Malaysian's Consumer Acceptance of Mobile Payment Services

Mobile payment is a type of payment that occurs through an electronic procedure, during which the consumer uses mobile communication techniques together with mobile devices for initiation, authorization or realization of payment. The level of acceptance in m-payment is slow that numerous questions on what causes consumer to accept mobile payment is arise. Although there is a variety of technology and payment ways available, mobile payment still have a very low preference as compare to cash payments in most of the country based on various prior studies. There is still inadequacy of acceptance on m-payment by consumers. In this paper, TAM model is used to identify the significant factors affecting the acceptance of mobile payment. The proposed model considered trust, perceived risk, perceived ease of use, perceived usefulness and compatibility as the factors influencing mobile payment acceptance. The model is evaluated empirically and the results indicate that trust, perceived risk, perceived ease of use, perceived usefulness have a significant relationship with the mobile payment acceptance while compatibility does not have a significant relationship with the mobile payment acceptance. This study would benefit both the customers and policy makers. The policy makers can understand the main causes that affect customer's acceptance on mobile payment services so that they can provider experience to the current and future mobile payment users. The customers may also know that mobile payment can benefit them in terms of making payment in a more convenient and shorter purchasing process. The mobile application developers can also enhance the features that can offer more pleasant and user friendly products to users.