Factors Impacting the Intention to Use M-Payment

Recently m-payment or mobile payment is a payment instrument that is widely accepted in Indonesia, not only because of the convenience offered but also due to an enticing economic benefit. However, how long the m-payment provider will survive to subsidize its promotional costs. Therefore, this study examines factors that affect the use of m-payment without looking at economic benefits but focus on customer behavior. The model in this study involved two individual differences and four m-payment features and equipped with two TAM variables that explain the behavior in adopting the technology. Then, empirical examination is conducted, starts with data collection using a survey from m-payment users. Afterwards, data is analyzed utilizing structural equation models (SEM) method. The result indicates that perceived ease of use (PEOU) and perceived of usefulness (PU) are the most powerful factors that influence the intention to use m-payment. Interestingly, among m-payment characteristics, only compatibility and convenience affect the PEOU while mobility and reachability have no effect on either PEOU or PU. This result also can be an insight for m-payment providers to implement their application development strategies based on their customer behavior.