3. P2P Mobile Payments: Investigating the Factors of Adoption Among Students in Germany

This paper seeks to contribute to filling a knowledge gap on the topic of person-to-person (P2P) mobile payment adoption behaviour. The study builds on quantitative survey data from university students in Berlin. The theoretical foundation rests on innovation diffusion theory (IDT), the theory of reasoned action (TRA), the technology acceptance model (TAM), and mobile payment research. The majority of respondents have a favourable attitude towards using P2P mobile payments. P2P mobile payments are perceived as useful, easy to use, and are compatible with the lifestyle of the majority of respondents. They also support respondents’ mobile lifestyle; enabling them to cheaply, quickly, and easily conduct transactions on the move. Despite the benefits, social pressure to use P2P mobile payments is low, and respondents are comfortable with current payment methods. Adoption might be further hampered by concerns related to trust in service providers and security risks. Banks seeking to launch new P2P mobile payment solutions or aiming to improve existing services should focus on system usability, and increase awareness of service benefits. At the same time, there is a need to build trust and promote customer security. It is also important to focus on lifestyle compatibility, and consider an individual’s social environment and its effect on their adoption decision.