Factors Influencing SMEs’ Adoption of Mobile Payments: The Mediating Role of Trust in Technology

Abstract

The purpose of this study is to understand the factors contributing to the adoption of mobile payment systems among the users in Pakistan regarding factors that influence the technology and the relationship between Perceived Usefulness (PU), Perceived Ease of Use (PEU), Cost of Adoption (CA), and Security & Privacy Concerns (SPC) and Trust in Technology (TIT). The growing importance of digital financial solutions in new economies necessitates the study of trust development in technology to better promote its use among users. Data were collected from 220 respondents in mobile payment systems like Easypaisa, JazzCash, and Nayapay in Pakistan were gathered with the help of a structured questionnaire in urban areas. Purposive sampling technique was employed to make sure that relevant participants will be involved. Partial Least Squares Structural Equation Modeling (PLS-SEM) conducted through SmartPLS was used to analyze the data. The findings show PU and PEU have positive and significant impacts on TIT, whereas CA and SPC have negative and significant effects. The result also shows a strong mediation between these independent variables and AI by TIT, and it proves its primary role in the decision making of users. These results indicate that trust is a pivotal channel via which perceptions concerning the usability of the system, its affordability, and security have been worked down to the intention of the active adoption.  Their findings provide useful information to the fintech companies, the providers of mobile payments, and policymakers as well. By helping to make mobile payment platforms more convenient, valuable, and inexpensive, and having in place strong security and privacy measures, one can greatly increase the trust of the user and consequently their adoption. Awareness of these advantages and preemptive apportioning of the apprehensions of the users can also help in further enhancing the levels of adoption, particularly in a digitally developing economy such as Pakistan.