CHAPTER ONE

INTRODUCTION AND BACKGROUND OF THE STUDY

1.1 Introduction and background
Mobile payment has become increasingly competitive in South Africa over the past
few years. Major international companies such as Samsung, Apple Pay, and Huawei
Pay target the lucrative market to expand overseas (Dublin, 2019). Mobile phone
service providers such as Samsung, Huawei, and Apple have gained motivation to
improve their mobile phones' compatibility with new mobile payment methods with
the influx of technology. Several small businesses have adopted technological
advancements to improve their operations and make life easier for their customer in
payment transactions (Cao, 2021). These international mobile service providers
collaborate with financial institutions to gain relevance in the mobile payment market.
Akata (2022) reported that some small business enterprises allowed their customers
to use contactless transactions over the (POS) point of sales. Mobile payments have
become incredibly popular worldwide (Statista SA, 2022).

Statista SA (2022) states that the South African digital population was 38.13 million
active users, and over 36 million users were using mobile internet. As a result, 99%
of internet users use social media using their mobile phones. Therefore, international
mobile phone service providers took advantage by expanding their mobile payment
market. Statista SA (2022) projected the increasing trend of South African online
usage penetration from 2017 to 2026, and they anticipated online usage to reach
66.06 per cent in 2026. Therefore, smartphone use will grow to 41.85 million users
by 2025.

Humbani and Wiese (2018) suggested that South Africa can be a conducive
emerging economy for the mobile payment market to offer digital payment
technologies. Mobile payment technologies include quick response (QR) codes and
(NFC) near-field communication, mobile wallets, and mobile banking. Statista SA
(2022) reported that the total transaction value in the digital payment segment would
reach the US $ 13,602 million, and transaction value in the mobile point of sale
(POS) payments segments would reach US $3628. They further pointed out that the
users in the mobile point of sale (POS) payments segments will increase to about
7.4 million by 2026.
The reports by Statista SA (2022) on the usage of smartphones and the increase in
the number of mobile point of sales (POS) terminals accelerated mobile payment
adoption in South Africa. Hanno (2021) observed the increase in demand for
contactless payment transactions. However, Mastercard New Payment Index (2021)
argued that the protocols of covid 19 pandemic mainly drove the rise in mobile
payment adoption. McKane (2020) reported that 63% of South Africans claimed to
have been using contactless cards with their smartphones since the start of the covid
19 pandemic. However, many researchers argue that many transactions are still
cash-based (Deloitte, 2019; McKane, 2018).

The South African Reserve Bank (SARB) vision 25 aims to stimulate economic
sustainability by supporting the unbanked population with the agenda of financial
inclusion and access to digital financial services (Deloitte & Mastercard, 2019).
However, the South African population of about 89% has successively opened bank
accounts. Paul Kent (2018) noted that many South Africans withdraw their salaries
monthly from the cash collection points. BusinessTech (2022) supported that 53% of
all point of sale (POS) payments are still made in cash, while 89% of transactions
are cash-based in the informal sector.

The informal sectors in South Africa are in rural areas with no regulation of trading
activities (Dalvit, 2018). Informal markets are where people conduct trading activities
without legal formalities rather than in urban areas. Deloitte & Mastercard (2019)
reported that small business enterprises in the informal sector had limited mobile
point of sales (POS) terminals and forced their customers to pay on cash
transactions. Paul (2018) reported that more than 60% of transactions are cash
based in rural areas.

Therefore, the report by Deloitte & Mastercard (2019) suggests that mobile payment
adoption in South Africa is limited due lack of mobile point of sales payments in
informal markets. They further argued that the South African Reserve Bank (SARB)
vision 25 failed to support the digitization of financial services despite the success of
over 80% of the population of South Africans now owning bank accounts. In this
case, the researcher has been motivated to investigate the factors that influence the
customers in rural areas to accept and use mobile payment methods focusing on the
University students in a rural town of Eastern Cape Province.
Adopting a mobile payment system has advantages for the customers as it fosters
robustness in security, safety, and convenience (De Luna et al., 2019). The mobile
payment method offers many benefits to small business enterprises as it improves
revenue and ensures quality services of transactions, improving customer
satisfaction.

This research aims to investigate the factors that influence the adoption of mobile
payment methods by the university of Fort Hare students in the rural town of Eastern
Cape Province. As a result of investigating these factors, it may be beneficial for
small business enterprises, financial institutions, government, and other
policymakers to implement strategies that accommodate the customers to cope with
the digital payment technologies.

The study adopted the unified theory of acceptance and use of technology to
measure the behavioural intention and actual usage of mobile payment systems.
Venkatesh (2003) defines the unified theory of acceptance and use of technology as
the measure of the behavioural intention of the customers to accept the technology
and usage of technology by the customers. To investigate factors influencing
students' behavioural intention, the unified theory of acceptance and use of
technology (UTAUT) includes performance expectations, effort expectations, and
facilitating conditions.

1.2 Research Problem

Technology has developed across many business sectors, and some businesses are
encouraging their customers to perform transactions using mobile payment systems
(Alam et al., 2021). There are significant benefits of using mobile payment methods
for both customers and businesses. According to Statista’s SA (2022) projections,
the number of internet users and smartphone users will continue to rise year after
year.

Despite the advantages of mobile payment and the high rate of mobile phone use
with the advancement of technology, customer acceptability has remained a
significant barrier to adopting mobile payment technologies (De Luna et al., 2019).
Deloitte (2019) supported that the rate at which the usage of smartphones has
outperformed the mobile payment systems' acceptance and usage. Even though
Mastercard New Payment Index (2021) reported that 46% of South African are more
willing to use mobile payment methods like QR codes and 74% of South Africans
perceived the QR codes as safe, and 70% perceived the QR codes as more
convenient than the usage of cash.

However, the problem still exists as BusinessTech (2022), and the report by Deloitte
(2019) acknowledged that cash usage has remained dominant in South Africa, and
60% of formal retailers were accepting physical bank cards, and 53% of the point of
sale are cash-based transactions. McKane (2018) supported that cash usage in
South Africa continued to grow at a rate of 6 to 10 per cent per annum. Furthermore,
Mastercard New Payment Index (2021) stated that the customers were more willing
to accept contactless payment because of the covid 19 protocols of social distance.
Therefore, this concludes that their own will did not drive the customers' perception
but was due to the covid 19 pandemic regulations.

Even though Hanno (2021) reported that Nedbank had observed an increase in the
number of customer adoption of mobile payment, in this regard, the covid 19
pandemic regulations impacted a slight increase. Hanno's findings (2021) revealed
that customers were willing to accept contactless payment methods. However,
Deloitte and Mastercard (2019) argued that the cash usage transaction remains
dominant in South Africa, and the rate of smartphone usage on mobile payment
systems has remained incomparable. Therefore, there is a need to bridge the gap.
The focus of the research was to investigate the factors that influence the adoption
of mobile payment methods by university students.

1.3 Research objectives

The primary objective of this study:

 To investigate factors influencing the adoption of mobile payment methods by the

university of Fort Hare students.
The secondary objectives are to:
 Ascertain the extent to which performance expectancy influences the behavioural
intention of university students to adopt mobile payment methods.
 Investigate whether facilitating conditions influence the university students'
behavioural intention to adopt mobile payment methods.
 Investigate the effect of social influence on behavioural intention among
university students to adopt mobile payment systems.
 Investigate the effect of effort expectance on behavioural intention among
university students to adopt the mobile payment system
 Investigate the degree to which behavioural intention influences university
students' actual usage of the mobile payment system.
1.4 Hypothesis
H0: Performance expectance does not influence behavioural intention to adopt
mobile payment methods.
H1: Performance expectance influences behavioural intention to adopt mobile
payment methods.

H0: Effort expectance has no impact on the behavioural intention of students to adopt
mobile payment methods.

H2: Effort expectance has an impact on the behavioural intention of students to adopt
mobile payment methods.

H0: Social influence does not affect the behavioural intention among university
students to adopt mobile payment methods.

H3: Social influence influences the behavioural intention among university students to
adopt mobile payment methods

H0: Facilitation condition does not influence the behavioural intention of students to
adopt mobile payment methods

H4: Facilitation condition influences the behavioural intention of student to adopt

mobile payment methods

H0: Behavioural intention does not significantly influence university students'

adoption of mobile payment methods.

H5: Behavioural intention significantly influences university students' actual usage of

mobile payment methods.

1.5 Significance of the Study

The study attempts to predict the factors that influence university students' adoption
of mobile payment methods. The study seeks to help various stakeholders, which
include policymakers, government, small and medium enterprises, university
students, and customers.

The study's findings can be significant to the policymakers in financial institutions.

Policymakers can make policies favourable to their customers using smartphones for
digital transactional purposes. The study is essential to the policymakers as they can
decide the guidelines based on the findings, such as changing mobile banking
transactional charges based on the actual usage of mobile payment methods.
Policymakers can implement strategies that can effectively address the problem. For
example, the decision to educate and advertise mobile payment methods can be
based on the degree of willingness of the customer to adopt and the actual usage of
smartphones for digital transactions.

The study can be significant to the government as they can get more insight into the
factors influencing South African people to adopt digital payment systems such as
mobile wallets and mobile banking. The government will be able to determine what
should be done as the adoption of mobile payment systems promote financial
inclusion and the fourth industrial revolution and stimulate economic growth. In this
instance, the findings can determine the government to support the small medium
enterprises with mobile point of sale payments as the lack of infrastructure
discourages the willingness of customers to adopt mobile payment methods

The study seeks to help small and medium enterprises with information on mobile
payment adoption. Small medium enterprises can understand customers' willingness
to adopt mobile payment methods as the use of mobile payment systems will
increase their revenue and reduce customer complaints. The information about the
desire to use mobile payment will determine whether the small and medium
enterprises should need to increase the mobile point of sale terminals.

The study results can be significant to university students and customers as the
policymakers decide based on the findings. For instance, small and medium
enterprises can respond to the study's results by increasing the (POS) mobile point
of sales payments. Therefore, the students and customers in the community will
benefit from using the mobile payment methods as the mobile payment system
promotes robust security and convenience, saves time

Finally, the study seeks to identify the factors influencing mobile payment adoption,
focusing on university students. While filling the gap in the noticeable empirical
studies on the factors that influence mobile payment methods, the study also seeks
to make a significant theoretical literature contribution to the existing literature.

1.6 Literature review

This section discusses theoretical and empirical literature related to the study.

1.6.1 Theoretical Review

This section discusses the theory that underpinned the basis of this study. The
researcher used the unified theory of acceptance and use of technology (UTAUT)
proposed by Venkatesh et al., (2003).

1.6.1.2 Unified theory of use and acceptance of technology (UTAUT)

Many researchers have used the unified theory of use and acceptance of the
technology model to explain the user’s behavioural intention to accept innovative
technology and usage (Sivathanu, 2019). The model is derived from the integration
of eight individual acceptance models, which include Theory of Reasoned Action,
Theory of acceptance, Motivational Model, Theory of Planned Behaviour, combined
TAM and TPB, Model of PC Utilization, Innovation Diffusion Theory, and Social
Cognitive Theory (Venkatesh et al., 2003). The model has four primary constructs:
performance expectancy, effort expectancy, social influences, and facilitating
conditions. It also includes four control variables, such as age, gender, experience,
and voluntariness of use that solidify the explanatory abilities of the model.

Chauhan, Yadav, and Choudhary (2021) pointed out that even though the UTAUT
model captures most variables required to provide predictions of technology
acceptance and use intentions, it is important to understand that the results
regarding the relative importance of all four major constructs of the model varied
widely and inconsistently depending on various places. Therefore, the model has
been adjusted with the variables that suit the specific area of the study to guarantee
a valid result. Thus, the theory of this study includes performance expectancy, effort
expectancy, social influence, and facilitating conditions to predict the behavioural
intention and actual usage of mobile payment methods by university students.

1.6.2 Empirical literature

This section discusses the existing empirical literature and hypotheses of the study.

 performance expectancy

Performance expectancy is the people's belief that using the system will improve
their job performance (Chang, & Xiong, 2021; Chayomchai et al., 2020; Rosnidah et
al., 2019; Sivathanu, 2019). According to Alaeddin et al., 2018; Patil et al., 2020;
Raza et al., 2021), customers adopt mobile payment systems when they believe the
method is beneficial for their financial transactions.

 Effort expectancy

Chopdar, Korfiatis, Sivakumar and Lytras (2018) define effort expectancy as the
level of easiness associated while using mobile payment technology. Effort
expectancy is the extent to which the customers perceive the technology as easy to
use (Rahi & Alnaser, 2019). Hussain et al. (2019) believe that if customers find few
challenges in using innovative technology, they will be more likely to use the system.

 Social influence

Sharma (2019) defines social influence as the degree to which relatives such as
friends, colleagues, and family members influence the behavioural intention of the
individual to use technology. Social influence is a fundamental social variable in the
model, as it includes the opinion of friends and relatives for the individual to adopt
innovative technology. Dwivedi (2019) believed that social influence becomes
stronger at an early stage when individuals adopt new technology. Nassar (2019)
states that social influence is a factor in attracting people to use mobile payment
systems as they believe mobile payment technology will benefit their payment
transactions

 Facilitating conditions

Jeon and Lee (2019) define facilitating condition as the individual belief about the
availability of the resources to use new technology. The people believe that the
availability of technological resources will enhance the adoption of mobile payment
services (Dwivedi et al., 2020).

 Behavioural intention

Manrai and Gupta (2022) define behavioural intention as the willingness of

individuals to act in a certain way. Srivastava and Singh (2022) define behavioural
intention as the psychological state of the customers to perform a task. Behavioural
intention is a mediator variable influenced by the four main variables of a unified
theory of technology of use (UTAUT) (Venkatesh et al., 2003). In this study,
behavioural intention will be defined as an individual’s willingness or intention to
adopt mobile payment services

 The influence of performance expectancy on behavioural intention to adopt

mobile payment services

Many researchers have found that performance expectancy has a significant impact
on behavioural intention to use specific technologies, such as mobile commerce
(Sair & Danish, 2018); mobile learning (Chao, 2019); and mobile payment services
(Jung et al., 2020). Syifa and Tohang (2020) conducted a study in Indonesia on the
use of e-wallet systems. They collected data from 107 respondents who use e-
wallets and adopted the partial least square to analyse the data. The findings of their
study showed that performance expectancy is the most influential factor in
behavioural intention to use an e-wallet. Chao (2019) studied the intention to use
mobile learning using the extended unified theory of technology use. The data was
collected from 1562 respondents and was analysed using the partial least square
(PLS). The findings of their study revealed that performance expectancy influences
behavioural intention. Based on the findings above, the following hypothesis
proposes:
H1: Performance expectancy significantly influences behavioural intention to adopt
mobile payment services by university students.

 The influence of effort expectancy on behavioural Intention to adopt mobile

payment services.
This variable was one of the fundamental reasons to adopt mobile payment methods
found in previous studies (Chopdar et al., 2018; Sivathanu, 2019; Jadil 2021). It is
discovered that the higher the easiness of mobile payment services, the higher the
users’ behavioural intention would be (Sivathanu, 2019). Some of the mobile
payment researchers stated that effort expectance has a significant positive impact
on the behavioural intention to adopt mobile payment (Shaikh & Karjaluoto, 2018;
Farah & Abbas, 2018; Hussain & Johns, 2019). Shaikh et al., (2018) conducted a
study examining the usage intention of contactless payment systems in developed
countries using the modified UTAUT2. The data was collected from 1165
respondents and analysed using the modelled structured equation and was
discovered that effort expectancy has a significance on user intentions. Thus, we
hypothesized the following:

H2: Effort expectancy significantly influences the behavioural intention to use mobile
payment by university students

 The influence of social influence on behavioural intention to adopt mobile

payment services

Several researchers discovered that social influence has a considerable influence on

behavioural intention to use innovative technologies in learning management
systems (Alshehri, Rutter, & Smith, 2019); mobile learning (Chao, 2019) and mobile
payment (Al-Okaily et al., 2020). Tusyanah, Wahyudin and Khafid (2021) conducted
a study in Indonesia on factors that influence the behavioural intention to use an e-
wallet. The data was collected from a sample population of 365 students and the
collected data was analysed using partial least square. Results from the study
concluded that social influence has a positive effect and significant influence on
behavioural intention to adopt e-wallets of 22.8%. Al-Okaily et al., (2020) undertook a
study on the determinants of digital payment systems using the extended unified
theory of acceptance and technology use (UTAUT2). The data was collected from a
sample population of 270 Jordanian public sector employees and were analysed
using the partial least square. It was found that the intention to use the mobile
payment system has been positively influenced by social influence. Hence, this can
lead to the following hypothesis:
H3: Social influence significantly influences behavioural Intention to adopt mobile
payment services by university students.

 The influence of facilitating conditions on behavioural intention to adopt mobile

payment services

Many studies indicated that facilitating conditions significantly influence the

behavioural intention to use a certain technology (Mensah et al., 2020; Patil et al.,
2020; Gupta et al., 2019). A study done by Mensah et al., (2020) on the factors that
influence the continuity intention of university students in Ghana to use mobile
money transfer revealed that facilitating condition influences the intention. Patil et al.,
2020 conducted a study on consumer adoption of mobile payment and found that the
intention of consumers to adopt mobile payment has been influenced by facilitating
conditions. Therefore, Naranjo et al., (2019) added that the availability of resources
for mobile payment for use will increase users’ behavioural intention to adopt
innovative technologies. Thus, the following hypothesis is formulated:

H4: Facilitation condition influences the behavioural intention of student to adopt

mobile payment methods

 The influence of behavioural intention on the actual adoption of mobile payment

methods

Barry & Jan, (2018) conducted a study entitled factors that influence the use of
mobile commerce and they found that behavioural intention has a significant
influence on the adoption of mobile commerce. Some of the researchers argued that
various motivational factors influence the intention of people to use certain
technologies (Alaeddin et al.,2018; Patil, 2020; Kumar et al., 2018). However, some
researchers limit their studies to determine the significant relationship between
behavioural intention on the adoption of mobile payment services (Alaeddin et al.,
2018; Kumar et al., 2018). Therefore, other researchers (Patil, 2020) warned about
investigating factors that influence behavioural intention to adopt mobile payment
methods without assessing the influence of behavioural intention on mobile payment
methods adoption. A few couples of studies found a significant relationship between
behavioural intention on actual adoption of mobile payment methods (Sivathanu,
2019). However, there are still few studies that yet investigate the influence of
behavioural intention on mobile payment methods adoption by university students.
Based on the above explanations, the following hypothesis is proposed:

H5: Behavioural intention significantly influences university students' adoption of

mobile payment services.

1.6.2.1 Research model

Figure 1 below shows the model illustrating the factors that influence behavioural
intention and the actual usage of mobile payments. Performance expectancy, effort
expectancy, social influence and facilitating condition are the factors that influence
the adoption of mobile payment methods. The behavioural intention and actual
usage of mobile payment methods are the factors measured in this study.

Figure 1: a proposed model of the research

H1
Performance
expectancy

Effort expectancy H2 H5
Behavioural Actual usage of
intention mobile payment
H3
Social influence

H4
Facilitating condition

Source: modified by the researcher

1.7 Research Methodology

Research methodology can be defined as the specific steps used to identify, select,
process, and analyse information about a research topic (Pandey et al., 2021). This
section discusses the research paradigm, research design, approach, population,
sample, data collection method, research instrument, reliability and validity, statistical
analysis, ethical consideration, and delimitation.

1.7.1 Research paradigm

A research paradigm is the collection of values and techniques used to solve
problems (Mutiani & Abbas, 2021). There are three main paradigms namely
positivism, interpretivism, and pragmatism. Positivism is primarily based on the
actual results from scientific methods to prove the truthfulness of the outcome
(Onyeukwu, 2022). This research adopted a positivist paradigm to investigate the
factors that influence the adoption of mobile payment methods. The researcher used
the positivism paradigm because it involves the scientific methods that can prove the
reality of the outcome of this study rather than interpretivism based on judgments.

1.7.2 Research design

Research design is the blueprint, or the plan specifically prepared in advance to
answer the research question (Pandey, 2021). There are three main research
designs descriptive, exploratory, and causal. This study used a descriptive design.
Descriptive research design can be defined as the detailed description of the events,
situations, behaviour, and characteristic of the population under the study. The
descriptive research design fits well in this study as it enables the researcher to
understand the current situation that influences university students to adopt mobile
payment methods.

1.7.3 Research Approach

There are three main research approaches quantitative, qualitative, and mixed
research approach (Paoletti et al, 2021). This study adopted the quantitative
approach to collect the primary data using the research surveys. Therefore Hobson
(2019) defines the quantitative approach as the collection of data that can be
analysed in quantitative nature using statistical methods. The quantity research
approach fits well in this study as it aims to determine the factors that influence the
adoption of mobile payment methods, and it is in line with the positivist paradigm.

1.7.4 Target population

A population is defined as a set of all individuals under observation (Weeks, 2020).
Pande et al., (2021) define a population frame as a list of the population from which
the researcher can select to undertake the study. This study targeted the population
of registered students at the University of Fort Hare. The University of Fort Hare has
three campuses in different location which includes Alice, Bisho, and East London.
The total population distribution of the registered students in each of the three
campuses is shown in Table 3.1

Table 3.1: Population Distribution

Campus Total number of registered Students

Alice 9228
Bhisho 316
East London 7163
Grand Total 16707

1.7.5 Sampling Method

A sample is the subset of elements that can be selected by the researchers from the
pool (Pande et al., 2021). This study used a non-probability sampling method. Non-
probability sampling assures that the researcher will get a response immediately
from the respondents at a low cost.

1.7.5.1 Sampling Technique

This study adopted the convenience sampling technique. Convenience sampling
allows the researcher to choose the respondents who are in proximity to his location.
The researcher used the convenience sampling technique because it is cheaper,
and it is fast to carry out the sampling process.

1.7.5.2 Determining Sample Size

The sample size of the population can be considered important as the degree of
truthfulness of the population depends on the size of the sample (Subedi, 2021). Rao
soft sample calculator, Slovin formula, Krejci, and Morgan tables are among the
methods used to determine sample size. The researcher used the raosoft to
calculate the sample of students at the University of Fort Hare. The sample size of
this study is 376 at a 5% margin of error, 50% population distribution, and level of
confidence intervals at 95%.

1.7.6 Research Instrument

This study used the questionnaire as an instrument to gather data. The

questionnaire was designed into two sections. The first section provides the
respondent demographic information. The second part provides the measurement
items to be answered per each construct in the (UTAUT) model.

1.7.8 Data collection method

The survey method was used to collect the data. The researcher collected the data
from the student to understand their perspective on the acceptance and usage of
mobile payment systems. The researcher used an online survey to collect the data.
The online survey was suitable for this study because it allows all respondents to
participate.

1.7.9 Measurement scale

The study used the questionnaire developed by (Dalimunte et al., 2019; Nur &
Pangaea, 2021; Roy & Quaddus., 2018), which was used to collect data for a similar
study. The questionnaire was designed based on five levels of the Likert scale where
(1) indicated Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree, and (5) Strongly
Agree to the statement given on each statement. The performance expectancy was
measured against five items with a Cronbach of 0,833 (Oliveira, 2016). The effort
expectancy was measured against four items with a Cronbach of 0,769 (Oliveira,
2016). Dalimunte et al. (2019) used four items to measure social influence, and three
items measured behavioural intention with a Cronbach of 0,832. The facilitating
condition was measured using four items with a Cronbach of 0,58 (Nur &
Panggabean,2021). Roy and Quaddus (2018) measured the actual usage with four
items at a Cronbach of 0,96. The respondents ticked the appropriate response to
questions designed on a 5-point Likert scale.

1.8 Reliability
Reliability is the extent to which measures are free from errors and yield consistent
results (Amirrudin et al., 2021). The researcher used the Cronbach alpha coefficient
to measure the degree of consistency result. The researcher ensured the
instrument's reliability if the Cronbach alpha coefficient was close to one. Therefore,
the measurement items are strong enough to measure. While if the Cronbach alpha
coefficient is close to zero, this will show that the items in the instrument are not
strong enough to measure what is intended by the researcher. The researcher used
the instrument used by other researchers in the same study with the acceptable
reliability of above 0,7 Cronbach alpha, as seen in table 2.

Variables Number Cronbach Source

of items alpha
Performance 5 0,833 (Oliveira, 2016)
expectance
Effort expectance 4 0,769 (Oliveira, 2016)

Social influence 4 0,851 (Dalimunte et al., 2019)

Facilitating 4 0,858 (Nur & Panggabean ,2021)

condition

Behavioural 3 0,832 (Dalimunte et al, 2019)

intention
Actual usage 4 0,96 (Roy & Quaddus, 2018)

Source: created by the researcher

1.8.1 Validity
Validity is defined as the extent to which a measurement construct will be able to
measure what it was designed to measure (Amirrudin et al., 2021). The researcher
used factor loading to ensure the validity of the construct in the model. The
researcher presented the first draft of the instrument to the University of Fort Hare
research committee before finalizing the instrument.

1.8.2 Statistical Analysis

The statistical package for social sciences (SPSS) software analysed descriptive and
inferential statistics. A descriptive statistic is the statistics used to describe the
characteristic of the sample (Habes et al., 2021). Descriptive statistics include the
measure of mean and standard deviation. The inferential statistics can generalize
the outcome of the entire population. The inferential statistic measures the
hypothesis test, and structural equation modelling is employed to test the proposed
model of the research.

1.8.3 Ethical Consideration

Ethical consideration outlines the principles that guide the researcher during the
research process (Williamon, Ginsborg, Perkins & Waddell, 2021). The researcher
applied for ethical application to the University of Fort Hare research ethic
committee. The researcher completed the ethical application accordingly to the
ethical principles by stating the following statements on the questionnaire instrument:
responses from the questionnaire will remain confidential, and personal information
will not be required from participants to ensure anonymity, the results will be used
only for academic research purposes, the respondents are allowed to complete the
questions at their own time and respondents are allowed to give their consent for
voluntary participation, and they can stop completing the questions if they are not
willing. The researcher was granted the ethical clearance number from the University
of Fort Hare research ethic committee (UREC).

1.8.4 Delimitations of the Study

This research focuses on one institution of university Fort Hare including these
campuses, Alice, Bisho, and East London. The study collected data from university
students. The study is within the scope of the theory of technology of acceptance
and usage of technology.

1.8.5 Chapter outline

Chapter one – Introduction and background of the study

Chapter one provides the critical section of the research study. These include the
introduction and background, the research problem, objectives, hypotheses,
literature review, the significance of the study, research methodology, statistical
analysis, ethical considerations, and delimitations.

Chapter two – Mobile payment adoption and theoretical literature background

Chapter two aims to provide a literature review on the state of mobile payment
adoption in South Africa. A detailed discussion on mobile payment systems available
in South Africa with their advantages and disadvantages. The mobile payment
adoption in rural areas of South Africa. There was also a discussion of theoretical
literature and empirical studies.

Chapter three – Research Methodology

This chapter outlines the research paradigm, research design, approach, design,
target population, sample method, data collection method, research instrument
reliability and validity, data analysis, ethical consideration, and delimitations.

1.8.6 Conclusion

This chapter discussed the background of the research and the empirical literature
relevant to this study. This study also outlined its objectives and hypothesis. This
chapter revealed the positivist paradigm, quantitative approach, and descriptive
design. Furthermore, the chapter highlighted the target population, sample method,
and research instrument. In this chapter, the researcher reported that the study used
SPSS online sample survey. This chapter provides the outline of the rest of the
chapters of this study. The next chapter provides the background of mobile payment
adoption in South Africa and theoretical literature.
 Chapter 2

Mobile payment adoption in South Africa and theoretical literature background

2. Introduction

The purpose of this chapter is to review the literature relevant to this study. Starting
with a discussion of mobile payment adoption in South Africa and rural areas of
South Africa, followed by the mobile payment systems available in South Africa and
the advantages and disadvantages of mobile payment methods in South Africa. The
chapter further discusses the theory underpinning this study, the constructs used in
the study, and the empirical literature related to this study.

2.1 Mobile payment adoption in South Africa

BusinessTech (2022) reported that 53% of all point of sale (POS) are still made in
cash, while 89% of transactions are cash-based in the informal sector. This case
shows that mobile payment adoption in South Africa is still lagging. The penetration
of mobile payment in South Africa was driven by the increase in the predictions of
smartphone users from 9,7 million in 2014 to 26,3 million in 2023 (Holst, 2019).
However, the acceptance of mobile payment methods remains low in South Africa
because most transactions are still cash-based (McKane, 2018). He further pointed
out that cash usage in South Africa continued to grow at a rate of 6 to 10 % per
annum.

A recent report from McKane (2020) states that Samsung has reached 2 million
transactions on its mobile payment platform in South Africa. In this case, it proves
that the customers in South Africa are willing to use mobile payment methods.
According to the Mastercard New Payment Index (2021), 63% of South Africans
claimed to use contactless cards because of the covid 19 conditions, and 53% use
digital wallets. Mastercard revealed that 60% of South Africans are willing to use
smartphones for payment transactions. However, 63% of South Africans claimed
they use contactless cards using their smartphones. Deloitte (2019) argued that
most customer transactions are still cash-based.

McKinsey (2020) pointed out that 45 % of South Africans visit physical bank
branches, and 42 % use mobile phones to interact with the banks during the covid
19 period. This case shows that many South Africans were unaware of using mobile
phones in their financial decisions. Therefore, McKane (2018) suggested that there
is still needed to educate the customers about the risk of cash payments and the
benefits of digital payment systems such as mobile payment methods. Deloitte
(2019) reported that 73 % of the customers in South Africa are ready to use their
mobile phones to scan the QR codes at the point of sale (POS), and the merchant’s
providers stated that their revenue increased by 10 % by using the QR codes.

According to the Mastercard New Payment Index (2021) reported that 46% of South
African are more willing to use mobile payment methods like QR codes. They further
revealed that 74% of South Africans perceived the QR codes as safe, and 70%
perceived the QR codes as more convenient than cash. Hanno (2021) reported that
Nedbank observed an increase in the number of customer adoption and common
customer complaints by using contactless payments with their mobile devices
through (NFC) near-field communication.

Deloitte and Mastercard (2019) reported that the failure of the financial inclusion
agenda of South African Reserve Bank (SARB) vision 25 to promote digital financial
services attributed to the lack of infrastructure in the informal sector. They further
pointed out that transactions based on bank cards and mobile payments are
accepted in formal sectors though the payment acceptance points are limited. In this
case, they continued to report that the small informal traders do not accept payment
based on bank cards and mobile payment services, thereby restricting their
customers from using cash. They further reported that in rural and urban areas, 60%
of the residents were using physical bank cards for their transactions in the formal
sector, and only 4% of transactions were using bank cards at informal retailers.

2. 1. 2 Mobile payment systems in South Africa

The advancement of technology has made many changes in the payment systems
and attracted international companies such as Samsung, Apple, Huawei, Google,
and financial institutions into the mobile payment market. The mobile payment
system is the broad term that incorporates the mobile payment methods and is as
follows:
 Mobile wallets
A mobile wallet is a virtual wallet that stores personal information and credit card on
a mobile device such as a smartphone. Customers can make contactless payments
using mobile wallets at the (NFC) terminals. Hanno (2021) reported that some of the
banks in South Africa announced that most of their payment terminals are now
offering (NFC), which is available in most retailers. Mobile wallets such as Google
Pay, Samsung Pay, and Apple Pay use near-field communication (NFC) technology
to allow tap-and-pay. South Africa has international providers of mobile wallets,
including Apple, Samsung, and Google. South African banks, such as Standard
Bank, Nedbank, ABSA, and First National Bank, support these international service
providers of mobile wallets. Hanno (2021) concluded that mobile wallets provide
convivence by allowing bank customers to leave their physical bank cards at home.
In addition, mobile wallets offer robust security as their pin, pattern, fingerprint, or
facial ID scan before the payment can be processed.

 Mobile banking
Mobile banking is a service provided by financial institutions such as banks to allow
customers to perform transactions using their mobile devices. Mobile banking allows
customers to send and receive money in a remote. The banks in South Africa
introduced mobile bank services quite long ago. Deloitte (2019) reported that the
South African Reserve Bank vision (SARB) 25 made considerable efforts to improve
financial inclusion for unbanked customers, and about 80% of the South African
population have bank accounts. The World Bank (2022) reported that over 40 million
South Africans now own bank accounts. Therefore, this allows South African banks
to launch mobile banking services with the development of mobile banking apps
installed on mobile devices. The South African bank has banking apps that allow
customers to check their balances, make national and international transfers, pay
with QR codes, buy airtime and data, and pay taxes and fines (Emilly, 2022).
 Quick response codes (QR)
Quick response codes are the contactless payment method allowing customers to
scan and pay using their smartphones (Humbani, 2019). South African banks and
other retailers provide QR codes. Zapper, snapscan, and flickpay are the QR codes
that are popular in South Africa.
 Near field communication (NFC)
Near-field communication is the mobile payment method offered by most retailers
and banks in South Africa. Near-field communication (NFC) allows customers to
conduct contactless transactions in a short distance of fewer than four centimetres
(Chingapi & Steyn, 2022). The payment can be made through contactless at the
point of sale using their mobile device.
2.1. 3 Advantages of mobile payment systems.

 Helps to reduce fraud

Using mobile payment such as mobile wallets, mobile banking, and Near field
communication guarantees less risk of fraud. The user cannot display the account
number and user's information secured with passwords (Hanno, 2021).
 Saves time
The use of mobile payment can save time. A transaction is completed by simply
tapping the phone over the NFC payment terminal and verified in a few seconds
(Chingapi & Steyn, 2022). The sender can send money using a mobile banking app
without visiting the bank branch. Thus, mobile payment can save time for online
transactions with some retailers.
 Increase customer convenience
The payment of goods and services will be more convenient using mobile payment
systems such as apple pay, Samsung pay, and google pay (Humbani, 2019). The
customer can conduct the financial transaction in his comfort without carrying bank
cards or cash. Mobile apps can reduce the risk of having cash. The customers can
access their accounts, track their transactions, and download the proof of payment
without consulting the bank tellers (Hanno, 2021).

2.1. 4 Disadvantages of mobile payment systems

 Need for network connectivity

The use of mobile wallets requires a network connection to conduct the transaction.
The poor network coverage and the cost of data to connect on the internet remain
crucial factors affecting the customers.
 High transactional cost
The use of mobile payment systems requires an additional fee charged on each
transaction. Some customers may not be aware of these charges, which might
cause them to be reluctant to adopt mobile payments.
 Need for compatible smartphones
Apple pays, Samsung, and Google pays are mobile payment systems requiring
specific compatible devices. Apple pay requires the latest iPhone, and iPads and
Samsung pay require the latest version device. These mobile devices are expensive,
contributing to the challenge that makes customers unwilling to adopt mobile
payment systems.

2.1. 5 Mobile payment adoption in rural areas of South Africa

Dalvit (2018) defines the rural area as a vulnerable, marginalized area characterized
by poor infrastructure, poor network coverage, financial exclusion, digital illiteracy,
and an informal market. The acceptance and usage of mobile payment system in
rural areas has remained low in South Africa. Many researchers reported that the
use of cash remains dominant, especially in the informal markets where 89% of
transactions are cash-based (Deloitte & Mastercard, 2019; McKane, 2018; Emilly,
2022; BusinessTec, 2022).

Informal markets are trading activities mostly found in marginalized areas and are
usually unregulated, unregistered, unprotected, and untaxed. The informal sectors in
South Africa are primarily in rural areas. Paul (2018) reported that 90% of
transactions are conducted in cash based in rural and peri-rural areas because they
are more informal sectors. Although the effort made by the South African Reserve
Bank (SARB) vision 25 of financial inclusive of about 80% population of South
Africans have owned bank accounts in rural and urban areas, the increase in
smartphone usage and the availability of mobile payment systems by the
international mobile companies such as Samsung, Huawei, Apple, Google in
collaboration with South African banks: Standard bank, First National Bank (FNB),
ABSA, Nedbank, Capitec, the acceptance and usage of mobile payment methods
have remained very low. As a result, the researcher has been motivated to
investigate the factors that influence mobile payment adoption, focusing on university
students in a rural town of Eastern Cape province, South Africa.

2. 2 Theoretical backgrounds

The discussion over technology acceptance and the use of technology have
attracted different explanations and hypotheses. One of the common models is the
Unified Theory of Acceptance and Use of Technology (UTAUT) proposed by
Venkatesh et al. (2003).

2.2.1 The unified theory of use and acceptance of technology

The study used the unified theory of acceptance and use to investigate university
students' behavioural intentions and the actual usage of mobile payment systems. A
unified theory of acceptance and use of technology is one of the most
comprehensive theories used by psychologists to determine people's behavioural
intentions towards the acceptance and usage of technology. Venkatesh et al. (2003)
proposed the model of UTAUT theory, which includes the following factors:
performance expectancy (PE), effort expectancy (EE), social influence (SI), and
facilitation condition (FC) to predict technological acceptance and usage. Venkatesh
et al. (2003) added that the purpose of the UTAUT model is to explain information
technology use behaviour. Other researchers in different technologies use the
UTAUT model that Venkatesh et al. (2003) proposed. The model can measure the
behavioural intention towards accepting new technology, and the actual usage
comes after the behavioural intention (see figure 1).
Many researchers have used the unified theory of use and acceptance of the
technology model to explain the user's behavioural intention to accept innovative
technology and usage (Sivathanu, 2019). The model is derived from the integration
of eight individual acceptance models. These include the Theory of Reasoned Action
(TRA) (Ajzen & Fishbein, 1977); Theory of acceptance model (TAM), Motivational
Model, Theory of Planned Behaviour (TPB), combined TAM, and TPB, Model of PC
Utilization, Innovation Diffusion Theory (IDT), and Social Cognitive Theory (SCT)
(Venkatesh et al., 2003). The model has four primary constructs: performance
expectancy, effort expectancy, social influences, and facilitating conditions. The
factors discussed affect the behavioural intention to adopt technology, and ultimately
the behavioural intention affects the actual use of the technology. It also includes
four control variables such as age, gender, experience, and voluntariness of use that
solidify the explanatory abilities of the model.

Chauhan, Yadav, and Choudhary (2021) pointed out that even though the UTAUT
model captures most variables required to provide predictions of technology
acceptance and use. Therefore, it is essential to understand that the results
regarding the relative importance of all four primary model constructs varied widely
and inconsistently depending on various places. The model must be adjusted with
variables relevant to the specific study area to ensure a valid result.

Figure 2: Unified theory of acceptance and use of technology (UTAUT)

Source: Venkatesh, Morris, et al., (2003)

2. 2. 2 Conceptual Framework
A conceptual framework is a visual representation that helps the researcher to show
the expected relationship between variables. Figure 1 shows the interrelationship of
variables that can influence mobile payment adoption. This study adapted the
research model from the UTAUT model proposed by Venkatesh (2003). Behavioural
intention and actual mobile payment use are the two significant variables that explain
the adoption of mobile payments. Performance expectancy, effort expectancy, social
influence, and facilitating conditions are the four primary constructs of the UTAUT
model used to determine behavioural intention. Therefore, the actual usage of
mobile payment methods can be determined after the behavioural intention.

2.2.3 Review of variables for mobile payment adoption

Behaviour intention measures the likelihood of someone buying or using a particular

product, service, or technology. Intention to act measures how likely a person is to
attempt the desired action. Manrai and Gupta (2022) define behavioural intention as
the willingness of individuals to work in a certain way. Srivastava and Singh (2022)
define behavioural intention as the psychological state of the customers to perform a
specific task. Many studies conducted research to identify factors influencing
behavioural intention and actual usage. Therefore, there are many theories used to
determine the factors that influence behavioural intention, which include the Theory
of reasoned action (TRA), The plan behaviour theory (TPB), the Technological
acceptance model (TAM), and the Unified Theory of acceptance and usage of
technology (UTAUT Behavioural intention is regarded as the essential variable in the
model as it is the mediator variable influenced by the four main variables of a unified
theory of acceptance and usage of technology (UTAUT) to adopt a particular
technology (Venkatesh et al., 2003). In this study, behavioural intention will be
defined as an individual's willingness or intention to adopt mobile payment services
The four main variables of the UTAUT model that influence the behavioural intention
and actual usage of mobile payment systems are as follows:

Performance expectancy - the Unified Theory of Acceptance and Usage (UTAUT)

includes performance expectancy as one of its constructs. Many researchers have
used this construct in different contexts. According to recent studies, performance
expectancy is a crucial predictor of people's intentions and, ultimately, their use of
technological systems. Performance expectancy is the belief that using a system will
help one perform better, affecting one's decision whether to adopt current technology
(Chang, & Xiong, 2021; Chayomchai et al., 2020; Rosnidah et al., 2019; Sivathanu,
2019). According to some researchers, customers will use mobile payment systems
when they perceive that using them will benefit their transactional purposes
(Alaeddin et al., 2018; Patil et al., 2020; Raza et al., 2021). In this study,
performance expectancy refers to the extent to which students adopt mobile
payment systems after realizing how useful they will be for their financial activities.

Effort expectancy - is the construct of the UTAUT model that measures the degree of
ease associated with the use of the technology system. Venkatesh et al. (2003)
explained effort expectancy as the level of easiness related to using a technology
system. Chopdar, Korfiatis, Sivakumar, and Lytras (2018) define effort expectancy
as the level of easiness associated while using mobile payment technology. Effort
expectancy is the extent to which the customers perceive the technology as easy to
use (Rahi & Alnaser, 2019). Hussain et al. (2019) believed that if the customers find
few challenges in adopting innovative technology, then more of them will be willing to
adopt the system. Effort expectancy is the principle that there is a relationship
between the effort to use a system and the outcome received from the effort. In this
study, university students are more likely to use mobile payment methods when they
realize they use less effort to attain their benefits. However, fewer students are likely
to use mobile payment methods if they know that the effort of using them
outperforms their benefits.

Social influence - the unified Theory of acceptance and usage (UTAUT) considers
social influence as a factor. Social influence is the individuals believes it is vital that
other individuals think they should use the new system. According to Sharma (2019),
social influence is how friends, family members, and colleagues affect a person's
decision to adopt a particular technology. Social influence is a fundamental social
variable in the model, as it includes the opinion of friends and relatives for the
individual to adopt innovative technology. According to Dwivedi (2019), social
influence becomes stronger when individuals adopt technology early. Nassar et al.
(2019) claimed that many people would start using mobile payment methods due to
social influence because they believe that mobile payment technology will benefit
them in their payment activities. In the context of this study, other students may feel
willing to adopt mobile payment systems because their friends think they should. In
universities, students may feel compelled to use new mobile payment methods as
they see others using flickpay, mobile wallets, and snapscan. Therefore, social
influence is the main factor in the unified Theory of acceptance.

Facilitating conditions - according to the UTAUT model, facilitating conditions are the
extent to which individuals perceive the existence of organizational infrastructure and
the technical infrastructure required to use the intended system. Facilitating
conditioning is the environmental factor that supports the use of the system.
According to Jeon and Lee (2019), facilitating conditions are individual beliefs about
the availability of resources for a particular technology. The availability of
technological resources will facilitate the adoption of mobile payment services
(Dwivedi et al., 2020). In the context of this study, students will be able to make
mobile payments through the availability of mobile payment options offered by
service providers such as banks. Venkatesh et al. (2003) defines the facilitating
condition as the extent to which people perceive the availability of resources will
affect their intention to use the system

2.2.4 Empirical literature

The empirical literature presents what other studies have discovered when
conducting studies on the same topic
2.2.4.1 The influence of performance expectancy on behavioural intention to
adopt mobile payment services
Many researchers have found that performance expectancy has a significant impact
on behavioural intention to use specific technologies, such as mobile commerce
(Sair & Danish, 2018); mobile learning (Chao, 2019); and mobile payment services
(Jung et al., 2020). Syifa and Tohang (2020) conducted a study on the use of e-
wallet systems in Indonesia. They adopted the modified DeLone-McLean IS Success
Model, which explains the customer perspective regarding behavioural intention,
including the following factors performance expectancy, effort expectancy,
information quality, and service quality. A total of 123 users participated in this study,
and 107 responded successively. Results were analysed using partial least squares.
Their study found that performance expectancy was the most influential factor in
customers’ behavioural intentions to adopt an e-wallet. They pointed out that
performance expectancy affects customers' behavioural intentions because they
perceive that using e-wallets will benefit them in financial activities.

Chao's study (2019) adopted the extended unified theory of technology use (UTAUT)
to determine the intention to use mobile learning. They collected data through online
surveys from different universities with 1562 respondents. They analysed data using
a structural equation model and partial least squares (SEM-PLS). They found that
performance expectancy significantly influenced Behavioural Intention.

Jung’s 2020) study on mobile payment usage in the US revealed performance

expectancy influences behavioural intention. Jung et al. (2020) conducted their study
using an online survey with a total of 327 population sample size, and the data were
analysed using multiple regression and descriptive statistics. Their findings revealed
that behavioural intention is heavily influenced by performance expectance, among
other factors. Based on the results above, the following hypothesis proposes:
H1: Performance expectancy significantly influences university students' behavioural
intention to adopt mobile payment services.
2.2.4.2 The influence of effort expectancy on behavioural intention to adopt
mobile payment services.
This variable was one of the fundamental reasons to adopt mobile payment methods
found in previous studies (Chopdar et al., 2018; Sivathanu, 2019; Jadil, 2021). They
discovered that the higher the easiness of mobile payment services, the higher the
users' behavioural intention would be (Sivathanu, 2019). Some mobile payment
researchers stated that effort expectance significantly positively impacts the
behavioural intention to adopt mobile payment (Shaikh & Karjaluoto, 2018; Farah &
Abbas, 2018; Hussain & Johns, 2019). Shaikh et al. (2018) studied the extent to
which risk perceptions, effort, and performance expectancy in mobile banking
adoption in Pakistan. They used the theory of acceptance and the unified theory of
acceptance to modify the conceptual framework of their research. They collected
data from a sample of 189 Pakistan responses and analysed them using the smart
partial least square (PLS). Their findings revealed the strong significant influence of
effort expectance on behavioural intention.
Hussain & Johns (2019) studied mobile-payment adoption for Bangladesh's bottom
of the pyramid segment. They collected data from a sample population of 247
bottom-of-pyramid (BOP) customers using a sample survey, and the extended
unified theory of acceptance and use was employed (UTAUT2). They analyse data
using confirmatory analysis and structural equation modelling. The finding of their
study revealed that effort expectancy positively influences the behavioural intention
of customers to adopt mobile payment.

The research by Jadil, 2021 supported that effort expectance significantly influences
behavioural intention. Jadil (2021) conducted a study on the adoption of mobile
banking, and they adopted a meta-an analysis of the unified theory of acceptance
and usage (UTAUT) model. The findings of their study revealed the significance of
the effort expectance on the behavioural intention to adopt mobile banking. Thus, we
hypothesized the following:
H2: Effort expectancy significantly influences the behavioural intention to use mobile
payment by university students
2.2.4.2 The influence of social influence on behavioural intention to adopt
mobile payment services
Several researchers discovered that social influence has a considerable impact on
behavioural intention to use innovative technologies in learning management
systems (Alshehri, Rutter & Smith, 2019), mobile learning (Chao, 2019), and mobile
payment (Al-Okaily et al., 2020). Tusyanah, Wahyudin, and Khafid (2021) studied
factors influencing the behavioural intention to use an e-wallet in Indonesia. The
study's target population was 4 156 students and a sample population of 365
students of the faculty of economics at Universitas Negeri Semarang. The collected
data by questionnaire were analysed using structural equations modelling partial
least squares (SEM-PLS). Results from the study concluded that social influence has
a positive and significant impact on behavioural intention to adopt e-wallets of
22.8%.

Al-Okaily et al. (2020) studied the determinants of digital payment systems using the
extended unified theory of acceptance and technology use (UTAUT2). The data was
collected from a sample population of 270 Jordanian public sector employees and
were analysed using the partial least square. They found that social influence
influences behavioural intention to use the JoMoPay system.

The study by Alshehri, Rutter, & Smith (2019) supported that social influence
significantly influences the adoption of the new system. Alshehri et al. (2019) studied
a topic entitled the understanding of the student perception of mobile learning. The
study adopts the unified theory of acceptance and uses it to find out how students
perceive to use of the blackboard system. They analysed the data using structural
equation modelling to test the proposed hypothesis. The study's results revealed that
social influence play's an essential role in the student becoming more willing to use
the blackboard systems. Hence, this can lead to the following hypothesis:
H3: Social influence significantly influences university students' behavioural intention
to adopt mobile payment services.
2.2.4.3 The influence of facilitating conditions on behavioural intention to
adopt mobile payment services
Several studies have suggested that facilitating conditions influence the behavioural
intention to use a given technology (Mensah et al., 2020; Patil et al., 2020; Gupta et
al., 2019). Mensah et al. (2020) studied factors influencing the continuity intention of
university students in Ghana. The study adopted the unified theory of acceptance
and use. The findings of the study revealed that facilitating condition influences
students’’ behavioural intention to continue using a mobile money transfer.

Patil et al., 2020 conducted a study on consumer adoption of mobile payment in

India and found similar results found by Mensah et al. (2020) that the intention of
consumers to adopt mobile payment has been influenced by facilitating conditions.
However, a study by Gupta et al. (2019) on factors that influence the adoption of
mobile payment in India found different results from other researchers. Their study
revealed that the facilitating condition moderates behavioural intention.

Therefore, Chao (2019) added that the availability of resources for use would
increase users' behavioural intention to adopt innovative technologies. The unified
theory of acceptance and usage (UTAUT) shows the direct influence of facilitation
conditions on actual use (Venkatesh et al., 2003). Therefore, several researchers
found a direct relationship between facilitating conditions and behavioural intention.
Thus, the following hypothesis proposes:
H4: Facilitation condition influences the behavioural intention of student to adopt
mobile payment methods
2.2.4.4 The influence of behavioural intention on the actual usage of mobile
payment methods
Barry & Jan (2018) conducted a study entitled factors that influence the use of
mobile commerce in Malaysia. The study adopted the technology acceptance model
(TAM), and they distributed questionnaires to 350 smartphone users. The study's
findings revealed that behavioural intention has a significant favourable influence on
mobile commerce use. Some researchers argued that various motivational factors
influence the intention of people to use certain technologies (Alaeddin et al.,2018;
Patil, 2020; Kumar et al., 2018). However, some researchers limit their studies to
determine the significant relationship between behavioural intention on the adoption
of mobile payment services to the extent of finding the relationship between
behavioural intention and actual usage (Alaeddin et al., 2018; Kumar et al., 2018).
Therefore, other researchers (Patil, 2020) warned about investigating factors that
influence behavioural intention to adopt mobile payment methods without assessing
the influence of behavioural intention on actual usage.

A few studies found a significant relationship between behavioural intention and

actual usage of mobile payment methods (Sivathanu, 2019). Sivathanu’s (2019)
study entitled adoption of digital payment system in India. They collected data from a
sample survey of 766 respondents. The study's findings suggested that behavioural
intention to use innovation affects the actual usage of the digital payment system.
However, few studies still investigate the influence of intention on mobile payment
methods adoption by university students. Based on the above explanations, the
following hypothesis proposes:
H5: Behavioural Intention significantly influences the actual usage of mobile payment
services by university students
2.3 Conclusion
This chapter presented an overview of the mobile payment adoption in South Africa
and rural areas and the mobile payment system in South Africa. The chapter
discussed the advantages and disadvantages of mobile payment systems. In
addition, this chapter discussed the theoretical framework underpinning the study
and the empirical studies related to the same topic. The next chapter discusses the
research methodology used in this study.

Chapter 3

Research Methodology

3. Introduction

This chapter presents the methodology to investigate the factors that influence
mobile payment adoption by university students. In this study, the research
methodology was used to address the research objectives derived from the
hypothesis and the empirical literature review from the previous chapters. Research
methodology refers to the specific steps used to identify, select, process, and
analyse information about a research topic (Pandey et al., 2021). There are logical
steps that can be used to investigate the identified research problem (Bairagi &
Munot, 2019). The research methodology of this chapter presents the discussion of
the following sections, research paradigm, research design, research approach,
target population, sampling method, data collection instrument, reliability and validity,
statistical analysis, and ethical consideration.

3.1 Research paradigm

A research paradigm is the collection of values and techniques used to solve

problems (Mutiani & Abbas, 2021). There are two main paradigms namely positivism
and interpretivism
3.1.1 Positivism

Positivism is primarily based on the actual results from scientific methods to prove
the truthfulness of the outcome (Onyeukwu, 2022). A positivist view of reality is
based on empirical evidence and statistical observations (Kamath & Pai,
2020). Positivists argued that reality can only exist if there is a direct observation
which involves the ability to measure and record the findings (Kamath & Pai, 2020).
Observations can be done through experiments and sample surveys. In the case of
mobile payment adoption, the positivist can justify the reality of the outcome of the
research only if the findings are objectively verified through the scientific procedure
using statistical methods of quantitative nature.

3.1.2 Interpretivism

According to interpretivism, the truthfulness of the results depends on the subjective

judgments of the individuals (Bleiker et al., 2019). The opinion and the perception of
the individuals are regarded as the elements that justify the existence of reality
according to interpretivism. Interpretivism is highly recommendable to be used when
the researchers are dealing with a qualitative approach (Bleiker et al., 2019). It is
also suitable when the researcher collects the data using observation, in-depth
interviews, and focus groups.

The research adopted a positivism paradigm as it is appropriate for a quantitative

approach and sample surveys for data collection. The positivism paradigm is the
best for this study as it investigated the factors that influence the adoption of mobile
payment methods, using the quantitative research approach which is associated with
scientific methods like sample surveys and statistical methods to test the hypothesis
and address the research problem.

3.2 Research design

Research design is the blueprint, or the plan specifically prepared in advance to

answer the research question (Pandey, 2021). The research design constitutes the
decision regarding the question such as what, where when and how much. The
research design presents what type of data is to be collected, where the data can be
collected, when the data should be collected, and how the data can be analysed to
answer the research question. Research design is how the researchers can be able
to address the research objectives. There are three main research designs
descriptive, exploratory, and causal.

This study adopted a descriptive research design. Descriptive research design can
be defined as the detailed description of the events, situations, behaviour, and
characteristic of the population under the study (Siedlecki, 2020). The descriptive
design includes a description of collected data from respondents of different age
groups, gender, and different level of education, then the data can be presented in
tabular form to understand the behaviour of the respondents concerning each
factor’s influence.

The researcher used a descriptive research design to understand the feasible

instrument for data collection, the appropriate sample method, statistical data
analysis and the time frame required to complete the research. The descriptive
research design is appropriate for this study as it enabled the researcher to choose
the online questionnaire instrument quantitative research approach, conveniently
sampling method, and descriptive and inferential statistics to address the research
problem.

3.3 Research Approach

There are three research approaches quantitative, qualitative, and mixed (Paoletti et
al., 2021). This study used a quantitative approach that is consistent with the
positivist paradigm. Hobson (2019) defines the quantitative approach as gathering
data that allows statistical analyses. The variables can be measured using the
questionnaire instrument and then analysed using statistical procedures by
converting the data to numerical form (Creswell & Poth, 2018). The study adopted a
quantitative approach since it relies on numbers and fewer variables, thereby
reducing biases and enhancing accuracy.

3.4 Target population

The population is a set of all individuals under observation (Weeks, 2020). Pande et
al., (2021) define a population frame as a list of the population from which the
researcher can select to undertake the study. This study targeted the population of
registered students at the University of Fort Hare. The University of Fort Hare has
three campuses in different locations: Alice, Bisho, and East London. The total
population distribution of 16 707 registered students at the University of Fort Hare.

Table 3.1: Population Distribution

Campus Total number of registered Students

Alice 9228
Bhisho 316
East London 7163
Grand Total 16707

3.5. Sampling Method

A sample is a subset of elements selected by the researchers from the population

framework (Pande et al., 2021). The probability sampling method provides the
likelihood for all respondents to participate than non-probability, where the
researcher can select respondents subjectively. In addition, probability sampling
generally provides an unbiased representation of the population than non-probability.
Probability sampling is associated with a high cost and requires more time than the
non-probability sampling method, which requires less time since the respondents are
selected randomly. The researcher used non-probability sampling. The researcher
attempts to reduce the biasedness of non-probability by increasing the sample size.
The researcher used the non-probability method because associated with low cost
and requires less time.

3.5.1 Sampling Technique

This study used the convenience sampling technique of the non-probability sampling
method. The convenience sampling technique allows the researcher to get the
responses quickly, saves time and it is cheap. However, the data can be collected
subjectively from the respondents, and this leads to biasedness of the outcome for
the sample to represent the population. The researcher used a large sample size of
376 students to reduce the likelihood of biasedness. The researcher used the
convenience sampling technique as the best fit for this study as it enables the
researcher to choose the respondents who are in proximity of their location.
3.5. 2 Determining Sample Size

The sample size of the population can be considered important as the degree of
truthfulness of the population depends on the size of the sample (Subedi, 2021). The
greater the sample size, the more accurate the population representation. A sample
size calculator in Raosoft, a Slovin formula, Krejci tables, and Morgan tables can all
be used to determine sample size. The sample size for students at the University of
Fort Hare was determined using the Raosoft sample calculator. The study used a
sample size of 376, with a margin of error of 5%, a population distribution of 50%,
and a confidence interval of 95%.

3.6 Data collection Method and Instrument

This study used the questionnaire instrument to gather data. The data was collected
directly from the field using the online google form. The questionnaire was distributed
to the student emails using the google link. The students completed the
questionnaire and submitted the responses to the researcher. The questionnaire
consisted of two parts. An overview of the respondent's demographics is provided in
the first part of the questionnaire. In the second part, the measurement items are
provided for each construct in the unified theory of acceptance and usage. The
survey method was used to collect the data from the sample population of the
University of Fort Hare. The researcher collected the data from the student to
understand their perspective on the acceptance and usage of mobile payment
systems. The researcher used an online survey to collect the data. The online survey
was suitable for this study because it allows all respondents to participate.

3.6.1 Measurement scale

The researcher modified a questionnaire developed by (Dalimunte., et al 2019; Nur

& Pangaea, 2021; Roy & Quaddus., 2018) to measure factors that influence the
adoption of mobile payment methods by university students. The questionnaire was
designed based on five levels of the Likert scale where (1) indicated Strongly
Disagree, (2) Disagree, (3) Neutral, (4) Agree, and (5) Strongly Agree to the
statement given on each statement. Each variable in the instrument was measured
against the items with the acceptable Cronbach scale as follows: performance
expectancy was measured against five items with a Cronbach of 0,83 (Oliveira,
2016) and effort expectancy, performance expectancy, facilitating condition and
actual usage were measured against four items. The behavioural intention was
measured against three items with a Cronbach of 0,96 (Dalimunte et al, 2019)

3.6 2 Reliability

Reliability is defined as the extent to which measures are free from errors and
therefore, yield consistent results (Amirrudin et al., 2021). The researcher used the
Cronbach alpha coefficient to measure the degree of internal consistency result.
According to Amirrudin et al., (2021) the Cronbach alpha coefficient should be above
0,7 to ensure the reliability of the instrument. This means that the measurement
items are strong enough to measure what is intended. While, if the Cronbach alpha
coefficient is below 0,7. This will show that the items in the instrument are not strong
enough to measure what is intended by the researcher. The measures for internal
consistency or reliability of the instrument with variables, several items and
Cronbach are as follows:

Table 2: Measure the reliability of the instrument

Variables Number Cronbach Source

of items alpha
Performance 5 0,833 (Oliveira, 2016)
expectance
Effort expectance 4 0,769 (Oliveira, 2016)

Social influence 4 0,851 (Dalimunte, Miraja, Persada

& Prasetyo, 2019)
Facilitating 4 0,858 (Nur & Panggabean ,2021)
condition

Behavioural 3 0,832 (Dalimunte et al, 2019)

intention
Actual usage 4 0,96 (Roy & Quaddus, 2018)

3.6.3 Validity
Validity refers to the extent to which a measurement construct can measure what it
was intended to measure (Amirrudin et al., 2021). To ensure the validity of this study,
the researcher used the Fornell and Larcker criterion, which includes discriminative
validity (Fornell & Larcker, 1981). The researcher used factor loading to ensure the
validity of the construct in the model. The researcher presented the first draft of the
instrument to the University of Fort Hare research committee before finalizing the
instrument to ensure the validity of the instrument.

3.7 Statistical Analysis

The researcher used a statistical package for social sciences (SPSS) software to
analyse descriptive statistics and inferential statistics. Descriptive statistics is defined
as the statistics used to describe the characteristic of the sample (Habes et al.,
2021).

3.7.1 Descriptive statistics

There are two descriptive statistics in this study: mean and standard deviation. The
researcher will measure the descriptive statistic of demographic profile respondents
which includes gender, age, race, education level and the variables in the proposed
model such as performance expectance, effort expectancy, facilitating condition,
social influence, behavioural intention, and actual usage.

3.7.2 Inferential statistics

The inferential statistics can generalize the outcome of the sample to the entire
population. There are two types of inferential statistics: hypothesis tests and
correlations between independent and dependent variables.

3.7.3 Structural equation modelling (SEM)

Structural equation modelling is a multivariate technique for estimating and testing

hypothesized interrelated dependency relationships between observed variables.
This study employed structural equation modelling to test the hypothesis of the
proposed model. The structural equation model is the best fit to estimate the
hypothesis of the proposed model of this study as the structural equation model
confirms the multiple variable characteristics simultaneously rather than the multiple
linear regression. The study used correlational analysis to determine the intensity of
the independent variable's influence on the dependent variable. In this case, the
researcher can determine the degree of intensity influence of performance
expectancy on behavioural intention.

3.7.4 Determining the good fitness of the model

The researcher used the fit indices such as goodness-of-fit index (GFI), adjusted
goodness-of-fit index (AGFI), normed fit index (NFI), and root mean square error of
approximation (RMSEA) to test the good fitness of the collected data on the model
(Bentler, 1990). The GFI values and these AGFI values range between 0 and 1,
indicating well-fitting models, and the RMSEA should range between 0.05 to 0.10,
indicating fair fit, and values above 0.10 indicate poor fit (MacCallum et al., 1996).

3.8 Ethical consideration

Ethical consideration outlines the principles, values, and norms that guide the
researcher during the research process (Williamon, Ginsborg, Perkins & Waddell,
2021. The researcher completed the ethical application form accordingly by adhering
to the ethical principles and stated the following statements on the questionnaire
instrument:

 Confidentiality and anonymity - the researcher ensured the confidentiality of the

respondents and personal information to remain anonymous.
 Voluntariness - the respondents were informed to complete the questions on their
own time, and respondents were allowed to give their consent for voluntary
participation. They can stop completing the questions if they are not willing.

 Honesty - the researcher guaranteed honesty to remain truthful and maintain

integrity while conducting the study.

 ·Consent - the respondents were informed of the purpose, the benefits, the time
to be taken, and the research process. The respondents sign the consent form in
the agreement between the respondents and the researcher.

 ·Well-being -the rights and well-being of the respondents would be protected by

the researcher during the research process.

The researcher applied for ethical application to the University of Fort Hare research
ethic committee (UFHREC).

Delimitations of the Study

This research focused on one institution of university Fort Hare including these
campuses, Alice, Bisho, and East London. The study focused on collecting data from
university students. The study is within the scope of the theory of technology of
acceptance and usage of technology.

3.9 Conclusion

Chapter 3 discussed the in-depth research methodology of this study. The

methodology chapter covers these sections positivism paradigm, research approach,
research design, data collection method, collected, sampling technique, reliability
and validity, analysis of data, ethical consideration, and delimitations. The next
chapter provides an analysis and presentation of the data.
 Chapter 4

Results and interpretation

Introduction

This chapter presents and interprets the research findings. This chapter used the
research procedure discussed in the previous chapter to present the analysis and
report the results. The study used the statistical package for social sciences (SPSS)
to analyse the descriptive statistics and the partial least square-structural equation
modelling (PLS-SEM) using SMARTPLS software to analyse the inferential statistics
of the study. The chapter begins with the demographic information of the
respondents.

Demographic information of respondents

Section A the questionnaire aimed to determine the distribution of demographic

information based on age, ethnicity, gender, education, faculty, and campus.

Age of the respondents.

Table 4.1 shows the age of the respondents in the study. The results show that 1.4
percent (n=6) were below 18 years. There were approximately 71.9 percent (n=300)
of respondents in the 18-24 age range, 23.5 percent (n=98) in the 25-34 age range,
2.2 percent (n=9) in the 35-44 age range, and 1 percent (n=4) in the 45-54 age
range.

Table 4.1 Age distribution of respondents

Indicate your age in years

Frequency Percent Valid Percent Cumulative
Percent
Valid Below 18 6 1.4 1.4 1.4

18 to 24 300 71.9 71.9 73.4

25 to 34 98 23.5 23.5 96.9
35 to 44 9 2.2 2.2 99.0
45 to 54 4 1.0 1.0 100.0
Total 417 100.0 100.0

Ethnicity of the respondents

Table 4.2 shows the ethnicity of respondents. The results revealed that 0.2 percent
(n=1) Asians, 0.5 percent (n=2) whites, 98.3 percent (n=410) blacks and 1.0 percent
(n=4) coloureds. Most of the respondents in this study were black.

Table 4.2 Ethnicity distribution of respondents

What ethnicity would best describe you?

Frequency Percent Valid Percent Cumulative
 Percent
Valid Asian 1 .2 .2 .2
White 2 .5 .5 .7
Black 410 98.3 98.3 99.0
Coloured 4 1.0 1.0 100.0

Total 417 100.0 100.0

Gender of the respondents

Table 4.3 shows the gender distribution of the respondents. The question aimed to
determine whether the respondents were male or female and preferred not to say.
Results show that 57,3 percent (n=239) are females, 41.5 percent (n=173) are
males, and 1.2 percent (n=5) prefer not to say.

Table 4.3 Gender of the respondents

Indicate your gender

Frequency Percent Valid Percent Cumulative
Percent
Valid Female 239 57.3 57.3 57.3
Male 173 41.5 41.5 98.8
Prefer 5 1.2 1.2 100.0
not to
say
Total 417 100.0 100.0

Education level of the respondents

Table 4.4 shows the education level of the respondents. The results revealed that
27.1 percent (n=113) were 1st undergraduate, 29.5 percent (n=123) were 2 nd
undergraduate, 16.1 percent (n=67) were 3 rd undergraduate. Subsequently, 14.6
percent (n=61) were 4th undergraduate, 8.2 percent (n=34) were honours, 3.4
percent (n=14) were masters and 1.2 percent (n=5) were PhD.

Table 4.4 Education level of respondents

 What is your education level?
Frequency Percent Valid Percent Cumulative
Percent

Valid 1st undergrad 113 27.1 27.1 27.1

2nd undergrad 123 29.5 29.5 56.6

3rd undergrad 67 16.1 16.1 72.7

4th undergrad 61 14.6 14.6 87.3

Honours 34 8.2 8.2 95.4

Masters 14 3.4 3.4 98.8

PhD 5 1.2 1.2 100.0

Total 417 100.0 100.0

Faculty of the respondents

Table 4.5 shows the faculty belonging to the respondents. This question aimed to
determine which faculty the respondents belonged to. The results revealed that 30
percent (n=125) respondents were belongs to management &commerce, 25.9
percent (n=108) science & agriculture, 20.1 percent (n=84) Social science &
Humanities. Subsequently, 5.5 percent (n=23) Law,13.2 percent (n=55) Education
and 5.3 percent (n=22) Health sciences.

Table 4.5 Faculty of the respondents

Which Faculty do you belong to?

Frequency Percent Valid Cumulative
Percent Percent
Valid Management & 125 30.0 30.0 30.0
Commerce
 Science & 108 25.9 25.9 55.9
Agriculture
Social science & 84 20.1 20.1 76.0
humanities
Law 23 5.5 5.5 81.5
Education 55 13.2 13.2 94.7
Health science 22 5.3 5.3 100.0
Total 417 100.0 100.0

Respondents Campus

Table 4.6 shows the respondent's campus. This question aimed to find out the
campus location of the respondents. The results revealed that 71.9 percent (n=300)
were respondents at Alice, 27.6 percent (n=115) in East London, and 0.5 percent
(n=2) in Bhisho. Most respondents were from the Alice campus.

Table 4.6 Respondents Campus

Which campus are you enrolled at?

Frequency Percent Valid Percent Cumulative
Percent
Valid Alice 300 71.9 71.9 71.9
East London 115 27.6 27.6 99.5
Bhisho 2 .5 .5 100.0
Total 417 100.0 100.0

Descriptive statistics

This section presents the output from the descriptive statistics analysis for all
variables in the study. In this case, there were 417 respondents. The mean and
standard deviation measures the importance of measurement items explained in the
study's variables. The minimum shows the low scale, and the maximum shows the
highest scale selected for a particular variable. There are six variables in section B
explained by the measurement items.

Table 4.7 Descriptive statistic of study variables

 Descriptive Statistics
Variables N Minimum Maximum Mean Std.
Deviation
Statistic Statistic Statistic Statistic Statistic

Performanc PE1 417 1 5 3.89 1.064

e PE2 417 1 5 3.95 1.032
expectance PE3 417 1 5 4.12 .996
PE4 417 1 5 4.20 .985
PE5 417 1 5 3.99 1.067
Effort EE1 417 1 5 3.98 1.003
expectance EE2 417 1 5 3.40 1.193
EE3 417 1 5 3.71 1.098
EE4 417 1 5 3.64 1.131
Social SI1 417 1 5 3.46 1.137
influence SI2 417 1 5 3.37 1.180
SI3 417 1 5 3.49 1.131
SI4 417 1 5 3.42 1.201
Facilitating FC1 417 1 5 3.74 1.102
condition FC2 417 1 5 3.87 1.039
FC3 417 1 5 3.82 1.082
FC4 417 1 5 3.74 1.080
Behavioural BI1 417 1 5 3.50 1.137
intention BI2 417 1 5 3.80 1.051
BI3 417 1 5 3.92 1.021
Actual AUMP1 417 1 5 3.84 1.176
usage of AUMP2 417 1 5 3.59 1.239
mobile AUMP3 417 1 5 3.41 1.231
payment AUMP4 417 1 5 3.39 1.333
Valid N 417
(listwise)

In table 4.7, the minimum and maximum scores for the six variables are 1 and 5,
respectively. Performance expectance is best explained by PE4 and PE3, as they
had a mean of 4.20 and 4.12, respectively, compared to PE1, PE2, and PE5. The
measurement item that best explains effort expectance is EE1, with a mean of 3.98
and a standard deviation of 1.003. Regarding effort expectancy, EE2 has the least
importance, with a mean of 3.40 and a standard deviation of 1.19. Social influence is
best explained by measurement item SI3, as it had a mean of 3.49 and a standard
deviation of 1.131. Among the measurement items with the least social influence,
SI2 has a mean of 3.37 and a standard deviation of 1.180. The measurement item
best explains facilitating condition is FC2, which had a mean of 3.87, with a standard
deviation of 1.039. A measurement item with the least importance in facilitating
condition is FC1, which had a mean of 3.74, with a standard deviation of 1.102. In
the analysis of the measurement items, BI3, which had a mean of 3.92 and a
standard deviation of 1.021, explains behavioural intention best.

In contrast, the measurement item with the least importance on behavioural intention
is BI1, which had a mean of 3.50 with a standard deviation of 1.137. The
measurement item that best explains the actual usage of mobile payment is AUMP1,
as it had a mean of 3.84 with a standard deviation of 1.176. The measurement item
with the least importance on actual usage of mobile payment is AUMP4, as it had a
mean of 3.39 with a standard deviation of 1.333. Despite this, all the measurement
items explain their variables equally since their means are all over 3.0.

The assessment of normality for all items

Variables items Skewness

Statistic

Performance expectance PE1 -.846

PE2 -.937
PE3 -1.099
PE4 -1.281
PE5 -1.089
Effort expectance EE1 -1.004
EE2 -.297
EE3 -.626
EE4 -.598
Social influence SI1 -.546
SI2 -.286
SI3 -.404
SI4 -.473
Facilitating condition FC1 -.698
FC2 -.837
 FC3 -.830
FC4 -.763
Behavioural intention BI1 -.349
BI2 -.640
BI3 -.813
Actual usage of mobile AUMP1 -.849
payment AUMP2 -.594
AUMP3 -.424
AUMP4 -.457

Measurement model

This section presents the measurement of the proposed model in the study. Factor
loading analysis can assess the validity and reliability of the model using the partial
least square structural equation modelling (PLS-SEM). The study used convergent,
and discriminant validity to evaluate the reliability and validity of the proposed model.
The study adopted a root-mean-square error of approximation (RMSEA) to assess
the goodness of fit. A researcher used partial least square structural equation
modelling to evaluate the hypothesis of a model.

Reliability and validity

The first step in the measurement model is convergent validity. Convergent validity
refers to how closely a measurement item relates to other measurements that
measure the same construct. Convergent validity is the set of items that measure the
same inter-correlated construct. According to Fornell Larcker (1981), the average
variance extracted (AVE) measures the significance of factor loadings. Furthermore,
he suggested a threshold of 0.5 for the average variance extracted. Hair et al. (2010)
considers factor loadings above 0.5 highly convergent. As shown in Table 4.8, all
constructs had a good internal consistency as their Cronbach alpha values exceeded
0.7. Furthermore, all factor loadings were significant, greater than or equal to 0.5
(Hair et al., 2006). The average variance extracted meets the acceptable threshold
of 0.5, confirming the measurement items' validity.

Table 4.8 Factor loadings, CR, Cronbach’s Alpha, and AVE values

Constructs items Factor Cronbach's Average

 loading alpha variance
extracted
(AVE)
Performance PE1 0,845 0,927 0,718
expectance PE2 0,849
PE3 0,886
PE4 0,848
PE5 0,807
Effort EE1 0,836 0,805 0,517
expectance EE2 0,538
EE3 0,735
EE4 0,735
Social influence SI1 0,701 0,849 0,592
SI2 0,662
SI3 0,833
SI4 0,863
Facilitating FC1 0,762 0,831 0,553
condition FC2 0,755
FC3 0,693
FC4 0,763
Behavioural BI1 0,784 0,877 0,710
intention BI2 0,815
BI3 0,922
Actual usage of AUMP1 0,929 0,880 0,644
mobile payment AUMP2 0,789
AUMP3 0,707
AUMP4 0,768
Discriminant validity

The study assessed the validity of the proposed model using discriminant validity. To
confirm discriminant validity, the square root of the average variance should exceed
the correlation between each pair of constructs. Table 4.9 shows that most diagonal
values exceed the inter-constructed correlations, confirming discriminant validity.

Fornell-Larcker criterion

AUMP BI EE FC PE SI
AUMP 0,802
BI 0,578 0,843
EE 0,497 0,800 0,719
 FC 0,662 0,829 0,799 0,744
PE 0,523 0,744 0,846 0,749 0,847
SI 0,463 0,645 0,641 0,619 0,546 0,769
Note: Diagonal elements in bold represent square roots of average variance extracted (AVE). The off-diagonal
elements represent the correlation coefficients.

However, a few constructs showed weak discriminant validities at FC and EE, PE

and EE, and PE and FC. As a result, these constructs with weak validities were
subjected to further assessment. Shiu et al. (2011) argued that one of the limitations
of the Fornell Larcker criterion is a rule of thumb in which the researcher does not
consider the sampling errors. Against this backdrop, this study further assessed the
discriminant validity using the Heterotrait-monotrait ratio (HTMT) – Matrix. (Hair et
al., 2022) stated that the heterotrait-monotrait ratio (HTMT) – Matrix assumes that
the correlation of each pair of variables should be less than 0.9. The results in table
4.10 show all inter-construct correlations were below the threshold of 0.9, thereby
the discriminant validity has been established.

Heterotrait-monotrait ratio (HTMT) - Matrix

AUMP BI EE FC PE SI
AUMP
BI 0,574
EE 0,492 0,802
FC 0,656 0,830 0,797
PE 0,518 0,746 0,840 0,752
SI 0,466 0,648 0,646 0,620 0,548

Model fit

Saturated model Estimated model

SRMR 0,039 0,051
d_ULS 0,454 0,779
d_G 0,356 0,377
Chi-square 773,791 816,594
NFI 0,889 0,883

Results of the hypotheses testing

H Hypothesised paths SRW P values Recommendation

H1 PE -> BI 0,118 0,272 unsupported
H2 EE -> BI 0,241 0,090 unsupported
H3 SI -> BI 0,140 0,019 supported
H4 FC -> BI 0,461 0,000 supported
H5 BI -> AUMP 0,578 0,000 supported
Note: H = Hypothesis; SRW = Standardized regression weight; = Significant at
p<0.05
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