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Abstract
The objective of this research was to provide a better understanding of the effects offinancial incentives in adopting NFC mobile payment within the framework of the Diffusion of Innovation Theory. More specifically, this study examines 1) whether the availability, type, amount, and promotion period of financial incentives increase consumers trust in adopting NFC mobile payment; 2) whether the availability, type, amount, and promotion period of financial incentives decrease consumers perceived risk in adopting NFC mobile payment; 3) whether the availability, type, amount, and promotion period of financial incentives increase consumers intention to adopt NFC mobile payment; and 4) whether different financial incentives influence consumers continuance intention to use NFC mobile payment when incentives have expired. Four general hypotheses and 11 specific hypotheses were tested in structural equation models using experimental survey data collected from 463 U.S. adults aged between 18 and 35. The findings showed that the availability of financial incentives had a significant impact on NFC mobile payment adoption. Specifically, consumers with financial incentives had a higher level of trust and intention, and a lower level of perceived risk in adopting NFC mobile payment compared to consumers who were not offered financial incentives. However, no significant differences were found between cash back and discount rewards, 5% versus 10% rewards, and 1-month and 3-month reward periods. The results of this study provide service providers and researchers a better understanding of the impact of financial incentives on NFC mobile payment adoption and also give insight to providers in the mobile payment systems channel as well as retailers offering this payment option.