Abstract:
Businesses today must strive to adapt to ever-changing technology. Moreover, mobile payment systems are altering many businesses by adding a new dimension to traditional payment channels through the use of mobile technology. Traditional card systems are well established and have a global presence. To compete with the status quo, mobile payment systems have to generate and sustain value propositions that will attract large customers to reach critical mass if these alternative payment methods are to have a formidable future.
Merchants play a vital role in mobile payment systems supporting the supply side of the eco-system by provide service to customers as well as funding the system by paying a portion of the revenue to it. By understanding the benefits and challenges merchants experience, service providers can better plan and enhance mobile payment systems to grow market size and replace or compete with traditional payment methods.
A qualitative study was conducted with twelve merchants from different backgrounds. Both inductive and deductive analysis approaches were used to analyse the data collected. This research study provided the insights into the factors that affect the adoption of mobile payment systems by merchants. These factors were classified under three categories namely drivers, barriers and additional factors. Based on these findings a model was prepared that expresses the factors for mobile payment adoption.
