Exploring the intention to use M-payment in India

Abstract

Purpose The purpose of this study is to develop a model that explains a user’s attitude toward M-payments in India, based on the motivational model and awareness about demonetization policy. The study also investigates the validity and differential predictive power of four different M-payment usage models, by considering the effect of improved awareness regarding demonetization policy on the core construct of the motivational model. Design/methodology/approach The model was tested with survey data from 362 M-payment users using partial least squares. Respondents were M-payment users with significant usage experience. Findings This study empirically determined that the motivation model and awareness about demonetization policy in M-payment usage after demonetization are connected. As hypothesized, the study found: a positive relationship between extrinsic motivation and intention to use M-payment, positive relationship between awareness about demonetization policy and behavioral intention to use M-payment, positive relationship between intrinsic motivation and extrinsic motivation, positive relationship between awareness about demonetization policy and extrinsic motivation and positive moderation effect of awareness about demonetization policy on the extrinsic motivation-behavioral intention relationships. The hypothesis that awareness about demonetization policy would have a moderating effect on intrinsic motivation–behavioral intention relationship was not supported. Practical implications From a practitioner’s perspective, this study underscores the importance of raising sufficient awareness about the demonetization policy as a determinant of users’ willingness to use M-payment services. Mandatory regulations by the government and motivation toward M-payment use can be a good starting point for a cashless economy. Originality/value This study makes a needed contribution to the literature by validating the integrated motivation model, emphasizing the importance of raising awareness about the demonetization policy among M-payment users. The model may provide a useful foundation for future research in this area.