The risk-risk trade-off (R2T) framework: Examining contact [cash] versus contactless [mobile] payment usage

Abstract

Although the diffusion of mobile payment technology has been historically governed by contextual events that trigger anxiety, accentuating either the risks of mobile payments or the risks of its conflicting alternative, cash, literature neglects the importance of examining the risks associated with the alternatives. To address this gap, we develop the risk-risk trade-off (R²T) framework, drawing from the theory of substitutes of hazardous substances, and examine how individuals make usage decisions by balancing two sets of risks – for mobile payments and cash, respectively. On one side, the framework weighs contactless [mobile payment] risks related to potential thefts and losses, heightened by the rise in cybercrime. Conversely, on the other side, it weighs the risks from its substitute, contact [cash] payment, carrying the health hazard of infectious disease transmission through contact, with this risk magnified during the global pandemic. To validate the model, we used survey responses from 1403 participants in India and triangulated the quantitative results using their qualitative comments. This study theoretically contributes to the mobile payment usage literature by moving beyond technology risks as the sole risks to be considered for usage decision-making and includes the analysis of risks of the technology's substitute, cash, as well. The framework can support analysis of users' decisions towards consciously choosing the technology against its alternatives, in various risky contexts.