YANGON UNIVERSITY OF ECONOMICS

DEPARTMENT OF COMMERCE
MASTER OF BANKING AND FINANCE PROGRAMME

INFLUENCING FACTORS OF CUSTOMER INTENTION

ON KBZPAY MOBILE WALLET ADOPTION

THIDAR PHYU
(EMBF-6th BATCH)

DECEMBER, 2019
INFLUENCING FACTORS OF CUSTOMER INTENTION ON
KBZPAY MOBILE WALLET ADOPTION

A thesis submitted as a partial fulfillment of the requirement

for the degree of Executive Master of Banking and Finance
(EMBF)

Supervised by Submitted by

Dr. Aye Thu Htun Thidar Phyu

Professor Roll No-63

Department of Commerce MBF 6th Batch

Yangon University of Economics

DECEMBER, 2019
ABSTRACT

The primary objective of this study is to examine the factors influencing

customers’ intention to adopt KBZPay mobile wallet services in Myanmar.
Quantitative and descriptive methods are used to measure the objective of this study.
A sample of 200 mobile wallet users are selected from the total mobile wallet users
which is about 4000 of KBZ Bank, University Avenue Road Branch-2 in Kamayut
Township, to collect the primary data. The supporting theoretical framework used for
this research is sourced from extended version of the technology acceptance model
(TAM) and Innovation Diffusion Theory. In this study, independent variables,
influencing factors include perceived ease of use, perceived usefulness, compatibility,
subjective norm, observability, perceived security, perceived costs and dependent
variable is behavioral intention to adopt. The study found that perceived cost,
perceived security, perceived usefulness and perceived ease of use have significantly
influenced on behavioral intention towards mobile wallet adoption. According to the
result of this study, KBZPay mobile wallet provider should enhance agents and
merchants for more wallet users’ usefulness. Besides, wallet provider should maintain
the stability of connection to become more trust on security. After that, transaction
fees of KBZPay should be adjusted to increase customer intention on mobile wallet
adoption.
ACKNOWLEDGEMENTS

First of all I would like to express my special thanks to Prof. Dr. Tin Win,
Rector, Yangon University of Economics, for his concern and encouragement to the
participants of MBF Programme. I am also grateful to Prof. Dr. Nilar Myint Htoo,
Pro-Rector of Yangon University of Economics for her continuous support and
encouragement.

Secondly, I would like to show my special gratitude to Prof. Dr. Soe Thu,
Head of Department of Commerce and Programme Director of Master of Banking and
Finance Programme for her guidance and encouragement through the course.

My deepest and heartfelt thanks go to my supervisor Prof. Dr. Aye Thu Htun,
Department of Commerce, Yangon University of Economics for her kindness,
valuable advice, open-minded guidance, excellent supervision during preparation of
my thesis. I could not have finished my thesis without the passionate and continued
support of my supervisor.

I want to express my sincere thanks to my respectful professors and lecturers

who share us their valuable knowledge during the course of our study at Yangon
University of Economics and my classmates who helped me in various ways through
the study.

Especially, my special thanks to my sisters and best friends for their kind
support and assistant in collecting my survey data without hesitance. Moreover, I
would like to thank each and every respondent for their time and kind responses.

Finally, I would like to thank all my responsible persons of KBZ Bank who
gave me required information and my colleagues for helping me to prepare my thesis
peacefully by sharing my duties with them.
TABLE OF CONTENTS

Page

ABSTRACT i

ACKNOWLEDGEMENTS ii

TABLE OF CONTENTS iii

LISTS OF TABLES v

LISTS OF FIGURES vi

LISTS OF ABBREVIATIONS vii

CHAPTER 1: INTRODUCTION 1

1.1 Rationale of the Study 2

1.2 Objectives of the Study 3

1.3 Scope and Method of the Study 4

1.4 Organization of the Study 4

CHAPTER 2: THEORETICAL BACKGROUND 5

2.1 Theory of Planned Behavior 5

2.2 Influencing Factors on Behavioral Intention to Adopt 5

2.3 Previous Studies of Influencing Factors on Adoption 11

2.4 Conceptual Framework of the Study 12

CHAPTER 3: BACKGROUND INFORMATION OF KBZ BANK

AND KBZPAY MOBILE WALLET SERVICES 13

3.1 Profile of KBZ Bank 13

3.2 Key Players of KBZPay Mobile Wallet Services 14

3.3 KBZPay Mobile Wallet Services 15

CHAPTER4: ANALYSIS ON INFLUENCING FACTORS OF

MOBILE WALLET ADOPTION 18

4.1Research Design 18

4.2 Demographic Profile of Respondents 19

4.3Analysis of Influencing Factors on Mobile Wallet Adoption20

CHAPTER 5: CONCLUSION 32

5.1 Findings 32

5.2 Suggestions 33

5.3 Limitations and Need for Further Study 34

REFERENCES

APPENDIX

LISTS OF TABLES
Table no: Descriptions Page

4.1 Demographic Profile of Respondents 19

4.2 Perceived Ease of Use 21

4.3 Perceived Usefulness 22

4.4 Compatibility 23

4.5 Subjective Norm 24

4.6 Observability 25

4.7 Perceived Security 26

4.8 Perceived Costs 27

4.9 Behavioral Intention 28

4.10 Summary of Overall Mean Scores 29

4.11 Analysis of Influencing 30

factors on mobile wallet adoption

LISTS OF FIGURES
Figure no: Descriptions Page

2.1 Technology Acceptance Mode 6

2.2 Innovation Diffusion Theory 8

2.3 Conceptual Model of the Study 12

LISTS OF ABBREVIATIONS
NFC Near Field Communications

TAM Technology Acceptance Model

TPB Theory of Planned Behavior

UTAUT Unified Theory of Acceptance and Use of Technology

TRA Theory of Reasoned Action

IDT Innovations Diffusion Theory

PEU Perceived Ease of Use

PU Perceived Usefulness

KBZ Kanbawza

ATM Automatic Teller Machine

PIN Personal Identification Number

BI Behavioral Intention
CHAPTER 1

INTRODUCTION

Banks play a very important role in the development of a country’s economy.

The banking sector is the backbone of every emerging country. Any changes made in
this sector through technology adoption had an impact on a country’s growth.
Banking technology can give benefits to both banks and customers. Pikkarainenet al.
(2004) mentioned two fundamental reasons underlying banking technology
development and penetration. The first one is the bank gets significant cost savings in
their operation through e-Banking services. And secondly, the banks could reduce
their branch networks and downsized the number of service staff which paved the
way to self-service channels. Customers also enjoy self-service, time savings and
reduced stress of queuing in the banking hall. It was indicated that digital banking
services delivery are the cheapest and the most profitable delivery channel for
banking products.

Banks are becoming more competitive in developing their innovative services

such as online payment system, mobile banking and other related applications in
developing countries as there is a wide range of untapped potential of the financial
sector. The mobile phone users are growing rapidly day after day, and much of them
are smart phone users. Nowadays, banks are entering the market on mobile financial
services to develop mobile applications which include bulk disbursements, airtime
top-ups, e-commerce and remittances. Mobile wallet is a platform that makes banking
simpler, safer and more convenient way. It provides users the convenience of storing
one or more methods of payments digitally. Rather than carrying cash or even cards,
the user just stores their payment information on a smart device, like a phone, a
watch, or a tablet, locked, and protected by a password. Other information, such as
store loyalty card information and digital coupons can also be stored.

Under mobile wallet technology, mobile operators, device suppliers and

service integrators are fast developing. The three value chains of the payments,
mobile, retail and technology industries are the object of significant investment by the
smart phone industry (Kemp, 2013). Increasing smart phone users push merchants to
communicate with customers through their mobile handsets by sending them new
products lists, provide coupons and facilitate purchasing process (Yang et al., 2012).
Besides, mobile wallet mechanism provides functions that consumer can manage
receiving information from merchants, and also compare products prices between
different retailers.

Although innovation in new mobile financial services is important, improving

customer adoptions is more important. Adoption is the mental process through which
an individual passes about an innovation first hearing to final adoption. The adoption
theory has simple objective that is “To observe new product adoptions and new
product diffusion in the market to understand how and why as well as to what extent a
new product is adopted by individuals or organizations” (Hitesh Bhasin, 2018). As per
adoption theory, a new product which is being launched in market should have
previous empirical data pointing towards the possible success of a product.

Nowadays, private banks are competing to launch mobile financial services in

Myanmar. There are so many mobile wallets issued by banks and non-bank financial
institutions in the market. Banks can earn more profit and market share by innovating
mobile wallet. This paper targets to investigate influencing factors on customer
intentions to adopt KBZPay mobile wallet, provided by Kanbawza Bank, one of the
private banks in Myanmar.

1.1 Rationale of the Study

Digital wallets, e-wallets, or mobile wallets, are all rage right now in the
financial world. The usage is spreading fast, as going ‘cashless’ is the latest trend in
fin-tech. The rapid growth of smart phones users is great chance for banks to seize the
opportunities to go cashless banking. Nowadays, smart phones have more power to
take sharp photos, communicate on social media, access email, and now make
payments as well. Several countries have adopted e-wallets on a large scale, with a
widespread use in Kenya and Tanzania. The popularity of mobile wallet in Asian
countries has been rising too. China, India and Singapore are the biggest adopters of
digital wallet.
The greatest advantage of mobile wallets hold for consumers as well as
retailers is the ease of payment. A transaction is follow by immediate transfer of the
money by using NFC (Near Field Communications) technology. And also, the retailer
can process the order and send it out immediately. The user does not have to divulge
any personal details or bank account details to the retailer, since those details are
already stored in the e-wallet once and for all. Most e-wallets are protected not just
with password but biometrics, so no one else can use it to make payments.
Mobile wallets allow customers to use their smart phones to make payments
for purchasing goods and services. To use their smart phones as mobile wallet,
customers need to download the mobile wallet application and enter their personal
information, debit card and credit card information. A mobile wallet is a much-
advanced smooth application that includes elements of mobile transactions,
membership cards, loyalty cards, and travel cards, Also, it stores personal and
sensitive information like passports, credit card information, PIN codes, booking
details, and insurance policies that can be encrypted or password-protected (Caldwell,
2012).
Myanmar banking sector is growing up now and the highest quality products
competition and services have become increasingly demanding. Some private banks
and non-bank financial institutions in Myanmar have launched their wallets. Mobile
wallet is the best solution to reach bank services to unbanked people, and it leads to a
quick path towards cashless society. It makes the users more secure, less costly, and
time-saving, as no need to visit a bank branch.
Currently, mobile wallet adoption by consumer is in the early stages but wallet
providers are willingness to see widespread adoption of this new technology. There is
a practical need for more understanding of the factors that could influence mobile
wallet adoption. The study aims to examine the influencing factors of consumer
adoption on this new technology. Widespread use of mobile wallet is sooner or later
by strengthening the influencing factors and cashless environment is ahead.
Among digital wallets launched in Myanmar, KBZPay, provided by
Kanbawza bank is the fastest growing wallet. It hit over three million fully registered
customers in one year time. Therefore, KBZPay was chosen to find out the degree of
customer interest and willingness of using the mobile wallet.
1.2 Objectives of the Study

The objectives of the study are

(1) To identify the Mobile Wallet services of KBZPay
(2) To examine the influencing factors of customer intention on KBZPay
Mobile Wallet adoption
1.3 Scope and Method of the Study

Descriptive method and quantitative method was used to measure customer

intention on KBZPay mobile wallet adoption. Primary data was collected from
questions answered by KBZPay mobile wallet users from KBZ Bank (University
Avenue Road Branch-2) in Kamayut Township. The population of the study is about
4000 and 200 KBZPay mobile wallet users were selected from the total wallet users.
The secondary data was gathered from previous thesis papers, text book, journals,
articles, internet and other related reports.

1.4 Organization of the Study

This paper is organized by five chapters. Chapter one presents introduction

which includes rationale of the study, objectives of the study, scope and method of the
study, and organization of the paper. Chapter two includes theoretical background of
the study of mobile wallet and concept of customer adoption in mobile wallet.
Chapter three presents the profile of Kanbawza Bank and background information of
KBZPay mobile wallet services, provided by Kanbawza Bank. Chapter four includes
analysis of customer intention on KBZPay mobile wallet services adoption. Chapter
five, the last chapter is conclusions including findings, suggestions, and needs for
further research.
CHAPTER 2

THEORETICAL BACKGROUND

This chapter includes background theory of planned behavior for influencing

factors of customer intention on mobile wallet service adoption and conceptual
framework.

2.1 Theory of Planned Behavior (TPB)

The theory of planned behavior is an extension of the theory of reasoned

action (Ajzen & Fishbein, 1980; Ajzen & Fishbein, 1975) made necessary variables
by the original model’s limitations in dealing with behaviors over which people have
incomplete willing. A pivotal factor of the theory of planned behavior is the
individual’s intention to perform a given behavior. It is assumed that intentions are the
motivational factors that influence a behavior; they are indications of how hard people
are willing to try, of how much of an effort they are planning to make, to carry out the
behavior. The stronger the intention to engage a behavior, the more likely should be
its performance. The original induction of the theory of planned behavior (Ajzen,
1985) defined intention (and its other theoretical constructs) concerning trying to
perform a given behavior rather than in relation to actual performance.
Technology Acceptance Model (TAM), by Davis (1989), Theory of Planned
Behavior (TPB), by Ajzen (1993), Unified Theory of Acceptance and Use of
Technology (UTAUT), of by Venkatesh & Davis et al. (2003) are widely used
theories by the researchers to explain user’ intention to use technology. Using Theory
of Planned Behavior (TPB) Ting, et al. (2016) found out that attitude, subjective norm
and perceived behavioral control positively affect the intention towards mobile
payment system. Interestingly, they discovered that intention to use mobile payment
is different by ethnicity where it is being distinguished by normative beliefs and
subjective norm.

2.2 Influencing Factors on Behavioral Intention to Adopt

The Technology Acceptance Model has been widely used as the theoretical
basis for many studies of user technology acceptance (Taylor& Todd, 1995).
Technology Acceptance Model is one of the most influential extensions of Ajzen and
Fishbein's Theory of Reasoned Action in the publications. Davis's TAM (Davis, 1989;
Davis, Bagozzi, &Warshaw, 1989) is the most widely applied model of users'
acceptance and usage of technology (Venkatesh, 2000). It was developed by Fred
Davis and Richard Bagozzi (Davis 1989, Bagozzi, Davis &Warshaw 1992) places
many of TRA's attitude measures with the two technology acceptance measures, ease
of use and usefulness. Theory of Reasoned Action and Technology Acceptance
Model, both of which have strong behavioral components, assume that when someone
forms an intention to act, that they will be free to act without limitation. In the real
world, there will be many restrictions, such as a limited freedom to act (Bagozzi,
Davis &Warshaw 1992).

2.2.1 Technology Acceptance Model

Venkatesh and Davis (Venkatesh & Davis 2000) extended the original TAM
model to explain perceived usefulness and usage intentions regarding social influence
(subjective norms, voluntariness, images) and cognitive contributory processes (result
demonstrability, output quality, job relevance, perceived ease of use). TAM is the
most effective theory for this kind of study which investigates factors influencing on
adoption. TAM proposed that two particular beliefs, perceived usefulness and
perceived ease of use, are the primary drivers for technology acceptance (Davis,
1989). Perceived Usefulness is described as a person believes that using a particular
system would increase his or her job performance. Perceived Ease of Use is described
as the degree to which a person believes that using a particular system would be free
of effort.
Figure (2.1) Technology Acceptance Model

Perceived
Usefulness

Attitude Behavioral Actual

External Toward Intention System
Variables Using to Use Use
Perceived
Ease of
Use
Source: Davis et al, (1989)
2.2.2 Innovation Diffusion Theory

Rogers, (2003) defined diffusion as “the process in which innovation was

transmitted via certain channels over a period among the members of a social
system.” Rogers’ diffusion of innovations theory was the most appropriate for
examining the adoption of technology. For Rogers (2003), adoption was a decision of
“full use of an innovation as the best course of action available” and rejection was a
decision, “not to adopt an innovation.”
Innovations Diffusion Theory (IDT), (Rogers, 2003) includes five significant
characteristics which reflect the influencing factors of new technology adoption:
relative advantage, compatibility, complexity, trialability and observability. Relative
advantage is determined as the degree to which innovation is considered as being
better than the idea it replaced. Compatibility refers to the degree to which innovation
is regarded as being consistent with the potential end-users’s existing values, prior
experiences, and needs. Complexity is defined as the end-users perceived level of
difficulty in understanding innovations and their ease of use. Trialability refers to the
degree to which innovations can be tested on a limited basis. Observability is the
degree to which the results of innovations that can be visible by other people.
Earlier research on the diffusion of innovations also suggested an important
role for perceived ease of use. Tornatzky and Klein (Tornatzky and Klein 1992)
analyzed the adoption, finding that compatibility, relative advantage, and complexity
had the most significant relationships with adoption across a broad range of
innovation types. This study has more focuses on above three characteristics which
reflect the behavior of mobile wallet users. While, the theoretical framework of this
study is the integration of Technology Acceptance Model with Innovation Diffusion
Theory, it was found that the relative advantage construct in IDT is similar to the
concept of the PU in TAM, and the complexity construct in IDT captures the PEU in
the TAM, although the sign is the opposite (Moore & Benbaset, 1991). The
innovation diffusion theory is expressed in Figure (2.2).

Figure (2.2) Innovation Diffusion Theory

Compatibility

Complexity

Adoption of
Observability Innovation

Relative
Advantage

Trialibility

Source: Rogers, (2003)

Perceived Ease of Use

According to Davis (1989) Perceived Ease of Use is presented as the degree to
which a person believes that using a particular system would be free of effort. Chin &
Todd (Chin & Todd, 1995) indicate that PEU has a positive effect on the end-users’
behavioral intention as well as the perceived usefulness of the system. When mobile
wallet users perceive a correspondingly high ease of use, they will be more likely to
recognize the convenience of mobile wallet and to try different mobile wallet
services, experiencing a higher level of usefulness. Perceived ease of use has been
empirically validated in an indirectly through its effect on the Perceived Usefulness
construct (Chandra et al., 2010; Chen, 2008; Peng et al., 2012; Yang, 2005). For
instant, Yang (2005) found that PEU has a significant influence on PU among users in
Singapore. Chen (2008) found PEU to have a direct impact on individuals’ intentions
of adoption among United States consumers.

Perceived Usefulness

Perceived Usefulness is described as the degree to which individuals believe

that using a particular system would enhance their job performance within an
organizational context (Davis, 1989). However, PU in the context of mobile wallet
services can be explained as the extent to which an individual believes that using the
mobile wallet services will enhance his or her productivity and performance in
conducting payment transactions. The effect of PU on behavioral intention to adopt
and use new technology has been empirically validated in many previous studies
(Davis, 1989; Venkatesh & Davis, 2000; Chin & Todd, 1995; Peng et al., 2012). S.
Zarrin Kafsh (2015) found that the perceived usefulness of the system is a significant
predictor in intention to use of the Mobile wallet.

Compatibility

Compatibility, foundation construct in IDT, refers to the degree to which

innovation is regarded as being consistent with the consumers’ needs, habits,
experiences, existing values, and personal beliefs (Rogers, 2003). Several studies have
shown that compatibility is an important aspect of innovation adoption, and it has a
strong influence on a person’s intention to adopt new technology (Chen, 2008; Wu &
Wang, 2005; Schierz et al., 2010). Agarwal, (2000) described a positive relationship
between an individual’s prior compatible experiences, and the new information
technology acceptance. Chen, (2008) proposed that M-payment services are likely to
be adopted when people perceive that using the services is compatible with their
purchasing behaviors and lifestyle, which also enhances their social image.

Subjective Norm

Subjective norm refers to the degree to which an individual pays attention to

and is influenced by the opinions of people who are important to him/her while
consideration a particular activity (Fishbein & Ajzen, 1975). Subjective norm, similar
to the construct Attitude in the original TAM model, be found to predict adoption
behavior. Chong et al. (2012) suggests a direct association of Subjective Norms to
behavioral intention. If a leader or superior proposes that a particular innovation
might be useful the suggestion could affect the individual’s perception towards the
usefulness of the innovation (Schepers & Wetzels, 2007).

Observability
Combining TAM and IDT in previous studies, when users perceived a system
as being easier to be observed or described, they tended to perceive the system as
more useful (Huang, Mourikis, &Roumeliotis, 2013; Yang, 2007). Therefore, it is
proposed that observability has positive effect on perceived usefulness of mobile
wallet.

Perceived security

Perceived security is described as the degree to which a customer believes that

using a particular mobile payment procedure will be secured (Shin, 2005; Yenisey,
Ozok & Salvendy, 2005). One of the most concerns in mobile wallet is security to
support mobile cash transactions. Near Field Communications (NFC) can provide a
secure environment for convenient and efficient business transactions. NFC enables
fast and easy wireless connection between electronic devices in short-range distance
(Chen & Chang, 2013). Given the rising concerns over mobile security, this study
explores the effect of users’ perceived security in intention to use a mobile wallet.
Cheong, Park, & Hwang (2008) analyzed barriers to mobile payment adoption and
reported that the lack of security is the most frequent reason for refusing to use the
system. Mallet et al. (2008) described that perceived security strongly affected
consumer intention to use mobile payment.

Perceived cost

The concept of perceived cost has been suggested as a factor in determining

consumer intention to adopt a new technology by Luarn & Lin (2005), who argue that
high pricing structures can be major barriers to the adoption. Consumers may find
mobile wallet services to be an unattractive and unnecessary option if the additional
costs involved are found to be expensive or the benefits of using the mobile wallet
services do not offer value for money.
2.3 Previous Studies of Influencing Factors on Adoption

Several studies have been conducted to identify factors influencing the

adoption of technology related products and services in different aspects using a
variety of theoretical perspectives (Thong, 1999; Martin &Matlay, 2001; Harrison,
Riemenschneider &Mykytyn, 2003) and Innovation Diffusion Theory(Rogers, 2003).
Some previous studies have shown the influencing factors of mobile wallet adoption.
Zarrin Kafsh, S. (2015) developed a new technology acceptance model that affect the
people’s behavioral intentions to use mobile wallet in Canada. He used TAM and IDT
model to examine the variables and found that perceived usefulness, compatibility,
and perceived cost is significantly affecting consumers’ intention to adopt.
Phonthanukitithaworn, C., (2015) investigated the factors affecting
consumers’ intention to adopt mobile payment services in Thailand. Based on the
extended TAM model, the study found that compatibility, subjective norms, perceived
trust and perceived cost effect the consumer adoption of M-payment services in
Thailand.
Aldousari et al. (2016) used TAM to examine the determinants of consumers’
attitudes towards using online shopping. Raza, et al. (2018) applied TPB to see
students’ acceptance of mobile learning in higher education. San Martin and Herrero
et al. (2012) used Unified Theory of Acceptance and Use of Technology (UTAUT) to
explain user intention to make booking or reservations through websites, in the
tourism industry.
Busu et al. (2018) conducted a study to determine factors that affect the
adoption of NFC among universities students based on Technology Acceptance
Model. They found that only perceived usefulness, compatibility, and perceived cost
is significantly affecting consumers’ intention to adopt NFC. In contrast, Mun, et al.
(2017) found that all TAM variables are affecting millenials’ intention to use mobile
payment. Using the same theory, Tan et al. (2013) found that both perceived
usefulness and perceived ease of use positively affecting customers’ intention to use
mobile credit card. In addition to original construct of TAM, Tan, et al. (2014) have
extended it to include social influence and personal innovativeness in information
technology to study factors influencing the adoption of NFC technology.
2.4 Conceptual framework of the study

The conceptual framework for this study is adapted from Venkatesh & Davis,
et al. (2000), Rogers (2003), Phonthanukitithaworn, C., (2015) who conducted the
factors influencing on customer intention to adopt mobile wallet.

Figure(2.3) Conceptual Model of the Study

Perceived Ease of Use

Perceived Usefulness

Compatibility

Behavioral Intention
Subjective Norm
to adopt

Observability

Perceived Security

Perceived Cost

Source: Adapted from Venkatesh & Davies et al. (2000), Rogers (2003),
Phonthanukitithaworn, C., (2015)

This research framework is an adapted theoretical framework which blends

Technology Acceptance Model (TAM) and Innovations Diffusion Theory (IDT). The
framework consists of independent variables such as Compatibility, Observability,
perceived usefulness, perceived ease of use, subjective norms, perceived security,
perceived cost which can influence customer nature of Myanmar and dependent,
variable behavioral intention to adopt mobile wallet services.

CHAPTER 3
BACKGROUND INFORMATION OF KANBAWZA BANK AND
KBZPAY MOBILE WALLET SERVICES

This chapter presents the profile of Kanbawza Bank and mobile wallet
services of KBZPay provided by Kanbawza Bank.

3.1 Profile of Kanbawza Bank

Kanbawza Bank (abbreviated as KBZ Bank) is a private commercial bank in

Myanmar and established on 1st July, 1994 in Taunggyi, located in southern part of
Shan State. The name Kanbawza is the traditional name for the Shan State in
Myanmar. KBZ Bank was a part of the KBZ Group of companies which operates
successfully across various businesses such as mining, aviation, insurance,
manufacturing, hospitality, agriculture, infrastructure and healthcare. KBZ Bank was
established with a single branch in Taunggyi and the current management took over
KBZ Bank in November 1999. In April 2000, KBZ headquarters was relocated to
Yangon, capital and business city of Myanmar. Later, it grows and develops as one of
the top private banks in Myanmar with the most extensive retail banking network.
At present, KBZ Bank has more than 500 braches all over the country and has
the staff-force of 18,000 employees. KBZ Bank presently accounts for approximately
40 percent market share of both retail and commercial banking in the country, and has
the growing international presence and being the first Myanmar bank to open offices
in neighboring markets. KBZ bank is leading the way to cashless society, particularly
in digital and technology, for Myanmar’s rapidly developing financial services
industry through an approach that understands the opportunities of innovation the
needs of the Myanmar and the unique context of the country’s economy. Myanmar’s
economy is now expanding and opening-up, KBZ Bank sees exciting opportunities to
work with international investors, providing an important and critical bridge to
Myanmar’s fast-growing cities, entrepreneurs and local.
KBZ Bank’s vision is to become the best-managed bank in the world. That is
simply what Myanmar needs, and deserves. And, its mission is to improve the quality
of life through banking. As the mission it pronounced, KBZ Bank innovate KBZPay
mobile wallet to reach its banking services to 100 percent financial inclusion.
3.2 Key Players of KBZPay Mobile Wallet Services

There are so many participants involving in KBZPay mobile wallet services.

For instant, mobile device provider, telecom operator, agents, merchants, customers
and staff are involved. Some of them are key players of KBZPay mobile wallet, and
they are as follows;

(a) Agents

Agents are the business partners who can give services on behalf of KBZPay
and receive commission for that. Customer visits agent to request KBZPay services
such as airtime top-ups, cash-ins, cash-outs and remittances. Agent performs the
transactions on their smartphone with the KBZPay partner application. Bank sends
approval notification to agent. After that, the transaction is complete and the customer
receives their receipt or notification from the bank. To become an agent, KBZ bank
develops the policies that include he/she must have a building to do business which
can easily be seen or found by KBZPay users. And also, he/she must own a business
and business licence. He/she must sign an agreement with KBZ Bank. Moreover,
he/she must put one Million in their partner application in advance to make
transactions. He/she will be well-trained by Master Agent Branch Teller from the
respective branch and assist them at all times they have difficulties with the
application and errors in processing.

(b) Merchants

Merchants also are the business partners who receive payments from the
KBZPay users. Although merchants are charged some points for the payment made in
the users, merchants gets benefits of reducing cashier, no need to worry about note
change for refund and fake notes, and also safe keeping for cash. Another benefit, the
most important benefit for merchants is sales growth.
(c) Customers/Users

It is undeniable that consumers are the most important factor for any business.
It is very pivotal to gain the adoption from consumers. The interesting thing is that
paying by mobile device does not have much attraction toward consumers (Stringer,
2014). Customers are the most important player for widespread use of mobile wallet
leading to a cashless environment, and this study will mainly focus on this part. To
use KBZPay, user must download application and make registration by filling
personal information. Then, users can start using. Every log in process is protected by
one time password (OTP). Using KBZPay, customer gets benefits of time savings,
cost savings, no need to carry physical cash, or card, even a physical wallet. Customer
can make purchases online with KBZPay staying at home by at any time, any place.
Customers can link their individual bank account with their KBZPay wallet. Customer
can make cash in at every nearby agents or merchants or from bank account. And
also, they can make cash out at nearby agents or ATMs. They can remit or transfer to
their family, friends or colleague at any time. Each and every transaction is protected
by PIN.

3.3 KBZPay Mobile Wallet Services

KBZPay is a mobile wallet that connects people to a digital economy that was
once out of reach for many. It was introduced in 2018 in line with KBZ Bank’s
aspiration toward 100% financial inclusion to support Myanmar’s development
aspirations and needs, KBZPay brings financial services beyond the physical bank
branches and into the palms of customers’ hands. Millions of customers now enjoy a
new banking experience, using KBZPay to manage their money, pay for goods and
services, store cash, remit to each other and conduct daily financial affairs that were
once labour-intensive and time-consuming. KBZPay utilizes the best and safest
technology and with the support of KBZ Bank’s 18,000 staff. Now it is the leading
mobile wallet in Myanmar, connecting customers with thousands of merchants and
agents across the country every day.
KBZPay is a mobile wallet platform provided by KBZ Bank, one of the most
trusted banks in Myanmar. Now it is available for download across the country. It is
the safer, simpler and more convenient way to transact money. Whether you wish to
pay, transfer, cash in or cash out, it is easy with KBZPay with just a few taps on your
phone. For the security purpose, KBZPay mobile wallet is protected by one time
password for every log in and own password for every transaction. All the sensitive
information is encrypted and no one can hack or theft because of the Near Field
Communications (NFC) technology and cloud based solution.
According to the announcement by KBZ Bank, KBZPay acquired over
3,000,000 (three million) customers, 230, 000 Agents and Merchants within one year
from its first launch. It expresses that daily remittance transactions reached 300,000
and monthly transaction also reached to 8,000,000 (eight million) per month. The
total transaction volume was equivalent to 1.8 billion United States dollars.
Currently, the following services are available in KBZPay mobile wallet.
According to the consumers’ needs, product providers are modifying the application
frequently.

(a)Scan and Pay: To pay merchant and bills, KBZPay users can make payment by
scanning QR code of the merchants and it takes a few seconds to scan. To scan QR,
users and merchants must be in a short distance. But users can pay manual by typing
short codes of merchants when users and merchants are away from each other.

(b)Receive: Users can receive e-money (digital money put in advance to be ready to
use) by receive QR if payers and receivers are in a short distance if not, use a phone
number to receive.

(c)Cash In: Users can put e-money to their mobile wallet by visiting nearby agents or
merchants and by directly transfer from their bank account linking KBZPay and a
single bank account.

(d)Cash Out: Users can make cash out process in three ways. Directly cash out by
cash at agents or nearby KBZ ATMs. And the third way is cash out by transfer to their
bank account.

(e)Top Up: Users can make top-up on their own, or the others’ mobile airtime on
almost all telecoms in Myanmar such as MPT, Telenor, Ooredoo and Mytel at
anytime, anywhere except making top-up MEC Tel. At present, KBZPay offers 3
percent discount on every top up above 3000 kyats.

(f)Transfer: KBZPay users can transfer money securely and safely if the receiver has
a mobile number. So, no third party can cash out without your permission ever.
(g)Buy Tickets: Users can buy air tickets, bus tickets, movies ticket through service
agencies which are the business partner of KBZPay.

(h)Gift cards: Gamers can by some diamonds or points by KBZPay

(i)Donation: KBZPay users can donate to some organization for charity deeds.

(j)Bills Payment: Monthly utility bills and electricity bill can be paid by KBZPay
without visiting to the respective offices, and no need to wait in a queue for so long.
(k)Pocket Money: Users can pay pocket money as a surprise to their beloved persons
with so many reasons.

(l)Quick Pay: It is a function to make installments to financial institutions, payments

in advance to services industries, transportation, trading, online shopping, IT &
mobile, insurance, internet service providers and registration fees for Universities, and
so on.

(m)Nearby: This function helps the users find nearby KBZPay agents and merchants
easily.

(n)History: Users can trace back every transaction they made at which date and time
in this function and can filter with the transaction type easily. KBZPay users will get
notification message every time they make or accept transactions.
(o) Bank Account: KBZPay users can link with their individual bank account and
KBZPay mobile wallet. Users can make deposit or withdraw from and to bank
account with KBZPay wallet.
CHAPTER 4
ANALYSIS OF INFLUENCING FACTORS ON MOBILE
WALLET ADOPTION

This chapter expresses the analysis of influencing factors on customer

intention of KBZPay mobile wallet adoption.

4.1 Research Design

A sample of 200, mobile wallet users were selected from the KBZPay mobile
wallet users in Kamayut Township which is 5 percent of total wallet users about 4000
of KBZ Bank, University Avenue Road Branch-2. To achieve the main objective of
this study, a survey questions and items are adapted from similar studies. The
questions for the measurement items were formulated on a five points likert scale,
asking respondents to indicate their agreement with the statements from 1(strongly
disagree) to 5 (strongly agree). The questionnaire was divided into two parts. The first
section consists of demographic profile of respondents, and the second section
consists of the questions to measure customers’ behavioral intention to use mobile
wallet. Descriptive method, quantitative method and random sampling method was
used to analyze the primary data collected.

This research used descriptive research method output data by examining

survey responses. For multiple choice questions, data analysis was in frequency count,
percentages, and excels were used. For likert scale questions, data analysis was in
average (Mean), percentages, excels and charts. The average-mean score range
between (1.00-1.80) is interpreted as very low level of agreement. And the mean score
range (1.81-2.60) has low level of agreement and the range (2.61-3.40) indicates
medium agreement level. After that, the mean score range (3.41-4.20) and (4.21-5.00)
are high level and very high level of agreement (Tan &Teo, 2000).
4.2 Demographic Profile of Respondents

Demographic characteristics are very important in analyzing the factors that

influence customers’ intention on mobile wallet adoption. This section expresses the
profiles of random sample of 200 customers taken out from the customers in Kamayut
Township, Yangon. The demographic profile of respondents cover Age, Gender,
Education, Occupation and Income level are summarized in table (4.1).

Table (4.1) Demographic Profile of Respondents

Variables Respondents Percentage

Age Under 25 years 25 12.5

26-35 years 119 59.5
36-45 years 39 19.5
Above 45 years 17 8.5
Gender Male 71 35.5
Female 129 64.5
Education Post Graduate 29 14.5
Graduate 127 63.5
Under Graduate 21 10.5
High school level 23 11.5
Occupation Professional 32 16
Self-employed 33 16.5
Staff 105 52.5
Student 14 7
Other 16 8
Monthly <200,000 35 17.5
Income 200,000-400,000 71 35.5
(Kyats) 400,000-600,000 32 16
600,000-800,000 14 7
800,000-1,000,000 13 6.5
>1,000,000 35 17.5
Source: Survey data, 2019
As shown in above table (4.1), there are (71) males and (129) females out of
200 respondents contributes to the survey. For the respondents’ age group, it is
divided into four ranges which are under 25 years, 26-35 years, 36-45 years and above
45 years old. According to the survey, the highest (59.5%) of respondents are in the
age group of (26-35) years, followed by (36-45) years, (under 25) years and (above
45) years old are (19.5%), (12.5%) and (8.5%) respectively.
Regarding to the education level, the result shows that (127) respondents out
of total hold at least a bachelor degree, which is (63.5%) of total respondents, and
other (14.5%) hold post graduate level, (10.5%) are bachelor level and (11.5%) are
high school level.
With regard to the occupation of the respondents, the results show that (32)
respondents out of total are professional employees which make (16%). Other (33)
respondents are self-employed that accounted for (16.5%) and another (105)
respondents are government and company staffs, which make the highest (52.5%) of
occupation group. And the remaining (8%) of respondents are housewife and retired.
According to the monthly income item of the survey, there are (17.5%) of total
200 customers earn above one million who is professionals, senior manager level, and
above. The majority of the respondents who are (35.5%) of total earn monthly income
of (Ks-200,000 - 400,000). Thus, Sample size for this study can be described as the
group of customers who are educated, employed with medium income.

4.3 Analysis of Influencing Factors on Mobile Wallet Adoption

This research is mainly focused on examining the factors influencing on

customer intention to KBZPay mobile wallet adoption. The research framework for
this study is based on extended Technology Acceptance Model (Venkatesh& Davis,
2000) and Innovation Diffusion Theory (Rogers, 2003). The research model includes
the two innovative characteristics (compatibility and Observability) that exert an
important effect on the peoples’ perceived usefulness, perceive ease of use and
intention to use mobile wallet. As shown in the model, the Subjective Norms affect
the intention to use mobile wallet by forming direct relationship on Behavioral
Intention. Theoretical model in this study also examines the relationship between
Security, Cost and Behavioral Intention.
(a) Perceived Ease of Use

Table (4.2) presents the factors which reflect the customer perception
on Perceived Ease of Use. They are the processes are clear, and understandable in
using KBZPay wallet, becoming skillful at using KBZPay wallet is easy, KBZPay
wallet is easy to use, using KBZPay wallet is easy to accomplish tasks and
interaction with KBZPay wallet does not require a lot of mental effort.

Table (4.2) Perceived Ease of Use

Item Description Mean Level of Agreement

1 When I use KBZPay wallet, the 3.92 High

processes are clear and
understandable.
2 It is easy for me to become skillful at 3.89 High
using KBZPay wallet.

3 KBZPay wallet is easy to use. 3.99 High

4 It is easy to use KBZPay wallet to 3.85 High

accomplish my tasks.
5 Interaction with KBZPay wallet does 3.72 High
not require a lot of mental effort.
Overall Mean 3.87 High

Source: Survey data, 2019

The mean scores for perceived ease of use, shown in table (4.2) provide the
fact that “KBZPay is easy to use” getting the highest mean scores 3.99 among the
factors in perceived ease of use. For those, who has poor education finds KBZPay a
little difficult to use. Then, the second highest score 3.92 for “The processes are clear,
and understandable in using KBZPay” shows that clear and understandable of the
system, has high customer acceptance. After that, the fact easy to learn to be skillful
of using, getting the score of 3.89 also has strong consumer likelihood. The remaining
two items also get high mean scores which indicate the high customer agreement
level.
(b) Perceived Usefulness

Table (4.3) describes the items which examine the customer perception
on Perceived Usefulness. They are using KBZPay wallet enables to accomplish
tasks much quicker, using KBZPay wallet make it easier to carry out tasks, using
KBZPay wallet enhance payment more effective, using KBZPay wallet enhance
payment more effective and KBZPay wallet is very useful.

Table (4.3) Perceived Usefulness

Item Description Mean Level of Agreement
1 Using KBZPay wallet enables me 3.93 High
to accomplish my tasks much
quicker.
2 Using KBZPay wallet make it 3.89 High
easier for me to carry out my tasks.
3 Using KBZPay wallet enhance my 3.84 High
payment more effective.
4 KBZPay mobile wallet services 4.01 High
save me time.
5 KBZPay wallet is very useful. 3.97 High

Overall Mean 3.93 High

Source: Survey data, 2019

The result of table (4.3) shows that “KBZPay mobile wallet services save
time” is the most important fact for perceived usefulness winning the highest mean
score of 4.01. Followed by the mean scores of 3.97 for “KBZPay is very useful,” and
“Using KBZPay enable accomplish tasks much quicker” having the score of 3.93
express that usefulness of the system can enhance the user’s performance. There has
not much difference between the variables in table (4.3). It can be assumed that the
average mean score for perceived usefulness is the highest among the factors in
research conceptual framework.

(c) Compatibility
Compatibility is the measurement of how KBZPay mobile wallet service is
compatibility for each user’s lifestyle and how will impact the daily life of the users
by using it. Items of variable Compatibility for this research are presented in the table
(4.4). They are using KBZPay wallet fit well with lifestyle, using KBZPay wallet fit
well with the way to conduct payment transactions, KBZPay wallet is completely
compatible with current situation, Making payments by scanning with KBZPay wallet
is convenient and transactions can be made after banking hour is more compatible.

Table (4.4) Compatibility

Item Description Mean Level of Agreement

1 Using KBZPay wallet fit well with 3.68 High

my lifestyle.
2 Using KBZPay wallet fit well with 3.68 High
the way I like to conduct my payment
transactions.
3 Using KBZPay wallet is completely 3.55 High
compatible with my current situation.
4 Making payments by scanning with 3.85 High
KBZPay wallet is convenient.
5 Transactions can be made by 3.89 High
KBZPay wallet after banking hour is
more compatible for those who have
limited time.
Overall Mean 3.73 High

Source: Survey data, 2019

As shown in the table (4.4) overall mean score is (3.73) among the
facts of compatibility, “Transactions can be made by KBZPay after banking hour is
more compatible” has the highest mean value of 3.89. All the factors in table (4.4)
indicate that KBZPay mobile wallet is compatibility with their lifestyle.

(d) Subjective Norm

Items of variable Subjective Norm are described in the table (4.5). They are
People who are important to me think that I should use KBZPay wallet, People whose
opinion I valued prefer me to use KBZPay wallet, being supported using KBZPay
wallet, being advised to use KBZPay wallet as a payment method and using KBZPay
wallet is influenced by social contacts.

Table (4.5) Subjective Norms

Item Description Mean Level of agreement

1 People who are important to me 3.60 High
think I should use KBZPay wallet.
2 People whose opinion I value prefer 3.59 High
me to use KBZPay wallet.
3 People who are important to me 3.61 High
support my use of KBZPay wallet.
4 I was advised to use KBZPay wallet 3.77 High
as a payment method.
5 Using KBZPay wallet is influenced 3.40 Medium
by my social contacts.
Overall Mean 3.60 High

Source: Survey data, 2019

The results from the study are shown in the following table (4.5). According
to the outcome from table (4.5), customers’ acceptance for using KBZPay is
influenced by the others’ suggestion. Although the agreement level for “Using
KBZPay is influenced by social contacts” is medium, overall mean score indicate that
Subjective norms influenced the customer intention to use mobile wallet services.
This means that word of mouth is more powerful than social contacts.

(e) Observability
Table (4.6) describes the items of variable Observability. They are observing
using KBZPay wallet for buying products, purchasing products through KBZPay
wallet is a practice seen before, observing people send and receive money, observing
making payments for University school fees and observing buying tickets (air tickets,
bus tickets, movies tickets, etc).

Table (4.6) Observability

Item Description Mean Level of agreement
I observe people using KBZPay
1 3.77 High
wallet for buying products.
Purchasing products through
2 KBZPay wallet is a practice that I 3.60 High
have seen before.
I observe people send and receive
3 3.80 High
money by KBZPay wallet.
I observe people making payments
4 for University school fees with 3.56 High
KBZPay wallet.
I observe people buying tickets (air
5 tickets, bus tickets, movies tickets, 3.57 High
etc) with KBZPay wallet.

Overall Mean 3.66 High

Source: Survey data, 2019

When consumers perceived a system is being observed by others they tend to

realize the system as useful, Huang et al. (2013). The more they can easily be
observed from others, the more they will adopt the innovation. The result from the
table (4.6) shows that observability from others has high customer agreement level.
Therefore, observability is also the important factor to increase customer adoption.

(f) Perceived Security

Perceived security is one of the barriers in mobile wallet technology to support
mobile cash transactions. Near field communications (NFC) enables fast and easy
wireless connection between electronic devices in short range distance (Chen &
Chang, 2013). Table (4.7) presents the items which reflect the customer perception
on Perceived Security.

Table (4.7) Perceived Security

Item Description Mean Level of Agreement

1 I feel secure using KBZPay wallet 3.88 High

because other people cannot access my
account without my permission.
2 I feel secure sending sensitive 3.77 High
information across KBZPay wallet.

3 I feel secure to link bank account with 3.86 High

KBZPay wallet because the password
protected or encrypted.
4 I have no worries about connection lost 3.48 High
while I am making transactions with
KBZPay wallet.
5 I feel secure that I will not lose my 3.67 High
money even if I lost my sim card used
for KBZPay wallet.
Overall Mean 3.73 High

Source: Survey data, 2019

The results come out from the table (4.7) indicate that “feeling secure using
KBZPay because other people cannot access the account without permission” is the
strongest and the fact that “feeling secure to link bank account with KBZPay because
the password protected or encrypted” has the second strongest mean value of 3.88
and 3.86 respectively. The another factor that “Having no worries about connection
lost while making transactions” gets little low score than other factors and it
expresses there is low customer satisfaction on the internet connection while using
mobile wallets. According to the above result perceived security has the direct effect
behavioral intention.

(g) Perceived Costs

It has been suggested that the concept of Perceived Cost as a factor in

determining the consumer intention to adopt a new technology by Luarn & Lin, 2005,
who discuss that high pricing structure can be a major barrier to the adoption.
Consumers may find unattractive on using the mobile wallet services if the pricing
structure is high. The items of variable Perceived Cost which described in the table
(4.8) are cost of equipment is not high, transaction fee is not high, communication or
internet access fee is not high and overall, using KBZPay does not cost a lot.
Table (4.8) Perceived Costs
Item Description Mean Level of Agreement

1 Cost of equipment (e. g mobile 3.72 High

device) for using KBZPay is not
high.
2 Transaction fee for using KBZPay 3.58 High
wallet is not high.
3 Communication or internet access fee 3.70 High
for using KBZPay wallet is not high.
4 Overall, using KBZPay does not cost 3.74 High
me a lot.
Overall Mean 3.68 High

Source: Survey data, 2019

The result of variable Perceived Cost is shown in table (4.8). Presently,

KBZPay has the reasonable pricing from the respondents’ answers and by controlling
the fair-pricing it can attract the consumers’ intention on mobile wallet adoption. If
the cost structure goes up, consumers will be considered to carry on using of the new
technology.
(h) Behavioral Intention
Table (4.9) describes the items reflecting the customer attitudes
towards behavioral intention which are continued using because it is easy to use,
continue using because it is useful, continue using than any other payment method,
continue using when suggested to use, continue using when someone used, continue
using if facing no security problems and continue using if not, costing a lot than usual.
Table (4.9) Behavioral Intention

Item Description Mean Level of Agreement

1 I continue using KBZPay wallet 3.86 High
because it is easy to use.
2 I continue using KBZPay wallet 3.93 High
because it is useful for my payment
transactions.
3 I continue using KBZPay wallet 3.64 High
rather than any other payment
method to conduct a transaction in
the future.
4 I continue using KBZPay wallet 3.57 High
when the person I value suggested
me to use.
5 I continue using KBZPay wallet 3.44 High
services when I had seen someone
else using before trying it myself.
6 I intend to use KBZPay wallet if I do 3.75 High
not face any security problems while
using.
7 I intend to use KBZPay wallet if it is 3.78 High
not cost me a lot than usual.
Overall Mean 3.71 High
Source: Survey data, 2019

The Survey results come out from the table (4.9) indicates the
customer intention on KBZPay mobile wallet adoption. Among the influencing
factors, “I continue using KBZPay if it is useful for my payment transactions” which
represents the Perceived usefulness construct, is the strongest and having the mean
value of 3.93 and the factor that “I continue using KBZPay if it is easy to use”
representing the Perceived ease of use is the second strongest customer agreement
level with mean value of 3.86. The third and fourth variables are the Perceived
security and Perceived Cost having the scores of 3.78 and 3.75 respectively, and also
has the high customer perception. The overall mean score shows the high level of
customer agreement on KBZPay. By strengthening the high customer perception
items, consumers’ intention on adoption of mobile wallet can be increased and by
controlling or reducing the negative influencing factor adoption rate cannot be
declined.
(i) Summary of Overall Mean Scores

Summary of overall mean scores are shown in the table (4.10). The
independent variables of the conceptual framework of this study are Perceived Ease of
Use, Perceived Usefulness, Compatibility, Subjective Norm, Observability, Perceived
security and Perceived cost.
Table (4.10) Summary of Overall Mean Scores
Item Description Mean Level of agreement

1 Perceived Ease of 3.87 High

Use
2 Perceived 3.93 High
Usefulness
3 Compatibility 3.73 High

4 Subjective Norm 3.60 High

5 Observability 3.66 High

6 Perceived security 3.73 High

7 Perceived cost 3.68 High

Source: Survey data, 2019

The survey result of perceived usefulness is found that the highest score of
3.93 and it means that most of the customers’ agreements highly accept KBZPay’s
usefulness. Perceived ease of use has the second highest value, and it also means that
high level of agreement. The rest of two variables compatibility and perceived
security also has high agreement level. Mean scores between the variables have not
much difference, but they all have high level of agreement.

(j) Effect of influencing factors on mobile wallet adoption

Table (4.11) shows the result for regression analysis of influencing factors on
mobile wallet adoption.
Table (4.11) Analysis of Influencing factors on mobile wallet adoption

Unstandardized Standardize
Coefficients d
Model Coefficients T Sig
B Std Beta
Error
1 (Constant) 1.241 0.267 4.652 0.000

Perceived ease of 0.144** 0.071 0.164 2.028 0.045

use
Perceived usefulness 0.181* 0.096 0.173 1.874 0.062

Compatibility 0.045 0.096 0.046 0.521 0.636

Subjective norm 0.032 0.086 0.033 0.371 0.711

Observability 0.147 0.097 0.142 1.507 0.133

Perceived security 0.200** 0.096 0.205 2.092 0.038

Perceived costs 0.277*** 0.082 0.285 3.371 0.001

N 200

Adjusted R Square 0.331

F Value 15.056

*** Statistically significant at 1% level, ** at 5% level, * at 10% level

Source: SPSS output, 2019
The model can explain 33% about the variance of influencing factor of
behavioral intention on adoption. That means influencing factor has explanatory
power on behavioral intention to adopt. As shown in the table (4.11) there are seven
influencing factors variables such as perceived ease of use, perceived usefulness,
compatibility, subjective norm, observability, perceived security, and perceived costs
that effect on customer intention to adopt. As per estimated linear regression model,
the F value of 15.056 mean overall models significant level at 0.000. For the
significant of each variable, perceived cost is significant at 1% level and having the p
value of 0.001. After that, perceived security and perceived ease of use are significant
at 5% level since the result of p value is 0.038 and 0.045 respectively. Then,
perceived usefulness is significant at 10% level with a p value of 0.062. Among the
three significant variables, perceived cost is the most significant and highest effect on
behavioral intention because of the Beta value of behavioral intention is the highest
among the others (β=0.277)
CHAPTER 5

CONCLUSION

This chapter consists of the result findings from the researched study, suggestions
and needs for further research on influencing factors of KBZPay mobile wallet
services adoption.

5.1 Findings

The main objective of this study was to examine the influencing factors on
customer intention of mobile wallet services adoption of KBZPay. The majority of the
respondents 65% of total 200 are females and another 35% are males, and all
respondents use smartphones and used as a payment method. Based on the researched
theoretical model, it was examined how the constructs of the research model
influenced the behavioral intention on mobile wallet adoption. The model consists of
eight constructs: Perceived Ease of Use, Perceived Usefulness, Compatibility,
Subjective Norm, Observability, Perceived Security, Perceived Cost, and Behavioral
Intention. The model found that Perceived Usefulness, Perceived security and
Perceived cost have the high degree of significance in mobile wallet adoption.
Moreover, Perceived Ease of Use has the second strongest significance on behavioral
intention.

The result shows that the “KBZPay mobile wallet services save me time” is
the most influencing factors of customer intention to mobile wallet services having
the high mean value and significance. Follow by the fact that “KBZPay is very
useful” is the second highest of among the items in Perceived Usefulness construct.
The other items have the slightly lower score of mean and overall mean score is also
the highest. Therefore, the overall result shows that Perceived Usefulness heavily
influenced on the variable of Behavioral Intention on mobile wallet adoption.

The result come out from the study shows that overall, KBZPay does not cost
a lot is the most important item among the items in perceived cost, having the high
mean score. Then, the fact that transaction fees for using KBZPay is not high is the
lowest mean score, and it indicates that some customer think that transaction fees of
KBZPay is still high. On the other hand, most of the customers think that it is
reasonable price. According to the outcome, the perceived cost construct has the
direct effect on behavioral intention.
The result shows that the fact feeling secure using KBZPay because other
people cannot access account without permission is the strongest and getting the
highest mean score among the variable items in a controlled security. Every customer
wants to be secured while they are using the mobile wallet. The other items in the
construct have slightly different mean score and showing that perceived security is the
strong and positive influence factor on behavioral intention.

As a result of the variable factors, “KBZPay is easy to use” has the strongest
mean value and the second highest of all variable factors in the model. Nobody wants
complex system to carry his/ her tasks. Another question, “When I use KBZPay, the
process is clear and understandable” also has the high mean value and the overall
mean is also high. Easiness of using a system has much effect on behavioral intention
to adopt mobile wallet. Perceived ease of use affects BI positively and directly. Due to
the survey result, compatibility, subjective norm, observability also influenced the
behavioral intention.

In conclusion, this study found that perceived usefulness, perceived cost and
perceived security is the key influencing factors in consumer adoption in mobile
wallet. Higher usefulness could assist the individuals’ financial activities management
and higher security creates the confidence and reduces the burden of the users in using
the system. Moreover, perceived ease of use is the second strongest influencing factor
in adopting mobile wallet. The other factors compatibility, subjective norm and
observability of the mobile wallet services moderately influenced the behavioral
intention on customer adoption of KBZPay mobile wallet.

5.2 Suggestions

Mobile wallet is a crucial topic in the financial technology in Myanmar. Banks

can capture a higher consumer adoption by improving the key influencing factors of
mobile wallet adoption. This research paper mainly focuses on consumers of KBZPay
mobile wallet users in Kamayut Township, Yangon area. In order to make widely
acceptance of mobile wallet, many related stakeholders require much effort in terms
of change. Besides, mobile wallet services are in their first stages to be presented in
Myanmar. Wallet providers need to enhance the agents and ATMs for easy to remit
and cash out by the customers. And then, mobile wallet owner should create
merchants acceptance points to get more customer adoption on mobile wallet.
Furthermore, wallet owners should generate promotion plans according to the market
needs. This research found that KBZPay’s transaction fee is still a little high for some
users. Therefore, mobile wallet providers should adjust the pricing structure for more
customer usage of mobile wallet. Widespread use of mobile wallet is sooner or later
by strengthening the influencing factors and cashless environment is ahead.

5.3 Limitations and Need for further Research

Although KBZPay customers are over three million within one year, the
sample size of this study is 200, customer that is quite small. Therefore, results of data
gathering cannot be generalized to the whole population. There are other limitations
in this study, as respondents’ age grouping in this research does not represent the age
distribution of the total users of KBZPay. Therefore, there might be a likelihood of
bias in the results of the significance between the variables. Furthermore, there is a
limitation that Likert scale may not be completely reliable because different
respondents have different perceptions, and they will choose the different point of
scales. To be sustainable growth of mobile wallet, further studies need to be more
focus on outside of the Yangon area which has full of various customer segments.
And also, this study is only focus on consumers of mobile wallet services and it does
not cover the agents, and merchants’ perception and adoption.
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Internet Websites:

www.xpressmoney.com

www.kbzbank.com

www.kbzpay.com

www.wikipidia.org
APPENDIX

QUESTIONNAIRES

The following questions are asking your attitude towards the KBZPay mobile wallet
services of Kanbawza Bank. Please be assured that your responses will be strictly
confidential. Please put a () mark to indicate your preference. We are grateful upon
your participation.

Section (1) Demographic profile Analysis

(1) Age

O Under 25 years O 26 to 35 years

O 36 to 45 years O Above 45 years

(2) Gender

O Male O Female
(3) Education Qualification

O High School O Under Graduate

O Graduate O Post Graduate

(4) Type of Occupation

O Professional O Business Owner

O Staff (Government/ private) O Student

O Other

(5) Monthly Income

O Less than 200,000 O 200,001 - 400,000

O 400,001 - 600,000 O 600,001 - 800,000

O 800,001 – 1,000,000 O Above 1,000,000

Section(2)

Questionnaires on customer intention of mobile wallet services adoption

provided by Kanbawza Bank.

Please indicate the levels of agreement on each of the following statement by

making a () mark in the appropriate box.

(6) Perceive Ease of Use

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question 1 2 3 4 5
When I use KBZPay wallet, the processes are clear and
1
understandable.

2 It is easy for me to become skillful at using KBZPay wallet.

3 KBZPay wallet is easy to use.

4 It is easier to use KBZPay wallet to accomplish my tasks.

Interaction with KBZPay wallet does not require a lot of mental

5
effort.

(7) Perceive Usefulness

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

Using KBZPay wallet enable me to accomplish my tasks much

1
quicker.

2 Using KBZPay make it simpler for me to carry out my tasks.

3 Using KBZPay wallet enhance my payment more effective.

4 KBZPay mobile wallet services save me time.

5 KBZPay wallet is very useful.

(8) Compatibility

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

1 Using KBZPay wallet fit well with my lifestyle.

2 Using KBZPay wallet fit well with the way I like to conduct my
payment transactions.

3 Using KBZPay wallet is completely compatible with my current

situation.

4 Making payments by scanning with KBZPay wallet is convenient.

5 Transactions can be made by KBZPay wallet after banking hour is

more compatible for those who have limited time.

(9) Subjective Norm

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

1 People who are important to me think I should use KBZPay wallet.

2 People whose opinion I value prefer me to use KBZPay wallet.

3 People who are important to me support my use of KBZPay

wallet.

4 I was advised to use KBZPay wallet as a payment metnoh.

5 Using KBZPay wallet is influenced by my social contacts.

(10) Observability

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

1 I observe people using KBZPaywllet for buying products.

Purchasing products through KBZPay wallet is a practice that I

2
have seen before.

3 I observe people send and receive money by KBZPay wallet..

4 I observe people making payments for University school fees.

I observe people buying tickets (air tickets, bus tickets, movies

5
tickets, etc) with KBZPay wallet.

(11) Perceived Security

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

I feel secure using KBZPay wallet because other people cannot

1
access my account without my permission.

2 I feel secure sending sensitive information across KBZPay wallet.

I feel secure to link bank account with KBZPay wallet because

3
password protected or encrypted.

I have no worries about connection lost while I am making

4
transactions.
I have no worries of losing my money even if I lost my sim card
5
used for KBZPay wallet.
(12) Perceived Cost

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

Cost of equipment for using KBZPay (e. g mobile device) is

1
not high.

2 Transactions fee for using KBZPay wallet is not high.

The communication or internet access fees for using

3
KBZPay wallet does not high.

4 Overall, using KBZPay wallet does not cost me a lot.

(13) Behavioral Intention

Index: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, 5=Strong Agree

No Survey Question Items 1 2 3 4 5

1 I continue using KBZPay wallet if it is easy to use.

2 I continue using KBZPay wallet if it is useful for my

payment transactions.
I continue using KBZPay wallet if it is useful for my
3
payment transactions.

I continue using KBZPay wallet if the person I value

4
suggested me to use.

I continue using KBZPay wallet services if I had seen

5
someone else using before trying it myself.

I intend to use KBZPay wallet if I do not face any security

6
problems while using.

I intent to use KBZPay wallet if it is not cost me a lot than

7
usual.