Determinants on customers intention to use mobile wallets in ho chi minh city

Therefore, this thesis is conducted in order to examine the determinants of customers’ intention to use mobile wallets in Ho Chi Minh City, which can reinforce the theoretical framework

BANKING UNIVERSITY OF HO CHI MINH CITY

-

QUÁCH THỊ HƯƠNG GIANG

DETERMINANTS ON CUSTOMERS’ INTENTION TO USE MOBILE WALLETS IN HO CHI MINH CITY

BACHELOR’S THESIS Major: FINANCE – BANKING

Code: 7340201

HO CHI MINH CITY, 2020

BANKING UNIVERSITY OF HO CHI MINH CITY

-

QUÁCH THỊ HƯƠNG GIANG

DETERMINANTS ON CUSTOMERS’ INTENTION TO USE MOBILE WALLETS IN HO CHI MINH CITY

BACHELOR’S THESIS Major: FINANCE – BANKING

Code: 7340201

SUPERVISOR PhD HỒ CÔNG HƯỞNG

HO CHI MINH CITY, 2020

ABSTRACT

The innovation of technology has recently brought many benefits to consumers, particularly in the digital payment context Many financial institutions and technology service providers have begun to develop digital payment applications This has made digital payments in general and mobile wallets in specific become more popular in Vietnam, especially in big cities such as Ho Chi Minh City However, the number of users of these types of payments is still relatively low Therefore, this thesis is conducted in order to examine the determinants of customers’ intention to use mobile wallets in Ho Chi Minh City, which can reinforce the theoretical framework of research in customers’ intention to use mobile wallet services

The proposed research model is based on the Unified Theory of Acceptance and Use of Technology, which remains Performance Expectancy, Effort Expectancy, Social Influence, and Facilitating Conditions as the main factors to reflect the intention to use mobile wallets In addition, Perceived Security, Trust, Mobile Wallet Knowledge, and Reputation are also introduced as factors that affect the intention to use mobile wallets In this study, the author also adds demographic factors (including age, gender, education, income) into the research model

After gathering and examining 195 samples under the quantitative research method, the results indicate that there are six factors considered significant to the intention to use mobile wallets These factors are Performance Expectancy, Effort Expectancy, Facilitating Conditions, Trust, Mobile Wallet Knowledge, and Reputation, in which Performance Expectancy contributes the most in explaining the intention to use mobile wallets However, contrary to previous researches, the results show that there is no significant relationship between Perceived Security, Social Influence as well as the demographic factors and the intention to use mobile wallets

The findings of this research contribute to the theoretical framework of studies

in the intention to use mobile wallets of customers in Ho Chi Minh City The

implications of the results are also discussed in order to give recommendations to

the mobile wallet developers and providers, and directions for further studies

DECLARATION

I hereby declare that the thesis “Determinants on customers’ intention to use mobile wallets in Ho Chi Minh City” is my original work and has not been published or submitted except for quotations and citations which have been acknowledged

The Author

Quách Thị Hương Giang

ACKNOWLEDGEMENTS

In the past time, thanks to the favorable conditions of Banking University of

Ho Chi Minh City, I would like to thank all the professors at the university for having conveyed me a lot of useful knowledge and experience over the past four years, especially Ph.D Ho Cong Huong – the instructor who has wholeheartedly instructed me to complete this thesis well

I wish you all health and success in the career of growing people

Best regards

The Author

Quách Thị Hương Giang

TABLE OF CONTENTS

ABSTRACT i

DECLARATION iii

ACKNOWLEDGEMENTS iv

LIST OF TABLES viii

LIST OF FIGURES viii

LIST OF ABBREVIATIONS ix

CHAPTER 1 INTRODUCTION 1

1.1 RATIONALE FOR RESEARCH 1

1.2 RESEARCH OBJECTIVES 4

1.3 RESEARCH QUESTIONS 5

1.4 RESEARCH SUBJECTS 5

1.5 SCOPE OF RESEARCH 6

1.6 METHODOLOGY 6

1.7 THESIS STRUCTURE 7

CHAPTER 1 SUMMARY 9

CHAPTER 2 LITERATURE REVIEW 10

2.1 MOBILE WALLET OVERVIEW 10

2.2 RELEVANT THEORIES 11

2.2.1 Theory of Reasoned Action 11

2.2.2 Theory of Planned Behavior 12

2.2.3 Technology Acceptance Model 13

2.2.4 Unified Theory of Acceptance and Use of Technology 15

2.2.5 Social Cognitive Theory 17

2.2.6 Diffusion of Innovation Theory 18

2.3 DOMESTIC AND FOREIGN RESEARCH RELATED 19

2.3.1 Foreign researches 19

2.3.2 Domestic researches 23

2.4 THEORETICAL FRAMEWORK OF THESIS 25

2.5 HYPOTHESES 27

2.5.1 Performance Expectancy (PE) 27

2.5.2 Effort Expectancy (EE) 27

2.5.3 Social Influence (SI) 27

2.5.4 Facilitating Conditions (FC) 27

2.5.5 Perceived Security (PS) 28

2.5.6 Trust (TR) 28

2.5.7 Mobile Wallet Knowledge (MK) 29

2.5.8 Reputation (RE) 29

2.5.9 Behavioral Intention (BI) 30

2.5.10 Demography Factors 30

CHAPTER 2 SUMMARY 31

CHAPTER 3 METHODOLOGY 32

3.1 RESEARCH PROCESS 32

3.2 PROPOSED MODEL 33

3.3 CONSTRUCTS MEASUREMENT 35

3.4 MEASUREMENT SCALES 38

3.5 QUANTITATIVE RESEARCH 38

3.5.1 Sampling Design 38

3.5.1.1 Population 38

3.5.1.2 Sample Size 39

3.5.2 Final Questionnaire 39

3.5.3 Data Collection 40

3.5.4 Data Analysis Method 40

3.5.4.1 Descriptive Analysis 40

3.5.4.2 Reliability Analysis 40

3.5.4.3 Exploratory Factor Analysis 41

3.5.4.4 Correlation Coefficient Analysis 41

3.5.4.5 Multiple Regression Analysis 42

3.5.4.6 Independent sample t-test 43

3.5.4.7 One-way analysis of variance 43

CHAPTER 3 SUMMARY 43

CHAPTER 4 RESULTS AND DISCUSSION 44

4.1 DESCRIPTIVE ANALYSIS 44

4.2 MEASUREMENT ASSESSMENT 46

4.2.1 Reliability Analysis 46

4.2.2 Exploratory Factor Analysis 48

4.2.2.1 Exploratory Factor Analysis for Independent Variables 48

4.2.2.2 Exploratory Factor Analysis for Dependent Variable 51

4.3 CORRELATION COEFFICIENT ANALYSIS 51

4.4 MULTIPLE REGRESSION ANALYSIS 54

4.4.1 Testing the Assumptions of Multiple Regression Analysis 54

4.4.2 Results of Multiple Regression Analysis 56

4.5 TESTING DIFFERENCES BETWEEN DEMOGRAPHIC FACTORS 61

4.5.1 Testing the difference between two genders 61

4.5.2 Testing the difference among groups of age 61

4.5.3 Testing the difference among groups of education level 63

4.5.4 Testing the difference among groups of income level 64

CHAPTER 4 SUMMARY 65

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 66

5.1 CONCLUSIONS 66

5.2 IMPLICATIONS 69

5.3 LIMITATIONS AND RECOMMENDATIONS FOR FURTHER RESEARCHES 71

CHAPTER 5 SUMMARY 73

REFERENCES 74

APPENDIXES 81

APPENDIX 1: Questionnaires 81

APPENDIX 2: Descriptive Analysis Results 89

APPENDIX 3: Reliability Analysis Results 90

APPENDIX 4: Exploratory Factor Analysis Results 95

APPENDIX 5: Correlation Coefficients Analysis Results 98

APPENDIX 6: Multiple Regression Analysis results 99

APPENDIX 7: Differences between demographic factors test 100

LIST OF TABLES

Table 2.1 Foreign researches list 21

Table 2.2 Domestic researches list 24

Table 3.1 Constructs measurement 35

Table 4.1 Frequency Analysis for Research Samples 45

Table 4.2 Reliability analysis results of measurement scales by Cronbach’s Alpha 46

Table 4.3 Summary of EFA test for the independent variables 48

Table 4.4 Rotated Component Matrix Analysis for Independent Variables 50

Table 4.5 Summary of EFA test for the dependent variable 51

Table 4.6 Summary of Pearson’s Correlation Coefficient Analysis 52

Table 4.7 Model Summary 56

Table 4.8 ANOVA test 57

Table 4.9 Multiple Regression Coefficients 57

Table 4.10 Hypotheses Results 60

Table 4.11 Independent Samples Test for Gender factor 61

Table 4.12 Test of Homogeneity of Variances for the age factor 61

Table 4.13 ANOVA test for age factor 63

Table 4.14 Test of Homogeneity of Variances for the education factor 63

Table 4.15 ANOVA test for Education Factor 64

Table 4.16 Test of Homogeneity of Variances for the income factor 64

Table 4.17 ANOVA test for income factor 65

Table 5.1 Influence level of factors on the intention to use mobile wallets 68

LIST OF FIGURES Figure 1.1 Biggest growth in mobile payment in Vietnam and the Middle East 2

Figure 1.2 Payment types in percent in Vietnam from 2017 to 2023 3

Figure 2.1 Theory of Reasoned Action 12

Figure 2.2 Theory of Planned Behavior 13

Figure 2.3 Technology Acceptance Model 14

Figure 2.4 Unified Theory of Acceptance and Use of Technology Model 16

Figure 2.5 Social Cognitive Theory 17

Figure 2.6 Social Cognitive Theory 18

Figure 2.7 Diffusion of Innovation Theory 19

Figure 2.8 The theoretical framework of the thesis 26

Figure 3.1 The research process 33

Figure 3.2 The proposed model 34

Figure 4.1 Normal P-P Plot of Regression Standardized Residual 55

Figure 4.2 Scatterplot 56

LIST OF ABBREVIATIONS Abbreviation Description

ANOVA Analysis of variance

BI Behavioral Intention

DOI Diffusion of Innovation Theory

E-commerce Electronic commerce

EFA Exploratory Factor Analysis

E-payment Electronic payment

E-wallet Electronic wallet

FC Facilitating Conditions

M-commerce Mobile commerce

M-payment Mobile payment

SBV State Bank of Vietnam

SCT Social Cognitive Theory

TAM Technology Acceptance Model

TPB Theory of Planned Behavior

TRA Theory of Reasoned Action

UTAUT Unified Theory of Acceptance and Use of Technology UTAUT2 Unified Theory of Acceptance and Use of Technology 2 VIF Variance inflation factor

CHAPTER 1 INTRODUCTION

In this first chapter, an overview of research will be presented, which includes research rationale, research objectives, research questions, the scope of the study and thesis layout

1.1 RATIONALE FOR RESEARCH

Nowadays, with the rapid development of information and technology, smartphone is not only a contact tool or an information search engine, but also an instrument with many convenient functions for users such as entertainment, shopping, and study According to “Report on Vietnamese consumer habits”, nearly 72% of Vietnamese consumers own smartphones This figure is much higher than the number of people who own computers (43%) and tablets (13%) (Consumer Barometer, 2017) This indicates that smartphone is the mobile device which leads the usage trend of Vietnamese consumers at the present Moreover, a strong foundation has been founded due to the rapid growth of the internet, which boosts the accessing internet by smartphones rate In 2019, mobile phone is the most instrument chosen to access the internet (92% of people who access the internet), this number increased by 27% compared to 2014 In addition, within the number of people accessing the internet, 70% have purchased merchandise online (increased

by 12% compared to 2014) (Vietnam E-commerce and Digital Economy Agency, 2019) As can be seen, there is room for the market for electronic commerce (e-commerce) in general and mobile commerce (m-commerce) in specific

As smartphones have played a significant role in people’s lives, which is the main hub for getting online and purchasing goods and services, the awareness of the potential for secure mobile payments (m-payments) has increased considerably in order to replace older forms of payments, which includes the insecure method of inserting card numbers into a personal computer Along with the expansion of

mobile phones, digital wallets place a significant role in the transition to a cashless society Vietnam is catching the worldwide trend while many companies have released various m-commerce services in different fields The appearance of m-commerce services has gradually changed customers’ habits due to the advantages they bring to customers Along with the world trend, Vietnam is also showing a rapid growth in the usage of digital payments

Figure 1.1 Biggest growth in mobile payment in Vietnam and the Middle East

Source: Global Consumer Insights Survey (PwC, 2019)

Figure 1.1 shows that the number of Vietnamese people making m-payments

in stores is growing faster than elsewhere in Southeast Asia (Global Consumer Insights Survey, 2019) The proportion of consumers in Vietnam using m-payments from 37% in 2018 has increased to 61% in 2019 In this context, according to the State Bank of Vietnam (SBV) (2018), e-payments in Vietnam saw an increase in numbers in 2018 with the growth rate at 19.5% (comparing to 169.5% in 2017) In the Quarter I/2019, the figure grew significantly at 68.8% comparing to the same

quarter of 2018 Meanwhile, regarding m-payments, the number of m-payments increased by 97.7% compared to the same quarter of 2018, with the total amount of 924,000 million VND, which is 232.3% comparing to Quarter I/2018 (SBV,2019) Because Viet Nam is still a heavily cash-based society with close to 99% of financial transactions conducted in cash, the demand for other types of banking products is also set to grow; in particular demand for payment cards and wealth management services

According to the SBV (2019), there are 76 commercial banks providing Internet payment services and 41 m-payment operators in Vietnam Besides, 31 organizations have been licensed by the SBV to provide payment intermediation, including 26 organizations providing electronic wallets (e-wallets), such as MoMo, ZaloPay, Airpay, etc By the end of 2018, the whole country had 4.2 million wallets linked to bank accounts (SBV, 2019)

In 2019, 28% of total e-commerce purchases are paid by e-wallet, increase by 3% comparing to 2018, and by 11% compared to 2017 (Statista, 2019)

Figure 1.2 Payment types in percent in Vietnam from 2017 to 2023

Payment types in percent in Vietnam from 2017 to 2023

Bank transfer Cards Cash on delivery E-wallet

Vietnam is currently in a position where customers desire the convenience of digital payments and authorities are looking for better financial inclusion and greater transparency However, up to date, there is few in the number of people utilizing mobile wallet, comparing to mobile phone users The elemental obstacle is the attitude of individuals to adjust to another type of payment In a nation such as Vietnam where a larger part of consumers still favors Cash on delivery method, it is difficult to fasten the pace of the process of innovation diffusion such as mobile wallets

So in the meantime, there is a need to re-examine the effectiveness of the factors which drive customers’ intention to use mobile wallets This will help the Government, banks and mobile wallet service providers to formulate effective policies in order to ensure the adoption of mobile wallets by a large number of people in Vietnam Therefore, research about consumers’ intention to use mobile wallets in Ho Chi Minh City is very essential

1.2 RESEARCH OBJECTIVES

The world saw a rapid growth in e-payment in recent years The widespread use of mobile devices in the e-payment has a significant role in this expansion Along with the increase in trading volume and the introduction of brand new devices, new products have been released One such latest product is the mobile wallet There is a need, therefore, to uncover the factors that actively affect the customers’ willingness to use mobile wallets So, in order to study the active factors which drive customers’ intention to use mobile wallets, the following objectives have been framed:

- To develop a research framework for intention to use mobile wallets in Ho Chi Minh City, Vietnam

- To examine the effectiveness of the factors that influences the customers’ intention to use mobile wallets in Ho Chi Minh City, Vietnam

- To study the intensity of the influence made by the active factors that affect the intention of customers to use mobile wallets in Ho Chi Minh City, Vietnam

The study will discuss, investigate and validate these factors by using the Unified Theory of Acceptance and Use of Technology Model The findings of this thesis may provide leaders and marketers with important information in doing their development strategies in the FinTech industry, specifically the mobile wallet sector Marketers may utilize these hypotheses to develop related mobile wallet marketing strategies in Ho Chi Minh City This will also help the Government, banks and mobile wallet service providers to formulate effective policies in order to ensure the adoption of mobile wallets by a large number of people in Vietnam

1.4 RESEARCH SUBJECTS

The research subject is the intention to use mobile wallets of customers in the payment market and the factors influencing the customer's intention to use mobile wallets

The research is surveyed on the customers who are aware of mobile wallets

and who are living or working in Ho Chi Minh City

1.5 SCOPE OF RESEARCH

The research will investigate only the intention to use mobile wallets Other factors such as the priority in choosing which provider is not discussed this thesis This research will access information from two main sources, which are:

- Secondary data, which is researched, collected on articles, scientific researches, academic books in the field of e-commerce, e-payment and e-wallets

- Primary data, which will be investigated and collected through the questionnaire survey in the form of direct interviews and emailed to the survey subjects

This research is conducted in Ho Chi Minh City, which is the most prosperous economic center of Vietnam Moreover, the research surveys 195 respondents The results of this study in the city, at some level, can represent for Ho Chi Minh City in general and can be used as a reference for further purposes

Secondly, the main study is processed by the quantitative method In this stage, the final questionnaires were delivered to mobile wallet users who lived in

Ho Chi Minh City by distributing the questionnaires to respondents (direct interviews) and sending survey links (under Google Form) through email and social networks

Finally, the research uses analytical tools such as IBM SPSS 20.0 and Microsoft Excel 2013 for the data analysis stage After collecting a sufficient amount of samples from the survey, the data were coded, analyzed and interpreted

by IBM SPSS 20.0 Statistic Descriptive Statistics, Cronbach’s Alpha, Exploratory Factor Analysis, Pearson’s Correlation Coefficient, and Multiple Regression analysis were employed

Chapter 2: Literature Review

In this chapter, the author presents the definition of mobile wallet, its functions, its advantages, payment process by mobile wallet and some of the related laws and regulations This chapter also provides the literature reviews that concern the mobile wallet, theoretical models and competitive model To be more specific, the chapter explains the history and developments of several theoretical frameworks such as Theory of Reasoned Action, Theory of Planned Behavior, Technology Acceptance Model, Unified Theory of Acceptance and Use of Technology Model, Social Cognitive Theory, and Diffusion of Innovation Theory Chapter 2 also presents domestic and foreign research done on the stream of studies related to customers' intention to use mobile wallets This chapter is concentrated on explaining each factor in the model, and the reasons for including them in the research model

Chapter 3: Methodology

Chapter 3 introduces a brief description of the research methodology and use it

to test the research model It presents the research process, constructs measurements, survey questionnaire, the pilot study, and the main study The measurement scales apply for the research factors will also be determined in this

chapter This chapter also defines how to collect data, introduces the data analysis tool and methods used in the research

Chapter 4: Results and discussion

Chapter 4 presents the sample specification, translates data collected from the survey, analyses data as well as discusses the result finding of the quantitative study

in connection with the research model The result findings include Descriptive Statistics, Reliability Analysis, Exploratory Factor Analysis, Correlation Coefficient Analysis, Multiple Regression Analysis, Independent Sample T-test, and One-Way ANOVA Based on the results, the author concludes the proposed hypotheses in chapter 5

Chapter 5: Conclusions and recommendations

The last chapter discusses the prominent results and research findings This chapter includes the main conclusions, implications, and research limitations Finally, this thesis provides suggestions for further research on the topic area Simultaneously, this chapter also includes recommendations for enterprises that provide mobile wallet services and for the authorities in order to attract more mobile wallet users in the payment market in specific and in the e-commerce market in general

CHAPTER 1 SUMMARY

This chapter introduces issues such as the rationale for the research, objectives, and questions from the researcher The scope of research, thesis structure and the methods used to analyze the relationship between the intention to use mobile wallets for each variable are also presented The details of the literature review on the relationship between the intention to use mobile wallets and each variable will be discussed further in the following chapter

CHAPTER 2 LITERATURE REVIEW

This chapter discusses theoretical frameworks and hypothetical development The chapter also provides an overview of identifying dependent and independent variables that influence the intention to use mobile wallets

2.1 MOBILE WALLET OVERVIEW

According to Article 4 of Decree 101/2012/NĐ-CP supplemented by Paragraph 1 Article 1 Decree 80/2016/NĐ-CP regarding non-cash payment, mobile wallet Service is defined as the service that provides you with an identified electronic account by mobile payment services providers created on an information storage item (such as electronic chips, mobile sim, servers, etc.) to allow storage of

a monetary value which is guaranteed by the equivalent cash value which is transferred from the customer’s bank account into mobile wallet account with the ratio 1:1 and used to replace cash

In other words, mobile wallet is an electronic account, it is like "wallet" of users on the internet and acts as a cash wallet in the payment market, helping users

to perform payment on the internet, sending money more quickly, simply and saving not only in time, effort but also money

According to the SBV, there are 26 organizations providing e-wallets, such as MoMo, ZaloPay, Airpay, etc By the end of 2018, the whole country had 4.2 million wallets linked to bank accounts (SBV, 2019)

Each mobile wallet provider has its distinguish development strategies targeting different customer sectors Therefore, the product Mobile Wallet of each provider has different utilities and services Most of the mobile wallets in Vietnam generally have the functions as below:

- Receive and send money: after register and successfully activate account, the user can receive money from different methods such as deposit money directly at

the cashier of the provider, deposit money through counters at the banks connecting

to the mobile wallet provider, deposit money online through bank account, etc and

if the user has balance in his/her account, the user can transfer money to another account in the same application, transfer money to the connected bank account or transfer money to friend/acquaintance by post or through the bank branches;

- Money storage: the customers can use mobile wallets as a place to store money under electronic money form safely and conveniently And the recognized amount in mobile wallet accounts is equivalent to the actual amount transferred into;

- Online shopping payment: if there is balance in the mobile wallet account, the user can use this balance to make payment for online shopping transactions on e-commerce flatform/websites in Vietnam or international if it is associated with the payment function via that mobile wallet;

- Account query: with this function, the user can perform change/adjust in personal information, password and perform balance query, transaction history in their own mobile wallet account;

- Top-up for mobile phone, online games, etc.: when owning a mobile wallet, the users also can use their balance in accounts to pay for mobile phone top-up, online game top-up easily with lower fees compared to other electronic payments (e-payments);

- Bills payment: the mobile wallets providers nowadays have extended connection and collaboration with enterprises providing essential living services such as telephone, internet, water, electricity, television, etc This allows users to make these kinds of payments through mobile wallet account more proactive and convenient

2.2 RELEVANT THEORIES

2.2.1 Theory of Reasoned Action

Theory of Reasoned Action (TRA) was developed by Ajezen and Fishbein in

1975 in the field of social psychology, based on the assumption that individuals rely

on reasons and use the available information systematically to take action According to TRA, the most important factor that determines an individual's behavior is his/her intention to behave, not his/her attitude An individual’s intention consists of two basic determinants: Attitude that an individual has toward the actual behavior and Subjective norm associated with the behavior in question (Ajezen and Fishbein, 1975)

Figure 2.1 Theory of Reasoned Action

Source: Ajezen and Fishbein, 1975

Attitude toward behavior is reflected in one's negative or positive feelings about taking a specific action while Subjective Norm is expressed by cognitive pressure to comply with the opinions of others (Ajezen and Fishbein, 1975)

The TRA model provides a useful tool that can explain and predict the actual behavior of an individual fairy well However, several limitations of this model are also pointed out It is proved that the TRA model is not explanatory for technology adoption (Al-Mamary et al., 2016) Moreover, the scholars also emphasize that the model is too general so that it can not explain for specific types of behavior, particularly psychological behaviors

2.2.2 Theory of Planned Behavior

The Theory of Planned Behavior (TPB) was an extension of the TRA model According to Al-Mamary et al (2016), the TPB model is developed to improve its association with practical behavior It has eliminated the limitations of the previous model, which is that an individual is considered to have complete control over the behavioral situation TPB is one of the most well-known theories that can explain human behavior in different contexts (Al-Mamary et al., 2016) One of the key

Subjective norm

Attitude toward

behavior

Behavior Intention

Behavior

assumptions of this model is that the Behavior Intention is a reliable predictor of the actual behavior (Ajezen and Icek, 1991) The behavioral intention in the model is considered as the result of different mixed attitudes towards one behavior

Figure 2.2 Theory of Planned Behavior

Source: Ajezen and Icek, 1991

The TPB model extends the TRA with the third component, affecting the Behavior Intention This component is Perceived Behavioral Control Perceived behavioral control represents an individual's perceived ease or difficulty of performing a particular behavior (Ajzen, 1991) It is assumed that perceived behavioral control is determined by the total set of accessible control beliefs As Ajzen (1991) stated in the theory of planned behavior, knowledge of the role of perceived behavioral control came from Bandura's concept of self-efficacy, which can be found in some other models of behavior interpretation and prediction

Perceived Behavioral Control and Behavioral Intention are both important factors to predict behavior, depending on the specific conditions, the importance level of each factor will be different (Ajzen, 1991)

2.2.3 Technology Acceptance Model

The innovation and the emergence of new technologies prompt researchers to improve and develop a particular model to study the determinants of individuals’ technology adoption For this reason, the Technology Acceptance Model (TAM) was first proposed by Davis in 1986 in order to predict user’s acceptance of

Subjective Norm

Attitude toward Act

or Behavior

Behavior Intention

Behavior

Perceived

Behavioral Control

technology and usage intention in an organizational context and it has become the most widely applied model in this field of study (Venkatesh, 2000)

The TAM was a theoretical extension of the TRA model The TAM, as shown

in Figure 2.3, was also the first model that established external variables as the main factors in studying technology adoption

Figure 2.3 Technology Acceptance Model

Source: Davis, 1989

The TAM is based on the assumption that attitude toward using is a good predictor of actual system use (Nikola Marangunić và Andrina Granić, 2015) Attitude toward Using is considered to be a major factor in the intention to use technology Meanwhile, Attitude is also influenced by two main variables, reflecting an individual’s perception of a system's characteristics and potential uses (Davis, 1989), which are:

- Perceived Usefulness: was defined as “the degree to which a person believes that using a particular system would enhance his or her job performance” (Davis, 1989);

- Perceived Ease of Use: was defined as “the degree to which a person believes that using a particular system would be free from effort” (Davis, 1989)

As TAM is evolving over time, many researchers have included various external variables to increase its predictive power and reliability Therefore, this model has become a dominant model in the study of technology adoption

Perceived Ease

of Use

Perceived Usefulness

Attitude toward Using

Behavior Intention External

Variables

In summary, the TAM is one of the most influential theories to analyze the adoption in several studies However, it still contains certain limitations The original model has been improved many times to better suit the research needs of scholars Sun and Zhang (2006) and Vankatesh et al (2003) have pointed 2 main disadvantages in TAM studies, which are (1) the explanation of the model is not high and (2) the correlation between the factors of the model is contradicted within the studies with different fields and subjects After collecting research results from

55 articles, Sun and Zhang (2006) and Venkatesh et al (2003) found that the model’s coefficient of determination ( ) averaged around 40% Moreover, the assumptions about the correlation between the main factors in the model are not always reached as proposed in the TAM Moreover, this model firstly concentrated

on the adoption of technology in an industrial context, where the workers apply technologies Therefore this model is not suitable for study the intention to use mobile wallets

2.2.4 Unified Theory of Acceptance and Use of Technology

Venkatesh et al (2003) found that researchers in the field of information technology and computer systems had difficulty in selecting appropriate research models and often chose to incorporate some concepts from several different models

So Venkatesh and his colleagues realized that it was necessary to synthesize and develop a consolidated model in order to study consumer technology adoption Through several longitudinal studies at 4 different organizations for individuals who are introduced to new technology at the workplace, Venkatesh et

al (2003) conducted empirical comparisons of eight models that have been widely used in studies on user acceptance for new information technology and systems The 8 models include Theory of Reasoned Action; Technology Acceptance Model; Motivational Model; Theory of Planned Behavior, the Combined theory of TAM and TPB; Model of Personal Computer Use - MPCU; Diffusion of Innovation Theory; Social Cognitive Theory The scholars also examine the impact of control variables such as experience, age, gender, and voluntariness

Venkatesh et al (2003) selected and combined the most powerful factors in the previous eight models to develop the Unified Theory of Acceptance and Use of Technology model (UTAUT) The model consists of four key constructs (Performance Expectancy, Effort Expectancy, Social Influence, and Facilitating Conditions) and 4 control variables (Experience, Age, Gender and Voluntariness of Use) and can explain up to 70% of behavior intention (Venkatesh et al., 2003)

Figure 2.4 Unified Theory of Acceptance and Use of Technology Model

Source: Venkatesh et al., 2003

TAM is a common theory that has been widely and regularly used to study the determinants of the intention to adopt new technology and innovation However, the UTAUT model has begun to attract the attention of other studies to apply in various studies on technology adoption Nysveen and Pedersen (2016) also conclude that the UTAUT model is a very useful model to apply in technology acceptance research and help to understand what factors are acceptable In the study of Lu, Yao, and Yu (2005), it was stated that although Perceiving Ease of Use and Perceived Usefulness were important variables that would influence the intention to

Behavioral Intention

Actual Use

Voluntariness of Use Experience

Age Gender

adopt new technologies and innovations However, social influence is also a major factor

2.2.5 Social Cognitive Theory

The Social Cognitive Theory (SCT) is a well-known theory that can be applied

to a wide range of areas of human activities (Al-Mamary et al., 2016) The theory assumes that any human behavior is consistent with an analytical and action process

Figure 2.5 Social Cognitive Theory

Source: Albert Bandura, 1986

The theory suggests that there is an interaction of personal factors, environmental factors and behaviors (Bandura, 2008) These three factors influence each other in the action of an individual

This model consists of five core constructs:

- Performance-Outcome Expectancy means that an individual foresees the potential outcome of his/her actions;

- Personal-Outcome Expectancy results in relation to an individual who expects the impact of behavior on his/her life;

- Self-Efficacy represents a degree of belief in his/her own ability to perform a behavior;

- Effect is an individual’s attitude toward a particular behavior; whether he/she likes this kind of behavior or not;

- Anxiety shows the fear of an individual trying to do something

Behaviors

Environmental Factors Personal Factors

Figure 2.6 Social Cognitive Theory

Source: Albert Bandura, 1986

This theory serves as the basis for many other theories and models of human behaviors However, some scholars say that it is too general In specific contexts, it can not explain human behavior, especially in research on technology adoption

2.2.6 Diffusion of Innovation Theory

Diffusion of Innovation Theory (DOI) was developed by Everett Rogers in

1962 It is popular in the context of the distribution of knowledge about a new technology among people through different communication channels, which revolves around an individual receives personal knowledge about technology, if he/she decides to use it like others in society (Rogers, 1995) The model contains five factors which are Relative Advantage, Compatibility, Complexity/Simplicity, Trialability, and Observability The DOI theory is applied to research many innovations in various fields from tools to organizational improvement (Tornatzky and Klein, 1982)

Figure 2.7 Diffusion of Innovation Theory

Source: Diffusion of Innovations (Everett Rogers, 1995)

The DOI theory is a very common theoretical lens and is often used to test the elements of applying innovative technology The advantage of using DOI theory is that it provides a structure of different types of consumers regardless of economic status and allows investigating the factors that will influence the decision to adopt innovative technology (Mallat et al., 2009, and Arvidsson, 2014)

However, many scholars have shown the disadvantages of DOI theory while studying the adoption of technology (Al-Mamary et al., 2016) One of the reasons is

it depends mainly on the features of new technology, not on the sentiment of the users This leads to the fact that the model is not reliable to predict an individual’s adoption of technology

2.3 DOMESTIC AND FOREIGN RESEARCH RELATED

2.3.1 Foreign researches

Zhen Shao, Lin Zhang, Xiaotong Li, and Yue Guo (2019) published their research “Antecedents of trust and continuance intention in mobile payment platforms: The moderating effect of gender” drawing upon trust and innovation

diffusion theories A survey was conducted in China and 740 valid questionnaires were collected Seven factors were included, which are Mobility, Customization, Security, Reputation, Trust in the Platform, Perceived Risk, and Continuance Intention The findings indicate that Security is the most significant influence of customers’ trust, followed by platform reputation, mobility, and customization Trust put a negative influence on perceived risk and a positive impact on continuance intention Moreover, the findings show that the influence of trust is dependent upon gender Specifically, mobility and reputation have stronger influences for males in building trust, meanwhile, security and customization have more effects on trust for female customers

Nidhi Singha, Neena Sinhab and Francisco J Liébana-Cabanillasc (2019) investigated on “Determining factors in the adoption and recommendation of mobile wallet services in India: Analysis of the effect of innovativeness, stress to use and social influence” The research aims to provide important insights into the TAM and UTAUT2 models and develops a conceptual model to determine the most significant factors influencing users' intention, perceived satisfaction, and recommendation to use mobile wallets The research collected 206 samples from an online and offline survey in India The results pointed out that ease of use, usefulness, perceived risk, and attitude have a significant impact on customer's intention to use mobile wallet services

Voronenko Dmitrii Olegovich (2018) has published the study “Determining Factors of Adoption of Digital Device Wallets by Russian Consumers” based on the UTAUT2 model The study had surveyed 165 samples and has extended the UTAUT2 model with three additional constructs, examining eleven determinants which are Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Habit, Trust, Security, Performance Risk, Privacy Risk, and Behavioral Intention In the end, the research indicates that Performance Expectancy and Habit have a positive influence on the adoption of digital device wallets Secondly, Perceived Risk is the main inhibitor of the

adoption of digital device wallets In addition, Age, Gender, and Usage Experience have no significant impact on the adoption process of digital device wallets

Pankaj Yadav (2017) had conducted research in India on “Active Determinants for Adoption of Mobile Wallet” The research collected 350 valid survey questionnaires In this research, six factors (Perceived Quality of Service, Perceived Risk, Perceived Usefulness, Perceived Cost, Perceived Ease of Use, and Trust) have been chosen, which were believed to affect customers’ intention to use mobile wallets The results indicate that only the factor, Perceived Usefulness, put a positive impact on intention to use mobile wallets

Krishna Kumar S, Dr.C.Sivashanmugam and Ajay Venkataraman (2017) published the study “Intention to use Mobile Wallet: Extension of TAM Model” in order to examine the university students’ intention to use mobile wallets, using TAM model as the basis The study surveyed in total 439 university students from a reputed Indian University through a survey questionnaire which was reflecting their responses to five constructs which were Intention to use mobile wallets, Subjective norms, Awareness, Perceived Security, and Cash crunch The model employed in this study on a sample of University students validated the cash crunch as an independent variable and the results indicated that Cash Crunch Technology Acceptance Model (CCTAM) could be an extension of TAM as a model The results indicate that all Subjective norms, Awareness, Perceived Security, and Cash crunch have influences on the Intention to use mobile wallets

Table 2.1 Foreign researches list Authors Framework Topics and Samples Determinants

Zhen Shao, Lin

The moderating effect

samples) 7 Continuance Intention Nidhi Singha,

Determining factors

in the adoption and recommendation of mobile wallet services

in India: Analysis of the effect of

innovativeness, stress

to use and social influence (206 samples)

9 Perceived satisfaction

10 Recommendation to use

Consumers (165 samples)

1 Performance Expectancy

2 Effort Expectancy

3 Social Influence

4 Facilitating Conditions

(2017)

TAM Active Determinants

for Adoption of Mobile Wallet (350

1 Perceived Quality of Service

2 Perceived Risk

samples) 3 Perceived Usefulness

4 Perceived Cost

5 Perceived Ease of Use

6 Trust Krishna Kumar

1 Intention to use mobile wallets

to use mobile payment Risk is believed not to be the factor that influences the intention to use mobile payment services Meanwhile, convenience, mobility, compatibility, and mobile payment knowledge have an influence on ease to use and usefulness, among which compatibility is the most significant factor The findings also show that trust in safe to use does not affect usefulness, otherwise impact directly on the intention to use mobile payment services

The Ninh Nguyen, Tuan Khanh Cao, Phuong Linh Dang and Hien Anh Nguyen (2016) conducted a study on “Predicting consumer intention to use mobile payment services: Empirical evidence from Vietnam”, based on TAM model Survey data are also conducted and 489 samples were collected in order to

investigate the impact of consumers’ perceptions of mobile payment services and social influence on use intention The research includes six constructs (Perceived Usefulness, Perceived Ease of use, Perceived Enjoyment, Subjective norm, Perceived Behavioral Control, Trust and Intention to use service) and concludes that perceived trust is the most influencing factor on the intention to use mobile payments followed by perceived ease of use, perceived enjoyment, perceived behavioral control, perceived usefulness and subjective norm, respectively

Nguyen Thi Phuong Linh (2013) did research on “Research on Factors affecting the intention to use electronic wallets in Vietnam”, using the UTAUT model as a basis The study was conducted and collected 265 valid samples The author has extended the UTAUT model with four more variables, which include Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Perceived Creditworthiness, Perceived Cost, Government Support, User Community, and Behavioral Intention The results show that Intention to use e-wallets is affected by Performance Expectancy, Effort Expectancy, Social Influence, Perceived Creditworthiness, Perceived Cost, Government Support and User Community Meanwhile, Facilitating Conditions does not impact on Intention

1 Mobility

2 Convenience

3 Compatibility

4 Mobile payment knowledge

5 Trust

6 Risk

7 Ease to use

8 Usefulness

9 Safe to use

10 Intention to use The Ninh

Empirical evidence from Vietnam (489 samples)

UTAUT Research on Factors

affecting the intention

to use electronic wallets in Vietnam (265 samples)

6 Perceived Cost

7 Government Support

8 User Community

9 Behavioral Intention

Source: The author’s synthesis

2.4 THEORETICAL FRAMEWORK OF THESIS

Based on the results of the analysis of models and theories of acceptance behaviors using new technology, the author found that UTAUT model (a model synthesized from eight popular theories in behavior towards using new technology) has been proved to have a higher level of explanation than its eight predecessor models and the adjusted R squared coefficient reaches 70% (Venkatesh et al., 2003)

Therefore, in this research, the author proposes to use the UTAUT model as a basis to build a research model on the factors affecting the intention to use mobile wallets in Ho Chi Minh City

Figure 2.8 The theoretical framework of the thesis

Source: The author’s synthesis

The model above (shown in Figure 2.8) represents the theoretical framework

of the thesis for the individual's intentions to use mobile wallets for this thesis According to previous studies, reviews of the conducted studies show a significant relationship between Effort Expectancy, Performance Expectancy, Social Influence, and Facilitating Conditions and Behavioral Intention to use mobile wallets The author also includes four additional variables which are Trust, Perceived Security, Reputation, and Mobile Wallet Knowledge into the study Therefore, the theoretical framework of this thesis is to study the significant relationship between all these independent variables and the dependent variable In addition, this study examines

the significant differences between demographic factors (Gender, Age, Income Level, and Education Level) and Behavioral Intention

2.5 HYPOTHESES

2.5.1 Performance Expectancy (PE)

Performance Expectancy (PE) is defined as "the degree to which the user expects that using the system will help him or her to attain gains in job performance" (Venkatesh et al., 2003) According to behavioral theories, those who expect that technology will work well, tend to use this technology more This leads

to Hypothesis 1:

H1: Performance Expectancy positively affects the Intention to use mobile wallets

2.5.2 Effort Expectancy (EE)

Effort Expectancy (EE) is defined as "the degree of ease associated with the use of systems" (Venkatesh et al., 2003) According to behavioral theories, those who expect that technology will be easy to use and will not require extensive efforts from their side, tend to use this technology more This leads to Hypothesis 2:

H2: Effort Expectancy positively affects the Intention to use mobile wallets

2.5.3 Social Influence (SI)

Social influence (SI) is defined as "the degree to which an individual perceives that important others believe he or she should use the new system" (Venkatesh et al., 2003) According to Venkatesh et al (2003), Social Influence is described as Subjective norm in TRA, TAM2, TPB/DTPB, and C-TAM-TPB According to behavioral theories, those who think that people from their social environment appreciate the use of technology, tend to use this technology more This leads to Hypothesis 3:

H3: Social Influence positively affects the Intention to use mobile wallets

2.5.4 Facilitating Conditions (FC)

Facilitating Conditions (FC) are defined as "the extent to which an individual believes that organizational and technical infrastructure exists to support the use of

the system" (Venkatesh et al., 2003) According to behavioral theories, people who think their surroundings (e.g infrastructure) make it easier to use technology, tend

to use this technology more This leads to Hypothesis 4:

H4: Facilitating Conditions positively affects the Intention to use mobile wallets

2.5.5 Perceived Security (PS)

According to Vejacka (2015), there is a positive relationship between Perceived Security and Intention to adopt Technology That means Perceived Security is a factor that will influence the intention to accept mobile wallets This statement is also acknowledged by Cabanillas et al (2017) and Luna et al (2017), both studies concluding that Perceived Security is an issue that will affect the intention to adopt the technology In addition, Al-Amri et al (2016) also demonstrated that Perceived Security has a positive impact and significant relationship on customer’s intention to adopt the technology However, the results from the study of Moroni et al (2015) are different, it shows that there is a negligible relationship between Perceived Security and the intention to adopt the technology This leads to Hypothesis 5:

H5: Perceived Security positively affects the Intention to use mobile wallets

2.5.6 Trust (TR)

According to Forbes, customer’s trust is the backbone for a successful business (Wells, 2019) Moreover, a report of Salesforce has stated that 93% of the customers would recommend one company to their relatives if they trust that company and 91% of them will continue to use the products more frequently (Trends in Customer Trust, 2018) Trust has been a common issue for most of the new technology that is involved with customers’ money A recent study conducted

in the United States investigated the factors, prompting consumers to accept NFC payments from mobile phones in restaurants (Khalilzadeh et al., 2017) This context

is very close to the scope of this study, as it also involves the analysis of antecedents and inhibitors to apply one of the most important features of mobile payment Trust

reflects people on the belief that a service provider will perform a number of activities that meet individual expectations Basically, that means a person believes that a mobile application or other types of service will work as intended Trust is also hypothesized to predict the intention to use technology This leads to Hypothesis 6:

H6: Trust positively affects the Intention to use mobile wallets

2.5.7 Mobile Wallet Knowledge (MK)

According to Garcia-Murillo and Annabi (2002), knowledge is the factor that promotes customers to exchange products/services Customers who have a higher level of knowledge in innovation tend to be ahead of its market trend and expect to gain benefits from innovation and would adopt new commercial products faster and more intensively than ordinary ones (Schreier and Prügl, 2008) Gia-Shie Liu and Pham Tan Tai (2016) also propose that if customers have a high level of knowledge regarding the platform they use for mobile payments, they would use mobile payments easily and efficiently, and are likely to adopt mobile payments This leads

H8: Reputation positively affects the Intention to use mobile wallets