How consumers' privacy perceptions influenced mobile payment acceptance during the COVID-19 pandemic

Purpose Our research investigated how the perceived effectiveness of privacy, perceived privacy risk, and perceived security influenced consumers' behavioral intention to use mobile payment applications during the COVID-19 pandemic. Design/methodology/approach We applied a quantitative method using a cross-sectional online survey conducted over three years. We collected a sample of 1,471 survey responses focused on ages 18–39. Using descriptive statistics, confirmatory factor analysis, and structural equation modeling, we tested our hypotheses with SPSS 27 and AMOS 27. Findings Results of the study indicate that the perceived effectiveness of privacy positively influences perceived privacy risk, perceived security, and behavioral intention. Moreover, perceived privacy risk has a positive effect on perceived security. We found no significant relationship between perceived privacy risk and behavioral intention, although perceived security has a positive effect on behavioral intention. Further mediation analyses showed that perceived privacy risk and perceived security mediate the relationship between the perceived effectiveness of privacy and behavioral intention. Originality/value This research sheds new light on the role of perceived privacy effectiveness in mobile payment adoption in Hungary, particularly during the COVID-19 pandemic. Our research also explains why and how perceived privacy effectiveness influences consumers' perceived privacy risk, perceived security, and behavioral intention.