The rising popularity of mobile payments can be attributed to the widespread use of smartphones and their applications. Despite its potential to simplify our lives, its adoption in African countries has been limited. This paper aims to enhance our understanding of the critical factors that influence the acceptance of mobile payments in Nigeria by exploring the impact of “network externalities” in addition to conventional technology acceptance factors. It posits that performance expectancy, effort expectancy, social influence, trust, and network externality are the key drivers of mobile payment acceptance. The research findings indicate that while traditional drivers still have an impact on customers’ willingness to adopt mobile payment, network externalities have the strongest influence. The paper provides recommendations for future research, although the results did not support the impact of effort expectancy.
Cite this paper
Ajao, Q. M. , Oludamilare, O. and Sadeeq, L. (2023). Drivers of Mobile Payment Acceptance: The Impact of Network Externalities in Nigeria. Open Access Library Journal, 10, e240. doi: http://dx.doi.org/10.4236/oalib.1110240.
Adebiyi, A.A., Alabi, E., Ayo, C.K. and Adebiyi, M.O. (2013) An Empirical Investigation of the Level of Adoption of Mobile Payment in Nigeria. African Journal of Computing & ICT, 6, 196-207.
Bukvic, I.B. (2021) Adoption of Online Payments during the COVID-19 Pandemic. 74th International Scientific Conference on Economic and Social Development, Lisbon, 18-19 November 2021, 58-67.
Qasim, H. and Abu-Shanab, E. (2016) Drivers of Mobile Payment Acceptance: The Impact of Network Externalities. Information Systems Frontiers, 18, 1021-1034.
https://doi.org/10.1007/s10796-015-9598-6
Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. (2003) User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27, 425-478.
https://doi.org/10.2307/30036540
Zhou, T., Lu, Y. and Wang, B. (2010) Integrating TTF and UTAUT to Explain Mobile Banking User Adoption. Computers in Human Behavior, 26, 760-767.
https://doi.org/10.1016/j.chb.2010.01.013
Oshlyansky, L., Cairns, P. and Thimblebyand, H. (2007) Validating the Unified Theory of Acceptance and Use of Technology (UTAUT) Tool Cross-Culturally. Proceedings of HCI 2007 the 21st British HCI Group Annual Conference University of Lancaster, Lancaster, 3-7 September 2007.
https://doi.org/10.14236/ewic/HCI2007.67
Sarabadani, J., Jafarzadeh, H. and Shami Zanjaniand, M. (2017) Towards Understanding the Determinants of Employees’ E -Learning Adoption in Workplace: A Unified Theory of Acceptance and Use of Technology (UTAUT) View. International Journal of Enterprise Information Systems, 13, 38-49.
https://doi.org/10.4018/IJEIS.2017010103
Abu-Shanab, E. and Pearson, J.M. (2009) Internet Banking in Jordan: An Arabic Instrument Validation Process. International Arab Journal of Information Technology, 6, 235-244.
Ajao, Q.M. (2019) A Novel Rapid Dispatchable Energy Storage System Model Using Autonomous Electric Vehicles to Reduce Grid Dependency. Electronic Theses and Dissertations, Georgia Southern University, Statesboro.
https://digitalcommons.georgiasouthern.edu/etd/1936
Economides, N. (1996) Network Externalities, Complementarities, and Invitations to Enter. European Journal of Political Economy, 12, 211-233.
https://doi.org/10.1016/0176-2680(95)00014-3
van der Heijden, H., Verhagen, T. and Creemers, M. (2003) Understanding Online Purchase Intentions: Contributions from Technology and Trust Perspectives. European Journal of Information Systems, 12, 41-48.
https://doi.org/10.1057/palgrave.ejis.3000445
Bailey, A.A., Bonifield, C.M., Arias, A. and Villegas, J. (2022) Mobile Payment Adoption in Latin America. Journal of Services Marketing, 36, 1058-1075.
https://doi.org/10.1108/JSM-04-2021-0130
Dass, R. and Pal, S. (2011) Exploring the Factors Affecting the Adoption of Mobile Financial Services among the Rural under-Banked. 19th European Conference on Information Systems, ECIS 2011, Helsinki, 9-11 June 2011.
Singh, J., Thakur, G., Alexander, J., Rayi, A., Peng, J., Bell, W. and Britton, J. (2021) Predictors of Nonconvulsive Seizure and Their Effect on Short-Term Outcome. Journal of Clinical Neurophysiology, 38, 221-225.
https://doi.org/10.1097/WNP.0000000000000687
Dahlberg, T. and Mallat, N. (2002) Mobile Payment Service Development—Managerial Implications of Consumer Value Perceptions. Proceedings of the 10th European Conference on Information Systems, Information Systems and the Future of the Digital Economy, ECIS 2002, Gdansk, 6-8 June 2002.
Mallat, N. (2007) Exploring Consumer Adoption of Mobile Payments—A Qualitative Study. The Journal of Strategic Information Systems, 16, 413-432.
https://doi.org/10.1016/j.jsis.2007.08.001
Karnouskos, S. (2004) Mobile Payment: A Journey through Existing Procedures and Standardization Initiatives. IEEE Communications Surveys & Tutorials, 6, 44-66.
https://doi.org/10.1109/COMST.2004.5342298
Wang, H., Chen, S. and Xie, Y. (2010) An RFID-Based Digital Warehouse Management System in the Tobacco Industry: A Case Study. International Journal of Production Research, 48, 2513-2548. https://doi.org/10.1080/00207540903564918
Slade, E.L., Williams, M.D. and Dwivedi, Y.K. (2013) Mobile Payment Adoption: Classification and Review of the Extant Literature. The Marketing Review, 13, 167-190. https://doi.org/10.1362/146934713X13699019904687
Teo, T.S.H., Lim, V.K.G. and Lai, R.Y.C. (1999) Intrinsic and Extrinsic Motivation in Internet Usage. Omega, 27, 25-37.
https://doi.org/10.1016/S0305-0483(98)00028-0
Ajao, Q.M. (2023) Overview Analysis of Recent Development on Self-Driving Electric Vehicles. International Journal of Engineering Research & Technology, 12, 510-517.
McKnight, D.H., Choudhury, V. and Kacmar, C. (2002) The Impact of Initial Consumer Trust on Intentions to Transact with a Web Site: A Trust Building Model. The Journal of Strategic Information Systems, 11, 3-4.
https://doi.org/10.1016/S0963-8687(02)00020-3
Gefen, D., Karahanna, E. and Straub, D.W. (2003) Trust and TAM in Online Shopping: An Integrated Model. MIS Quarterly, 27, 51-90.
https://doi.org/10.2307/30036519
Arvidsson, N. (2014) Consumer Attitudes on Mobile Payment Services-Results from a Proof of Concept Test. International Journal of Bank Marketing, 32, 150-170.
https://doi.org/10.1108/IJBM-05-2013-0048
Haruvy, E. and Prasad, A. (1998) Optimal Product Strategies in the Presence of Network Externalities. Information Economics and Policy, 10, 489-499.
https://doi.org/10.1016/S0167-6245(98)00014-6
Van Hove, L. (2000) The New York City Smart Card Trial in Perspective: A Research Note. International Journal of Electronic Commerce, 5, 119-131.
https://doi.org/10.1080/10864415.2000.11044208
Au, Y.A. and Robert, J.K. (2008) The Economics of Mobile Payments: Understanding Stakeholder Issues for an Emerging Financial Technology Application. Electronic Commerce Research and Applications, 7, 141-164.
https://doi.org/10.1016/j.elerap.2006.12.004
Bravo, L.G., Sagredo, M.F., Martínez, P.T., Penna, C.B., Molina, J.F., Stanciu, I.D. and Nistor, N. (2020) Psychometric Analysis of a Measure of Acceptance of New Technologies (UTAUT), Applied to the Use of Haptic Virtual Simulators in Dental Students. European Journal of Dental Education, 24, 706-714.
https://doi.org/10.1111/eje.12559
Harkness, J. and Schoua-Glusberg, A. (1998) Questionnaires in Translation. In: Harkness, J., Ed., Cross-Cultural Survey Equivalence, Zentrum für Umfragen, Methoden und Analysen-ZUMA, Mannheim, 87-126.
Wu, Y.-L., Tao, Y.-H. and Yang, P.-C. (2007) Using UTAUT to Explore the Behavior of 3G Mobile Communication Users. 2007 IEEE International Conference on Industrial Engineering and Engineering Management, Singapore, 2-4 December 2007, 199-203. https://doi.org/10.1109/IEEM.2007.4419179
Alshare, K., Grandon, E. and Miller, D. (2004) Antecedents of Computer Technology Usage: Considerations of the Technology Acceptance Model in the Academic Environment. Journal of Computing Sciences in Colleges, 19, 164-180.
Mas, I. and Radcliffe, D. (2011) Mobile Payments Go Viral: M-PESA in Kenya.
https://documents.worldbank.org/en/publication/documents-reports/documentdetail/638851468048259219/mobile-payments-go-viral-m-pesa-in-kenya
Adeleke, R. (2021) Digital Divide in Nigeria: The Role of Regional Differentials. African Journal of Science, Technology, Innovation and Development, 13, 333-346.
https://doi.org/10.1080/20421338.2020.1748335
Ajao, Q.M., Haddad, R.J. and El-Shahat, A. (2019) Comparative Analysis of Residential Solar Farm with Energy Storage between the USA and Nigeria. 2019 SoutheastCon, Huntsville, 11-14 April 2019, 1-8.
https://doi.org/10.1109/SoutheastCon42311.2019.9020420
