Conceptualizing consumer perceptions of making M-payments using smart phones in Ireland

Consumer adoption of smart phones is growing globally at an exponential rate presenting significant commercial opportunities for all organizations. The percentage of the population using mobile phones in Ireland is the largest in Europe, with market revenue of €2 billion in 2009, and 117.3 percent penetration. However, the commercial growth potential of smart phones is being hindered by an industry failure to adopt an accepted m-payment model to facilitate the widespread adoption of m-payments. Furthermore, previous research has shown there is a lack of a willingness among consumers to make m-payments. However, little is known about consumer's perceptions of m-payments using a smart phone or what factors impact upon these perceptions. In response, this paper develops a theoretical smart phone m-payment model, and applies it using an online survey, to explore Irish consumer's perceptions of making an m-payments for products/ services using their smart phones. The empirical findings of the developed PLS model, illustrate that respondents display a strong willingness to transact using m-commerce but trust is the key factor in explaining consumer's willingness to make an m-payment for products/ services using their smart phones. Another significant finding for m-payment com panies is that respondents considered using a secure and trusted third-party payment company as the preferred method of making an m-payment for products/ services. Significant levels of concern regarding perceived privacy control, together with the authority and inde pendence of regulatory bodies and the robustness of the legislative frameworks governing m-commerce, were also very evident from the empirical findings.