Does the reputation of the provider matter? A model explaining the continuance intention of mobile wallet applications

ABSTRACT

This study proposes a new model of technology adoption in a mobile wallet application context, which includes the provider’s reputation and profession, trust, perceived value, and security of mobile wallet applications. Based on a survey of 382 users, a structural model was verified. A multi-group analysis was conducted to verify the moderating impact of the provider’s profession. Our results confirm the impact of the provider’s reputation on trust and perceived security; both verified as antecedents of the continuance intention. Besides, the provider’s profession moderates the impact of reputation on trust. The study suggests that mobile wallet application providers focus on reputation in their communication strategy to build and maintain trust. In addition to the moderating role of the providers’ profession, verifying provider’s reputation as a factor enhancing the trust and perceived security of the mobile wallet application constitutes the main originality of this paper.

KEYWORDS:

• Mobile wallet application
• reputation
• provider’s profession
• trust
• security
• continuance intention

Highlights

• The impact of the provider’s reputation on trust and perceived security is confirmed.

• Trust and perceived security are both verified as antecedents of the continuance intention.

• The provider’s profession moderates the impact of reputation on trust.

• The role of value and usefulness, as independent factors explaining continuance intention, is highlighted.

• The study suggests that both types of providers focus on reputation in their communication strategy to build and maintain trust.

Acknowledgments

The author thanks Bank Albilad Chair of E-commerce (BACEC) for supporting research in Saudi Electronic University and this research.

Disclosure statement

The author declares that this research complies with Ethical Standards and that he has no conflict of interest.

Conflict of interest

The author declares that he has no conflict of interest.

Executive summary

This study aims to verify a new model explaining the continuance intention toward Mobile Wallet Applications. It includes the provider’s reputation which is an important variable when a company, which does not belong to the banking sector, enters the market of mobile payment applications.

The profession of the mobile wallet provider (banking vs non-banking) is proposed as a moderating variable. It is assumed to enhance the impact of reputation on security and trust in the case of mobile wallet applications of Non-banking providers. This research also verifies the impact of trust, perceived value and security of Mobile Wallet Applications on the continuance intention.

The test of moderating role of the providers’ profession is one of the original contributions because this link is uncovered by prior studies. Besides, the reputation of the provider as a factor enhancing trust and perceived security of the mobile wallet application constitutes the main originality of this paper. Other links still need verification in the context of the postadoption intentions regarding mobile wallet applications, namely the impact of perceived value on continuance intention.

A survey procedure, using previously well-established measurement scales, resulted in a database that comprises 382 users of Mobile Wallet Applications in Saudi Arabia.

The model has been verified using structural equation modelling, while the moderating effects are tested via Multi-group analyses.

Results show that the impact of the provider’s reputation on trust and perceived security is confirmed. The provider’s profession moderates this impact, as non-banking providers of mobile wallet applications need support from their prior reputation in other sectors to build trust toward this new service. In addition, trust, perceived value, use and perceived security are verified as antecedents of the continuance intention.

The study recommends that both types of providers focus on reputation in their communication strategy to build and maintain trust. Another practical implication suggests security procedures as a condition to enter and use the mobile wallet application profile in order to enhance perceived security and thereby continuance intention.