Why have consumers opposed, postponed, and rejected Innovations during a pandemic? A Study of mobile payment Innovations

  • Shalini Talwar K J Somaiya Institute of Management Studies and Research, Mumbai, India
  • Manish Talwar Alkesh Dinesh Mody Institute for Financial and Management Studies, Mumbai, India
  • Puneet Kaur Department of Psychosocial Science, University of Bergen, Norway
  • Gurmeet Singh The University of the South Pacific, Fiji
  • Amandeep Dhir University of Agder, Kristiansand, Norway
Keywords: Consumer resistance, functional and psychological barriers, innovation resistance theory, non-adoption, mobile wallets


The highly infectious nature of the COVID-19 virus has made the use of contactless payment methods a health exigency. Yet, consumers are resisting using mobile payments (m-payments) during the pandemic, a confounding behavior that needs to be better understood. The present study explicates this behavior by examining consumer resistance to m-payments during the COVID-19 pandemic. In addition, it provides more granular findings by measuring three levels of resistance/non-adoption, namely, postponement, opposition, and rejection. In this way, the study adds depth to the literature, which has largely examined resistance at an aggregate level to yield generic findings. Toward this end, the study draws upon the Innovation Resistance Theory (IRT) to propose that usage, value, risk, tradition, and image barriers influence the three levels of resistance/non-adoption differently. An artificial neural network analysis (ANN) of the data collected from 406 non-users of m-payments confirmed that the influence of the five barriers varies for the three levels of resistance/non-adoption. The results further suggest that the usage barrier is the most significant contributor to opposition and rejection intentions toward m-payments, whereas the image barrier is the most influential for postponement intentions. This study thus makes a useful contribution to theory and practice.


Abbas, M., Nawaz, M .S., Ahmad, J., & Ashraf, M. (2017). The effect of innovation and consumer-related factors on consumer resistance to innovation. Cogent Business & Management, 4(1), 1312058.

Abd Alfadil, N. A., Mohamed, M. S., Ali, M. M., & El Nima, E. A. I. (2018). Characterization of pathogenic bacteria isolated from Sudanese banknotes and determination of their resistance profile. International Journal of Microbiology, 2018, 1-7.

Bagozzi, R. P., & Lee, K. H. (1999). Consumer resistance to, and acceptance of, innovations. Advances in Consumer Research, 26(12), 218-225.

Bepari, S. (2019). The number of mobile wallet users grows by 140 million per year. Retrieved October 23, 2020 from: https://www.fintechnews.org/the-number-of-mobile-wallet-users-grows-by-140-million-per-year/

Chatterjee, D., & Bolar, K. (2019). Determinants of Mobile Wallet Intentions to Use: The Mental Cost Perspective. International Journal of Human-Computer Interaction, 35(10), 859-869.

Chen, Q., Lu, Y., Gong, Y. (Yale), & Tang, Q. (2019.). Why do users resist service organization's brand mobile apps? The force of barriers versus cross-channel synergy. International Journal of Information Management, 47, 274-282.

Claudy, M. C., Garcia, R., & O'Driscoll, A. (2015). Consumer resistance to innovation—A behavioral reasoning perspective. Journal of the Academy of Marketing Science, 43(4), 528-544.

Claudy, M., O'Driscoll, A., Garcia, R., & Mullen, M. (2010). Consumer resistance to green innovations: Developing a new scale and an underlying framework. In 35th Macromarketing Conference, Wyoming, USA.

Cornescu, V., & Adam, C. R. (2013). The consumer resistance behavior towards innovation. Procedia Economics and Finance, 6, 457–465.

Doremalen, N. V., Morris, D. H., Holbrook, M. G., Gamble, A., Williamson, B. N., Tamin, A., Harcourt, J. L., Thornburg, N. J., Gerber, S. I., Lloyd-Smith, J. O., Wit, E. D., & Munster, V. J. (2020). Aerosol and surface stability of SARS-CoV-2 as compared with SARS-CoV-1. The New England Journal of Medicine, 382(16), 1-4.

Dickerson, M. S., & Gentry, J. W. (1983). Characteristics of adopters and non-adopters of home computers. The Journal of Consumer Research, 10(2), 225-235.

ETGovernment. (2020). Digital payments swell as 42% Indians make multiple online payments during Covid-19 lockdown. Retrieved October 23, 2020, from https://government.economictimes.indiatimes.com/news/digital-payments/digital-payments-swell-as-42-indians-make-multiple-online-payments-during-covid-19-lockdown/75172943.

Elbadrawy, R., & Aziz, R. A. (2011). Resistance to mobile banking adoption in Egypt: A cultural perspective. International Journal of Managing Information Technology, 3(4), 9-21.

Fang, Y., Nie, Y., & Penny, M. (2020). Transmission dynamics of the COVID‐19 outbreak and effectiveness of government interventions: A data‐driven analysis. Journal of Medical Virology, 92(6), 645–659.

Fujiki, H. (2020). The use of noncash payment methods for regular payments and the household demand for cash: Evidence from Japan. The Japanese Economic Review, 71, 719-765.

Gao, L., &Waechter, K. A. (2017). Examining the role of initial trust in user adoption of mobile payment services: An empirical investigation. Information Systems Frontiers, 19(3), 525-548.

Ganiere, P., Chern, W., Hahn, D., & Chiang, F. S. (2004). Consumer attitudes towards genetically modified foods in emerging markets: The impact of labeling in Taiwan. The International Food and Agribusiness Management Review, 7(3), 1–20.

Gatignon, H., & Robertson, T. S. (1989). Technology diffusion: An empirical test of competitive effects. Journal of Marketing, 53(9), 35-49.

Gupta, A., & Arora, N. (2017). Understanding determinants and barriers of mobile shopping adoption using behavioral reasoning theory. Journal of Retailing and Consumer Services, 36, 1–7.

Gurtner, S. (2014). Modelling consumer resistance to mobile health applications. ECIS 2014 Proceedings – 22nd European Conference on Information Systems, Tel Aviv, Israel.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2016). Multivariate Data Analysis.7th Edition. Pearson: India.

Hew, J. J., Leong, L. Y., Tan, G. W. H., Ooi, K. B., & Lee, V. H. (2019). The age of mobile social commerce: An Artificial Neural Network analysis on its resistances. Technological Forecasting and Social Change, 144, 311-324.

Hirschheim, R., & Newman, M. (1988). Information systems and user resistance: Theory and practice. The Computer Journal, 31(5), 398-408.

Hosseini, M. H., Delaviz, M., Derakhshide, H., & Delaviz, M. (2016). Factors affecting consumer resistance to innovation in mobile phone industry. International Journal of Asian Social Science, 6(9), 497-509.

Jaganmohan, M. (2020). COVID-19 impact on use of digital payments in India 2020. Retrieved October 23, 2020, from https://www.statista.com/statistics/1111082/india-coronavirus-impact-on-digital-payment-usage/.

Jakhiya, M., Bishnoi, M.M., & Purohit, H. (2020). Emergence and growth of mobile money in modern India: A study on the effect of mobile money. 2020 Advances in Science and Engineering Technology International Conferences (ASET), 1-10, doi: 10.1109/ASET48392.2020.9118375.

Kaur, P., Dhir, A., Singh, N., Sahu, G., & Almotairi, M. (2020a). An innovation resistance theory perspective on mobile payment solutions. Journal of Retailing and Consumer Services, 55, 102059.

Kaur, P., Dhir, A., Bodhi, R., Singh, T., & Almotairi, M. (2020b). Why do people use and recommend m-wallets? Journal of Retailing and Consumer Services, 56, 102091.

Khanra, S., Dhir, A., Kaur, P., & Joseph, R. P. (2021). Factors influencing the adoption postponement of mobile payment services in the hospitality sector during a pandemic. Journal of Hospitality and Tourism Management, 46, 26–39. Doi:10.1016/j.jhtm.2020.11.004

Kleijnen, M., Lee, N., & Wetzels, M. (2009). An exploration of consumer resistance to innovation and its antecedents. Journal of Economic Psychology, 20(3), 344-357.

Kuisma, T., Laukkanen, T., & Hiltunen, M. (2007). Mapping the reasons for resistance to internet banking: A means-end approach. International Journal of Information Management, 27(2), 75-85.

Kumar, S., Dhir, A., Talwar, S., Chakraborty, D., & Kaur, P. (2021). What drives brand love for natural products? The moderating role of household size. Journal of Retailing and Consumer Services, 58, 102329. Doi:10.1016/j.jretconser.2020.102329

Laukkanen, T. (2016). Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the internet and mobile banking. Journal of Business Research, 69(7), 2432-2439.

Laukkanen, P., Sinkkonen, S., & Laukkanen, T. (2008). Consumer resistance to internet banking: Postponers, opponents and rejectors. International Journal of Bank Marketing, 26(6), 440-455.

Laukkanen, T., Sinkkonen, S., Kivijärvi, M., & Laukkanen, P. (2007). Innovation resistance among mature consumers. Journal of Consumer Marketing, 24(7), 419-427.

Leong, L. Y., Hew, T. S., Ooi, K. B., & Wei, J. (2020). Predicting mobile wallet resistance: A two-staged structural equation modeling-artificial neural network approach. International Journal of Information Management, 51, 102047.

Lian, J. W., & Yen, D. C. (2013). To buy or not to buy experience goods online: Perspective of innovation adoption barriers. Computers in Human Behavior, 29(3), 665-672.

Mani, Z., & Chouk, I. (2017). Drivers of consumers' resistance to smart products. Journal of Marketing Management, 33(1-2), 76-97.

Mani, Z., & Chouk, I. (2018). Consumer resistance to innovation in services: Challenges and barriers in the Internet of Things ea. Journal of Product Innovation Management, 35(5), 780-807.

Mittelstaedt, R. A., Grossbart, S. L., Curtis, W. W., & Devere, S. P. (1976). Optimal stimulation level and the adoption decision process. Journal of Consumer Research, 3(2), 84-94.

Mohtar, S., & Abbas, M. (2015). Consumer resistance to innovation due to perceived risk: Relationship between perceived risk and consumer resistance to innovation. Journal of Technology and Operations Management, 10(1), 1-13.

Nabih, M. I., Bloem, J. G., & Poiesz, T. B. C. (1997). Conceptual issues in the study of innovation adoption behavior. Advances in Consumer Research. 24, 190-196.

Oh, Y. J., Park, H. S., & Min, Y. (2019). Understanding location-based service application connectedness: Model development and cross-validation. Computers in Human Behavior, 94, 82-91.

Park, K., & Koh, J. (2017). Exploring the relationship between perceived pace of technology change and adoption resistance to convergence products. Computers in Human Behavior, 69, 142-150.

Patsiotis, A. G., Hughes, T., & Webber, D. J. (2013). An examination of consumers' resistance to computer-based technologies. Journal of Services Marketing, 27(4), 294-311.

Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879-903.

Poon, W. C. (2008). Users' adoption of e-banking services: The Malaysian perspective. Journal of Business and Industrial Marketing, 23(1), 59-69.

Pousttchi K., & Schurig M. (2004). Assessment of today's Mobile Banking applications from the view of customer requirements. Proceedings of the 37th Hawaii International Conference on System Sciences, Big Island, HI, USA.

Ram, S. (1987). A model of innovation resistance. Advances in Consumer Research, 14, 208-212.

Ram, S., & Sheth, J. N. (1989). Consumer resistance to innovations: The marketing problem and its solutions. Journal of Consumer Marketing, 6(2), 5-14.

Seth, H., Talwar, S., Bhatia, A., Saxena, A., & Dhir, A. (2020). Consumer resistance and inertia of retail investors: Development of the resistance adoption inertia continuance (RAIC) framework. Journal of Retailing and Consumer Services, 55, 102071.

Sharma, S., Singh, G., Sharma, R., Jones, P., Kraus, S., & Dwivedi, Y. K. (2020a). Digital health innovation: Exploring adoption of COVID-19 digital contact tracing apps. IEEE Transactions on Engineering Management, 1–17.

Sharma, S., Singh, G., & Pratt, S. (2020b). Does Consumers' Intention to Purchase Travel Online Differ Across Generations? Empirical Evidence from Australia. Australasian Journal of Information Systems, 24, 1-31.

Silic, M., & Ruf, C. (2018). The effects of the elaboration likelihood model on initial trust formation in financial advisory services. International Journal of Bank Marketing, 36(3), 572-590.

Simard, R., & L'Ecuyer, P. (2011). Computing the two-sided Kolmogorov-Smirnov distribution. Journal of Statistical Software, 39(11), 1-18.

Soh, P. Y., Heng, H. B., Selvachandran, G., Anh, L. Q., Chau, H. T. M., Son, L. H., Abdel-Baset, M., Manogaran, G., Varatharajan, R. (2020). Perception, acceptance and willingness of older adults in Malaysia towards online shopping: A study using the UTAUT and IRT models. Journal of Ambient Intelligence and Humanized Computing. https://doi.org/10.1007/s12652-020-01718-4.

Suzuki, Y., & Williams, L. R. (1998). Analysis of EDI Resistance Behavior. Transportation Journal, 37(4), 36-44.

Szmigin, I., & Foxall, G. (1998). Three forms of innovation resistance: The case of retail payment methods. Technovation, 18(6-7), 459-468.

Talke, K., & Heidenreich, S. (2014). How to overcome pro-change bias: Incorporating passive and active innovation resistance in innovation decision models. Journal of Product Innovation Management, 31(5), 894-907.

Talwar, S., Dhir, A., Kaur, P., & Mäntymäki, M. (2020b). Barriers toward purchasing from online travel agencies. International Journal of Hospitality Management. 89, 102593.

Talwar, S., Dhir, A., Kaur, P., & Mäntymäki, M. (2020d). Why do people purchase from online travel agencies (OTAs)? A consumption values perspective. International Journal of Hospitality Management, 88, 102534.

Talwar, S., Dhir, A., Kaur, P., Zafar, N., & Alrasheedy, M. (2019). Why do people share fake news? Associations between the dark side of social media use and fake news sharing behavior. Journal of Retailing and Consumer Services, 51, 72–82.

Talwar, S., Dhir, A., Khalil, A., Mohan, G., Islam, A. K. M. N. (2020c). Point of adoption and beyond. Initial trust and mobile-payment continuation intention. Journal of Retailing and Consumer Services, 55, 102086.

Talwar, M., Talwar, S., Kaur, P., Islam, A. K. M. N., & Dhir, A. (2020e). Positive and negative word of mouth (WOM) are not necessarily opposites: A reappraisal using the dual factor theory. Journal of Retailing and Consumer Services, 102396. Doi:10.1016/j.jretconser.2020.102396

Talwar, S., Talwar, M., Kaur, P., & Dhir, A. (2020a). Consumers' resistance to digital innovations: A systematic review and framework development. Australasian Marketing Journal. https://doi.org/10.1016/j.ausmj.2020.06.014.

Talwar, M., Talwar, S., Kaur, P., & Dhir, A. (2020f). Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic? Journal of Retailing and Consumer Services, 58, 102341.

Thomas, Y., Vogel, G., Wunderli, W., Suter, P., Witschi, M., Koch, D., Tapparel, C., Kaiser, L., (2008). Survival of influenza virus on banknotes. Applied and Environmental Microbiology, 74(10), 3002-3007.

UNDP. (2020). COVID-19 pandemic. Retrieved October 23, 2020, from https://www.undp.org/content/undp/en/home/coronavirus.html.

WHO. (2020a). WHO coronavirus disease (COVID-19) dashboard. Retrieved October 23, 2020, from https://covid19.who.int/.

WHO. (2020b). Coronavirus disease (COVID-19): How is it transmitted? Retrieved October 23, 2020, from https://www.who.int/news-room/q-a-detail/coronavirus-disease-covid-19-how-is-it-transmitted

Woodside, A.G., & Biemans, W. G. (2005). Modeling innovation, manufacturing, diffusion, and adoption/rejection processes. Journal of Business and Industrial Marketing, 20(7), 380-393.

Xu, X., Chen, P., Wang, J., Feng, J., Zhou, H., Li, X., Zhong, W., & Hao, P. (2020). Evolution of the novel coronavirus from the ongoing Wuhan outbreak and modeling of its spike protein for the risk of human transmission. Science China Life Sciences, 63(3), 457-460.

Yin, Z., Gong, X., Guo, P., & Wu, T. (2019). What drives entrepreneurship in digital economy? Evidence from China. Economic Modelling, 82, 66-73

How to Cite
Talwar, S., Talwar, M., Kaur, P., Singh, G., & Dhir , A. (2021). Why have consumers opposed, postponed, and rejected Innovations during a pandemic? A Study of mobile payment Innovations. Australasian Journal of Information Systems, 25. https://doi.org/10.3127/ajis.v25i0.3201
Research on Information Systems Development