Examining the perceived risks of contactless card acceptance in the New Zealand market
Thesis DisciplineBusiness Administration
Degree GrantorUniversity of Canterbury
Degree NameMaster of Commerce
Contactless payment is a modern addition to transaction technology and has gained traction in New Zealand through the advent of contactless bank cards. Consumers no longer require security PINs for low value transactions which creates faster payments and reduces queuing times. However, reduced security has given rise to card theft, fraudulent transactions and criticism from consumers who feel they have little control over payment instruments. Despite ample academic attention given towards contactless pay via smartphones, few studies have explored contactless cards which are a drain on global economies due to interchange fees. Policy makers, retailing unions and global payment networks are debating the merits of fee regulations that are dependent on consumer acceptance. Hence, this study empirically measures consumer acceptance of contactless cards which informs stakeholders of their likely trajectory and highlights potential for prospective markets. Partial least squares structural equation modelling is used in conjunction with technology acceptance and risk perception theories to formulate a proposed model fit for measuring intent to use. A questionnaire is constructed using repurposed measures reflecting latent perceptions that possess demonstrated relevance in relation to contactless pay technologies. Results from 587 respondents show that acceptance is strongly influenced by perceived security, overall risk, trust and usefulness. New Zealand consumers are largely positive towards use whilst younger cohorts are the most likely to accept. The proposed model is suitable for reapplication in prospective markets which aids scholars in measuring market receptivity of contactless cards.