Consumers' Intention to Adopt HCE in Lebanon
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Date
2017
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Abstract
The increased uptake in advanced mobile devices coupled with improved infrastructure has led to a global trend in mobile computing, and has redefined a lot of societal aspects and the interactions involved therein. In particular, the rise of smartphones to ubiquity has initiated nothing short of revolutionary ideas regarding the future of mobile payments and the marketplace. Mobile banking is essentially an application of mobile computing which greatly reduces spatial and temporal limitations on banking activities, and provides for more rapid and convenient interaction with the banking platform at hand. Various technologies have been used to enhance the mobile banking experience, such as Short Message Service, Quick Response code, Bluetooth, and Near Field Communication, to varying degrees of success. The most recent wireless banking technology that has refined its predecessors, and is the topic of this paper, is termed Host Card Emulation. The latter provides many silent advantages relative to technologies it aims to supersede whilst at the same time enhancing the user experience as well as benefiting financial institutions that realize its implementation.
In effect, this research aims to analyse and collect data regarding the prioritization of factors that influence the successful adoption of the innovative payment technology, Host Card Emulation. This will in turn be used to answer the question: What are the determinants of consumers’ adoption of Host Card Emulation in Lebanon?
Collected data from approximately 200 respondents has been critically assessed to suggest the best practices to the banking industry in order to achieve the widespread adoption of Host Card Emulation. This is particularly important since Host Card Emulation technology is already implemented by default in recent smartphones which are already ubiquitous, and its adoption in turn provides banks with a massive market that remains untapped. The importance of its adoption cannot be overstated, because it provides a unified approach to mobile payment. Host Card Emulation does away with the incoherence and overhead of simultaneously supporting various platform-dependent methods of payment such as ApplePay, SumsungPay, and Google Wallet for both banks and businesses, which is the case of the older Near Field Communication technology.
The present study outlines a number of factors to be probed in their capacity to predict and explain consumer behaviour in regards to novel technologies. To this end, two paradigm standards were used as a basis for the theoretical model of the paper; the Technology Acceptance Model and the Theory of Diffusion of Innovation. The findings showed that only three of the six factors used were significant; relative advantage, ease of use, and personal innovativeness. The paper elaborates on a number of managerial and theoretical implications in the context of the aforementioned findings.
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Mokhtarian, M. (2017). Consumers' Intention to Adopt HCE in Lebanon (MBA thesis, Haigazian University)