Siyal 2019

Data Technologies and Applications
M-banking barriers in Pakistan: a customer perspective of adoption and continuity

intention
Abdul Waheed Siyal, Donghong Ding, Saeed Siyal,
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M-banking
M-banking barriers in Pakistan: barriers in
a customer perspective of Pakistan
adoption and continuity intention

Abdul Waheed Siyal and Donghong Ding
School of Management,
Received 2 April 2018
University of Science and Technology of China, Hefei, China, and Revised 27 August 2018
Saeed Siyal 17 October 2018
Accepted 31 October 2018
School of Public Affairs,
University of Science and Technology of China, Hefei, China
Abstract
Purpose – The purpose of this paper is to determine barriers jeopardizing the adoption and usage intention
of mobile banking (M-banking) in Pakistan and provide deeper insights to fix such deteriorating factors.
Design/methodology/approach – Data was collected in countrywide regional headquarters to mark the
utmost generalizability of the results, which included seven largest cities of Pakistan. SEM path analysis was
used to analyze data collected from Pakistan’s top 5 bank customers incorporating both users and non-users.
Findings – Results revealed that lack of awareness, initial trust and compatibility and perceived risk were
the core barriers that stood out as obstacles to the adoption and usage of M-banking in Pakistan. It was also
approved that having fixed these core barriers would outcome in existing users’ continuity intent besides
raising new users’ inclination toward M-banking.
Originality/value – The study has unveiled the core barriers that have so far impeded the adoption and
usage of M-banking. There is not a unified position concerning adoption and usage blockades. Factors differ
with contexts, markets, time and kinds of innovations. However, this study is unlike past studies that merely
studied students within a specified institute in a restricted jurisdiction. This is the first study to have
nationally explored adoption and usage issues; thus, it is anticipated to potentially contribute to the prevailing
literature especially in Pakistani context where a few studies prevail, addressing M-banking adoption and
usage barriers.
Keywords Pakistan, Barriers, SEM, TAM, Awareness, M-banking
Paper type Research paper
1. Introduction
Mobile banking (M-banking) has revolutionalised the overall banking industry, as most of
the banking transactions can easily be performed regardless of time and place, on ones’
fingertips without having to visit any bank branch (Oliveira et al., 2014; Mohammadi, 2015b;
Tran and Corner, 2016; Salimon et al., 2017), which has enabled consumers to attain desired
value-added banking services with a nominal and, sometimes, no cost, besides considerable
savings of time, money and efforts (Goyette et al., 2010; Hogan et al., 2004; Kim and
Prabhakar, 2004). M-banking in prevailing commerce plays a significant role in accelerating
growth (Kim and Prabhakar, 2004) and bringing banking value-added services to
consumers’ doorsteps (Harrison-Walker, 2001; Hogan et al., 2004). M-banking is still in its
early evolutionary stage (Teo et al., 2012), hence mainly targeting trust of potential users to
ascertain long lasting and expanding usage, but despite such far-fetched gains and
incredible efforts, yet M-banking has not been able to reach experts’ surmised levels (Mullan
et al., 2017; Hanafizadeh et al., 2014; Shaikh and Karjaluoto, 2015).
This calls for the further probe, compelling researchers and service providers to
step back and look into the barriers effecting M-banking adoption spread and resulting Data Technologies and
Applications
of existing M-banking accounts into dormancy and deactivation, which is contrary © Emerald Publishing Limited
2514-9288
to Gartner’s predicted mass institutionalization of M-banking at latest in 2013 DOI 10.1108/DTA-04-2018-0022
DTA (Gartner, 2008); the Juniper Research predictions of worldwide M-banking users
surpassing 1bn by 2017 ( Juniper Research, 2013), which forms simply 15 percent of global
cell phone users and leaving the giant part unbanked; and the marvelous rise touching
2bn users by 2021, foreseeing more than one in each three of mature population, accessing
M-banking services via their mobile devices ( Juniper Research, 2016), which is again a
huge prediction seemingly, lacking fortified outcomes besides contradicting numerous
extant studies ascertaining declined growth expectations of M-banking (Koksal, 2016;
Dineshwar and Steven, 2013; Shih et al., 2010; Cruz et al., 2009; Lee and Chung, 2009;
Luarn and Lin, 2005).
Some past studies of Laukkanen (2007), Laukkanen and Lauronen (2005), Laforet and Li
(2005), Kim et al. (2007), Bigne et al. (2005), Tanner (2008), Teo et al. (2012) and Moser (2015)
reveal that only a meager percentage of the youngster population among developed or
developing countries has so far shown their inclination toward the adoption of M-banking,
which typically consents that higher the change is involved in the innovation, greater is the
confrontation shown by users (Laukkanen et al., 2007). However, it is natural for innovations
to face conflict in the shape of delayed acceptance or thwarting use, while the prevailing
literature speaks loud and clear that innovations’ prochange bias results positive as the
users welcome latest services and products (Laukkanen, 2016) and resultantly the
innovation literature confines enquiry into adoption and diffusion aspects (Talke and
Heidenreich, 2014). All these studies have put their efforts to unblock the way of technology
acceptance, but yet there seems to be a giant gap between barriers and mass adoption,
which poses a severe threat to M-banking application, it is promising predictions and the
heavy investment of banks in the innovation infrastructure, by spawning scanty returns,
creating a concerning situation that needs to be put right at sooner possible level to
smoothen the uptake of the technology as well as encourage future investments in latent
innovations as otherwise this grave situation would force banks to terminate their
M-banking services, according to Teo et al. (2012) scarcity of users compelled some
American Banks to shut down their M-banking services.
This study points out barriers that resist potential consumers’ determination (both users
and non-users) to use M-banking in Pakistan, leaving the growth rate a bit stable and slow
paced, and further elaborates hurdles and proposes remedial notes to fix barriers, which
pose hindrance to the adoption and usage intention, unlike most past studies that merely
concentrate on SMS banking except very few heading toward M-banking (Shaikh and
Karjaluoto, 2015; Mehrad and Mohammadi, 2016; Mohammadi, 2015a), while others speak of
initial adoption (Yuan et al., 2016; Baptista and Oliveira, 2016) and motivations toward
M-banking (Tam and Oliveira, 2017). Recent studies have only focused on users (Raza et al.,
2017; Mohammadi, 2015a; Sharma, 2017) without considering non-users. Majority of such
studies focus M-banking on technological aspects rather than user behaviors (Sharma et al.,
2017; Wessels and Drennan, 2010). A little attention has been given to the developing
countries, which is of the grave concern (Teo et al., 2012; Sharma et al., 2017). Therefore,
consumer perspective has received less attention (Ferreira et al., 2014), which corroborates
the barriers as an under researched facet (Mehrad and Mohammadi, 2016), leaving a
developing country like Pakistan untapped and, henceforth, making it imperative to study,
identify and examine such antecedents (Glavee-Geo et al., 2017). Some recent studies of
Mohammadi (2015a), Afshan and Sharif (2016) and Hanafizadeh et al. (2014) have left their
research domain just limited to the students of a certain college or university within a
specified jurisdiction or area, which calls to further investigate adoption and usage issues at
a broader level, surpassing the previously restricted domain, consequently, the barriers
remain unexploited, which are explored in this study at the broadest level, and to the best of
authors knowledge, this is the first study in Pakistani context that has investigated
adoption issues at the national level, and accordingly, our study answers the repeated recent
calls to look into adoption issues. In pursuit of tracing key antecedents influencing adoption M-banking
and usage of M-banking, our study devised following research questions: barriers in
RQ1. What are the key antecedents which hinder the adoption and use of M-banking in Pakistan
Pakistani banks by customers, and whether improving those conditions could be
fruitful for retaining users and attracting non-users?
RQ2. What are the implications of these antecedents in terms of theory development and
practice/management?
The remainder of the paper is ordered as follows: we address literature review in the next
section, followed by the presentation of the conceptual model and research hypotheses,
discussion of findings, implications for theory and practice, further study directives and
finally conclusion.
2. Literature review
M-banking overview: M-banking is an application of M-commerce, which was introduced in
Pakistan in 2009 and has now become inseparable part of business today (Afshan and
Sharif, 2016) but still demanding more trust and compatibility for its widespread and mass
acceptance, which hinders banks, service providers and the consumers to attain its
competitive advantage. M-banking is supposed to improve banks’ efficiency and people’s
quality of life (Malaquias and Hwang, 2016) and provide them with multiple value-added
banking services such as fund transfers, utilities, stocks and other banking services (Tiwari
and Buse, 2007). The use of M-banking services empowers users to input and authorize their
own financial and non-financial transactions (Kim et al., 2010), and the same is also
acknowledged by banks to their consumers, confirming the status of their authorized
transactions but besides all these facilitations, mass institutionalization of M-banking yet
remains an unfulfilled dream, which is being periodically predicted by various concerns.
Therefore, the prevailing conditions produce necessity to dive into the barriers blocking
attitude and intention of consumers and most of all help banks and service providers to
better understand key factors affecting intention to use M-banking (Mohammadi, 2015b).
2.1 M-banking in Pakistan

Pakistan, among cellular users, globally stands out on 8th position having over 140 m mobile
users (Afshan and Sharif, 2016), which indicates excellent market cushion availability for
uptake of M-banking, but, on the adverse, Pakistan has been globally ranked on 89th position
in the mobile internet network and on 126th position in the fixed broadband internet network
speeds (Ookla, 2017), which is a fading facet of the adoption and continuance of M-banking
and further fortifies the fact that why besides having such a comparatively huge cell phone
user base, consumers show reluctance to adopt M-banking and denote preference to the
precursors of M-banking, i.e., telebanking, branch banking and ATMs (Hanafizadeh et al.,
2014); this consumers’ avoidance also further supports the notion that technological advances
and service availability do not automatically lead to widespread adoption and use (Wessels
and Drennan, 2010; Wang et al., 2008). This also unveils the scarcity of valuable information to
consumers resulting in negative effects on their initial trust (Cruz et al., 2010; Tran and Corner,
2016) and in numerous misperceptions of multiple risks pertaining to the adoption of
M-banking (Luo et al., 2010). The existing literature in the Pakistani context focuses more on
customer satisfaction (Saleem and Rashid, 2011), effect of perceived risk on performance
expectancy and behavioral intention (Anus et al., 2011), social influence (Kazi and Mannan,
2013), speed and quality of service (Muhammed et al., 2013), security in internet and
M-banking (Mazhar et al., 2014) and gender differences (Glavee-Geo et al., 2017) rather than
identifying basic issues effecting M-banking adoption and continuity intention that have
DTA caused the adoption rate of mobile financial services to be still 2 percent among Pakistanis
(www.phoneworld.com.pk). And only 66 percent of available mobile accounts are currently
active (Afshan and Sharif, 2016). This meager percentage of users ascertains the dearth of
research in the Pakistani context, triggering the need to trace out the barriers that are blocking
the advancement of this rising phenomena and simultaneously placing it at a compatible level.
Our study mainly contributes to the M-banking literature by extending TAM with nucleus
barriers like lack of awareness, initial trust and compatibility and perceived risk, which thwart
acceptance and stretch of M-banking in Pakistan, spotlighting altogether users and non-users
accordingly, to mark out in bold their obstacles, in order to set them right effectively. We have
opted to examine and explore the factors that result in customers’ avoidance and keep them
away from this novel fondness by binding them with their traditional banking practices, apart
from their grasp upon the innovation. This extended TAM is surmised to help out in
understanding users’ elementary behavioral prototypes. Except a few most past studies have
simply focused on SMS banking, which is has been used in this study by defining adoption
and usage obstructions that eventually cause disinclination toward usage and continuity. For
pursuing utmost generalizability and fortified outcomes, varied population with different age,
income and education has been incorporated into the research sample. Our study explored the
mediating role of PU and PEOU, impacting indirectly usage intention, which contradicts
extant studies that inspected variables’ direct effect on intention (Mortimer et al., 2015; Koksal,
2016); therefore, we expect that our study would bring invaluable insights into the existing
literature and help in better understanding various patterns of customer behaviors.
2.2 Technology acceptance model (TAM)

TAM is most widely utilized innovation adoption model proposed by Davis (1989). This model
has remained prime predictor of individuals’ intention and determiner of factors affecting their
adoption of technology (Venkatesh and Davis, 2000). TAM is an adaptation theory of
reasoned action whose chronological liaison among belief, attitude and intentional behavior
enables to foresee users’ adoption of innovations and new technologies regarding information
systems (IS), where perceived usefulness (PU) and perceived ease of use (PEOU) play
mediating role to determine individuals’ attitude toward intention to utilize the innovation;
however, PEOU may also directly impact perceived usefulness as an independent variable
(Davis, 1989; Bankole et al., 2011) to ascertain that PU and PEOU are the basic determiners of
the system adoption and utilization. Besides TAM’s apparent limitation toward explaining
users’ attitude and intention to M-banking adoption, excluding external variables, monetary
and demographical factors (Venkatesh and Davis, 2000), TAM also provides the space to
supplement with exterior variables to determine PU and PEOU (Davis, 1989). Therefore,
numerous studies have been conducted via TAM to explore M-banking adoption and the
factors influencing its usage. Extant studies have variously extended original TAM on
different geographical, societal and technological grounds by adding explicit distinctiveness
and found support for service providing concerns and wide adoption of M-banking (Moser,
2015), like relative advantage and personal innovativeness (Chitungo and Munongo, 2013),
perceived security (Hsu et al., 2011), infact, around 40 percent of all such research studies have
been explored using TAM (Hanafizadeh et al., 2014).
3. Conceptual model and hypotheses

In this section, we will present core barriers.
3.1 Core barriers

Awareness. Innovation adoption depends on how effectively the requisite information
of its service usage, advantages and disadvantages is passed on to consumers
(Sathye, 1999; Safeena et al., 2012; Lee et al., 2007). As Al-Somali et al. (2009) concluded that M-banking
low awareness of online banking is a critical factor in causing customers not to adopt online barriers in
banking. Chen (2013), in his study of M-banking services, found that brand awareness Pakistan
enables consumers to use M-banking services, whereas consumers unfamiliar with a
product or service cannot make purchasing decisions. Howcroft et al. (2002) concluded in
their study of internet banking in United Kingdom that unawareness of services and
advantages is the strongest barrier to adoption and usage of internet banking. Since
M-banking is a novel experience to most people, hence, lack of awareness regarding its
services is a strong adoption barrier (Chen, 2013; Howcroft et al., 2002; Sathye, 1999).
Therefore, necessary awareness among people is a prospective motivating aspect, affecting
people’s attitude toward adoption of M-banking (Al-Somali et al., 2009; Laforet and Li, 2005;
Akturan and Tezcan, 2012). Awareness among consumers shows positive marks on PU and
PEOU and also helps them to minimize perceived risk related to using M-banking
(Mohammadi, 2015a; Hanafizadeh et al., 2014), consequently we hypothesize that:
H1. Awareness has a positive effect on perceived usefulness.
H2. Awareness has a positive effect on perceived ease of use.
Initial trust. Trust is placed in twofold, initial and ongoing (Gefen et al., 2003; Kim, 2012):
initial trust is defined as consumers’ belief and dependability on other party (McKnight
et al., 1998; Kim et al., 2009), willingness of dependability shows the establishment of initial
trust within that particular party, besides the existence of perceived risk (Kaabachi et al.,
2017; Whitener et al., 1998; Holmes, 1991; Kim and Prabhakar, 2004). Kim et al. (2009) in their
study of M-banking found that perceptions of initial trust and relative benefits were vital in
promoting personal intention to use M-banking. Kaabachi et al. (2017) in their study of
online banks in France concluded that initial trust has a major influence on the adoption of
online banking services. Trust is linked with various service sectors like internet banking
(Flavián et al., 2005) and mobile shopping (Lu and Yu-Jen Su, 2009). It has been found
significant to contribute in acceptance of latent technologies. Therefore, prior to experience,
consumers take risks to carry out their necessities (Afshan and Sharif, 2016; Mcknight and
Chervany, 2001; Zhou, 2012; Kim et al., 2008), which comparatively places M-banking at
higher perceived risk than traditional banking and initial trust then becomes a prime factor
toward using M-banking (Kim et al., 2009; Koksal, 2016; Zhou, 2011; Zhou, 2012), which may
be the reason most people do not choose M-banking (Mehrad and Mohammadi, 2016;
Mazhar et al., 2014); hence, we hypothesize that:
H3. Trust has a positive effect on perceived ease of use.
H4. Trust has a positive effect on perceived usefulness.
Compatibility. Innovation suitability to the life style and needs of people is called compatibility
(Hernandez and Mazzon, 2007; Hanafizadeh et al., 2014; Rogers, 2003); high compatibility of
innovations leads to higher chances of wide adoption (Wu and Wang, 2005; Chen et al., 2002;
Rogers Everett, 1995; Wessels and Drennan, 2010) because it considerably familiarizes the
innovations with their life styles and needs. Koksal (2016) in his study “the intentions of
Lebanese consumers to adopt M-banking” found that compatibility positively and
significantly discriminated high M-banking adopters from low adopters. Wu and Wang
(2005) in their study of mobile commerce drivers found that compatibility had the most
significant influence on PU and behavioral intentions to use mobile commerce. Koenig-Lewis
et al. (2010) in their study of M-banking services concluded that compatibility not only
had a strong direct effect on behavioral intention, but was also identified as an important
antecedent for PU and PEOU. Besides being one of the critical factors stimulating M-banking
DTA adoption (Koenig-Lewis et al., 2010; Shaikh and Karjaluoto, 2015; Chen, 2013; Lin, 2011),
compatibility is also one of the significant constructs effecting PU and PEOU (Agarwal and
Karahanna, 1998; Hanafizadeh et al., 2014). Hence, we hypothesize that greater compatibility
generates users’ positive attitude toward PU and PEOU:
H5. Compatibility has a positive effect on perceived ease of use.
H6. Compatibility has a positive effect on perceived usefulness.
Perceived risk. PR, proposed by Bauer (1960), is described as stipulations of ambiguous
consequences regarding customers activities, which carry probability of suffering a loss in
search of attaining a goal (Wessels and Drennan, 2010; Pavlou, 2003; Mortimer et al., 2015),
as customers think that by using M-banking they may suffer financial loss or may get their
personal data exploited (Makanyeza, 2017; Dineshwar and Steven, 2013). According to
Safeena et al. (2012), perceptions of risk are a dominant explanatory factor in consumer
behavior as individuals appear to be more cautious to avoid mistakes than to enhance
purchasing benefits. Makanyeza (2017) concluded in his study on M-banking in Zimbabwe
that the intangibility of M-banking services poses difficulty to consumers in the service
evaluation prior to consumption that makes consumers anxious about security issues.
Lee et al. (2003) claimed that dimensions of perceived risk refrained consumers to
adopt M-banking. PR is a key barrier M-banking is facing so far, and therefore, it has
been classified as one of the essential factors affecting PU and PEOU via attitude
(Akturan and Tezcan, 2012; Glavee-Geo et al., 2017). M-banking is posed to a greater risk due
to being at a remote link (Corradi et al., 2001; Kim et al., 2007; Tsu Wei et al., 2009); hence,
we hypothesize that:
H7. Perceived risk has a negative effect on perceived ease of use.
H8. Perceived risk has a negative effect on perceived usefulness.
Perceived usefulness. PU, in accordance with TAM, is the degree under which an individual
augments his/her job performance by utilizing a certain technology (Al-Gahtani, 2001;
Davis, 1993; Mathwick et al., 2001; Davis, 1989; Curran and Meuter, 2005); PU is a key
determiner of attitude and a vital role playing factor in shaping adaptation of innovations
(Chen et al., 2014; Kapoor et al., 2014; Tan and Teo, 2000). The existing literature highlights
PU as one of the most influential drivers of behavioral intention to adopt M-banking (Kapoor
et al., 2014; Williams et al., 2015; Chen et al., 2014). PU also refers to the external variables
such as efficiency and effectiveness (Ramayah and Lo, 2007) and marks significant positive
impact on attitude together with usage intentions in terms of utilizing M-banking (Mehrad
and Mohammadi, 2016; Al-Somali et al., 2009; Alalwan et al., 2016; Nysveen et al., 2005). In
fact, willingness of individuals toward utilizing M-banking significantly depends on its level
of usefulness, which positively develops their attitude to remove M-banking adoption
barriers; hence, we hypothesize that:
H9. PU positively affects users’ attitude.
H10. PU positively affects users’ intentions to continue utilizing M-banking services.
Perceived ease of use. PEOU refers to the extent of users’ readiness to utilize effort-free
system (Davis, 1989; Cudjoe et al., 2015; Püschel et al., 2010; Al-Somali et al., 2009). Extensive
range of studies depicts effect of PEOU on users attitude toward M-banking and its
utilization (Hanafizadeh et al., 2014; Luarn and Lin, 2005; Wang and Liao, 2007) and
recommend it as a major attribute of e-business apps such as I-Commerce, I-Banking and
M-commerce (Mazhar et al., 2014; Guriting and Oly Ndubisi, 2006). Dai and Palvi (2009)
found that PEOU was the significant predictor of intention toward mobile commerce among
Chinese consumers. According to Alalwan et al. (2016), Gu et al. (2009) and Püschel et al. M-banking
(2010), PEOU could play a decisive role to determine consumers intention to use M-banking. barriers in
Strong liaison between PEOU and PU suggests that technology’s usefulness and ease of use Pakistan
result in the achievement of expected benefits, performance enhancement and greater
adoption of the technology (Shaikh and Karjaluoto, 2015; Gu et al., 2009; Gefen et al., 2003).
According to Mehrad and Mohammadi (2016) and Teo et al. (2012), users are more diverted
and inclined to utilize the system if they find ease of use within the system, which draws
banks’ concentration on focusing more user friendly apps and interfaces, which positively
develop users’ attitude toward M-banking and its use; hence, we hypothesize that:
H11. PEOU has a positive effect on PU.
H12. PEOU has a positive effect on users’ attitudes.
Attitude and intention. Attitude plays a decisive role in intention to utilize a novel
technology (Davis, 1989; Ajzen and Fishbein, 1975; Ajzen, 1985) and attitude in TAM
remains the core antecedent and key mediator effecting other constructs on individuals’
intentional utilization of technology (Schierz et al., 2010). According to Cao and Mokhtarian
(2005) and Belanger et al. (2002), e-shopping intention can measure an individual’s conative
beliefs with respect to adopting or using e-shopping, which typically consents with Wessels
and Drennan (2010) that attitude transfers the effects of the consumers’ perceptions on their
intention to use M-banking. Moreover, recent studies in technology recognition sphere also
reveal that attitude prevails in mind and generates behavior that largely describes
variations in e-intentions and therefore attitude can be employed to foresee intention to use
technology (Mehrad and Mohammadi, 2016; Mohammadi, 2015a), which is in line with the
conclusions of Shaikh and Karjaluoto (2015), Püschel et al. (2010), Aboelmaged and Gebba
(2013) and Lule et al. (2012) in their M-banking adoption research that attitude positively
effects consumer intentions to continue using M-banking; hence, we hypothesize that:
H13. Attitude has a positive effect on intention to continue using M-banking.
3.2 Conceptual model

Drawing upon the hypotheses presented in the conceptual model and hypotheses section
of the study, the conceptual model is developed in Figure 1. The factors of awareness,
Awareness
H1
H2
PU
Initial Trust H4 H10
H9
H3 Intention
H11
Attitude
H6 H13
Compatibility H5 PEOU
H12
H8
H7 Figure 1.
The hypothesized
Perceived Risk model
DTA initial trust, compatibility, perceived risk, perceived usefulness and perceived ease of use,
attitude and intention are used to test in this model. Table I presents the definitions of
studied constructs.
4. Research design
4.1 Sampling and data collection
The purpose of this study is to trace out barriers jeopardizing intention of prevailing
M-banking users and diminishing inclination of non-users toward the innovation, thereby
leaving the far-fetched gains, industry efforts, heavy investments and expert predictions in
vain, creating a very crucial and concerning state to ponder upon the factors deteriorating
acceptance of M-banking. Henceforth, naturally our study targeted individuals having
both a mobile phone and a bank account. Existing customers of top 5 banks in Pakistan
were the target population of this study, including both M-banking users and non-users.
We attempted to acquire data from countrywide regional headquarters, which incorporated
seven largest urban areas of the country like Karachi, Islamabad, Lahore, Peshawar, Quetta,
Muzaffarabad and Gilgit, to slot in the studied sample for the utmost generalizability.
We approached the customers of various cities through our personal contacts and explained
purpose of our study and assured them regarding their response confidentiality and their
identification. These people were working in different business fields, organizations
and industries, and were already maintaining their bank accounts among top 5 banks.
We randomly selected from universities, companies and businessmen from private and
public sectors and sent them questionnaire via emails, Whatsapp, WeChat and Messenger.
In the span of six months from July to December 2017, we succeeded to attain 200 valid
samples from the diverse cities with the response rate of 62.5 percent.
The sample strength guarantees robust structural equation modeling (SEM) (Yang and
Yoo, 2004). We utilized the stratified sampling method that is considerably consistent with
the approach due to its diversity and Cochran formula (Cochran, 1977) to determine sample’s
representation for infinite society, which proved to be a satisfactory representative as a
whole, with reliability of 90, denoting appropriate consistency among questions, regarding
all the constructs. The Cochran formula initially helps to estimate separate sample sizes for
all the essential items to reach the required sample size for survey. This provides research
works with a range of sample sizes and enables them to reach sampling decisions on data.
In the Cochran formula for finite population, p stands for the sample proportion and
Source Construct and definition
Sathye (1999) Awareness: the degree to which the requisite information of M-banking service
usage, advantages and disadvantages is passed on to consumers
McKnight et al. (1998) Initial trust: the degree to which consumers’ belief and dependability on other party
is defined in order to fulfill a need without prior experience, or credible information
Hernandez and Mazzon Compatibility: the degree to which people perceive that an innovation is compatible
(2007) with the way they think, act and lead their lives
Pavlou (2003) Perceived risk: stipulations of ambiguous consequences regarding customers’
activities, which carry probability of suffering a loss in search of attaining a goal
Davis (1989) Perceived usefulness: the degree to which a person believes that using a particular
system would enhance his or her job performance
Davis (1989) Perceived ease of use: the degree to which a person believes that using a particular
system would be free of efforts
Table I. Davis (1989) Attitude: the degree of evaluative effect that an individual associates with using the
Definitions of target system
studied constructs Schierz et al. (2010) Intention: key probability that an individual will use a technology
N stands for the population size. Za/2 values 1.96, e-values less than 0.1, and q values 0.5. M-banking
The calculated sample was validated at a minimum of 90: barriers in
Pakistan
N:z2a=2 :p:q
n¼ :
e2 :ðN 1Þ þz2a=2 :p:q
The collected sample elaborates justified distribution among gender; males 55 percent;
females 45 percent: gender distribution of the sample is consistent with Pakistan’s latest
census report of 2017 that distributes males and females as 51 and 49 percent, respectively.
Furthermore, it encompasses different age groups, 40 percent population being of
18–30 years, 30 percent of 31–40 years; 17.5 percent of 41–50 years and 12.5 percent of more
than 50 years of age, respectively, which ascertains the studied sample as bias free. Table II
provides the complete picture of overall demographic uniqueness of the studied sample.
4.2 Measures and legitimacy

In an attempt to highlight core barriers, we filtered utilized measures from the prevailing
literature and discussed their validity and reliability with five banking IS experts and with
their invaluable guidance and feedback requisite changes were carried out. Moreover, to
assess the responses, we utilized a seven-point-likert scale ranging from (1) “strongly
disagree” to (7) “strongly agree,” and before launching a formal survey, a pilot test of the
adapted measures was conducted on a representative sample of 25 people selected at
random, which produced fortified outcomes, and based on those obtained results, we further
proceeded to launch the formal survey. Table III represents the thorough overview of the
measures and factor loadings.
Frequency %
Gender
Male 110 55
Female 90 45
Total 200 100.0
Age
18–30 80 40
31–40 60 30
41–50 35 17.5
50+ 25 12.5
Total 200 100.0
Education
Graduate 130 65
Post graduate 70 35
Total 200 100.0
Income
20,000 50 25
20,000–50,000 70 40
50,000–100,000 40 20 Table II.
100,000–200,000 20 10 The demographic
200,000+ 10 5 characteristics of
Total 200 100.0 the sample
DTA Factor
Construct Question loading α
Awareness (Al-Somali et al., I received enough information about mobile banking 0.89*** 0.932
2009)
I received enough information about the benefits of mobile 0.81*** 0.942
banking services
I have received information of mobile banking from the 0.79*** 0.943
bank
Initial Trust (Kim et al., 2009) I think mobile banking service is reliable 0.83*** 0.911
Mobile banking service has been created to help customers 0.96*** 0.935
I think the banks are fulfilling their obligations, In the field 0.87*** 0.961
of mobile banking
I would trust my bank to offer secure mobile banking 0.93*** 0.922

Compatibility (Schierz et al., Mobile banking is compatible with my other banking 0.97*** 0.931
2010; Cheng et al., 2006) accounts
Adopting mobile banking fits well with the way I manage 0.89*** 0.971
with other banks
Adopting mobile banking to conduct banking transaction 0.87*** 0.981
fits well into working with my other banking accounts
Perceived Risk (Cheng et al., I would feel secure sending sensitive information across the 0.92*** 0.924
2006) mobile banking
The mobile banking is a secure means through which to 0.93*** 0.912
send sensitive information
Overall, the mobile banking is a safe place to transmit 0.79*** 0.930
sensitive information
Perceived usefulness (Kim Using mobile payment would enable me to pay more 0.78*** 0.981
et al., 2010) quickly
Using mobile payment makes it easier for me to conduct 0.87*** 0.941
transactions
I would find mobile payment a useful possibly for paying 0.82*** 0.931
Mobile payment appears to be practical 0.75*** 0.942
Perceived ease of use (Kim The interaction with mobile financial services is clear and 0.75*** 0.945
et al., 2010) understandable
The interaction with mobile financial services does not 0.76*** 0.916
require a lot of mental effort
I find it easy to get mobile financial services to do what I 0.82*** 0.916
want it to do
I would find a mobile payment procedure to be flexible to 0.81*** 0.971
interact with
Attitude (Schierz et al., 2010) Using mobile payment services is a good idea 0.90*** 0.926
Using mobile payment services is a beneficial 0.91*** 0.941
Using mobile payment services is a wise idea 0.96*** 0.923
Intention (Schierz et al., 2010; Given the opportunity, I will use mobile payment 0.78*** 0.917
Table III. Lin, 2011) services
The research I am likely to use mobile payment services in the near future 0.82*** 0.970
instrument I am likely to use mobile payment services in the near future 0.91*** 0.940
4.3 Data analysis

SEM has been utilized to test the measurement model for examining interior reliability and
construct legitimacy of various items scales, which have been used to functionalize the
studied variables. SEM is a multivariate analysis of multivariate regression families that
provides researchers with a set of regression equations and enables them to examine at the
same time. According to Lohmöller (1989), SEM helps to guesstimate the parameters of a
structural model, ascertaining utilized variables’ potency and path. The SEM has been
largely identified with two broad variations, namely, CB-SEM (covariance-based SEM)
and PLS-SEM (partial least square SEM), whereas the objective of CB-SEM is to reproduce M-banking
the theoretical covariance matrix (Hair et al., 2014). CB-SEM has been widely used and barriers in
recognized in the survey research in particular. Henceforth, looking at the complexity of the Pakistan
model, the study used CB-SEM (AMOS software) to analyze the data.
4.4 Exploratory and confirmatory analysis

To check whether the items reflect requisite impact on their corresponding factors or their
probable disparity among factors, we performed convergent and discriminant validities and
reliability of scales (Anderson and Gerbing, 1988). This followed model fitness test and
liaison among variables. Main statistics elaborated in Table IV define standard factor
loadings of average variance extracted, composite reliability, R2, communality and values of
Cronbach α as all achieved above the standard level of 0.7. Furthermore, the reliability of
individual factor loadings of AVE surpasses 0.7, CRs 0.8, communality 0.5 as minimum and
maximum up to 0.93, which indicates acceptable reliability of the scales (Barclay et al., 1995).
Factor loadings of α also surpass 0.77 denoting a considerable good reliability (Nunnally
and Bernstein, 1994). However, intention, with R2 of 0.468, remains partially predicted,
whereas the attitude, with R2 of 0.532, is well predicted thereon, which ultimately results into
intention. Therefore, it is proved that the consumers’ assertive attitude toward the
innovation is deteriorated by the barriers in question and, consequently, their M-banking
usage or continuity intention is jeopardized accordingly. Furthermore, in Table V, the
square roots of the AVE are compared with correlation coefficients to investigate
discriminant validity and all the factors, regarding root square of AVE, showed up with
greater intensity as compared to their correspondent correlation coefficients, thereby
Factor Item Standardized loading AVE CR R2 Communality α
Awareness Awa1 0.89 0.8321 0.9321 0.8592 0.8781

Awa2 0.81
Awa3 0.79
Initial trust TR1 0.83 0.8827 0.9453 0.8676 0.9213
TR2 0.96
TR3 0.87
TR4 0.93
Compatibility Com1 0.97 0.9230 0.9701 0.9321 0.8912
Com2 0.89
Com3 0.87
Perceived risk Ris1 0.92 0.8032 0.8712 0.8676 0.8139
Ris2 0.93
Ris3 0.79
Perceived usefulness Use1 0.78 0.9101 0.8912 0.6754 0.8124 0.9812
Use2 0.87
Use3 0.82
Use4 0.75
Perceived ease of use Eas1 0.75 0.9141 0.9142 0.6217 0.8921 0.8914
Eas2 0.76
Eas3 0.82
Eas4 0.81
Attitude Att1 0.90 0.8914 0.8201 0.5321 0.6177 0.8241
Att2 0.91
Att3 0.96
Intention Int1 0.78 0.7412 0.8312 0.4687 0.5012 0.7871
Int2 0.82 Table IV.
Int3 0.91 Main statistics
DTA proving a better discriminant validity (Barclay et al., 1995). Furthermore, the actual and
recommended values of fit indices regarding χ2/df, goodness of fit indices (GFI), incremental
fit index (IFI), comparative fit index (CFI), non-normed fit index (NNFI), normed fit
index (NFI) (McDonald and Ho, 2002), root mean square error of approximation (RMSEA)
(Kline, 2005) were measured, which proved to be of plentiful worth and are further
elaborated in Table VII.
4.5 Common method variance

Common method variance (CMV ) is the serious apprehension in the studies that use the
self-reported method in data collection (Lindell and Whitney, 2001; Podsakoff et al., 2003;
Spector, 2006). Hence, looking at the past researchers’ recommendation, we employed two
prominent methods to handle such an issue. First is the appropriate use of procedural
remedies to minimize CMV. Hence, we attempted this by informing participants about the
fact that there are no right and wrong answers, ensuring confidentiality, improving survey
scales items by pre-testing with truly representative respondents, and by choosing more
simple language (MacKenzie and Podsakoff, 2012; Podsakoff et al., 2003, 2012). The second
solution is the use of appropriate statistical method to ensure non-existence of CMV. For this
purpose, apparently, there are three popular methods that researchers have used such as
Harman’s single factor test, use of Marker variable and common latent factor method. In the
present study, we first applied Harman’s single factor test (Podsakoff et al., 2003) to detect
CMV. The results show the variance about 30 percent (below 50 percent). Hence, this result
suggested that the common method bias was unlikely to be a serious concern in the present
research. Additionally, a few researchers have suggested the use of CFA (common factor)
over EFA (Herman’s single factor test) (Hult et al., 2006). Therefore, we also used common
latent factor to detect CMV issues using AMOS 22 (Serrano Archimi et al., 2018). The way to
do common latent factor in AMOS is to add a common latent variable where we repeat all
the items of the model in one-latent variable connected directly to all the items of the
actual model, using uncorrelated option we found a common variance of about 0.20 percent
(Gaski, 2017). It is, therefore, concluded that the CMV is not a major concern in this study.
Following the examination of correlation matrix for the exogenous latent constructs,
variance inflated factor (VIF), was assessed to verify multicollinearity problem. Hair et al.
(2011) suggested that multicollinearity is a concern if the VIF value is higher than 5. The VIF
scores for all latent variables are provided in the following Table VI. All the values obtained
are below 5; hence, multicollinearity is not a problem in the current study.
4.6 Path coefficient

Linear regression weights utilized to examine the linkage among the constructs in SEM are
defined as path coefficients, which incorporate multiplication of the standard deviations
among regression coefficients and explanatory constructs, assessing impact of variables in
AWA TR COM RIS USE EAS ATT INT
AWA 0.9121
TR 0.3939 0.9395
COM 0.6421 0.6753 0.9607
Table V. RIS 0.5832 0.8612 0.7631 0.8962
The square root of USE 0.6531 0.7531 0.8612 0.7261 0.9539
AVE (Italic at EAS 0.5741 0.5419 0.9231 0.8512 0.9342 0.9560
diagonal) and ATT 0.7324 0.8351 0.7869 0.7631 0.7864 0.7632 0.9441
correlation coefficients INT 0.6752 0.8313 0.8102 0.8501 0.7612 0.8524 0.7376 0.8609
the regression model (Chin et al., 2003). In accordance with the elaborating figures presented M-banking
in Table VII, compatibility-PEOU ( β ¼ 0.764, p o0.001) denoted the greatest impact among barriers in
all and PU-intention ( β ¼ 0.752, p o0.001) showed up second highest effect; attitude- Pakistan
intention ( β ¼ 0.721, p o0.001) also followed with a considerable affect; compatibility-PU
( β ¼ 0.675, p o0.001) denoted important path; PEOU-attitude ( β ¼ 0.652, p o0.001) showed
a deemed path; PEOU-PU ( β ¼ 0.636, p o0.001) also turned up significant effect; PU-
attitude ( β ¼ 0.614, p o0.001) showed a considerable impact; awareness-PU ( β ¼ 0.613,
p o0.001) showed a good assertive impact; furthermore, perceived risk-PEOU ( β ¼ −0.586,
p o0.001) showed a significant negative effect; perceived risk-PU ( β ¼ −0.578, p o0.001)
also showed a considerable negative impact; trust-PU ( β ¼ 0.575, p o0.001) denoted a
significant impact; trust-PEOU ( β ¼ 0.494, p o0.001) also showed an important affect;
awareness-PEOU ( β ¼ 0.292, p o0.001) also denoted an effect. Henceforth, all the paths
remain supported and are further elaborated in Figure 2 along with their path coefficients
and significances (Tables VII and VIII).
5. Discussion
Drawing upon the results, which showcase banks’ concern over relative benefits of
M-banking that are leading toward lower costs with higher returns. This novel technology
has tended banking industry to launch several value-added banking services, striving to
retain their own consumers besides attracting others. In doing so, banks are opting to
maximize their competitive advantage by enhancing their service domains and thereby
curtailing their overheads, which has not yet fortified their anticipations; therefore, besides
these endeavors banks need to fix traced out barriers that jeopardize consumers’ usage and
Latent constructs VIF values
Awareness 1.002
Initial trust 2.002
Compatibility 3.004
Perceived risk 1.026
Perceived usefulness 1.036 Table VI.
Perceived ease of use 3.004 Tolerance and
Attitude 1.048 variance inflated
Intention 3.075 factors
0.613***
Awareness
0.292**
PU
0.575*** 0.752***
Initial Trust
0.494*** 0.614***
0.636*** Intention
0.675*** Attitude
0.721***
Compatibility 0.764*** PEOU
0.652***
–0.578***
Figure 2.
Standard coefficients
Perceived Risk –0.586*** and significance level
DTA Question Path Path coefficient Supported or not
H1 Awareness→Usefulness 0.613*** Yes

H2 Awareness→Ease of use 0.292** Yes
H3 Trust→Ease of use 0.494*** Yes
H4 Trust→Usefulness 0.575*** Yes
H5 Compatibility→Ease of use 0.764*** Yes
H6 Compatibility→Usefulness 0.675*** Yes
H7 Perceived risk→Ease of use −0.586*** Yes
H8 Perceived risk→ Usefulness −0.578*** Yes
H9 PU→Attitude 0.614*** Yes
H10 PU→Intention 0.752*** Yes
H11 PEOU→PU 0.636*** Yes
Table VII. H12 PEOU→Attitude 0.652*** Yes

Path coefficients H13 Attitude→Intention 0.721*** Yes
and significances Notes: *,**,***Significant at 0.05, 0.01 and 0.001, respectively
Fit indices χ2/df GFI IFI CFI NNFI NFI RMSEA

Table VIII.
The values of Actual value 2.04 0.92 0.96 0.96 0.93 0.95 0.076
fit indices Recommended o3 W0.80 W0.90 W 0.90 W0.90 W0.90 o 0.1
continuity intentions. Current study elaborates several barriers deteriorating customer

attitudes toward M-banking usage and intention stability, incorporating awareness, initial
trust, compatibility and perceived risk. The analytical results show that the research model
examined in this study is acceptable and contributes to the existing literature.
Empirical analysis turned up several foremost findings, and elucidations and inferences
founded upon that analysis support all the hypotheses and are discussed as follows, prime
findings reveal that M-banking awareness left substantially positive effect on attitude
through perceived usefulness and ease of use. The path association connected by H1,
awareness with PU ( β ¼ 0.613, p o0.001) and H2, awareness with PEOU ( β ¼ 0.292,
p o0.001) show that both the hypotheses are accepted. The results show that impact of
awareness with PU is significant, whereas the association with PEOU as compared to
PU is less significant. While scarcity of awareness stood out as an obstacle to non-adoption
of M-banking, the results are congruent with the findings of Talke and Heidenreich (2014)
that awareness of the technology leads customers toward further inquiry of the innovation
which ultimately results into their usage intention. Therefore, customer awareness, which is
a managerial perspective, needs to be among the top most priorities of the banks; thus,
besides traditional advertisement tools, such as leaflets, brochures and text messages, banks
should also focus social networking sites as their advertisement tools and place visual-based
M-banking advertising material on social networks to educate both users and non-users.
Consequently that would prove beneficial for users to continue using M-banking and also be
helpful to non-users for arousing inclination toward using M-banking, as most of the
Pakistani population remains regularly visiting various social networking sites. Banks
should also arrange potential customer training sessions in their bank branches/field offices
or customer/user target locations like industries, associations, companies, universities,
colleges, libraries, etc., in order to pass on necessary information on experimental base to
their customers and resolve their usage barriers then and there. The results are consistent
with the findings of Al-Somali et al. (2009), Laukkanen and Kiviniemi (2010), Chen (2013),
Raza et al. (2017), Hanafizadeh and Khedmatgozar (2012) and Laforet and Li (2005).
Initial trust marks direct significant impact on both PU and PEOU. H3 and H4 define M-banking
significant and positive relation of trust with PU ( β ¼ 0.575, po0.001) and PEOU ( β ¼ 0.494, barriers in
po0.001), respectively. The results show that H3 and H4 are accepted and initial trust highly Pakistan
influences users’ perceptions about the technology in a developing country like Pakistan as it
deals with financial transactions. Significance and impact of trust in Pakistan is greater than
the findings of Sharma (2017) in Oman, where he discovered trust with the highest beta value
of 0.382. In fact, initial trust indirectly influences attitude and intention, which correspond with
Kaabachi et al. (2017), who place initial trust as a key player in attracting new customers,
which denotes its controllability a must, to fortify this phenomenon innovation, through
imparting enhanced customer education regarding M-banking functionalities and building
up reliability through mitigating compatibility and risk issues prevailing in users’ minds.
The findings are consistent with Alalwan et al. (2016), Alalwan et al. (2017), Kim et al. (2009),
Zhou (2011), Zhou (2012), Koksal (2016) and Luo et al. (2010).
Compatibility showed up with highest positive influence on attitude in terms of
inter-banks M-banking transactions, online shopping, air tickets, etc. The path connecting
association of H5, compatibility with PEOU ( β ¼ 0.764, p o0.001), and H6, compatibility
with PU ( β ¼ 0.675, p o0.001), remained significant and both the hypotheses are accepted.
The significance of compatibility also consents with Koenig-Lewis et al. (2010) who studied
take up of M-banking in young German consumers suggested that compatibility can
enhance wider adoption and continued use of M-banking as less efforts are required.
Hanafizadeh et al. (2014) in their study of M-banking adoption by Iranian bank clients found
that compatibility is recognized to be one of the most influential independent construct
affecting PU and PEOU further ensuring adoption. Therefore, adaptation of systems to the
latest technologies is essential; in order to facilitate customers with high-speed M-banking
inter-banks transactions and distinguishing M-banking services with wider variety in
accordance with users’ preferences. The findings are congruent with the studies carried out
by Hanafizadeh et al. (2014), Koenig-Lewis et al. (2010), Wu and Wang (2005), Sharma et al.
(2017), Gillenson and Sherrell (2002) and Makanyeza (2017).
Perceived risk also positively affected attitude resulting in users’ unwillingness to adopt
M-banking. The path associations of H7, perceived risk with PEOU ( β ¼ −0.586, p o0.001),
and H8, perceived risk with PU ( β ¼ −0.578, p o0.001), determine that perceived risk
significantly and positively effects PEOU and PU; therefore, both the hypotheses are
accepted, which consents with the findings of Aldás-Manzano et al. (2009) that new products
inherently contain risks that result in avoidance and Yousafzai et al. (2003) that online and
M-banking comparatively encompass greater risk than traditional banking. It is fears of the
users for getting their personal data and bank balance virtually exploited, which keeps them
reluctant toward the usage of technology. Therefore, banks need to enhance customer
confidence regarding safeguard of their passwords, personal data, financial transactions
and security of using the system as a whole. Equipment of existing system with latent
prototypes like biometrics and voice patterns is highly commendable in order to minimize
risk. The findings are congruent with the studies carried out by Coursaris et al. (2003),
Riquelme and Rios (2010), Makanyeza (2017), Purwanegara et al. (2014), Zhou (2012).
Role of PU remained positive in terms of determining customer attitudes toward
M-banking adoption and intention to continue using it. H9 and H10 connect the path of
PU with attitude ( β ¼ 0.614, p o0.001) and intention ( β ¼ 0.752, p o0.001), respectively.
The results show that impact of PU on intention remained the second highest significant
and positive after compatibility among all the constructs; however, impact of PU on attitude
was also considerably significant and positive; henceforth, both the hypotheses were
accepted. The results imply that consumers look for the technologies that are perceived
useful and best fit their personal and business needs at the broader level. PU is significantly
advantageous for users to divert them for adoption and continued usage of M-banking.
DTA Moreover, consumers’ motivation can even be enhanced with availability of transactions
around the clock without any interaction with bank branches. M-banking is also
advantageous for banks because it minimizes cost and helps to maximize customer base by
retaining their own customers and attracting others. The findings are in line with the studies
conducted by Thakur (2014), Mehrad and Mohammadi (2016), Koenig-Lewis et al. (2010),
Al-Somali et al. (2009) and Sharma et al. (2017).
Perceived ease of use is one of the fundamental predictors in TAM. H11 and H12
represent highly significant paths connecting PEOU with PU ( β ¼ 0.636, p o0.001) and
attitude ( β ¼ 0.652, po 0.001), respectively. The results show that PEOU significantly and
positively influences both PU and attitude; therefore, both the hypotheses are accepted. The
outcomes are evident that customers welcome technologies that are easy to use besides
being useful, which consents with Davis (1989) that technologies become useful when they
are easy to use. Therefore, it necessitates banks to upgrade systems to the preferential levels
of users, where they find it easier to manage their M-banking accounts, offering wider
variety of banking services with higher uninterrupted network. Thus, seeing the positive
impact of PEOU on PU and mediating role among attitude and usage intention, it is
compulsory to improve prevailing system to be more user friendly, with greater outputs in
order to retain existing users and to arouse inclination of the non-users to adopt M-banking.
Nevertheless, usage ease and usefulness denoted noteworthy mediated potential on attitude
in terms of diverting users to switch from their traditional banking practices to the latent
innovation. The findings are congruent with Luarn and Lin (2005), Wessels and Drennan
(2010), Al-Gahtani (2001), Wang et al. (2006) and Koksal (2016).
Attitude plays a vital role to form intention to use M-banking in H13, which is accepted
and shows highly significant and positive relation of attitude with intention ( β ¼ 0.721,
p o0.001). Results highlight that attitude is a basic element that is used to determine an
individual’s intention to adopt the latent technologies. Mehrad and Mohammadi (2016) in
their study of M-banking adoption in Iran found that attitudinal factors explain most of the
variations in e-intentions. According to Raza et al. (2017), attitude dwells in mind and leads
to the intentional use of M-banking. Attitude has been identified as an important factor that
influences individuals’ intention to adopt M-banking. Therefore, individuals who have
positive attitude will ultimately adopt M-banking. The findings are analogous to Gu et al.
(2009), Hsu et al. (2011) and Mansour et al. (2016). Our study revealed that low awareness
and lack of trust came out as their major hindrances for leaving the stone unturned because
compatibility and perceived risk would certainly be pondered upon in their next phase.
Henceforth, it’s recommended with high note to spread utmost awareness to build up users’
initial trust, in order to come across this latent technology and avail a broader range of
multiple benefits thereon. Customer perspectives should remain fundamentally focused,
while developing systems: as execution of enhanced M-banking communiqué strategies
would definitely prove more productive than merely upgradation of product strategies
(Laukkanen, 2007).
6. Theoretical and practical implications

This study considerably extends the existing literature in Pakistan in terms of M-banking
as the available literature has not well evaluated this latent technology that has resulted in
customer reluctance toward the technology. The study attempts to fill the gap by
highlighting basic inhibitors to M-banking acceptance and loyalty and ensuring its adoption
and continued use. Statistical perspectives of results support TAM factors and external
constructs of awareness, initial trust; compatibility and perceived risk also well predict the
customers’ adoption and continuity intention. To better comprehend the consumers’
behavioral patterns toward acceptance and loyalty of M-banking, we used PU and PEOU as
mediators. The results are significant and anticipated to supplement both theory and
practice. Hence, banks should mainly focus aspects related to these factors, while they M-banking
extend efforts to motivate customers to accept this technology. These results can prove barriers in
very useful to build up a base of loyal consumers. M-banking is a relatively new Pakistan
technology; therefore, it is essential that banks arrange suggested educational and
marketing campaigns to aware Pakistani citizens regarding benefits of M-banking in
comparison with traditional banking.
The research findings sufficiently corroborated that M-banking awareness left
substantially positive effect on attitude because most Pakistanis are not aware of the
technology services. According to (www.phoneworld.com.pk), currently only 2 percent of
adult population in Pakistan is using mobile financial services. And only 66 percent of the
available mobile accounts are currently active (Afshan and Sharif, 2016). This meager
percentage of users ascertains the dearth of research in the Pakistani context. Therefore,
banks need to prioritize customer awareness marketing strategies and pass on necessary
information on experimental basis to their customers that may include a dummy application
where customers can experience how to make M-banking transactions and enhance their
experience prior to actual use because low awareness causes negative effect on PU and
PEOU and ultimately to the behavioral intention. Banks need to aware their customers
about this technology’s benefits comparatively with traditional banking; for example, the
awareness campaign may include that by using M-banking customers will be able to make
all types of financial, non-financial transactions at home without having to visit branches
besides saving their precious time, efforts and cost. Such transactions may include fund
transfers, balance inquiry, chequebook issuance, account statement, etc.
Banks can preferably utilize platform of social media to spread requisite customer
awareness by placing visual-based material like customer training videos, product relevant
information and other value-added services on Facebook that is the most popular among
Pakistanis. It is commendable that banks create their YouTube channels and ensure
availability of usage guide videos to attract new users. Placing tutorial videos on YouTube
and Twitter could also benefit enhancing technology adoption rate (Alalwan et al., 2017).
Awareness spread proves helpful in building customers initial trust in the technology and
yields productive results in attracting new customers to adopt M-banking. Infact, initial trust
effects PU and PEOU and indirectly influences behavioral intention to use M-banking.
It necessitates banks to further ease M-banking portals with value-added features like mobile
shopping, ticketing, cab booking, etc. Such value-added features should be linked with
system’s online support mechanism that should expand M-banking services with higher data
transferring speed and bandwidth sites to avoid any transaction hang or disconnection during
the process. Banks also need to impart enhanced customer education regarding functionalities
more on hands-on practice to buildup reliability. Well-trained users who have been shown
technology benefits by quality educational campaigns will help to attract new customers
through positive word of mouth (Liébana-Cabanillas et al., 2017). This consistency with
functionalities will mitigate compatibility and risk issues prevailing in users’ minds.
Compatibility remained most influential factor to determine users’ attitude toward
M-banking. Therefore, the adaptation of systems to the latest technologies with wider
variety and users’ preferences is essential. In the absence of service awareness, which
involves lack of initial trust and compatibility, perceived risk plays a vital role to resist
M-banking among Pakistanis thereby raising various risks of security, privacy,
exploitation, misuse and loss. Therefore, banks need to mitigate risks by equipping the
existing system with latent prototypes like biometrics and voice patterns and by marketing
campaigns that emphasize the security policies and safeguards that are in place to prevent
financial and information loss. Besides that banks should introduce a customer centric
campaign highlighting their role in case of transaction failure or mis-posting/mistake by
users in addition to providing the remedial or reversal timeline, which would minimize
DTA consumers’ resistance and motivate them to adopt M-banking. Customer call center phone
calls should also be made free as their step wise process to first reach a call center agent that
may often keep customers in queue due to limited number of agents and then answer agent’s
verification queries before inquiring any services, products or guidance. This lengthy and
costly process resists customers to adopt M-banking and tends them to prefer traditional
banking. Free calls to customer service center could attract potential customers and would
rather encourage existing customers to inquire about newly launched services and products.
Users can do a lot more with the help of this latent technology and improve their way of life.
PU and PEOU remained positive in terms of determining customer attitudes toward
M-banking adoption and continued use. As the consumers prefer technologies that are
useful, easy to use and harmonious with other systems. Therefore, to enhance compatibility
with M-banking, banks should add more features in the system. The system should be well
connected and compatible with all shopping portals and point of sales. In addition, timely
upgradation of systems to the latent technologies is a must for banks to ease banking and
shopping needs of their customers so that they enjoy smooth and speedy transactions.
For example, if users experience smooth transactions at all point of sales and feel that their
M-banking account is compatible with other systems, then such users would develop more
positive attitude toward its continued use and would rather spread positive word of mouth
that would be fruitful for attracting non-users to adopt M-banking. Therefore, it necessitates
banks to provide more compatible and user friendly interfaces with wider variety of services
in addition to uninterrupted network. This will help in retaining existing users and to arouse
inclination of the non-users. Nevertheless, PU and PEOU showed remarkable mediated
potential on attitude to switch users from their traditional banking practices to M-banking.
To retain customer loyalty, banks need to introduce a feedback mechanism that may
include a social network platform like Facebook or WhatsApp where consumers can give
reviews for their use experience or share snapshots of any problems that occur during
M-banking transactions and be able to find their instant remedial actions. Such a strategy
could ensure greater customer satisfaction and loyalty. Banks also need to strengthen their
research and development departments to generate competitive ideas that could prove more
beneficial to improve compatibility of existing system with latent technologies.
7. Limitations and directions

In pursuit of portraying clearer picture of M-banking adoption and usage barriers in
Pakistan, the study encompasses several limitations for further studies. First, the study
covers only the existing bank account holders in top 5 banks of Pakistan, while the
non-account holders are not considered. Second, the respondents were relatively young and
possessing either graduate or post graduate degree, which may not represent as a whole.
Third, the study did not incorporate demographical factors, which may lead to different
findings. Fourth, the study has utilized a cross-sectional model, measuring users’ intentions
within a specified timeframe. Further studies are recommended to execute a longitudinal
survey, as the intentions vary over the time and include demographical factors to find
diverse conclusions. Lastly, we conducted research in Pakistan where the growth rate of
M-banking is in its initial stage; hence, the results cannot be generalized to the countries
with relatively mature M-banking. Future studies could analyze barriers in comparative
studies by considering technological, cultural and human differences among developed and
developing countries. Further our study focuses only M-banking that could mitigate
applicability of its results to other electronic channels.
8. Conclusion
In this study, we have input our efforts to analyze the barriers effecting individuals’
attitude toward the employment of M-banking, and to better comprehend individuals
behavioral prototypes, we incorporated PU and PEOU as mediators. The upshot produced M-banking
indispensable information for banking industry and M-banking segments in particular. Our barriers in
study varies from extant studies on following grounds. First, our study has picked up core Pakistan
barriers blocking adoption and spread of M-banking, covering both users and non-users, to
trace out their hindrances so that they may be effectively fixed unlike recent studies that
merely considered users of M-banking (Raza et al., 2017) or internet (Mehrad and
Mohammadi, 2016). Second, it minutely analyzes those barriers, causing usage avoidance
and accordingly recommends remedial actions, to set right the adoption issues, which
negatively affect users’ attitude, regardless of their understanding of the innovation and
keep them bound to the traditional banking practices, this extended TAM is supposed to be
of better help in foreseeing user behaviors.
Third, past research studies have barely paid all ears to SMS banking except a few studies
that have focused on M-banking (Mehrad and Mohammadi, 2016), while others
focus on motivations toward M-banking (Tam and Oliveira, 2017), which substantiates
the barriers as an under researched component (Mehrad and Mohammadi, 2016) and,
henceforth, necessitating to study, recognize and investigate such antecedents
(Glavee-Geo et al., 2017) and accordingly this study contributes in elaborating its usage
barriers at the broader level, which become ultimate cause of reluctance toward M-banking
adoption. Fourth, to mark the maximum generalizability, assorted population from
countrywide regional headquarters, with variant age, income, education, from diverse
professional areas, has been slotted in the studied sample to produce fortified results, which
places our study to be a premier in its type, unlike past studies which merely focused on
students of certain institutes within a particular and restricted area (Afshan and Sharif, 2016;
Mohammadi, 2015a). Fifth, this study investigated indirect effect on intention via mediating
role of PU and PEOU and moderating role of attitude that is contrary to past studies who
examined impact of constructs directly on usage intention (Mohammadi, 2015a); hence, this
study is anticipated to provide clearer portrait of users’ behavioral prototypes.
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Further reading
Mobile Banking in Pakistan and its Comparison (2015), available at: www.phoneworld.com.pk
(accessed December 30, 2017).
About the authors

Abdul Waheed Siyal is PhD Scholar for Business Administration under Chinese Government
Scholarship in the School of Management, University of Science and Technology of China. His research
interests include electronic markets such as M-commerce, M-banking and consumer psychology.
Abdul Waheed Siyal is the corresponding author and can be contacted at: waheed@mail.ustc.edu.cn
Donghong Ding is Professor in the School of Management, University of Science and Technology of
China. His research interests include institutional governance and leadership, entrepreneur theory and
cooperation governance, entrepreneurship and entrepreneurial management and electronic channels
for commerce and banking.
Saeed Siyal is MS Scholar for Public Management under Chinese Government Scholarship
in the School of Public Affairs, University of Science and Technology of China. His research interests
include employees turnover intentions in public sectors, transformational leadership theory and
electronic commerce.
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Data Technologies and Applications

M-banking barriers in Pakistan: a customer perspective of adoption and continuity

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adoption and continuity intention

University of Science and Technology of China, Hefei, China

2.1 M-banking in Pakistan

2.2 Technology acceptance model (TAM)

3. Conceptual model and hypotheses

3.1 Core barriers

3.2 Conceptual model

Source Construct and definition

4.2 Measures and legitimacy

I would trust my bank to offer secure mobile banking 0.93*** 0.922

4.3 Data analysis

4.4 Exploratory and confirmatory analysis

Factor Item Standardized loading AVE CR R2 Communality α

Awareness Awa1 0.89 0.8321 0.9321 0.8592 0.8781

4.5 Common method variance

4.6 Path coefficient

AWA TR COM RIS USE EAS ATT INT

Latent constructs VIF values

H1 Awareness→Usefulness 0.613*** Yes

Table VII. H12 PEOU→Attitude 0.652*** Yes

Fit indices χ2/df GFI IFI CFI NNFI NFI RMSEA

continuity intentions. Current study elaborates several barriers deteriorating customer

6. Theoretical and practical implications

7. Limitations and directions

No. 7, pp. 2432-2439.

subjective norms influence the adoption of mobile banking?”, International Journal of

About the authors

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