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Is the Convenience Worth the Risk? An Investigation of Mobile Payment Usage

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Abstract

The popularity of mobile payment services lies in the convenient transactions they offer to users. In the age of growing cybercrime, however, mobile payment transactions carry risks of financial and data losses. It thus becomes critical to understand how risk and convenience have contrasting impacts on users’ intention to use mobile payments. To investigate this, we consider various dimensions of perceived risk and perceived convenience to understand the net effect of their negative and positive influences on the intention to use. We also examine the actual use behavior predicted by intention along with the influence of habit. The research model, tested using survey responses from a sample of 215 users along with the descriptive answers from the survey respondents, helps us draw crucial insights. The study contributes to the field in a significant manner by providing insights into the balancing effect of risk and convenience on mobile payment service usage, as well as the development of the multi-dimensional scales for the key variables of risk and convenience.

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Acknowledgments

This study is a significant extension of an earlier work, which was presented at the International Conference on Secure Knowledge Management in Artificial Intelligence Era, 2019. We would like to thank the audience and the reviewers of the conference for their insightful comments, which helped us develop the paper substantially. We would also like to sincerely thank the associate editor and the reviewers of this paper for their constructive feedback.

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Authors and Affiliations

  1. Information Systems, Indian Institute of Management Kozhikode, Kozhikode, India

    Abhipsa Pal

  2. Information Systems, Goodman School of Business, Brock University, St. Catharines, ON, Canada

    Tejaswini Herath

  3. Information Systems, Indian Institute of Management Bangalore, Bengaluru, India

    Rahul De’

  4. Department of Information Systems and Cyber Security, College of Business, The University of Texas at San Antonio, San Antonio, TX, USA

    H. Raghav Rao

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  1. Abhipsa Pal
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  2. Tejaswini Herath
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  3. Rahul De’
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  4. H. Raghav Rao
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Correspondence to Abhipsa Pal.

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Appendix

Appendix

Table 2 Items in the survey questionnaire
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Table 3 Sample demographics
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Table 4 Reliability and validity of reflective constructs
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Table 5 Cross-loadings of the items of the reflective constructs
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Table 6 Fornell-Larcker criterion for discriminant validity
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Table 7 Heterotrait-monotrait (HTMT) ratio of correlation for discriminant validity
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Table 8 Tests for Formative Constructs, Perceived Risk and Perceived Convenience
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Table 9 Correlation table for Common Method Bias Test
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Table 10 Results for path coefficients and significance
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Table 11 Details of descriptive answers
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Pal, A., Herath, T., De’, R. et al. Is the Convenience Worth the Risk? An Investigation of Mobile Payment Usage. Inf Syst Front 23, 941–961 (2021). https://doi.org/10.1007/s10796-020-10070-z

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