Factors affecting user acceptance for NFC mobile wallets in the U.S. and Korea

Purpose - The purpose of this paper is to identify the factors affecting user acceptance for NFC mobile wallets in both Korean and US markets. Design/methodology/approach - The proposed model extends the UTAUT2 model with new constructs of credibility (CR) and service smartness (SS). This study was analyzed using partial least square structural equation modeling on data collected from 701 college students between the ages of 18 and 29. Findings - The results of this study demonstrate that performance expectancy (PE), effort expectancy (EE), CR, SS and habit (HB) have strong positive relationships with a user's behavioral intention to use NFC mobile wallets. Comparing the results of the USA and South Korea, there are different results regarding PE and CR. Research limitations/implications - This study shows that all factors except social influence (SI) have significant positive relationships with the intention to adopt NFC mobile wallets: Among the original UTUAT2 factors, PE, EE and HB are important determinants of NFC mobile wallet adoption and the new constructs, CR and SS, are significant determinants that influence BI. However, the target respondents are limited to college students of South Korea and the USA Thus, caution should be used when applying the results of this study towards less ICT developed countries and towards different age groups. Practical implications - This study provides multiple practical contributions. First, this study emphasizes HB as the strongest factor for adopting NFC mobile wallets in both South Korea and the USA Second, this study also highlights the importance of SS. Third, this study reveals that SI is not associated with the adoption of NFC mobile wallets. Fourth, nationality differences between the USA and South Korea account for the differences in consumer behaviors. Originality/value - This study has two main contributions: First, this study introduces a modified UTAUT2 model with two new variables (CR and SS) useful for NFC mobile wallets. Second, this study compares the results of partial least square structured equation models (PLS-SEM) of the two nationality groups, South Korea and the USA.