Benefits Of Mobile Payment Systems

Convenience of Mobile Payments

Mobile payment systems are basically those systems which help the consumers in paying with the help of their mobile devices which can be of different categories. There are several benefits of the payment providers in case of mobile payments. There is the need for fast payment is due to the fast paced life at present and the convenience which it provides to the users. The utility of mobile payments is growing at a constant rate as it allows the users to pay on the go and that is irrespective of where the users are (Mallat, 2007).

It is ensured that the providers of payments and the designers of applications make it extremely easy for the users to make payments. There has been the constant evolution of the payment industry and the largest challenge for the industry is to meet the growing needs of the user and the demands and expectations of the specific person (De Kerviler, Demoulin & Zidda, 2016).

The most important facility of the mobile payment systems is that of convenience as the system of payment is made easier and it is not complicated. It is possible for individuals to make payments anytime with the help of their mobile devices which are to be connected to the internet. The customers have the facility of seamlessly purchasing products or services which do not have to be handed over physically or no card has to be swiped. This has led to the eagerness among the consumers for quick, in and out experiences which are concerned with that of shopping (Hossain & Hossain, 2015).

There is a level of security in the sense that the consumers do not have the chance of assuming the risks of security which are connected to the cash or worry in case they possess sufficient amount of cash. This is because mobile payments reduce the risks of possessing cash on hand. Information related to the credit cards are not stored on the smart-hones but on the clouds. The speed of customer service is another huge factor in the typical payment of the shoppers which helps in their overall payment experience. Customers have more willingness to return in case there is no sort of waiting involved (Kim, Mirusmonov & Lee, 2010).

There have been a total of 10 articles which pertain to the topics of online mobile payments and that of customer satisfaction which help in the formulation of the questionnaire and understanding the relevance of the questions with respect to the topic of the survey. The articles relate to the different modes of online mobile payments, mobile payments and customer satisfaction, the impact of the mobile banking services on the customers and so on. These articles and secondary data help in the overall understanding of the nature of the preferences which might arise in specific situations (Liébana-Cabanillas, Ramos de Luna & Montoro-Ríos, 2017).

Security in Mobile Payments

Articles also include the concept of the empirical examination of the different factors which influence the intention of mobile means of payment, the intention to use different means of payment and so on. The article on NFC Payments states that mobile payments are extremely emerging, at one with the times and are an innovative market. The fusion of new technologies namely mobile banking, mobile wallets, biometric payments, SMS payments, QR codes are also included with the major feature of Near Field Communication (NFC). NFC is considered to be the mode of payment of the future. The article gives emphasis on the development of the business model with regard to such a mode of payment as business models are imperative to the success of an organisation (Kahandawa & Wijayanayake, 2014).

Articles on the determinants of customer adoption and the intention to recommend technology point to the fact that mobile payment is receiving huge amount of recognition globally and the merchants as well as the customers using cash, check or credit cards have grown to adopt this sort of culture due to its increasing use of use and facilities (Oliveira et al., 2016).

The data collected for the study on consumer benefits for the utilization of mobile payments is primary in nature. The data has been collected from 30 respondents. The questions are simple and to the point in order to elicit suitable responses from the respondents. The questions on general information concerned with the gender, age group to which the respondents belong and their nationality.

The other questions help in understanding the online mobile payment tendencies of the respondents. There is a gradation scale which helps in stating the position of the respondents regarding the different degrees of their agreement or disagreement. The scale is from 1 to 5. Starting at one which indicates strong disagreement, the scale is till that of 5 which indicates strong degree of agreement. The identities of the respondents are kept secret and they are not revealed at any cost.

(Based on age group)

It is clear from the pie chart that for the male respondents of the survey, all of whom are aged less than 20 years, there is a majority of the users who believe that they mostly use mobile payment at the time of online purchase of goods and services from their phones.

 
Table 1: Information on the male respondents aged less than 20 years

Speed and Customer Service in Mobile Payments

Out of the total respondents, there are 3 males under the age of 20 years. There are two respondents from India and one from China. There is an overall strong agreeability to the fact that mobile payments are utilized for their financial transactions. The respondents also strongly agree and agree to the fact that the mobile payments are safe to be utilized. Regarding the ease of use of the services, it can be said that the respondents consider the mobile payments very easy to use.

 
Table 2: Information on the female respondents aged less than 20 years

Out of the total respondents, there are 7 females under the age of 20 years. There are three respondents from China, three from Japan and one from India. There is an overall randomness of attitude towards the fact that mobile payments are utilized for their financial transactions with some strongly agreeing and some disagreeing. The respondents also agree to the fact that the mobile payments are safe to be utilized but the knowledge is comparatively less in comparison to the males of the same age group. Regarding the ease of use of the services, it can be said that the respondents consider the mobile payments very easy to use. The respondents also agreed to recommend the mobile payment to their friends and acquaintances in case it is available. The types of payment they use are also specified.

Table 3: Information on the female respondents who are aged between the age group of 21-30 years

Out of the total respondents, there are 9 females in the age group of 21-30 years. There are respondents from China, Australia and India. There is an overall randomness of attitude towards the fact that mobile payments are utilized for their financial transactions with some strongly agreeing and some disagreeing with a more or less agreeable nature.

Out of the total respondents, there are 7 males under the age of 21-30 years. There are two respondents from India and one from China, also from Nepal and Vietnam. There is an overall neutrality to the fact that mobile payments are utilized for their financial transactions.

There are a total of 13 male respondents and 17 female respondents for the entire survey which has been conducted. Out of the male respondents, majority of them agree to the question 4 which is clear from their response.

Summary statistics of the respondents for 4:

Evolution of Payment Industry

Summary statistics of the respondents for 5

 
Summary statistics for 6

Summary statistics for 7

Summary statistics for 8

 
Summary statistics for 9

 
Summary statistics for 10

Summary statistics for 11

The respondents agreed to recommend the mobile payment to their friends and acquaintances in case it is available. The types of payment they use are also specified. The mobile payments are also found to be useful in case of cashless transactions. In this connection it can be said the use as well as the understanding regarding the mobile payment is much less compared to the males and therefore it is seen that the variability is also high. Respondents have also stated that they will recommend the use of mobile payments to their friends. A considerable segment of the respondents in this section also feel that mobile payments are indeed useful for their payments. The respondents also agree and are neutral to the fact that the mobile payments are safe to be utilized. Regarding the ease of use of the services, it can be said that the respondents consider the mobile payments very easy to use, however some are neutral to the particular idea. The respondents also agreed to recommend the mobile payment to their friends and acquaintances in case it is available. The types of payment they use are also specified. The mobile payments are also found to be extremely useful in case of cashless transactions.    

 
The correlation table showing association between all the responses

 
Anova single factor table

Anova table showing sources of variation and degrees of freedom

Based on the literature review and the results which have been obtained from the survey, there has found to be certain gaps with regard to the respondents belonging to older age groups and this needs to be altered under any circumstances. The people who belong to younger age groups have adopted the culture, however those who belong to older generations need time to adopt to the changing times as is evident from their responses.

Conclusion

Therefore the results of the survey clearly show that there is a decrease in the online viability with the increase in the age group of the respondents. This needs to be prevented at all costs to ensure that the people of all age groups can effectively utilize online payments and make sure that they make proper use of this online technology. The neutral attitude needs to be changed to a positive attitude in order to ensure that all categories and age groups of people are benefited by the utilization of all the advancements in technology.

Chae, J. S. U., & Hedman, J. (2015). Business Models for NFC based mobile payments. Journal of Business Models, 3(1), 29.

De Kerviler, G., Demoulin, N. T., & Zidda, P. (2016). Adoption of in-store mobile payment: Are perceived risk and convenience the only drivers?. Journal of Retailing and Consumer Services, 31, 334-344.

de Sena Abrahão, R., Moriguchi, S. N., & Andrade, D. F. (2016). Intention of adoption of mobile payment: An analysis in the light of the Unified Theory of Acceptance and Use of Technology (UTAUT). RAI Revista de Administração e Inovação, 13(3), 221-230.

Hossain, N., & Hossain, Y. (2015). Mobile banking and customer satisfaction: the case of Dhaka city. Journal of World Review of Business Research, 5(3), 108-120.

Kahandawa, K., & Wijayanayake, J. (2014). Impact of Mobile Banking Services on Customer Satisfaction: A Study on Sri Lankan State Commercial Bank. International Journal of Computer and Information Technology, 3(3), 546-52.

Kim, C., Mirusmonov, M., & Lee, I. (2010). An empirical examination of factors influencing the intention to use mobile payment. Computers in Human Behavior, 26(3), 310-322.

Liébana-Cabanillas, F., Ramos de Luna, I., & Montoro-Ríos, F. (2017). Intention to use new mobile payment systems: a comparative analysis of SMS and NFC payments. Economic research-Ekonomska istraživanja, 30(1), 892-910.

Mallat, N. (2007). Exploring consumer adoption of mobile payments–A qualitative study. The Journal of Strategic Information Systems, 16(4), 413-432.’

Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behavior, 61, 404-414.

Schierz, P. G., Schilke, O., & Wirtz, B. W. (2010). Understanding consumer acceptance of mobile payment services: An empirical analysis. Electronic commerce research and applications, 9(3), 209-216.

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