The Easier, The Better? How Payment Services Influence the Usage of Offerings

Mobile payment services have gradually replaced traditional payment services (e.g., cash) and have become mainstream in some countries (e.g., China and Sweden). Prior research has mainly focused on comparing traditional payment services (e.g., cash and credit cards) and their impact on purchase outcomes (e.g., purchase intention). However, few studies have explored both traditional and non-traditional payment services (e.g., mobile payment services) on post-purchase outcomes (e.g., offering use). Through four experiments, this study reveals how different payment services (cash vs. mobile payment) might affect the usage of products or service offerings, especially in the long term. According to a laboratory field study, mobile payment (vs. cash) as a less (or more) painful payment form may encourage consumers’ short-term offering use, but may negatively affect long-term offering use. Payment pain mediates the relationship between payment services and short-term offering-use intentions, while pain of payment and perceived sunk costs sequentially mediate the effect of payment services on long-term offering use. Finally, an auditory confirmation service was introduced to alleviate the potential negative impact of mobile payment services on long-term offering use. This study enriches the knowledge on payment services and provides insights for mobile payment users.