Analyzing the Effect of Mobile Payments on Consumer Behavior

This essay examines the effect of mobile payments on consumer buying behavior, particularly within the context of Saudi Arabia. It begins by introducing the current status and forecasts of mobile payments, highlighting the shift from traditional cash payments to digital methods, especially during the pandemic. The essay then delves into a literature review, exploring how mobile payments influence consumer choices, the adoption of new payment technologies, and the impact of digital wallets. It also discusses the role of mobile payments in promoting brands and the importance of security measures. Furthermore, the essay analyzes the impact of mobile payments on customer purchasing behavior, covering topics such as mobile browser payments and in-app mobile payments, and their benefits in terms of ease and efficiency. The analysis emphasizes the positive influence of mobile payments on consumer decision-making and the ongoing transformation of Saudi Arabia's financial landscape towards digitalization.

The effect of mobile payment
on Consumer buying behavior
Contents

SECTION 1.................................................................................................................................................2
Effect of mobile payment on consumer buying behavior........................................................................2
SECTION 2.................................................................................................................................................3
Literature review.....................................................................................................................................3
REFERENCES............................................................................................................................................9
SECTION 1
Effect of mobile payment on consumer buying behavior
As the technology is getting enhanced and payment methods are getting diverse, the
usages of mobile payments have replaced the method of traditional cash payments (Zhao and
Bacao, 2021). By doing payments from mobile phones it has changed the consumer spending
patterns as well as payment habits. If we look at the current situation, then during this pandemic
doing payments from mobile phones is very much beneficial and almost all the individuals prefer
to do contactless payments (Raman and Aashish, 2021). The innovative technologies provide
new tools and techniques in relation to separate the phase of purchase from effective
consumption with the help of allowing all consumers to make certain purchases through mobile
phones (Ramadan and Aita, 2018). Consumers may feel a sort of change due to the enhancement
of multiple mobile channels which also changes their buying behavior in context with purchase,
consumption and also the after sales service. The strategies of mobile marketing are mainly
based on how consumers access the overall information with the help of their mobile phone. As
per the current digital world, the payment mode in terms of digital money is at high trend. The
mobile payments create an influence on consumer behavior as they had always used cash and
credit cards rather than digital money. Mobile payments are very much beneficial for an
individual because it provides a quick access to all individuals as they do not have waited to do

cash payment. They can just do it digitally and it can do within seconds. As per current situation
mobile payments are very much beneficial and especially if we look at the pandemic.
By looking at the earlier times the market shares of mobile payments it was determined that there
are around 232 million smartphones in use and around 15% of them used to do contactless
payments. In the year 2019 the global mobile payment market size stood at 1.18 trillion during
the year 2019 and the prediction has been made by looking at the current situation that till the
year 2027 the status and forecast would reach to around 8.94 trillion (Lara-Rubio Villarejo-
Ramos and Liébana-Cabanillas, 2021). With the help of mobile payment services, they offer all
audiences a quick way of money transfers as well as an efficient substitute for cash based
transaction also.
As per the current background of mobile payment in Saudi Arabia the banks offer certain
mobile banking applications so that all customers can access their accounts and can do payments
from their mobile phone only (Mou and Benyoucef, 2021). The people who do online shopping
are regularly buying certain new phones, different products and with respect to this they do make
payments on online basis and in terms of current situation it is considered as the primary element
of purchase. In terms of the future of all digital payments Saudi Arabia would be implementing a
gateway technology and also an e-wallet (Gupta and Arora, 2019). The financial landscape of
country is facing a period of transformation in relation with the technology advancement as well
as certain innovations in order to build up the level of digitalization of payments. The main aim
of management system was that they would decrease the usage of cash payments and would
support mobile payments. By looking at the current situation contactless payment are in high
trend and is increasing day-by-day. They always wanted that in future they build up cashless
society and everyone consider mobile payments only.
SECTION 2
Literature review
Mobile Payments
According to Kristen Jason and Alison Arthur, 2020, Technology has changed every business
sector and scripting new way of doing business in market with adoption of tools, applications and
software. It is critically becoming important for every individual to be well aware about these changes

technology so that it is easier to competitive advantages in this contemporary business environment.
Smart devices and their value have been increased periodically and now in this modern era it is not
possible for any individual to perform activity without use of mobile phones computers laptops and many
more (Esfahani and Ozturk, 2019). Payment systems have taken new path from physical to digitally.
The emerging of mobile payments started in 1997 by Meritor Bank of Finland who started the payment
system based on SMS. For example- Coca-Cola also introduced mobile payments in 1997 with wide
number of vending machines where customers could make easy payments from mobile (Ng, 2021). With
periodically changing interval of time, mobile payments now I have become important for everyone as
because they make it easier for customers as well as sellers to make the payment without any worries of
cash and in a fast method. In this on-going pandemic situation of covid-19, use of mobile payment system
and mobile wallets increasing at rapid scale. Security related to mobile phones your main focus by
customers so organizations uses many different types of software’s and well secured technologies to
protect the videos of customers at all aspects so that the information cannot be accessed by any third
party.
Saudi Arabia also started and developed their universal Mobile payment system as well as
infrastructure in 2018. Customers and users were connected with the card issued in the kingdom and it
also results in elephant of NFC based payment solution like Made pay and Apple pay. It has been also
reported that payments in Saudi Arabia has been slow in adoption of contactless technology and
improving their services with the initiatives of government and banks (Yuniarta and Purnamawati,
2021). Different types of companies which accepts the mobile wallet and are used by customers at larger
scale such as STC wallet brand, SAMA approved by two large financial services companies to launch full
event services with purpose of promoting cut in use of physical cash. It is necessary for both service
provider and service ticket to have a detailed knowledge about changes that are taking place within
country and outside the country so that it becomes easier for them to execute their business activities in
well effective manner without facing any issues. Government of Saudi Arabia are focusing towards
development of technology and services in a country so that people can become axis and used to
contactless technology which will also give them new path to do business (Sharma, Sharma and
Dwivedi, 2019). Furthermore, it has been also specifying that payment system is also affecting
consumer decision and their behavior towards product as well as services. It is also seen that many of the
companies uses mobile payment system as a way of promoting their brand and product as well. Digital
wallets and payments have any impact on business sector and it is a cost expensive but simplifies the
process of exchange easier way (Widyanto and Kusumawardani, 2021). Strict rules and regulations
have been also maintained and managed by Saudi Arabia legal assistance with government so that

customers can make payments through e wallets easily and without fear of losing their information in
wrong hands. It is critically essential for business organizations to adopt and promote this e wallets
technology it is easier for them to access computer benefits and expansion of business activities.
This has been also evaluated that with implementation of digital technology in market customer
satisfaction is increased and also it is beneficial for them to make payments from mobiles in this on-going
covid-19 situation.
Effect of mobile payment on customer purchasing behavior
As per viewpoint of Tobias Trutsch, 2021, As effect of mobile payment on adoption of
various use of technologies in terms of payment instruments such as cash, credit as well as tax
along with having prepaid cards for data mining customer points of view are explained
(Alkailani and Abu-Shanab, 2021). As mobile payment creates an effective impact on building
and making customer choices as mobile payment does not replace physical payment card but it
generally substitutes for paper related payment method for having more efficiency and ease of
work in carrying out payment along with mobile payment on customer buying behavior does not
statistical influence choice of payment along with their means of carrying out POS terms of their
implementation. As in technological world there is availability in terms of increasing number of
various payment instruments along with having new online payment opportunities that could be
offered to customer in terms of having their customer buying decision. As mobile payments
provide and is as well as effectiveness to customers so that they will be able to make payment
with effectiveness by having just one click (GARROUCH and TIMOULALI, 2020).
Aspirational banking payment systems as well as services that are carried by customers create a
long time consuming process for making payments and in present in order to deal with fierce
competition along with maintaining their position in market customer likely prefers to use
various mobile payments so that their payment mode could be performed quickly by using where
is mobile payment method (Garrouch, 2021). As mobile payment has created a positive effect on
customer decision making as traditional banking methods are facing fears competition from
established non-financial company like Google, PayPal and various other mobile payment
method. Along with customers are generally preferred to cover most of market share so that their
requirements as well as demands could be fulfilled in an effective manner.

As it has been analyzed that in terms of carrying out mobile payments in Saudi Arabia it
has emerged through a various method of carrying out payments as customers of Saudi Arabia
mostly prefer on using mobile payments in terms of fintech as well as digital wallet for using
mobile payments to make payments for availing production services also with other things. It
straight positive impact of mobile payment on customer behaviour and decision has it helps in
providing and ease of making payment to companies and marketers in order to avail services so
that attractiveness could be maintained.
As per viewpoint of Eleonora Pantano, 2021, As emerging retail culture is featured by using
extensive implementation of mobile technology through hire connectivity as well as contactless
technology that could enables customers to provide an effective experience in terms of shopping
(Shishah and Alhelaly, 2021). As by computing abilities as well as enhancement in mobile
technologies by having flexible software in terms of payment could lead to provide benefits to
customers in order to influence their customer buying decision. As it generally creates a positive
effect on carrying out mobile payments for influencing customer buying decision in various
terms as well as it provides features as well as benefits that are explained in various terms
(Mensah, 2019). Along with that customer buying behavior and decision making are based on
payments of mobile that could be carried and performed by marketers and companies in order to
provide them a sense of ease. In terms of carrying out effect of mobile payments in customer
buying behavior as well as decision making in Saudi Arabia it could provide various benefits as
well as features of mobile payments that could be used by customers for availing their services
which are explained as follows:
 Mobile browser related payments: As related to desktop E-Commerce shopping mobile
browser related payments generally allows customers to make card not present buying
through credit, a debit card also along with banking information by using mobile devices.
Customers of Saudi Arabia could visit their website in their mobile phones along with
choosing their product and services that they want to shop and provide their payment
details in order to make payments.
 In app mobile payments: As by this feature payment is related to mobile browser based
payment that creates in navigating to a website that are open in application of a store.
customer’s benefits in having a range of application in terms of in app mobile stores as

well as businesses which allows them to choose various product and services within a
limited ecosystem.
 Mobile or wireless credit card readers: As customers could use their smartphones as
well as mobile devices for pointing out sale system in order to make payments for
availing product and services (Ghazwani, 2021). There is another option that could be
used by customers in influencing behavior of buying decision through accepting mobile
payments by having wireless credit card terminal that could help them in making
payments without using traditional credit card terminal for a magnetic chip reader. As it
provides customers a sense of is and their buying decision could be affected in a positive
manner.
Intention to use focus of customer buying behavior through mobile payment.
As per viewpoint of Francisco Liebana Cabanillas, 2020, As there is intention to keep a
focus on customer buying behavior by having mobile payment as there is a rapid growth of
mobile technology among global population which is carried by various companies in order to
attempt for exploiting mobile devices as there are additional technique for increasing their sales.
And according to that there is main objective of business is to analyze various mobile payments
along with mobile communication towards customer in terms of providing short message
services as well as near field communication mobile payment services as the example of using
future payment systems (Al-Hazmi, 2021). As by using various models in research it could
applied to have various variables of technological acceptance model so that a perceive intention
to keep a focus on customer behavior could be examined. As in present years’ mobile devices
such as smartphones, wireless tablet as well as laptops transfers various types of data. As these
devices also serve to be a mode of payment for providing products and services for having a
means of transmission of information which is known to be mobile payments. Directly affect
customer buying decision of product and services (Williams, 2021). Author works and proposing
that any personal as well as commercial performance or activity should be involved in carrying
out electronic device which is connected to a mobile network for accomplishing an economic
transaction in terms of mobile payments that could be considered as an impairment in terms of
purchasing of products and services by customers.
This study focuses that for focusing on customer buying decision it is necessary to
determine various customer mobile payments which are identified as two largest present mobile

system of payments that are Short message service which is a remote tool and other one is near
field communication and it need a close proximity for carrying out payment services (Ramli,
F.A.A. and Hamzah, 2021). As customer decision of purchasing behavior is generally dependent
on modes of mobile payments that they found to be easier as well as suitable for carrying out
payment so it is necessary for companies to provide a simple and easy and mobile payment
services that requires communication protocol along with allowing exchange of short text
messages among to mobile devices that could help in communicating well in terms of
transactions. As a focus on creating and intention to provide customer buying decision in terms
of product and services for carrying out payments through mobile phones devices.

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