To M-Pay or not to M-Pay—Realising the potential of smart phones: conceptual modeling and empirical validation


The variety of products and services available through Smart Phones is predicted to increase significantly over the coming years as the commercial potential of Smart Phones for M-Commerce is widely acknowledged. In fact, it is predicted that M-Commerce will achieve in the next three to four years, what E-Commerce has achieved in the last fifteen years. However, while Smart Phones present significant opportunities for organisations, the M-Commerce channel is entirely contingent on consumers’ willingness to not only use these devices to engage in transactional tasks such as bookings, ticketing, and accessing information on products and services, but rather to actually make an M-Payment using the Smart Phone, and as such complete the M-Commerce transactional loop. Hence, M-Payments are a critical enabler of the true commercial value of the Smart Phone. Thus, gaining an understanding of consumers’ perceptions of using Smart Phones to make M-Payments is essential for theoretical explorations of the M-Payment phenomena, and in the practical implementation of M-Commerce services. This paper makes a number of contributions which are relevant to both academics and practitioners. The paper develops and empirically validates a conceptual model for exploring the impact of Vendor and Mechanism Trust on consumers’ willingness to use Smart Phones to make M-Payments for both Push and Pull based products. The empirical findings of the developed Partial Least Squares model illustrate that a pull-based model (where consumers have high levels of control over the transaction process) is the model consumers are most likely to adopt, and most likely to use to make M-Payments. To realise the M-Payments vision, vendors need to clearly communicate to consumers how their data is secured and privacy protected. Furthermore, the findings illustrate the critical importance of ensuring that adequate legislation is in place pertaining to the protection of consumers, and that such legislation is communicated to consumers to maximise their willingness to make M-Payments.

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The authors wish to thank and acknowledge the efforts of the editor Roger Bons and the three anonymous reviewers for their work and contribution to this paper.

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Correspondence to Philip O’Reilly.

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O’Reilly, P., Duane, A. & Andreev, P. To M-Pay or not to M-Pay—Realising the potential of smart phones: conceptual modeling and empirical validation. Electron Markets 22, 229–241 (2012).

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  • M-Payments
  • Trust
  • Smart phones
  • Smart mobile media services
  • PLS

JEL classification

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