Investigating the Effect of Perceived Security, Perceived Trust, and Information Quality on Mobile Payment Usage through Near-Field Communication (NFC) in Saudi Arabia

Abstract

This study aims to investigate the perceptions of near-field communication (NFC) usage for mobile payments in Saudi Arabia. In order to develop a mathematical framework for the acceptance of NFC quality of information for mobile payments, researchers have combined the technological acceptance model (TAM) and the idea of perceived risk. An online and physical study of 1217 NFC portable credit card holders in Saudi Arabia was conducted. Exploratory and confirmatory analyses were utilized to analyze the factor structure of the measurement items, and Smart PLS 2.0 from structural equation modeling (SEM) was used to assess the theories and hypotheses that had been put forth. The results show that (1) social influence, perceived element of risk, and subjective norms each have a negative influence on preconceptions of trust in online payment methods using NFC; (2) social influence, perceived element of risk, and social norms all have a positive effect on satisfaction with the security of electronic payment using NFC; (3) perceived ease of use has a negative effect on perceived confidence in digital payment using NFC; and (4) perceived ease of use has a negative effect on perceived trust in online payment using NFC. As a consequence of these findings, users’ attitudes regarding the use of NFC and behavioral intentions to utilize NFC mobile payment can be revealed. This study created a unique approach for assessing perceptions, perceived trust, and NFC information quality in mobile payment uptake in Saudi Arabia. As a consequence, banks may find this research useful as they implement new strategies to attract more customers, such as perceived security, brand trust, and NFC information quality in mobile payment adaption.