Intention to use mobile payment systems among unorganised retailers in India

Abstract

The recent transformation of retail payments in India has been bolstered by strong consumer demand, affordable payment devices, retailers’ readiness, an efficient grievance redressal mechanism, a new generation of payment service providers, the enhanced participation of private players, the emergence of FinTech platforms, and favourable government regulations and policy initiatives. The transformation of retail payments has benefitted industries of all sizes, including the many small ‘unorganised’ retailers. This study examines the behavioural intentions of such merchants with respect to the use of mobile payment technologies. The study adopts variables from technology acceptance theories and introduces new variables that are relevant to the context. The results indicate that behavioural intention is significantly influenced by awareness, cost, customer acceptance, entrepreneurial motivation, perceived usefulness and personal innovativeness. The study also examines the relationship between behavioural intention and the extent to which unorganised retailers are likely to adopt mobile payment solutions. This is found to be mediated by awareness, cost, customer acceptance, entrepreneurial motivation, perceived usefulness and personal innovativeness. The paper concludes with a number of recommendations pertaining to the development of suitable technologies for adoption.