The adoption of mobile payment services by millennials: the roles of smartphone addiction and situational variables

Purpose: The increased usage of smartphones has made mobile payment services (MPS) popular among millennials, but it is uncertain if this shift in behavior is temporary due to situational factors like the pandemic or a long-term trend due to technological advances. This study uses the diffusion of innovation (DOI) literature to assess an integrated model including smartphone addiction, technology-related and consumer-related factors that influence consumers' intention to use MPS. It also explores the interplay of situational variables and smartphone addiction in shaping this relationship. Design/methodology/approach: The authors base the conceptual model on the theory of rational addiction and the theory of optimal flow. This model is then empirically validated through data collected from seven hundred users of MPS in India. Research hypotheses are tested using structural equation modeling and multi-group analysis. Findings: The study finds that smartphone addiction has a positive impact on millennials' perceived advantages, compatibility, trialability and observability of MPS but does not significantly affect their perceived complexity or risk. The results also suggest that the relationship between smartphone addiction and MPS is moderated by situational factors. In low-priority situations, smartphone addiction strengthens millennials' perceptions and intentions to use MPS, while in high-priority situations, situational factors overshadow the impact of smartphone addiction. Originality/value: The findings of the study enable organizations to capitalize on smartphone addiction-driven MPS adoption behavior to sustain long-term usage behavior by appropriately understanding the context/situation which drives MPS adoption.