Towards Adopting Innovative Quick Response (QR)-Enabled Contactless Transaction Payment: The Malaysian MSMES’ Entrepreneurial Perspective in COVID-19 Setting

Abstract

Studies have shown that human nature is continuously evolving, and consumers are inevitably affected when it comes to adopting a new set of consumption behaviour. In the recent global pandemic notably termed as COVID-19, most consumers were fearful and forced to rely on new technological method of payments in the quest to acquire a safer method to buy goods and services. Entrepreneurs within the Micro, Small and Medium Enterprise (MSME) sector are no exception to such a phenomenon. The COVID-19 pandemic has given a huge socio-economic impact on many nations worldwide including Malaysia. According to the Malaysian Institute of Economic Research report, Malaysia’s GDP development would decline by 2.61% in 2020 (Bernama 2020). Such an indicator is alarming enough for most businesses, resulting in the need to enhance buyers’ spending power and stimulate socio-economic growth. One of the potential mechanisms is to analyse customers’ needs by leveraging on their technological and socio-psychological well-being issues considering COVID-19 fearful circumstances. This could then potentially impact their acceptance of alternative cashless transaction payment mechanisms from MSME business owners and respective stakeholders (Chin et al. 2022; Amer et al. 2020). The use of mobile contactless payments is ascending throughout the recent COVID-19 occurrence and Movement Control Order (MCO) in Malaysia, with certain business competitors perceiving an increasing number of support for such financial transaction payment adoption (Mokhtar 2019; The Star 2020). A contactless payment is an innovative programming application that utilises electronic gadgets such as personal computers, or portable mobile smartphones for online exchanges (Uduji 2019). It is an optional business strategy for merchandise or services’ payments, which include the use of Quick Response (QR)-based mobile payment platforms. Adjustments could potentially be made towards many consumers’ ‘new normal’ spending transaction payment procedure including propensity to use contactless payments and consider online platforms as an alternative shopping channel for necessities (Chin et al. 2022). Although gaining increased global acceptance, Malaysian MSMEs however, are still sceptical towards embracing contactless payment methods as a means of undertaking their business transactions (Aji et al. 2020). As such, it is thus pertinent to provide valid and explanatory reasoning for the potential adoption of QR-enabled contactless payments. Considering the pre-, during and post-COVID-19 pandemic fear, addressing these challenges could potentially be a novel approach towards investigating the extrinsic stimuli of MSME entrepreneurs and its implications on the nation’s economic system. Drawing from the seminal Technology Acceptance Model and Fear Motivating Theory, a proposed model that explains the use of QR-enabled contactless payments based on psychosocial and technological perspectives is developed that could potentially result in significant national economic and societal implications. A mixed method-based research design would be employed to gather the necessary data in addressing the identified issues amongst the targeted population of interest. Several potential contributions could potentially be observed such as technological diffusion, fear and need for personal hygiene preservation in proximity transactions, as well as ecological benefits such as promoting reduction of carbon footprint associated with printing and disposing of paper and plastic-based banknotes, respectively.