Exploring Factors Affecting Consumers’ Behavioral Intention to Adopt Mobile Payment Services A Case Study in the Kathmandu Valley, Nepal

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Sunny Manandhar
Phanasan Kohsuwan


Mobile payments will become increasingly common in the future since they reduce transaction time, and they have already replaced interactions with physical money in some markets. Yet in Nepal, consumers’ adoption of mobile payment services remains very low as compared to other traditional forms of payments, such as cash and credit cards. Thus, this study aimed to investigate the factors influencing consumers’ behavioral intention to adopt Mobile Payment Services in Kathmandu Valley, the area surrounding the capital of Nepal. The Unified Theory of Acceptance and Use of Technology was integrated with Privacy Calculus Theory and used in this study. Structural equation modeling results from 455 respondents revealed that facilitating conditions such as necessary knowledge and other technologies had a positive and the strongest influence on consumers’ actual use of such payments. Effort expectancy had a high and positive influence on consumers’ behavior intention towards mobile payment services. Consumers’ behavior intention was also positively influenced by performance expectancy and social influence. Mobile payment service providers could use these factors to effectively address consumers’ needs and try to exceed the expectations of their target consumers.


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