ABSTRACT

The purchase process is undergoing a transformation. To provide a seamless and fast payment experience, payment companies have streamlined the steps in the purchase process for consumers. Digital wallets have aided this effort by requiring a consumer to set up a default payment method prior to purchase. During a purchase, the digital wallet simply uses the default payment method instead of requiring the consumer to choose a payment method for each purchase. By decoupling the payment method choice from the purchase process, will consumer payment behavior or what influences their payment method choice change? Leveraging the theory of planned behavior, I conducted this study to predict consumer intention to actively select a funding instrument when using digital wallets. Three hundred and two digital wallet users (N = 302) completed a survey collecting attitudes, subjective norms, perceived behavioral control, intention, and behaviors on payment method choice in digital wallets as well as demographic and payment characteristics. Using the partial least squares-structural equation model (PLS-SEM), the analysis showed attitudes and subjective norms can predict consumer intention to actively select a payment method during a digital wallet purchase, while perceived behavior control was a not a predictor. In addition, certain attitudes were found to be more influential than others. Convenience was found to be the most influential followed by loyalty programs, money management, payment security, and, lastly, purchase environment. This study offers practical insights for payment and digital wallet companies as well as proposes future research to further enhance understanding of digital wallets and the selection of payment methods.

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DATE

January 2023

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CITATION

Birdsall, N. L. (2023). Payment method choice in digital wallets: An application of the theory of planned behavior (Order No. 30248393). Available from ProQuest Dissertations & Theses Global. (2771897709). Retrieved from https://www.proquest.com/dissertations-theses/payment-method-choice-digital-wallets-application/docview/2771897709/se-2