Culture is the silent force behind slow mobile payment adoption

While the increasing usage of smartphones and wallet apps (e.g. Apple Pay, Google Pay, and AliPay) has fuelled global growth in mobile payment, the adoption rate is not uniform across different countries. The paper defines mobile payments as a transfer of funds to purchase goods or services in which a mobile device executes and confirms the payment. In 2022, only 25% of users in the US adopted mobile payments, which is relatively low compared to countries in Asia such as China (72%), Thailand (65%), and India (63%)*.  

The study, published in International Marketing Review, involving a comprehensive survey of 679 respondents in the United States, investigated the relationship between individual-level cultural values and the acceptance of mobile payment technologies.  It shows that cultural value shapes consumers’ behaviour about adopting new technologies, including mobile payment. 

Traditional methods of analysing consumer behaviour often focus solely on national averages, neglecting individual cultural backgrounds that shape decision-making processes. The researchers compared two models: one assessing the direct effects of cultural orientations and another examining their moderating influences on technology acceptance. 

Dr Nima Heirati, Associate Professor of Marketing and co-author of the study at the University of Surrey, said: 

“The findings suggest that businesses must embrace a more nuanced understanding of their customers' individual-level cultural identities to create effective marketing strategies.  

“Ignoring these individual differences can lead to missed opportunities and hinder the growth of mobile payment adoption across various demographics.” 

The research identified five key individual-level cultural orientations—power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation—each of which has a significant impact on how consumers perceive and adopt new technologies. For instance, those with high power distance are more likely to value ease of use and habitual engagement with mobile payments, while individuals with high uncertainty avoidance tend to prioritise trust and reliability in their payment systems. 

Dr Heirati continued: 

“Businesses must tailor their marketing strategies to resonate with specific individual-level cultural values to foster greater acceptance of mobile payments. By understanding that cultural values influence consumers’ beliefs regarding technology, businesses can develop more effective marketing messages that address the unique needs and preferences of different consumer segments.”