1. Je Ho Cheong Myeong-Cheol Park Information and Communications University Mobile Payment Adoption in KOREA: Switching From Credit Card ITS 15th Biennial Conference

2. 2 Contents Introduction Literature review and study Model Research methodology Study outcome Conclusions and contribution

3. 3 Introduction (1/2) Motivation What makes M-payment particularly interesting is that the payment services for any retail purchases may well be provided by mobile operators and not by the established banking systems. That is, M-payment provides the mobile operators an opportunity to extend their business operation to financial service area and take some of the shares that could otherwise remain with existing players such as banks and financial institutions. Nevertheless, it is still obscure whether M-payment can be successfully deployed and practiced in the market.

4. 4 Introduction (2/2) Purpose of this study To identify  Human motivations underlying individual behavioral intention to use M-payment  The factors that make people difficult to switching from credit card to M-payment Question  Role of switching barrier in TAM (Technology Acceptance Model)

5. 5 The Literature review and Study Model (1/5) TAM (Technology Acceptance Model : Davis(1989)  This model adopts well established causal chain of “beliefs  attitude  intention  actual behavior” Perceived Usefulness Perceived Easy of Use Attitude Intention to UseActual Usage

6. 6 The Literature review and Study Model (2/5) The role of switching barrier [1/2] Definition  Economical, social and psychological cost that make customers’ defection difficult (Jones et al., 2000)  Classified into three groups: Attractiveness of alternatives, Interpersonal relationship, Perceived switching cost

7. 7 The Literature review and Study Model (3/5) The role of switching barrier [2/2] Attractiveness of alternative (Credit card)  Reputation, image and service quality of viable competing alternative available in the market place Interpersonal relationship (with Credit card company)  Strength of personal bonds that develop between customers and their service provider Perceived Switching Cost (from credit card to M-payment)  The degree to which an individual believes that switching a service provider would incur certain cost to him/her.  Grouped into three categories: continuity cost, sunk cost, and learning cost (Jones et al., 2000).

8. 8 The Literature review and Study Model (4/5) The role of facilitating condition [1/2] Definition  Perceived accessibility to the service network where M-payment service is available.

9. 9 The Literature review and Study Model (5/5) Study model

10. 10 Study Methodology Subjects Online Survey :1069 replies and 35 discarded  1034 replies used Gender  264 : female 770 : male Age  20~29 : 229(22.1%), 30~39 : 602(58.2%), 40~49 : 169 (16.3%), 50~59 : 26 (2.5%) 60~69 : 9(0.9%)  Education level  10 : no high-school diploma, 311 : high-school diploma, 193 : college diploma, 463 : bachelor degree, 57 higher than bachelor degree.

11. 11 Study Methodology Methodology SEM (Structured Equation Model) + CFA (Confirmatory Factor Analysis) Procedure  Reliability and Validity of measurement instruments Internal Consistency : Cronbach’s alpha Validity of measurement instruments: Factor Loading above 0.6 Reliability : Composite reliability and Variance Extracted  Overall and Structural equation model fit Absolute fit measures : Normed Chi-square, GFI, AGFI, RMSR, RMSEA Incremental fit measures : NNFI, NFI, CFA  Hypotheses test

12. 12 Study Outcome

13. 13 Implication and Contribution Implication Conceptualization of the facilitating condition is important and useful predictor of behavioral intention especially in the industry where service network is crucial in delivering the service. Loyalty toward credit card companies is not high enough to keep people in service  By leveraging enormous customer base, substantial market share can be captured Move-in cost of joining M-payment network and purchasing the mobile device makes mobile subscribers difficult to adopt M-payment Contribution Conventional TAM does not consider the competition between services and switching barrier of customers In this regards, the concept of switching barrier and the facilitating condition may help better understanding the intention to accept new service.

14. 14 Thank you for listening ! Jay@icu.ac.kr Jay@icu.ac.kr