment
breakdown
Preparedness of
mobile payment
breakdown
Response Recovery
Pre-
crisis
Crisis Post-
crisis
Effective Crisis Management
Source adopted from Richardson (1994)

12. ENTER 2018 Research Track Slide Number 13
Method
• Questionnaire survey
– The first section: user experience
– The second section: the dependence of
travelers on mobile payment
– The third section: measure awareness
– The fourth section: measure flexibility
– The final section: socio-demographic
information

13. ENTER 2018 Research Track Slide Number 14
Method
• Data collection: a third-party survey
company
• Sample requirements:
Chinese respondents who have used mobile
payment (e.g., Alipay, WeChat Pay) in the past one
year during their travel.

14. ENTER 2018 Research Track Slide Number 15
Findings and discussion
• Dependence on mobile payment
Table 1. Dependence on mobile payment

15. ENTER 2018 Research Track Slide Number 16
Findings and discussion
• Paired sample t-tests
Table 2. Paired sample t-tests
Note:
Pair 1: Comparison between domestic travel to own city and to anywhere except own city
Pair 2: Comparison between domestic travel to own city and outbound travel
Pair 3: Comparison between domestic travel to anywhere except own city and outbound travel

16. ENTER 2018 Research Track Slide Number 17
Findings and discussion
• Awareness and flexibility
Table 3. Paired sample t-tests
Note:
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization
Rotation converged in four iterations

17. ENTER 2018 Research Track Slide Number 18
Implications
• Theoretically:
– based on three-stage crisis management
framework (i.e., pre-crisis stage)
– attributes are identified to awareness and
flexibility
– extends the crisis management framework to
the mobile payment context and proves its
applicability

18. ENTER 2018 Research Track Slide Number 19
Implications
• Practically (e.g., tourism practitioners):
– communicate with different parties for
travelers to be informed of the platform
– Efficient help to solve mobile payment
breakdown problem
– Accurate information
– Restore/maintain trust

19. ENTER 2018 Research Track Slide Number 20
Conclusions
– Detect potential failures,
– Back up loops,
– Mitigate the breakdown,
– Mitigate trust related issues, and
– Prepare for future breakdowns of mobile
payment.

20. ENTER 2018 Research Track Slide Number 21
Future research
• Analyze the communication channels in
detail when tourists face mobile payment
breakdown.
• Analyze trust related, critical events.
• Analyze the role of environment and
provider.
• Investigate other payment methods that
consumers can use if mobile payment fails.

21. ENTER 2018 Research Track Slide Number 22
Dr Markus Schuckert 馬思勤
Assistant Professor
School of Hotel & Tourism Management
The Hong Kong Polytechnic University
17 Science Museum Road
TST-East, Kowloon, Hong Kong SAR
Tel.: +852 3400-2321
Fax: +852 2362-9362
Email: markus.schuckert@polyu.edu.hk
Web: www.polyu.edu.hk/htm
Time for Interaction.
Thank You very much!

22. ENTER 2018 Research Track Slide Number 23

23. ENTER 2018 Research Track Slide Number 24
References
• CCTV. (2017). Mobile payment occupies 71% of the total money transfer market.
Retrieved October 14, 2017, from
http://news.cctv.com/2017/01/05/ARTIWHc0VikSstehPvLncmMI170105.shtml
• China Internet Watch. (2017). China third-party online payment market overview Q1
2017. Retrieved July 5, 2017, from
https://www.chinainternetwatch.com/20806/online-payment-market-q1-2017/
• Khalilzadeh, J. Ozturk, A. B. & Bilgihan, A. (2017). Security-related factors in extended
UTAUT model for NFC based mobile payment in the restaurant industry. Computers in
Human Behavior 70: 460-474.
• Liébana-Cabanillas, F. Muñoz-Leiva, F. & Sánchez-Fernández, J. (2017). A global
approach to the analysis of user behavior in mobile payment systems in the new
electronic environment. Service Business: 1-40. doi: 10.1007/s11628-017-0336-7
• Lu, J. Yang, Z. Li, L. Yuan, W. Li, L. & Chang, C. C. (2017). Multiple schemes for mobile
payment authentication using QR code and visual cryptography. Mobile Information
Systems: 1-12. doi: 10.1155/2017/4356038
• Lu, S. & Law, R. (2007). TECHNOLOGY CRISIS MANAGEMENT IN MAINLAND CHINA: A
STUDY OF HOTELS IN HANGZHOU. Information Technology in Hospitality 4: 153-159.