Antecedents of “Trust and Perceived Usefulness” and Their Effect on Continuance Intention of Mobile Payment Platforms: A Mediation and Moderation Study from Pakistan

Abstract

Purpose: Further to Innovation Diffusion Theory and Technology Acceptance Models, this academic research determines how Trust and Perceived Usefulness of a Mobile Payment Platform affects the Continuance Intention of a customer. It uniquely contributes empirically, investigating two independent propositions. In case one Mobility, Customization, Security and Reputation were tested as antecedents of Trust in Mobile Payment Platforms. In the second case Mobility, Compatibility, Convenience and Reachability were tested as antecedents of Perceived Usefulness of Mobile Payment Platforms. The mediating effect of Trust and of Perceived Usefulness in relationships between all the Antecedents (Mobility to Reputation) and Continuance Intention was investigated. The mediating role of Perceived Risk and Perceived Ease of Use between Trust and Perceived Usefulness was also tested. Moreover, mediating role of Trust and Perceived Usefulness on Continuance Intention was also tested. Lastly, the moderating effect of gender on the relationship between respective antecedents and Trust, respective antecedents and Perceived Usefulness; and moderation by gender in the relationship between Trust and Continuance Intention; and moderation by gender in the relationship between Perceived Usefulness and Continuance Intention was investigated. Study Design and Methodology: Data for the study were collected from 400 Mobile Payment Platform subscribers in Pakistan, all of them having used a Mobile Payment Platform of any Commercial Bank, Microfinance Bank, Telecommunication Company or any other firm, at least once in their lifetime. Data were collected through an online survey using snow ball sampling technique. A questionnaire was floated on WhatsApp, Facebook and Instagram; and respondents were requested to forward it to their contacts. Structural Equation modeling was performed on the data with a Confirmatory Factor Analysis and Path Analysis, using the SmartPLS 3 software to test the regression relationships between latent constructs. Mediation was studied through Process Macro for SPSS and Moderation Analysis was carried out through Multi-Group Analysis on SmartPLS 3. Findings: Twenty two Research Questions were constructed and tested. The statistical analysis reveals that in Pakistan Trust acts as complementary mediator between antecedents (Mobility, Customization, Security and Reputation) and Continuance Intention . Also Perceived Usefulness was also found significant mediator between Mobility, Compatibility, Convenience and Reachability and Continuance Intention respectively. The analysis also found that Trust and Perceived Usefulness exert a direct positive impact on Continuance Intention. Additionally Perceived Ease of Use serves as a mediator between Perceived Usefulness and Continuance Intention; whereas Perceived Risk did not mediate between Trust and Continuance Intention. The moderation effects of gender also found to have an impact on Customization, Security, Reputation and Convenience; whereby for the former two variables the impact is higher on female customers whereas for the latter two the impact is higher on male customers. Also female respondents showed a greater likelihood towards Trust whereas male respondents depicted a greater impact towards Perceived Usefulness. Contribution of the research: This research is a pioneer study with respect to Continuance Intention of Mobile Payment Platform usage in Pakistan. Earlier studies were primarily focused on technology adoption. The unique contribution of the study is that it comprehensively identified and tested two determinants of Continuance Intention (Trust and Perceived Usefulness) along with their respective antecedents. This study investigated effects of antecedents of trust on Continuance Intention; and also effects of antecedents of Perceived Usefulness on Continuance Intention. The study further investigated the mediating role of Trust and of Perceived Usefulness as mediators between their respective antecedents and Continuance Intention. Lastly the moderation effect of Gender revealed that customization of services of mobile payment platform was preferred by females while reputation of mobile payment platform was preferred by males. Moderation by gender also revealed that trust in mobile payment platform was preferred by females while perceived usefulness of mobile payment platform was preferred by males as influencing their intention to continue to use their existing mobile payment platform. Managerial/Social implications: The study reports useful insights for the marketers in developing comprehensive and persuasive integrative marketing communications aimed at the Mobile Payment Platform users. The policy makers in specific and the society in general, need to focus on developing more Trust and Usefulness based strategies that focus on Customization, Reputation, Security, Convenience and Compatibility; and all strategies must highlight the gender preferences identified in the findings of this study.