The effect of perceived security and grievance redressal on continuance intention to use M-wallets in a developing country

Many developing countries, including India, are committed to curbing black money from the economy. Therefore, these countries are focusing on a transparent online transaction facility. M-wallets are one online option facilitated by various companies using a mobile application. The purpose of this paper is to investigate the impact of perceived usefulness, perceived security, perceived ease of use, trust, grievance redressal and satisfaction on young users’ intention to continually use M-wallet in India.

A research framework based on the expectation–confirmation theory has been formulated and tested empirically using data from M-wallets young users in India using structural equation modeling.

The analysis reveals that perceived usefulness and perceived ease of use significantly affect user satisfaction and intention to continually use M-wallets. The effect of perceived security on user satisfaction is significant, and grievance redressal mediates the effect of perceived security on intention to continually use M-wallets.

The outcome of the research will help M-wallet service providers and policy makers in planning the service and increasing customer’ continuance intention.

The uniqueness of this research is that it adds two important constructs for mobile payment systems (grievance redressal and perceived security) that were missing in the earlier model proposed by Zhou (2013). The addition of the two constructs helped in formulating a better model.