Determinants on customer's intention to use mobile wallets in Ho Chi Minh City: Bachelor thesis of Banking and Finance / Quách Thị Hương Giang ; Hồ Công Hưởng supervisor

MINISTRY OF EDUCATION

AND TRAINING

STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

----------------------

QUÁCH THỊ HƢƠNG GIANG

DETERMINANTS ON CUSTOMERS’ INTENTION TO

USE MOBILE WALLETS IN HO CHI MINH CITY

BACHELOR’S THESIS

Major: FINANCE – BANKING

Code: 7340201

HO CHI MINH CITY, 2020

MINISTRY OF EDUCATION

AND TRAINING

STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

----------------------

QUÁCH THỊ HƢƠNG GIANG

DETERMINANTS ON CUSTOMERS’ INTENTION TO

USE MOBILE WALLETS IN HO CHI MINH CITY

BACHELOR’S THESIS

Major: FINANCE – BANKING

Code: 7340201

SUPERVISOR

PhD. HỒ CÔNG HƢỞNG

HO CHI MINH CITY, 2020

i

ABSTRACT

The innovation of technology has recently brought many benefits to

consumers, particularly in the digital payment context. Many financial institutions

and technology service providers have begun to develop digital payment

applications. This has made digital payments in general and mobile wallets in

specific become more popular in Vietnam, especially in big cities such as Ho Chi

Minh City. However, the number of users of these types of payments is still

relatively low. Therefore, this thesis is conducted in order to examine the

determinants of customers’ intention to use mobile wallets in Ho Chi Minh City,

which can reinforce the theoretical framework of research in customers’ intention to

use mobile wallet services.

The proposed research model is based on the Unified Theory of Acceptance

and Use of Technology, which remains Performance Expectancy, Effort

Expectancy, Social Influence, and Facilitating Conditions as the main factors to

reflect the intention to use mobile wallets. In addition, Perceived Security, Trust,

Mobile Wallet Knowledge, and Reputation are also introduced as factors that affect

the intention to use mobile wallets. In this study, the author also adds demographic

factors (including age, gender, education, income) into the research model.

After gathering and examining 195 samples under the quantitative research

method, the results indicate that there are six factors considered significant to the

intention to use mobile wallets. These factors are Performance Expectancy, Effort

Expectancy, Facilitating Conditions, Trust, Mobile Wallet Knowledge, and

Reputation, in which Performance Expectancy contributes the most in explaining

the intention to use mobile wallets. However, contrary to previous researches, the

results show that there is no significant relationship between Perceived Security,

Social Influence as well as the demographic factors and the intention to use mobile

wallets.

The findings of this research contribute to the theoretical framework of studies

in the intention to use mobile wallets of customers in Ho Chi Minh City. The

ii

implications of the results are also discussed in order to give recommendations to

the mobile wallet developers and providers, and directions for further studies.

iii

DECLARATION

I hereby declare that the thesis “Determinants on customers’ intention to use

mobile wallets in Ho Chi Minh City” is my original work and has not been

published or submitted except for quotations and citations which have been

acknowledged.

The Author

Quách Thị Hƣơng Giang

iv

ACKNOWLEDGEMENTS

In the past time, thanks to the favorable conditions of Banking University of

Ho Chi Minh City, I would like to thank all the professors at the university for

having conveyed me a lot of useful knowledge and experience over the past four

years, especially Ph.D. Ho Cong Huong – the instructor who has wholeheartedly

instructed me to complete this thesis well.

I wish you all health and success in the career of growing people.

Best regards.

The Author

Quách Thị Hƣơng Giang

v

TABLE OF CONTENTS

ABSTRACT................................................................................................................ i

DECLARATION ...................................................................................................... iii

ACKNOWLEDGEMENTS ...................................................................................... iv

LIST OF TABLES .................................................................................................. viii

LIST OF FIGURES................................................................................................. viii

LIST OF ABBREVIATIONS................................................................................... ix

CHAPTER 1 INTRODUCTION ...........................................................................1

1.1. RATIONALE FOR RESEARCH..................................................................1

1.2. RESEARCH OBJECTIVES..........................................................................4

1.3. RESEARCH QUESTIONS ...........................................................................5

1.4. RESEARCH SUBJECTS ..............................................................................5

1.5. SCOPE OF RESEARCH...............................................................................6

1.6. METHODOLOGY ........................................................................................6

1.7. THESIS STRUCTURE .................................................................................7

CHAPTER 1 SUMMARY ......................................................................................9

CHAPTER 2 LITERATURE REVIEW ..............................................................10

2.1. MOBILE WALLET OVERVIEW..............................................................10

2.2. RELEVANT THEORIES............................................................................11

2.2.1. Theory of Reasoned Action ..................................................................11

2.2.2. Theory of Planned Behavior.................................................................12

2.2.3. Technology Acceptance Model ............................................................13

2.2.4. Unified Theory of Acceptance and Use of Technology .......................15

2.2.5. Social Cognitive Theory .......................................................................17

2.2.6. Diffusion of Innovation Theory............................................................18

2.3. DOMESTIC AND FOREIGN RESEARCH RELATED ...........................19

2.3.1. Foreign researches ................................................................................19

2.3.2. Domestic researches .............................................................................23

2.4. THEORETICAL FRAMEWORK OF THESIS..........................................25

2.5. HYPOTHESES............................................................................................27

2.5.1. Performance Expectancy (PE)..............................................................27

2.5.2. Effort Expectancy (EE).........................................................................27

2.5.3. Social Influence (SI).............................................................................27

2.5.4. Facilitating Conditions (FC).................................................................27

2.5.5. Perceived Security (PS) ........................................................................28

2.5.6. Trust (TR) .............................................................................................28

2.5.7. Mobile Wallet Knowledge (MK)..........................................................29

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2.5.8. Reputation (RE)....................................................................................29

2.5.9. Behavioral Intention (BI)......................................................................30

2.5.10. Demography Factors .........................................................................30

CHAPTER 2 SUMMARY ....................................................................................31

CHAPTER 3 METHODOLOGY.........................................................................32

3.1. RESEARCH PROCESS..............................................................................32

3.2. PROPOSED MODEL..................................................................................33

3.3. CONSTRUCTS MEASUREMENT............................................................35

3.4. MEASUREMENT SCALES.......................................................................38

3.5. QUANTITATIVE RESEARCH .................................................................38

3.5.1. Sampling Design...................................................................................38

3.5.1.1 Population..........................................................................................38

3.5.1.2 Sample Size .......................................................................................39

3.5.2. Final Questionnaire...............................................................................39

3.5.3. Data Collection .....................................................................................40

3.5.4. Data Analysis Method ..........................................................................40

3.5.4.1 Descriptive Analysis..........................................................................40

3.5.4.2 Reliability Analysis...........................................................................40

3.5.4.3 Exploratory Factor Analysis..............................................................41

3.5.4.4 Correlation Coefficient Analysis.......................................................41

3.5.4.5 Multiple Regression Analysis ...........................................................42

3.5.4.6 Independent sample t-test..................................................................43

3.5.4.7 One-way analysis of variance............................................................43

CHAPTER 3 SUMMARY ....................................................................................43

CHAPTER 4 RESULTS AND DISCUSSION....................................................44

4.1. DESCRIPTIVE ANALYSIS.......................................................................44

4.2. MEASUREMENT ASSESSMENT ............................................................46

4.2.1. Reliability Analysis...............................................................................46

4.2.2. Exploratory Factor Analysis.................................................................48

4.2.2.1 Exploratory Factor Analysis for Independent Variables...................48

4.2.2.2 Exploratory Factor Analysis for Dependent Variable.......................51

4.3. CORRELATION COEFFICIENT ANALYSIS..........................................51

4.4. MULTIPLE REGRESSION ANALYSIS...................................................54

4.4.1. Testing the Assumptions of Multiple Regression Analysis..................54

4.4.2. Results of Multiple Regression Analysis..............................................56

4.5. TESTING DIFFERENCES BETWEEN DEMOGRAPHIC FACTORS ...61

4.5.1. Testing the difference between two genders ........................................61

4.5.2. Testing the difference among groups of age.........................................61

4.5.3. Testing the difference among groups of education level......................63

4.5.4. Testing the difference among groups of income level .........................64

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CHAPTER 4 SUMMARY ....................................................................................65

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS ........................66

5.1. CONCLUSIONS .........................................................................................66

5.2. IMPLICATIONS.........................................................................................69

5.3. LIMITATIONS AND RECOMMENDATIONS FOR FURTHER

RESEARCHES......................................................................................................71

CHAPTER 5 SUMMARY ....................................................................................73

REFERENCES..........................................................................................................74

APPENDIXES ..........................................................................................................81

APPENDIX 1: Questionnaires ..............................................................................81

APPENDIX 2: Descriptive Analysis Results........................................................89

APPENDIX 3: Reliability Analysis Results..........................................................90

APPENDIX 4: Exploratory Factor Analysis Results ............................................95

APPENDIX 5: Correlation Coefficients Analysis Results....................................98

APPENDIX 6: Multiple Regression Analysis results ...........................................99

APPENDIX 7: Differences between demographic factors test...........................100

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LIST OF TABLES

Table 2.1. Foreign researches list..............................................................................21

Table 2.2. Domestic researches list...........................................................................24

Table 3.1. Constructs measurement ..........................................................................35

Table 4.1. Frequency Analysis for Research Samples..............................................45

Table 4.2. Reliability analysis results of measurement scales by Cronbach’s Alpha

...................................................................................................................................46

Table 4.3. Summary of EFA test for the independent variables...............................48

Table 4.4. Rotated Component Matrix Analysis for Independent Variables............50

Table 4.5. Summary of EFA test for the dependent variable....................................51

Table 4.6. Summary of Pearson’s Correlation Coefficient Analysis........................52

Table 4.7. Model Summary.......................................................................................56

Table 4.8. ANOVA test.............................................................................................57

Table 4.9. Multiple Regression Coefficients ............................................................57

Table 4.10. Hypotheses Results................................................................................60

Table 4.11. Independent Samples Test for Gender factor.........................................61

Table 4.12. Test of Homogeneity of Variances for the age factor............................61

Table 4.13. ANOVA test for age factor....................................................................63

Table 4.14. Test of Homogeneity of Variances for the education factor..................63

Table 4.15. ANOVA test for Education Factor ........................................................64

Table 4.16. Test of Homogeneity of Variances for the income factor .....................64

Table 4.17. ANOVA test for income factor..............................................................65

Table 5.1. Influence level of factors on the intention to use mobile wallets ............68

LIST OF FIGURES

Figure 1.1. Biggest growth in mobile payment in Vietnam and the Middle East.......2

Figure 1.2. Payment types in percent in Vietnam from 2017 to 2023 ........................3

Figure 2.1. Theory of Reasoned Action....................................................................12

Figure 2.2. Theory of Planned Behavior...................................................................13

Figure 2.3. Technology Acceptance Model ..............................................................14

Figure 2.4. Unified Theory of Acceptance and Use of Technology Model .............16

Figure 2.5. Social Cognitive Theory.........................................................................17

Figure 2.6. Social Cognitive Theory.........................................................................18

Figure 2.7. Diffusion of Innovation Theory..............................................................19

Figure 2.8. The theoretical framework of the thesis.................................................26

Figure 3.1. The research process...............................................................................33

Figure 3.2. The proposed model ...............................................................................34

Figure 4.1. Normal P-P Plot of Regression Standardized Residual..........................55

Figure 4.2. Scatterplot...............................................................................................56

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LIST OF ABBREVIATIONS

Abbreviation Description

ANOVA Analysis of variance

BI Behavioral Intention

DOI Diffusion of Innovation Theory

E-commerce Electronic commerce

EE Effort Expectancy

EFA Exploratory Factor Analysis

E-payment Electronic payment

E-wallet Electronic wallet

FC Facilitating Conditions

KMO Kaiser-Meyer-Olkin

M-commerce Mobile commerce

MK Mobile Wallet Knowledge

M-payment Mobile payment

PE Performance Expectancy

PS Perceived Security

RE Reputation

SBV State Bank of Vietnam

SCT Social Cognitive Theory

SI Social Influence

TAM Technology Acceptance Model

TPB Theory of Planned Behavior

TR Trust

TRA Theory of Reasoned Action

UTAUT Unified Theory of Acceptance and Use of Technology

UTAUT2 Unified Theory of Acceptance and Use of Technology 2

VIF Variance inflation factor