digital payment services - intercultural differences and trust as key determinants for the...

Intercultural Differences and Trust as Key Determinants for the Acceptance of Digital Payment Systems

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AGENDA

Eye Square – World Usability Day Berlin 201231.10.2012

WHO IS EYE SQUARE?

KEY DETERMINANTS

CONCLUSION

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WHO IS EYE SQUARE?

KEY DETERMINANTS

CONCLUSION

AGENDA

31.10.2012 Eye Square – World Usability Day Berlin 2012

Who is eye square?

31.10.2012 Eye Square – World Usability Day Berlin 2012

For more than eleven years, world leading company in the field of implicit user research

Focus on User Experience, Brand & Media and Shopper Experience

Pioneers in the use of eye tracking and the collection of physiological data in user research

Client base consisting of national and international companies such as: eBay, LG Electronics,Google, Yahoo!, Otto, Deutsche Bank and Procter & Gamble.

.

We understand users world-wide

eye square global studies

USABrasil

Russia

JapanChinaSouth KoreaTaiwan

MalaysiaIndonesia

Office LondonBerlin

Headquarter

Office Seoul

Office Tokyo

NorwayGreat Britain

NigeriaSouth Africa

BelgiumFranceSpanItally

PolandCzech Republik

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WHO IS EYE SQUARE?

KEY DETERMINANTS

CONCLUSION

AGENDA


SYSTEM and CONTEXT characteristics influencing acceptance of digital payment systems


Culturecultural characteristicsinstitutional trustcorruption

Institutionsaccess to institutional

finance system

Technologyinternet- and mobile usage

costs & availability of digital payment systems

Digital Payment Systemlatency of payment

usabilityportability

Trust-driving system characteristics

1. Ease of Use: clear & comprehensible features

2. Orientation: the user must always understand where he is in the process

3. Control: possibility to check and correct previous steps & data

4. Feedback on recent actions

5. Professional Design: minimalist design, consistent font size and wording, correct spelling

6. Smooth Technical Process

931.10.2012 Eye Square - World Usability Day Berlin 2012

CONTEXTTom travels world-wide

Eye Square - A Footer Example

He takes with him:

Tom was born and raised in Germany. He is 32 years old and from Düsseldorf . From there, he wants to start a round-the-world trip

TomTom starts his trip in Berlin

At first he wants to get something to eat. In

the restaurant Tom pays with Cash. He

would not pay by credit card which is often not possible anyway.

Like 50% of the Germans Tom likes to shop online. In online shops he mostly pays by

Invoice or with PayPal.

Although he uses his smartphone to browse online stores, he doesn‘t pay via his mobile

device due to Safety Concerns.

31.10.2012 Eye Square - World Usability Day Berlin 2012 12

Institutions• High density of bank branches: ~ 2.037 people/bank • Increasing number of ATMs (1/1.300 people)• Online banking is commonly used (44%)• 33% of the Germans own a credit card

Culture• High Uncertainty Avoidence (UAI: 65, „German Afraid“)• Industrialized country with the lowest trust in finance sector: 17%• Industrialized country with the lowest trust in the technology: 65%

Technology• 113,61 million mobile phone contracts• 75,6% internet users• eCommerce payment methods: Invoice (42%), PayPal/Click&Buy

(21%), Credit card (17%)

Take away German’s fears …

Culture• High uncertainty avoidance tendency (UAI: 65, „German Angst“)• Industrial country with the lowest trust in finance sector (17%)• Industrial country with the lowest trust in technology (65%)

• Population: 81,73 million

• High Income (OECD)

“I want to protect my data…!“

Why do you feel that your smartphone/tablet is not safe when shopping?


“I do not want to use the internet for

payments in general!“

“I‘m afraid that someone gets to the data. In addition, you are

always logged in with an app. If my mobile is stolen, others can easliy access my account in the shopping

portal.”

“ Why do online shops always offer

PayPal? Not everyone has trust

in PayPal!“

“Hackers can hack the app.

Unfortunately, this happened to me

before.“

“With my iPad I do not want to pay via PayPal. This payment

method doesn’t seem to be safe enough for the iPad .“

Tom arrives in the USA.

He is happy that he is able to pay by Credit Card everywhere, even a cup of coffee.

In the subway, he watched a man next to him

transferring money online via an Online Banking App.

He pays for his new Nike sneakers which he bought

online via PayPal. It is available in all online stores.

Higher trust, higher acceptance

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Institutions• Relatively high density of bank branches: ~2.800 people/bank• ~80% of all households have at least one credit card

Culture• Low uncertainty avoidence (UAI: 46) • Industrialized country with highest confidence in Finance sector:

41% • High technology trust: 81%

Technology• 331 million mobile phone contracts • 78,6 % internet users


Culture• Low uncertainty avoidance tendency (UAI: 46) • Industrialized country with highest confidence in finance sector

(41%) • High trust in technology (81%)


• High Income (OECD)

Tom is now in Moscow !

He rides into the center of Moscow and fortunately finds a bank.

He picks up a large amount of money, as he has heard that in Russia most of the payment is

done by Cash. Probably he won’t be able to

use his credit card.

He visits a former classmate who bought a new couch from a website selling second-hand

items. For payment, his friend wants to meet the seller in person. The couch is delivered

and his friend pays by cash.

Tom is wondering why his friend

prefers to pay by cash although

he could have transferred the

money.

Low trust, low acceptance

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Institutions• Density of Bank branches 1.700 persons/Bank• High Corruption perceptions index (CPI: 2,4/10)

Culture• Top in Uncertainty Avoidence Index(UAI: 95)• Low confidence in banks: money is deposited in cash at home.

Technology• 90% have a mobile phone• 42,8% internet users• since 2011 PayPal.ru


Institutions• Density of bank branches : 1.700 people/bank

• Population:141,9 million

• Upper Middle Income (OECD)

Culture• High uncertainty avoidance tendency (UAI: 95)• High corruption perception index (CPI: 2,4/10)• Low confidence in banks: money is deposited in cash at home

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‘‘I Prefer Cash ! ‘‘

Alexandr, 39, Engineer

Int.: How do you usually pay for this?

„I prefer cash. Probably a personal meeting in town and I just give him the money.

I have the card […] this is a plastic card, and I can not pay using it online.

[…] But to use a credit card, I wouldn‘t probably like to do that.“


After a long journey Tom reaches Kenya.

He is in Africa for the first time and struggles with the heat. After he has stayed a few days in the bustling capital, he visits a small town in the

surrounding area.

He starts to search for a bank branch.

He is disappointed when he discovers that no bank branch or ATM is available far and

wide.

After speaking to a passerby about it, he finds out that most of his friends transfer their money by

Mobile Banking via the provider M-Pesa.

Sandro Senn/Wikipedia

High utility, high acceptance

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Institutions• Bank density: 1 ATM for approx. 19.000 people

Culture• Low trust in institutions• Corruption und nepotism widespread (CPI: 2,2/10)• Medium uncertainty avoidance tendency (UAI: 52)• Collectivist society (IDV: 20)• Transactions primarily done within the family and locally known

retailers• Illiteracy rate approx. 30%

Technology• 19,4 Million Mobile connections (strong growth)• 15,6% Internet user• Mobile Money: 16 Million user with 2 Millionen Transactions per day

(M-Pesa)• > 40% of adults done mobile banking in 2011


Technology• 19,4 million mobile connections (strong growth)• 15,6% internet users• Mobile Money: 16 million users with 2 million transactions per day

(via M-Pesa)• > 40% of adults have done mobile banking in 2011


• Low Income (OECD)

Tom is in Bangladesh

His has run out of cash and looks for a bank in the city of Dhaka.

He has seen a bunch of people standing and

waiting in long lines in front of the bank

branches.

Waiting in front of the bank seems to be normal here but Tom does not want to wait for so long.

After a short time, Tom finds an ATM and can

easily withdraw cash with his credit card.

Later Tom learns how to get money via mobile phone. If he wants to get money from his Mom

abroad, she just has to go to Western Union, deposit money and give them the number of Tom‘s mobile. Instantly, Tom gets a short message and with that message he can get cash

even at a kiosk.

Tanweer drmc/Wikipedia

High utility, high acceptance…

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Institutions• Density of Bank branches: 1 Bank for 19.000 persons approx.• Traffic zam and long queues in banks very much time-consuming• Mobile Banking allows access to banking without a bank account

Culture• High uncertainty avoidance tendency (UAI: 60) • Collectivist society (IDV: 20)• Trust in interpersonal relationships (including cash transactions)• High illiteracy rate (29%)

Technology• 98 million mobile phone contracts• 6,7% internet users• PayPal not available


Institutions• Density of bank branches: 1 Bank for approx. 19.000 people• Traffic jams and long queues in banks → very time-consuming• Mobile banking allows access to banking without a bank account

• Population 150,5 million

• Low Income (OECD)

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AGENDA


WHO IS EYE SQUARE?

FACTORS

CONCLUSION

CONCLUSION

• For the acceptance of digital payment systems both system properties and context are crucial.

• Intercultural differences regarding trust in institutions, technology and

other people account for different levels in terms of acceptance and usage of digital payment systems.

• In industrialized countries where the financial system and technology is

highly developed, cultural factors explain differences in acceptance and

usage. Trust can be enhanced by interface design.

• In developing countries and emerging markets the utility of digital

payment systems is the crucial factor that determines acceptance.Digitalpayments help to eliminate institutional barriers and use easy-to-use technologies like mobile phones to provide access to the banking system.


Thank you for

your attention

References

Auswärtiges Amt (2012): http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/Kenia/Innenpolitik_node.html

Bankenverband (2012): https://www.bankenverband.de/publikationen/ods/die-privaten-banken-fakten-und-zahlen/die-privaten-banken-fakten-und-zahlen/download

Benamati & Serva (2007): Trust and Distrust in Online Banking: Their Role in Developing Countries

Bundesverband Digitale Wirtschaft (BVDW) e.V. (2011). E-Payment Report 2011

Credit.com Inc. (2012): http://www.credit.com/press/statistics/credit-card-statistics.html

Donner, J. (2007). The rules of beeping: Exchanging messages via intentional “missed calls” on mobilephones. Journal of Computer-Mediated Communication, 13(1), 1–22. DOI: 10.1111/j.1083-6101.2007.00383.x

FDIC (2011): http://www.fdic.gov/news/news/press/2011/pr11001.html

Gamos (2003): Innovative demand models for telecommunications services. Study on Botswana. DFID and CTO.

Gamos (2007): Senegal household survey. M-payment analysis. DFID – Transformational M-Payments. DFID. CATIA,

International Telecommunication Union (2011): http://www.itu.int/ITU-D/ict/statistics/at_glance/KeyTelecom.html

Molony (2006): ‘I Don’t Trust the Phone; It Always Lies’: Trust and Information and Communication Technologies in Tanzanian Micro- and Small Enterprises

Tchouassi (2012): Can Mobile Phones Really Work to Extend Banking Services to the Unbanked? Empirical Lessons from Selected Sub-Saharan Africa Countries. In: Zeitschrift

Schwarz (2009): http://www.theeuropean.de/441-uta-schwarz/677-mobilfunk-in-afrika

Statista (2012): http://de.statista.com/statistik/daten/studie/3907/umfrage/mobilfunkanschluesse-in-deutschland

TNS (2012). Electronic Payment Systems in Russia

Worldbank (2012): http://www.worldbank.org/country

Zapf (2012): Afrikas neuer Wohlstand. In: Financial Times

http://www.russiansearchtips.com/2012/04/russian-mobile-internet-usage-had-doubled-during-2011/

http://www.internetworldstats.com/euro/ru.htm

http://geert-hofstede.com/national-culture.html

http://en.wikipedia.org/wiki/Education_in_Bangladesh

http://www.bkash.com/video/empowering-unbanked

http://en.wikipedia.org/wiki/Telecommunications_in_Bangladesh

http://www.btrc.gov.bd/index.php/telco-news-archive

http://www.thedailystar.net/newDesign/news-details.php?nid=231625



Lisa Wiese

Phone +49 – 30 – 69 81 44–34

[email protected]

Miguel Twi-Yeboah Asuamah

Phone +49 – 30 – 69 81 44–41

[email protected]

Saddam Hossain

Phone +49 – 30 – 69 81 44–34

[email protected]

eye square GmbH

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D – 10997 Berlin

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