Understanding proximity mobile payment continuance usage in Indonesia from a habit perspective
| DOI | https://doi.org/10.1108/JABS-02-2020-0046 |
| Pages | 420-440 |
| Date | 04 February 2021 |
| Published date | 04 February 2021 |
| Subject Matter | Strategy,International business |
| Author | Yonathan Dri Handarkho,Yulius Harjoseputro,Joseph Eric Samodra,Aloysius Bagas Pradipta Irianto |
Understanding proximity mobile payment
continuance usage in Indonesia from a
habit perspective
Yonathan Dri Handarkho, Yulius Harjoseputro, Joseph Eric Samodra and
Aloysius Bagas Pradipta Irianto
Abstract
Purpose –This study aims to proposea theoretical model to explain mobile payment(MP) continuance
usage in a physicalstore in Indonesia from a habit perspective. In detail,continuance usage was argued
to be a consequence of habitual behaviorwhich is related to specific actions conducted automatically,
repeatedly and frequently. Therefore, the theoretical model was constructed on the theory of habit
establishment.
Design/methodology/approach –In total, 220 Indonesian respondents were used to examine the
theoretical model. Furthermore, a cross-sectional study was used through the use of a descriptive
statistical approach to preparing data and descriptive analyses and structural equation modeling
methodfor analysis.
Findings –Satisfaction was foundto have the most substantial direct influence on the establishmentof
habit to use MP followed by perceived usefulness and perceived compatibility. Meanwhile, deal
proneness and social ties were discovered to have a significant indirect effect on habit through the
mediationof usefulness.
Originality/value –This study used the theory of habit formation to understand how user develops
repeatedbehavior in MP usage which leads to continuance usage of theplatform. There is limited explicit
exploration and developmentof a theory based on this concept, therefore,this study is a contribution to
the bodyof knowledge with respect to habit formationand its impacts on MP continuanceusage.
Keywords Mobile payment, Moderating effect, Continuance usage, Habit, Indirect effect,
Physical store
Paper type Research paper
1. Introduction
The rapid growth of mobile technologyhas changed how people interact and behave daily,
even in conducting financial activities. The convergence of such technology with the need
for reliable and easily accessible financial services has led to the development of several
mobile app financial services like mobile payment (MP) to gradually replace traditional
individual monetary activity including in Indonesia (Lee et al.,2019;MDI and Mandiri
Sekuritas, 2019). Recently, these “fintech” services have slowly become a substitute for the
standard existing payment method used in bricks and mortar stores such as credit cards,
debit cards and cash (Handarkho and Harjoseputro, 2019). This platform uses the
advantage of smartphone and network technology by offering a simple, convenient and
arguably secure innovative payment mechanism (Sharma et al.,2019;Kim et al.,2019;
Humbani and Wiese, 2019). In general, MP refers to digital payment service conducted by
using mobile communication devices and wireless communication networks to complete a
specific transaction (Wang et al.,2019;Humbani and Wiese, 2019;Tan et al., 2019).
Yonathan Dri Handarkho,
Yulius Harjoseputro and
Joseph Eric Samodra are
all based at the Informatic,
Universitas Atma Jaya
Yogyakarta, Yogyakarta,
Indonesia. Aloysius Bagas
Pradipta Irianto is based at
the Information System,
Universitas Atma Jaya
Yogyakarta, Yogyakarta,
Indonesia.
Received 6 February 2020
Revised 14 June 2020
23 August 2020
Accepted 24 October 2020
The authors would like to show
gratefully acknowledges the
support from Universitas Atma
Jaya Yogyakarta (UAJY),
Indonesia.
PAGE 420 jJOURNAL OF ASIA BUSINESS STUDIES jVOL. 15 NO. 3 2021, pp. 420-440, ©Emerald Publishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-02-2020-0046
In Indonesia’s offline store context, this platform uses mobile communication technology to
complete several financial transactions using quick response (QR) code, and one-time PIN
(OTP) code as verification for payments. Moreover, MP in a physical store can be
categorized as a proximity method owing to the need of the user to bring their mobile
device to a physical merchant for the completion of a transaction (Esfahani and Ozturk,
2019;Kim et al.,2019;Ramos-de-luna et al., 2019).
From a scholastic perspective, the study of MP is dominated by the initial adoption of the
service. Several models such as technology acceptance model (TAM), unified theory of
acceptance and use of technology(UTAUT) and other adopted theories have been used by
many experts to examine the predictor of user intention in adopting MP platform (Lie
´bana-
cabanillas et al.,2017
;Johnson et al.,2018;Ramos-de-luna et al.,2019;Esfahani and
Ozturk, 2019;Park et al.,2019;Sharma et al., 2019;Tan et al., 2019). However, in
comparison with the attention to the initial adoption, studies on continuous usage are
considered less and have not been investigated deeply, even though the concept is
essential to retaining existing customers which may further lead to saving of a lot of
resources and increasing the profit of a company compared to gaining a new customer
(Chen and Li, 2017;Cao et al.,2018;Yuan et al.,2019). This concept also showed that MP
was able to satisfy the customer’s experience with the system, thereby leading to the
establishment of the brand’s image in the market (Bapat, 2020). Briefly, the continuous use
of MP is beneficial to both vendors and customers. From the vendors’ perspective, it helps
providers to acquire factors that encourage customers to keep using their service. Fromthe
customer perspective, vendors that try to improve their services tend to positively affect
their customers. Therefore, owing to the fact that the factors influencing adoption behavior
are different and cannot be applied, there is a need to explore and discuss the concept of
continuous usage construct in MP in more depth (Yuan et al.,2019;Humbani and Wiese,
2019).
The studies conducted in relation to continuance usage in mobile platform context mostly
use theory derived from satisfaction, perceived benefit and trust (Humbani and Wiese,
2019;Yuan et al.,2019;Jun et al.,2018;Lin et al.,2018;Yuan et al.,2017;Lu et al., 2017).
However, the fact that continuance usage is also a result of habitual behavior related to
specific actions conducted automatically owing to repeated and frequent performance
cannot be neglected (Limayem et al.,2007;Yen and Wu, 2016). This means people
unconsciously and automatically conduct a particular behavior after it has been performed
repetitively. Shiau and Luo (2013) explicitly argued that once a habit is well-established, an
individual performs it automatically, and it consequently becomes continuance usage. With
regard to MP, some previous studies have used habit as a predictor of MP continuance
usage but not as a primary construct to explain the behavior (Lin et al.,2018;Yen and Wu,
2016). Because of this gap, this study postulated the establishment of habit as a prominent
groundwork to explain continuance usage behavior in proximity MP context in an emerging
country. The perspective habit offers an alternative insight into the MP continuance
research and enriches the behavioralintention not deeply examined in previous studies. It is
also considered as a contribution to the body of knowledge. Therefore, several constructs
were explored in detail to explain how continuedMP usage is formed owing to the habit of a
consumer (Limayem et al.,2007). Furthermore, this research also studied the indirect effect
and moderating effect of age, gender and experiences on the predictor of habit, and as
both effects have not been explored widely in prior MP literature, this analysis was
considered a theoretical contribution to the topic of research. This study also developed an
alternative model using the exploratory analysis to inspire the development of further
research models. Theoretical and practical contributions were used to provide useful
strategies for MP vendors to retain their existing customers. It is essential to state that this
study used the structural equation modeling (SEM) technique to examine the theoretical
model with data obtained from Indonesianrespondents.
VOL. 15 NO. 3 2021 jJOURNALOF ASIA BUSINESS STUDIES jPAGE 421
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