Investigating mobile payment technologies as a replacement for cash/EFTPOS transactions

Wang, Bo
Petrova, Krassie
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Master of Computer and Information Sciences
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Auckland University of Technology

Due to the increasing popularity of smart phones, mobile payment (m-payment) is now a reality which is about to transform consumers’ daily activities such as paying for purchases in retail. For this new technology to become successful in mainstream New Zealand, it is important for the local industry stakeholders to gain in-depth understanding of retailers’ motives to adopt and validate its suitability as a replacement for cash/EFTPOS.

This thesis aims at providing answers to two research questions, what are the factors that motivate retailers for m-payment within the retail industry and what are the challenges they might face when implementing an m-payment system. This study uses a qualitative approach for data collection and analysis. A series of face to face interviews are conducted with retailers from the area of Auckland CBD in which they expressed their opinion towards the subject in accordance to their business environment. Data collected in the interviews are analysed using content analysis techniques. A code schema is developed based on the review of relevant literature and is used to extract meanings from data. The outcome of the research identifies the factors that influence the m-payment adoption in retailer industry and enhances the understanding of the challenges perceived by retailers.

The findings indicate that there is a general acceptance of m-payment in the New Zealand retail businesses. Merchants’ adoption of m-payment is motivated by the needs of consumers and by business related factors. The needs of customers for m-payment as an m-payment system or application are related to their demographics, background and attitude towards m-payment. This study also finds that lack of knowledge and competition from existing payment technology are the major challenges facing retailers. Those are important factors that could prevent retailers from adopting for m-payment in their business.

M-payment is found to be suitable as a replacement for cash/EFTPOS transactions. However, substantial efforts by service providers are required to promote the product as public awareness is low. This study contributes to the body of knowledge in the area as a very limited number of studies have focused on retail merchants and the empirical investigation of the attitudes of this particular stakeholder group (small retail merchants). It also provides valuable insights into the perception of m-payment by local retail business environment in Auckland, New Zealand.

Mobile payment , M-payment retail
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