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Mobile payments: What’s in it for consumers?

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  • Fumiko Hayashi

Abstract

Mobile payments?those initiated on a mobile device such as a cell phone or tablet computer?have received a significant amount of attention recently but still have not been widely adopted in the United States. ; Hayashi examines the barriers that have limited the takeoff of mobile payments in the United States. The article also draws on consumer payments research to assess which attributes of mobile payments might encourage or discourage adoption by U.S. consumers. ; The article concludes that greater convenience and enhanced ability to monitor account balances are likely to encourage consumer adoption of mobile payments for in-store purchases, while initial lack of merchant acceptance may discourage adoption. The effects on consumer adoption of cost, security, and targeted marketing are less clear and will depend on which mobile payment technology is used and how it is implemented.

Suggested Citation

  • Fumiko Hayashi, 2012. "Mobile payments: What’s in it for consumers?," Economic Review, Federal Reserve Bank of Kansas City, vol. 97(Q I), pages 35-66.
    • Handle: RePEc:fip:fedker:y:2012:i:qi:p:35-66:n:v.97no.1
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    References listed on IDEAS

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    1. Simon, John & Smith, Kylie & West, Tim, 2010. "Price incentives and consumer payment behaviour," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1759-1772, August.
    2. Marc Rysman, 2007. "An Empirical Analysis Of Payment Card Usage," Journal of Industrial Economics, Wiley Blackwell, vol. 55(1), pages 1-36, March.
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    6. Ching, Andrew T. & Hayashi, Fumiko, 2010. "Payment card rewards programs and consumer payment choice," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1773-1787, August.
    7. Terri Bradford & Fumiko Hayashi, 2007. "Complex landscapes: mobile payments in Japan, South Korea, and the United States," Payments System Research Briefing, Federal Reserve Bank of Kansas City, issue Sep.
    8. Schuh, Scott & Stavins, Joanna, 2010. "Why are (some) consumers (finally) writing fewer checks? The role of payment characteristics," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1745-1758, August.
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    Cited by:

    1. Terri Bradford & Fumiko Hayashi, 2014. "Mobile payments : merchants’ perspectives," Economic Review, Federal Reserve Bank of Kansas City, issue Q II, pages 33-58.
    2. Luminiţa Ionescu & George Lăzăroiu & Silviu Şerban, 2013. "A theory of the availability and level of consumer protection in online and mobile payments for public economic services," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 369-384, June.
    3. Michal Polasik, 2015. "The Potential for Development of Mobile Payments and mPOS Usage on the Polish Market: Empirical Results (Potencjal rozwoju platnosci mobilnych i zastosowania mPOS na rynku polskim. Wyniki badan empiry," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(54), pages 65-84.
    4. Park, JungKun & Ahn, Jiseon & Thavisay, Toulany & Ren, Tianbao, 2019. "Examining the role of anxiety and social influence in multi-benefits of mobile payment service," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 140-149.
    5. Singh, Nidhi & Sinha, Neena, 2020. "How perceived trust mediates merchant's intention to use a mobile wallet technology," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    6. Zura Kakushadze & Ronald P. Russo Jr, 2018. "Blockchain: Data Malls, Coin Economies and Keyless Payments," Papers 1802.07422, arXiv.org, revised Apr 2018.
    7. Kongaut, Chatchai & Lis, Piotr, 2017. "Supply and demand sides of mobile payment: A comparative analysis of successful mobile payment adoption in developed and developing countries," 28th European Regional ITS Conference, Passau 2017 169474, International Telecommunications Society (ITS).
    8. Kaur, Puneet & Dhir, Amandeep & Singh, Naveen & Sahu, Ganesh & Almotairi, Mohammad, 2020. "An innovation resistance theory perspective on mobile payment solutions," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    9. Krishna Moorthy & Loh Chun T'ing & Kwong Chea Yee & Ang Wen Huey & Lee Joe In & Poon Chyi Feng & Tan Jia Yi, 2020. "What drives the adoption of mobile payment? A Malaysian perspective," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 349-364, July.
    10. Aloys Prinz, 2019. "The microeconomics of mobile payments," Netnomics, Springer, vol. 20(2), pages 129-151, December.

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