Perception of Trust in Mobile Payment Usage Intent in India: An Exploratory Study Chandrasekhar Umesh*, Dr. Nandagopal R.** *PSG Institute of Management, PSG College of Technology, Coimbatore, India **Director, PSG Institute of Management, PSG College of Technology, Coimbatore, India Online published on 3 May, 2016. Abstract Mobile Payments will be a game changer for India as it will enable inclusive banking, financial transactions and virtual financial services across the country and generate economic efficiencies. With the mobile phone penetration in excess of 80% across all geographies, several banks, mobile phone operators and third-party application providers have entered the Indian market. Theoretical work has mainly focused on the Technology Adoption Model.(TAM) and its successive variants which deals with intent to use based on variables like perceived usefulness, ease-of use, prior experience of technology. This research addresses a pre-requisite for mobile payment adoption in India-the factor of trust. For large-scale adoption of mobile payments, customers must be assured that these payments should have minimal environmental risks (abuse of billing and usage information, misuse, oversight) for them, operators reputation (fairness and honesty) must be good and no risk of operator opportunism (delivering promises, right charges and confidentiality of information should be present. In addition, easy error mitigation in case of mistakes/refunds should be possible. These elements formed the construct of the study. A self-administered questionnaire in English and Tamil languages was administered over a period of 4 days. 326 complete responses were received and analyzed. The four constructs used account for around 21% for intent to use mobile payments. Three showed positive relationship and easy error mitigation construct did not indicate a relationship, the outlier indicator being respondents lack of faith in dispute resolution by the providers. Secondary data from the telecom regulatory authority report confirms existence of this issue. The research provides guidance to the industry for building trust with their customers and increase engagement to use, captures the concerns of the Indian mobile users in this key determinant and provides directions for further research in additional geographies to capture cultural differences within India and the uniqueness of the mobile phone users. Top Keywords Technology Adoption Model, Perceived Use, Risk, Mobile Payments, environmental risk, opportunism, trust. Top |