Consumers' Switching from Cash to Mobile Payment under the Fear of COVID-19 in Taiwan

ABSTRACT

The COVID-19 pandemic impacts our lives significantly;people have changed their daily lives in response to the unprecedented epidemic which not only awakened the arrival of a new normal in business, but also new lifestyles. For example, the adaptation of contactless mobile payment has grown in the past two years to avoid unnecessary contact and possible infections. In this study, we intend to examine behavioral intentions that made consumers shift from traditional cash payment to mobile payment during the COVID-19 period. Our research framework and hypotheses were developed and examined through the push (dissatisfaction)-pull (alternative attractiveness)-mooring (perceived fear) model. We used structural equation modeling (SEM) to validate our model and corresponding hypotheses. The results of this study showed that dissatisfaction with tradition-al payments and customer's perceived fears positively and significantly affected switching intentions. However, alternative attractiveness had no significant impact on consumers' switching intentions from cash to mobile payments during the pandemic. Moreover, this study shows how perceived fear has a mediating effect that motivates people to change their payment behaviors. Implications and future research directions about consumers changing in such a dynamic time are also discussed.