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Today, life has become dependent on electronic gadgets, which mainly consists of mobile devices such as the laptop, smartphone, and other electronic gadgets. In recent times, mobile phones enable us to engage in routine functions such as making payments for our shopping and other transactions (Sharma & Gupta, 2019). The introduction of the Information and Communication Technology (ICT), for instance, has created an opportunity for consumers to pay for products and services online and offline using mobile phones known as mobile payments or M-payment. Customers carry out large transactions through wireless and wired data transmission networks, with the support of mobile devices and mobile databases to give consumers access as well as convenience to large amounts of products and services.
According to Guo and Bouwman. (2016), M-payment is the initiation and confirmation of payment by wireless Some scholars also explained that M-payment could be defined as “any personal or commercial activity involving an electronic device connected to a telecommunication network to complete an economic transaction” (Liébana-Cabanillas, Ramos de Luna, & Montoro-Ríos, 2017).
The introduction of technologies like CDMA (Code Division Multiple Access) supporting 3G/4G for mobile telecommunications by companies like MTN, VODAFONE, AIRTEL/TIGO, in Ghana has created an enabling platform for consumers and sellers to accept and use their mobile phones to pay or accept payment for goods and services in Ghana. Integrating payment systems developed in different parts of the world is a challenge due to the lack of ICT knowledge and limited bargaining power with intermediaries. Because of the low quality of existing means of payment in some developing countries, that open more significant windows of opportunity for the future use of mobile payment (Asongu & Nwachukwu, 2018).
Unlike the developed countries, Ghana and some other developing countries have still not developed a model that allows for the use of e-cards (debit or credit cards) for business transactions. So, consumers and businesses mostly rely on cash for payment methods and settling of debts. This situation is worrying as it poses and exposes consumers to some risk including health, theft and loss of valuable money as a result of carrying physical cash in a purse or wallet. There is the need, therefore, to consider other safer methods of carrying cash without subjecting consumers to the above dangers. One of such ways is the use of mobile payment method.
Mobile payments have been in existence in the developed economies for some time now and have been linked to improving business transaction. A recent study by Accenture shows that in the coming years, there would be a decrease in the traditional payment method in favour of an increased digital payment (Accenture.Consulting, 2015). The study further predicted a significant increase in the use of retail apps (8%), Apple Pay™/Samsung Pay™ (7%) and PayPal (6%) (Liébana-Cabanillas et al., 2017). Also, a study by eMarket indicates mobile payment transaction in 2016 reached $27.05 billion, with customers spending an average of $721.47 annually (eMarket, 2015). The reason for the sharp rise in mobile payment sales, according to the report, is due to the rapid growth of the use of mobile payment technology.
Notwithstanding the abundance of literature on M-payment in the developed economies, few empirical studies have been carried out on mobile payment usage in developing market (Muriu,2017).). As to whether consumers’ aim towards e-payment can be construed to M-payment remains mostly unidentified. For that matter, the understanding of mobile users’ intention to adopt M-payment system in developing economies such as Ghana appears to be sparse or non-existent. This study, therefore, seeks to breach the gap in the literature on M-payment studies in developing economies such as Ghana. Hence, the major objective of this study is to find out the determinants of mobile payments system adoption intentions among consumers in Ghana.