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What hinders the usage of smartphone payments in Russia? Perception of technological and security barriers

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  • Semerikova, Ekaterina

Abstract

Russia has become one of the largest markets for contactless transactions via smartphone wallets, however, the share of smartphone payments is still much lower than that of plastic cards. This research aims to understand how the perception of technological and security barriers impacts the probability of smartphone use for offline payments in Russia. The analysis uses a representative sample of 1016 Russian cardholders gathered via an online survey in 2019. The study shows that the perception of such barriers as the fear of losing one's smartphone, entering the smartphone password in public places and a slower payment process negatively impacts the probability of using a smartphone as a payment instrument in Russia. The results imply that there is a potential to lower at least the perceived security barriers to further smartphone payments adoption that appear due to the consumers’ lack of knowledge of how they work.

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  • Semerikova, Ekaterina, 2020. "What hinders the usage of smartphone payments in Russia? Perception of technological and security barriers," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:tefoso:v:161:y:2020:i:c:s0040162520311380
    DOI: 10.1016/j.techfore.2020.120312
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    References listed on IDEAS

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    1. Krivosheya, Egor & Korolev, Andrew, 2018. "Benefits of the retail payments card market: Evidence from Russian merchants," Journal of Business Research, Elsevier, vol. 88(C), pages 466-473.
    2. Krivosheya, Egor & Korolev, Andrew, 2016. "Benefits of the retail payments card market: Russian cardholders' evidence," Journal of Business Research, Elsevier, vol. 69(11), pages 5034-5039.
    3. Arts, Joep W.C. & Frambach, Ruud T. & Bijmolt, Tammo H.A., 2011. "Generalizations on consumer innovation adoption: A meta-analysis on drivers of intention and behavior," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 134-144.
    4. Ekaterina Semerikova, 2019. "Payment instruments choice of Russian consumers: reasons and pain points," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 14(1), pages 22-41, November.
    5. Linck, K. & Pousttchi, Key & Wiedemann, Dietmar Georg, 2006. "Security Issues in Mobile Payment from the Customer Viewpoint," MPRA Paper 2923, University Library of Munich, Germany.
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    Cited by:

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    2. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Thrassou, Alkis & Vrontis, Demetris, 2022. "Social network games (SNGs) addiction: Psychological dimensions and impacts on life quality and society," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    3. Wan Rung Lin & Chun-Yueh Lin & Yu-Heng Ding, 2020. "Factors Affecting the Behavioral Intention to Adopt Mobile Payment: An Empirical Study in Taiwan," Mathematics, MDPI, vol. 8(10), pages 1-19, October.
    4. Ayatulloh Michael Musyaffi & Razana Juhaida Johari & Christian Wiradendi Wolor & Amer Azlan Abdul Jamal & Anaya Zahra Santika & Muhammad Arifsyah Arifi, 2023. "The Innovativeness and Value of Quick Response Code Payment for MSMEs: The Influence of Security-Related Factor," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 89-107.
    5. Verkijika, Silas Formunyuy & Neneh, Brownhilder Ngek, 2021. "Standing up for or against: A text-mining study on the recommendation of mobile payment apps," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Smartphone payments; Apple pay; Mobile payments; Financial innovations; Retail payments; Financial services;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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