Introduction
Chapter 1. Existing research in the field of digital device wallets adoption
10
1.1 Description of current environment in the market of digital payments
10
1.2 Existing research on digital device wallets adoption
19
1.2.1
Existing international research on adoption of digital device wallets
20
1.2.2
Existing research on adoption of digital device wallets in Russia
24
1.3
Identification of research gap in the field of adoption of digital device wallets in
Russia
26
Chapter 2. Development of research tools for analysis of digital device wallets
adoption in Russia with extended UTAUT2 model
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2.1 Extending UTAUT2 with trust and security constructs
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2.2 Foundations for using empirical research
37
2.3 Development of statistical hypotheses for extended UTAUT2 model
40
2.4 Development of survey questionnaire for adoption of digital device wallets in Russia
43
2.6 Choice of non-linear PLS-SEM approach to analysis of collected primary data
47
2.7 Research plan for determination of drivers of adoption of digital device wallets in
Russia
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Chapter 3. Identification of factors of digital device wallets adoption in Russia
52
3.1 Descriptive analysis of collected primary data
52
3.2 PLS-SEM analysis of the model
56
3.3 Interpretation of results
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Conclusion
66
Reference list:
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Appendix
Digitalization is reshaping the financial industry dramatically. Main drivers of changes in the market place are alteration of customer behavior and launches of new innovative products.
One of the latest advancements in the field of financial technologies is the emergence of digital device wallets. These are special mobile applications, which provide an opportunity for the consumers to store information about their debit/credit cards on a mobile phone for simplified card management. Experts call device wallets the next evolutionary step in the area of digital payments after Internet banking and mobile banking (McKinsey & Company, 2015).
The idea of a digital device wallet existed for a long period of time, but no company had been able to introduce the first service to the market and set a standard for the industry. The first launched digital device service Apple Pay set up by a technological corporation Apple in 2014 created paved the road for new players (Euromonitor International, 2015). Soon after that Google and Samsung launched their own applications called Google Pay and Samsung Pay respectively. All of these three services entered Russian market in the end of 2016. All of these services are similar to each other, as they contain the same general range of functions. All of them provide enhanced security of transactions, provide easy card management, opportunity to pay offline in shops through NFC contactless payments technology, and help storing information about special discounts.
While digital device wallets provide a set of very attractive features for the consumers, adoption of this innovation turned out to be much lower, than forecasted by the experts (PYMNTS, 2018). For example, very little proportion of iPhone owners in the US have even tried using Apple Pay during 3 years after its launch. All three major digital device wallet applications in US show flattened rates of growth.
The research of this Master Thesis has answered all posed research questions in three major stages. On the first stage, we analyzed existing non-empirical and empirical research on the issue of adoption of digital device wallets internationally and in Russia. This analysis helped to identify UTAUT2 model as the best fit for closing the posed research gap through answering research questions. On the second stage, theoretical model UTAUT2 was extended with additional constructs and a questionnaire for primary data collection was developed based on the classical scales attributed to the model. A sampling strategy was developed to collect primary data for further analysis. On the third stage, UTAUT2 model was analyzed with non-linear PLS- SEM statistical techniques. Resulting model turned out to be reliable and helped to answer research questions.
1. What are the antecedents of adoption of digital device wallets by Russian consumers?
Performance Expectancy and Habit are the major antecedents of adoption of digital device wallets by Russian consumers. Habit turned out to play the most significant role both in intention to use and in actual usage of a digital device wallet. Therefore, the more a consumers uses a digital device wallet, the more likely it is that she will continue to use it more frequently.
2. What are the inhibitors of adoption of digital device wallets by Russian consumers?
Perceived Risk of using a digital device wallet is the only statistically significant barrier for adoption of a digital device wallet. Consumers are anxious about loosing private data during a transaction. Also they are concerned that a digital device wallet might fail to work properly during a transaction, which might undermine a purchase. These concerns prevent consumers from adoption.
3. How much of variance in adoption of digital device wallets can be explained with derived factors?
Model has a high explanatory power with 72,6% explained in the variation of intention to use a digital device wallet. Moreover, factor of Habit explains 69,4% of variance in actual use for a digital device wallet. An unexpected finding showed that intention to use does not lead to actual use of a digital device wallet.
