NFC m-payment as a driver for customer loyalty towards retailers amongst Generation Z

Abstract

PurposeThe diffusion of near-field communication (NFC) m-payment depends largely on retailers who are more motivated to provide NFC m-payment for the retailers' customers if NFC m-payment increases loyalty. Therefore, this paper investigates the relationship between customer acceptance of NFC m-payment and loyalty towards the retailer amongst Generation Z.Design/methodology/approachThe NFC m-payment technology acceptance model was extended with loyalty intention towards the retailer. Therefore, an online survey was conducted amongst Generation Z that resulted in a sample of 310 respondents. The collected data were analysed by structural equation modelling (SEM).FindingsResults proved that the customers' intention to use NFC m-payment contributes to a large extent to loyalty intention toward the retailer. Besides, usefulness, enjoyment, social influence and compatibility with lifestyle played a significant role in customer acceptance of NFC m-payment.Research limitations/implicationsThis study's sample consists of Generation Z customers, and other generations should also be tested in future studies.Practical implicationsThe intention to use NFC m-payment predict retail loyalty. Retailers should communicate m-payment availability as a new retail service to influence store patronage.Originality/valueThis study provides theoretical contributions to NFC m-payment acceptance and retail loyalty literature. First, this research extends the NFC m-payment technology acceptance model with a new behavioural outcome, loyalty intention towards retailers. Second, this research enriched retail loyalty literature by proving that NFC m-payment technology adoption drives customer loyalty towards retailers.