From traditional payment habit to mobile payment habit : examining the mechanisms of payment habit change

Abstract

In recent years, mobile payments gradually entered the lifestyles of consumers. For some economies, mobile payment service is exploding at an impressive rate. While for others, the adoption speed remains slow and most of the consumers are hesitating to continue using these mobile payment platforms after an initial try. We believe this is largely because of the presence of the entrenched traditional payment habits. Based on psychology theory of habit, this study focuses on the habit change from the traditional payment habit to the new mobile payment habit. It discusses how is mobile payment habit formed, and how does mobile payment habit nudge continuous use. Data are collected among 154 Hong Kong students. The data analysis results reveal that traditional payment habit, compatibility dimension of facilitating conditions, perceived usefulness and perceived enjoyment have significant influences on the formation of and change to mobile payment habit; mobile payment habit also has a significant impact on continuance use. However, satisfaction was not found to be influential in mobile payment habit formation. Our study highlights the importance of traditional psychology theory of habit in the area of mobile payment habit substitution. It also innovates in verifying the co-existence of traditional payment habit and mobile payment habit and understand the mechanism of which traditional payment habit influences mobile payment habit.