NFC m-payment as a driver for customer loyalty towards retailers amongst Generation Z

Abstract

Purpose

The diffusion of near-field communication (NFC) m-payment depends largely on retailers who are more motivated to provide NFC m-payment for the retailers' customers if NFC m-payment increases loyalty. Therefore, this paper investigates the relationship between customer acceptance of NFC m-payment and loyalty towards the retailer amongst Generation Z.

Design/methodology/approach

The NFC m-payment technology acceptance model was extended with loyalty intention towards the retailer. Therefore, an online survey was conducted amongst Generation Z that resulted in a sample of 310 respondents. The collected data were analysed by structural equation modelling (SEM).

Findings

Results proved that the customers' intention to use NFC m-payment contributes to a large extent to loyalty intention toward the retailer. Besides, usefulness, enjoyment, social influence and compatibility with lifestyle played a significant role in customer acceptance of NFC m-payment.

Research limitations/implications

This study's sample consists of Generation Z customers, and other generations should also be tested in future studies.

Practical implications

The intention to use NFC m-payment predict retail loyalty. Retailers should communicate m-payment availability as a new retail service to influence store patronage.

Originality/value

This study provides theoretical contributions to NFC m-payment acceptance and retail loyalty literature. First, this research extends the NFC m-payment technology acceptance model with a new behavioural outcome, loyalty intention towards retailers. Second, this research enriched retail loyalty literature by proving that NFC m-payment technology adoption drives customer loyalty towards retailers.

Citation

Alt, M.-A. and Agárdi, I. (2023), "NFC m-payment as a driver for customer loyalty towards retailers amongst Generation Z", International Journal of Retail & Distribution Management, Vol. 51 No. 3, pp. 347-365. https://doi.org/10.1108/IJRDM-10-2021-0490