The willingness to use mobile payments : the Maltese scenario

Abstract

Technological advances and the internet have become an integral part of our lives and have brought massive changes in the way we do things. Mobile phone evolution and more importantly the advent of Smartphones, have revolutionised the way financial transactions are made. The transition from cash and cheques to credit cards to internet banking has now progressed to mobile payments or m-payments. This concept is still relatively unknown in Malta and this study aims to explore the willingness to use mobile payments in the local scenario. The research was conducted by taking an overview of the present situation of financial institutions and the telecommunications industry in relation to mobile payments. It also takes into account mobile and internet usage in Malta and the willingness of the major business sector stakeholders to introduce mobile payments locally. The main part of the research was through a survey with 224 participants conducted through both CAPI and CATI methods which focuses on how the Maltese make payments, how they use existent financial facilities and which financial institutions they trust most and feel most comfortable using. It also investigates mobile usage of participants including the types and brands of mobiles they use, which mobile service providers they choose and the level of trust and comfort they feel. The questionnaire also asks participants whether they are aware of mobile payments, what they understand by the term and if they would be ready to use them. The main findings after analysis of data collected was that 58.5% of participants have heard of mobile payments and 71.9% of them are willing to use them. The major factors of willingness to use are ease of use and availability while that of unwillingness is security. Respondents feel most comfortable paying by charging to their mobile phone account and most uncomfortable paying by debiting to their bank. 50% of participants foresee no change in their use of current methods payments and banks are most trusted to operate the mobile payments service followed by credit card companies and lastly telecommunications operators.