ASSESSING THE IMPACT OF DIGITAL INCENTIVE ON USER ACCEPTANCE TOWARD MOBILE PAYMENTS IN MACAU: A CASE STUDY OF MCOIN

The rapid growth of financial technology (fintech) has transformed consumer payment behavior worldwide, with mobile payments emerging as a dominant channel for everyday transactions. In Macau, the mobile payment ecosystem is led by MPay, which integrates the digital incentive program mCoin to encourage adoption and sustained usage. While prior studies have focused on technical and social determinants of mobile payment acceptance, limited research has examined the role of digital incentives as a motivational factor. This dissertation addresses this gap by assessing the impact of digital incentives, particularly mCoin, on user acceptance of mobile payments in Macau through the lens of the Unified Theory of Acceptance and Use of Technology (UTAUT).
A quantitative, cross-sectional research design was employed, utilizing a self-administered online questionnaire distributed among MPay users in Macau. The survey incorporated both agreement-scale and frequency-scale items, alongside two open-ended questions to capture qualitative insights. Data were analyzed using SmartPLS, with reliability and validity tests confirming the robustness of most constructs. One UTAUT construct—Facilitating Conditions—was excluded from the final analysis due to a Cronbach’s α below 0.70. The remaining constructs—Performance Expectancy, Effort Expectancy, Social Influence, and Digital Incentives—were tested for their influence on Behavioral Intention.
The results demonstrate that Digital Incentives exert the strongest effect on Behavioral Intention, underscoring the central role of mCoin in driving MPay adoption. Performance Expectancy and Social Influence also showed significant positive effects, while Effort Expectancy was found to be statistically significant but relatively weak. The final model achieved an R² of 0.720, indicating strong explanatory power.
This study contributes to both theory and practice by extending the UTAUT model with a contextual incentive construct and providing empirical evidence from Macau’s fintech environment. The findings offer practical guidance for service providers and policymakers, highlighting the need to integrate digital rewards with usability and trust to enhance long-term adoption of mobile payments.