1 Introduction
Just 20 years ago, the internet was, at best, a non-compulsory distribution, transaction, and communication channel [
1]. Now many see a decline in brick-and-mortar retail due to the proliferation of online shopping and e-commerce as inevitable [
2]. Against this trend, integrating and harmonizing innovative technologies, such as mobile payment, are crucial to enable an omnichannel strategy offline retailers can deploy to ensure a better customer experience [
3‐
5]. Customers seek speed, convenience, and flexibility with every purchase, regardless of the retail channel [
6]. Whereas online and offline retail were still two distinct worlds in the past, the two are rapidly converging, thanks to mobile e-commerce, which has been seen as a primary facilitator in the process [
7]. Ultimately, the payment transaction is the component that completes, delays, or even defers the purchase phase. Thus, mobile payment technology is important to retailers, as it facilitates and encourages the finalization of sales transactions. Research shows that, especially for online purchases, much hesitation can occur in the final payment phase and ultimately cause the purchase process to be aborted and the shopping cart to be abandoned [
8]. However, offline retailers are also expected to provide easy and secure payment, as the perception of offline purchases with a payment technology positively impacts corresponding online usage [
9]. Furthermore, research has demonstrated that mobile payment leads to a higher willingness to purchase and pay because of its low pain and high convenience [
10]. Such research indicates that mobile payment stimulates consumption. There is little doubt that secure, easy, and smooth payment is a crucial lever to improve and finalize not only the transaction but also benefits the overall customer's experience. Mobile payment has changed consumers' spending patterns, as transactions can be made anytime, anywhere [
11]. Payment via digital payment is considered more convenient, easier, and quicker than the use of traditional technologies such as credit cards, checks, or cash [
12].
Mobile payment can be defined as any system that offers service of financial activities, which includes the initiation, activation, and confirmation (authentication and authorization) of payment, either online or offline, using a mobile device, through different technology, applications, and solutions provided by banks or proxy financial companies [
10,
12‐
15].
With the speed of growth of financial technology, so-called fintech, and its introduction into the market, research investigating the mobile payment, as a specific subtype of fintech, attracted significant attention since technology made transactions via a mobile device possible. Especially since the corona crisis, the adoption of innovative technologies in retail has accelerated even further [
17,
18]. Even so, mobile payment remains a new domain of research. With the rapid rise of digital technology over the last decades, academic research is lagging, with many questions left unanswered [
16].
This study aims to answer the following questions, which we elaborate on in the subsequent sections: (1) How did the adoption of mobile payment change over the corona-crisis? (2) Which consumer groups have adopted mobile payment, and which have not? (3) Which individual differences and retail contexts beyond demographics might explain adoption further? (4) what is the role of social media in the adoption process?
A better understanding of these questions enables policymakers to understand which target groups to focus on for marketing and communication strategies, mainly social media. Thus, contributing to more efficient and effective policies toward financial inclusion. For retailers, such insight supports better decision-making on which payment systems to offer. Given the evolution towards a cashless society, addressing these questions gives all actors levers to ensure everyone can use reliable and convenient payment systems.
This study adds to ongoing research on technological applications during the pandemic. Experts agree that the COVID-19 crisis accelerated the adoption of certain online and traditional retail technologies [
18]. In a pandemic world where contactless interaction is advocated, it can be expected that contactless payment thrives even more than before to limit in-person transactions. However, little empirical evidence has been found comparing the adoption and usage of mobile payment technology before, during, and after the crisis. So, our first research objective is to investigate to which degree mobile payments were adopted, comparing data from 2019 and 2020.
Understanding how consumers differ in their purchase behavior in a multichannel context becomes crucial [
19]. It is more important than ever for retailers to understand their customer demographic profiles when adopting recent technologies [
15]. However, researchers studying mobile payment have focused entirely on technological acceptance models and which of those models' theoretical mediating constructs are most likely to influence intention to adopt mobile payment services [
11,
20,
21]. Such models provide a clear view of the criteria the technology must meet to impact intention and provide input to developers in understanding which benefits consumers seek and what characteristics the technology must possess to be relevant in the marketplace. However, they offer little guidance to retailers in understanding the profile and number of users capable of using specific technology, in which context it can best be applied, how to promote it, and to whom. The mobile payment field is built on explaining the intention to use, making no difference between actual users and nonusers. As a result, little is known about the current real users of mobile payments [
11]. While investigating socio-demographic differences between users and nonusers in other technology domains like social media [
22] or mobile shopping [
23] is a frequent practice, such insights seem notably lacking when investigating the literature on the adoption of mobile payment technologies. Recent work in financial policy research tried to identify the [early] adopters of mobile payment, but also, in that area, such research remains limited [
12,
24,
25]. Earlier work advised the inclusion of contextual factors indicating that mobile payment needed to fit into the life of its users [
26], and mobile payment had certain advantages depending on specific situations [
27]. The significance of adoption factors in different situations like the type of shop [e.g., supermarkets, kiosks, vending…] and various payment scenarios in terms of technology applied at the points of sale require further investigation [
21].
The second objective of this paper is to contribute to the mobile payment research field by addressing these gaps. By investigating differences in the profile of mobile payers in terms of their socio-demographics, frequency of patronizing convenience retail channels, social media usage, and their underlying general impulsive buying tendency, we provide insight into the mobile payment acceptance research domain in selecting potential essential moderators and context factors. Moreover, considering the continuous advancement of digital innovations, their importance, and their penetration into daily life, such research can also inform retailers, developers, and policymakers, on which digital/technology strategy to follow, making a segmented marketing and communication strategy possible [
28].
Digital inequality and the "digital divide" concept refer to differences in digital access, information, tools, and usage between regions and people. Earlier work within the digital divide field focused on access to computers, the internet, and the significance of having access when and where one wants it [
29]. In developed countries where access to the internet is seen as standard and in reach for most people regardless of urbanization, education, and age, the focus has shifted towards specific access to certain digital tools and usages like social media or mobile payment. In the related field of financial inclusion, the impact of fintech is studied to enable better access to financial services [
30]. It shows that investigating socio-demographic factors as antecedents of mobile payment adoption has merit.
Mobile payment solutions have found their way into both developed and developing countries [
31], but the perceived benefits of such technology between cultures are different [
32]. In emerging markets, financial technology can secure financial inclusion for groups that would not otherwise have access to financial services. [
31]. For developing countries, financial inclusion and better access to financial services are crucial for improving the lives of their citizens [
30]. Recent work in China suggests a positive association between mobile payment usage and happiness [
33]. As such, ensuring more mobile banking and payment adoption is recommended strongly to policymakers of emerging countries [
34]. It might also explain why research in the mobile payment field seems skewed towards developing and emerging countries, and evidence in the context of advanced economies is limited [
14,
20]. In contrast, mobile payment adoption in developed countries has been associated with increased financial vulnerability. This finding is supported by research in the US while not confirmed by recent work in a European context [
12]. Given such differences, new legislation, new technologies, and the market growth within mobile payment, investigating which groups are most likely to adopt digital payment and their consequences remain a constant endeavour. There is a definite need for more research from different countries [
12]. We report data from Belgium based on a representative non-student sample and enrich the field from a cultural perspective. We report data from Belgium based on a representative non-student sample and enrich the field from a cultural perspective. Cash still accounts for 73% of payment transactions and 48% in value within the Eurozone [
35]. so even in developed countries, the technology still needs to be widely accepted and used. Belgium is an interesting case to research the adoption of mobile payment given that pre-crisis adoption of contactless and mobile payments was lower than in other Eurozone countries [
36].
Given that recent review articles have been published that give an update on the status of the research on mobile payment, this paper focuses on discussing relevant studies related to our research questions that provide arguments in support of our hypotheses. An exhaustive analysis of all research on mobile payment is not within the scope of the current paper. In the next section, we discuss successively; (1) the role of the covid-19 crisis, (2) socio-demographic determinants, (3) shop patronage and general impulse buying as retail determinants, and (4) social media determinants. Next, we elaborate on the methodology and detail the findings of our study. The conclusion of the final section includes limitations, managerial implications, and directions for future research.
5 Discussion
Our data provide empirical academic evidence from a user point of view that the COVID-19 crisis accelerated the adoption of new retail technologies like mobile payment with an apparent positive periodic effect between 2019 and 2020 for both adoption (AMP) and more regular use (RMP) of mobile payment. It remains to be seen whether such a shift is sustained in a post-pandemic world and becomes habitual and widespread. The data in this study provided a unique opportunity to follow up on this prominent issue. The odds of being a regular user were 2.5 times higher in 2020 versus 2019. Given the current societal trends, one could expect mobile payment to mature in the coming years and become a dominant payment method. Given such a trend, it is paramount for retailers to offer this method both offline and online, as Belgium seems to move further towards a cashless society. The observed trend seems to support the previous mentioned industry report’s findings for Belgium [
36,
65].
Considering our second research question, we further analysed socio-demographic differences. For the central part, differences observed during the crisis were already established before the crisis. The increase in mobile payment adoption can be observed in most layers of society, except for the youngest age group, which was already higher in 2019, and amongst the unemployed, which at a low level shows no significant increase. The initial gender effect with lower odds for women and the kid's effect showing higher odds for those with kids seems to disappear once controlled for underlying shop-related profiles. This could explain the inconclusive results of previous studies regarding the effect of gender, which did not control for such variables.
Our hypotheses regarding age and social grade effect remained valid in concurrence with other profile variables showing a higher occurrence of mobile payment among younger ages and higher socioeconomic profiles. The age effect is in line with previous American and European findings. Previous results on socioeconomic variables including income, education, working and occupational status were inconclusive. Our research findings indicate no relationship with income level but rather a higher odd with a higher social grade status.
Regional differences in Belgium are usually explained by the difference in socioeconomic profile of its citizen. Given the regional difference remains after controlling for socio-economic profile indicates that other regional cultural differences like Hofstede’s cultural dimensions, could be responsible for the difference in the adoption of mobile payment in both regions. Previous research reported important cultural differences between Flanders (Dutch) and Wallonia (French) on Hofstede’s cultural dimensions, which were also reflected in their respective e-commerce websites [
82].
Our third research question is related to the retail context. We observe a clear association between general impulse buying tendency and mobile payment. The link between internet/online shopping and mobile payment is firmly established. This robust finding confirms previous research hypothesizing impulse buying and mobile payment to be related [
69].
Our data seem to only partially support the hypotheses that the adoption and use of mobile payment might be linked to all types of convenience stores. A higher incidence of mobile payment among petrol station shoppers was found, but not for vending, newsagent, or night outlet shoppers.
Our findings support the notion that mobile payment adoption varies across different economic, cultural, social, and retail context [
14].
In relation to our fourth research question, we assumed social media to be an indicator of mobile payment. However, this does not seem to apply similarly to all social network sites. Social media users of Facebook and Instagram, in particular, seem to be open to mobile payments. These channels facilitate social selling with specific shop-button features, allowing people to shop easily from the brand's photos and videos they encounter. Furthermore, a closer look at our data revealed a clear association between general impulse buying tendency and mobile payment and between mobile payment and Facebook and Instagram users. Not surprisingly, Aragoncillo and Orús [
83] pointed out that general impulse buying is related to these social network sites. Furthermore, social network sites like Facebook have been identified as “Superbrands” that evoke trust during the pandemic [
84]. Younger ages, general impulse buying, and Instagram and Facebook users are related. Nonetheless, they all seem to have a significant unique contribution in a concurrent model.
7 Limitations and suggestions for future research
Given the limitation of a repeated cross-sectional approach, further research could opt for a longitudinal approach to capture trends in adopting new retail technologies like mobile payment after the COVID-19 pandemic. Our primary variable only captures the frequency of use, while researchers could also investigate the number of purchases, type of purchases, and the amount paid via mobile payment. Given the limitation of our sample to 18 to 65-year-olds, further research can also look at older seniors and younger people.
Our current finding gives further guidance and support where the field of technology acceptance should be heading, considering a maturing mobile payment market. In line with previous research [
7,
10,
11,
16,
20], researchers need to be aware that with a maturing mobile payment market that; (1) earlier findings might not apply anymore and could be time specific, (2) should focus on differences within mobile payment options, (3) should switch from intentions to actual use or continuance use as the primary dependent variable, (4) could start to investigate preference or market/usage share as the main variable of interest, (5) differentiation in a mature market is not only a question of superior technology or product but also of branding.
Researchers investigating technology acceptance should be clear that they need to apply moderator variables to inform the field better, both technology providers and retailers, about what kind of features the user prefers. Both ages and socioeconomic-related moderators should be prime candidates to be incorporated within technology acceptance models investigating mobile payment. The need for more research and investigation into the role of trust and risk within specific target groups (ages,socio-economic profiles) and how they influence intentions and actual usage could advise policymakers further [
87]. Researchers could further investigate whether the differences observed in age and education might be caused by underlying factors like knowledge and resistance toward recent technology.
Besides background variables like socioeconomic profile and age, the observed differences in our data warrant further investigation into specific shopper orientation-related differences like general impulse buying tendency as moderators in the field of mobile payment using technological acceptance models. Future research can investigate which factors in such models, like the perceived utility and ease of use, might be moderated. The differences between social media users also warrant further investigation into the role of social media in adoption models. Mobile payment adoption was higher for internet/online and petrol station shoppers, while not for other convenience channels. The perceived utility and ease of use might be considered higher amongst the former channels, which could be further investigated.
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