The Impact of Network Externalities and Trust on User Adoption of Mobile Peer-to-Peer Payment Technologies

Abstract: Mobile peer-to-peer payment technologies are receiving growing attention on a global scale, from consumers to banks, large tech companies, and startups, as an alternative payment method. They are one of the factors driving the cashless transformation with a potential global market value of over 900 billion. The potential of this new way of transferring money is immense, some researchers even see it as the trigger for a rearrangement of major players in the financial services ecosystem. This study aims to determine the main factors behind the user intention to adopt mobile peer-to-peer payment technologies. The authors extend the technology adoption model Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) by incorporating Network Externalities and Trust. Based on the model's constructs, hypotheses were formalized and empirically tested by collecting data through an online survey in Sweden (N = 545). Data was analyzed by applying the Structured Equation Modeling (SEM). The extended model proves to explain 62.8 % of the variation in behavioral intention to adopt mobile peer-to-peer payment technologies, with Network Externalities and Trust having a positive influence on the explanatory power of the model. The results further showed that Performance Expectancy, Effort Expectancy, and Habit have a significant and positive influence on behavioral intention. The study contributes to an advanced theoretical understanding of user behavioral intention to adopt technology and by providing practitioners with constructive guidelines for effectively designing, developing and marketing mobile peer-to-peer payment technologies that achieve high consumer acceptance. Additionally, discussion of the results and limitations of the study open up for suggestions for further research.