Mobile Payments, Chinese Tourists, and Host Residents: Are Destination Stakeholders Prepared to Facilitate Mobile Payments?

Abstract

AbstractMobile payment has become ubiquitous worldwide. It is a form of digital payment activity performed on-site from a mobile device (i.e. smartphone) for the purchase of goods and services using QR or NFC (contactless and proximity card) technology. This study examines destination stakeholders’ level of engagement and involvement in facilitating mobile payments (e.g., AliPay and WeChat Pay) for Chinese tourists. Sabah (Malaysian-Borneo), a popular island destination in Southeast Asia, was selected as the study site. Using a qualitative approach, 25 tourism and hospitality industry practitioners participated in a semi-structured, in-depth interview between February to July 2020. Preliminary results revealed that industry practitioners had been actively seeking to implement mobile payment facilities since late-2017, specifically in the retail sector, as they felt the pressure in accommodating the needs of Chinese tourists. This study offers insights into how industry practitioners address local consumers’ shift in payment usage-behaviours; from traditional forms of payments (e.g., cash and credit card) to mobile payments in light of the COVID-19 pandemic.