SWITCHING TO CASHLESS? EXPLORING COSTS OF SWITCHING INTENTION IN MOBILE PAYMENT SERVICES

ABSTRACT

The concept of a cashless society has received increasing attention due to the prevalence of cashless transactions and the circulation of digital currency. The benefit of a cashless society is that mobile payment allows efficient, convenient, transparent, and traceable transactions. This study examined the influence of switching costs on customer satisfaction, stickiness, and intention to switch to mobile payment services. We also studied the effect of financial literacy on mobile payment services. Self-efficacy is irrelevant for experienced mobile payment users in terms of customer satisfaction and stickiness. Financial switching costs and self-efficacy (procedural switching costs) have no influence on user satisfaction and stickiness toward mobile payment services, whereas risk tolerance (procedural switching costs) and social influence (relational switching costs) positively influence these two factors. User stickiness partially mediates the relationship between user satisfaction and users’ switching intention toward mobile payment services. Our findings can help mobile payment enterprises focus on operational strategies and enhance the reputation of social networks to increase user satisfaction.

KEYWORDS:

• Switching cost
• mobile payment service
• financial literacy
• risk tolerance
• social influence

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Wei-Lun Chang

Wei-Lun Chang is the Associate Professor of Department of Business Administration in National Taipei University. He completed his Ph. D. degree at Department of Management Information Systems at National Chengchi University. His research areas include social media, sentiment, and technology in education. His work has appeared in Communications of the ACM, Information Systems Frontiers, Internet Research, Electronic Commerce Research and Applications, Knowledge-based Systems, European Journal and Operational Research, Transportation Research Part E: Logistics and Transportation Review, and Journal of Information Science.

Yen-Hao Hsieh

Yen-Hao Hsieh is an Associate Professor of Department of Business Administration in College of Business at National Taichung University of Science and Technology in Taiwan. He received his Ph.D. in Management Information Systems from National Chengchi University. His research interests include Electronic Commerce, Sentiment Analysis, Service Science, Service Experience, Customer Expectation Management.

I-Ting Lu

I-Ting Lu is an Assistant Professor of Banking and Finance at the School of Business and Management, Tamkang University in Taiwan. She received her Ph.D. degree in Finance from University of Missouri-Columbia University. Her research interests focus on financial gerontology, personal financial planning, inclusive financing, human well-being from the perspective of finance, and gender effects on customer finance.