Bridging the digital divide: Consumer engagement with remittances payment apps in emerging economies

The digital divide remains a formidable challenge in emerging economies, highlighting disparities in technology access and utilisation. This study explores consumer engagement with mobile payment applications for remittances in Lagos, Nigeria, a critical context where these disparities manifest. The research presents consumer perceptions and behaviours using a triangulated approach encompassing ethnographic observation, semi-structured interviews, and the model of information search. The theory of consumer behaviour, which depicts the five stages of consumer decision-making—problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour—this study identifies five key themes:

• Awareness

• Information search

• Alternatives evaluation

• Engagement

• Post-engagement evaluation.

  
  

Insights from the study reveal that cultural preferences and trust in traditional payment methods significantly influence users' willingness to adopt mobile payment apps. These insights underscore the importance of addressing socio-cultural factors in technology adoption strategies. The findings highlight the need for an inclusive technological strategy to bridge the digital divide, emphasising the necessity of accessible information channels and user-friendly interfaces to enhance consumer engagement. Continuous app refinement based on user feedback is crucial for optimising usability. Additionally, a nuanced understanding of socio-cultural influences on technology adoption is essential for informing policy and business strategies. Overall, this study contributes to understanding technology adoption in emerging economies and provides actionable insights to foster inclusive digital transformations and mitigate the digital divide.

Technology has become inseparable from everyday life, revolutionising consumer behaviours through innovations like chatbots, digital assistants, augmented reality and the metaverse. These advancements have reshaped how individuals interact with information and services and sparked global economic and social transformations. Despite the extensive literature exploring the adoption and implications of these technologies, a significant research gap persists concerning their utilisation by consumers in developing countries and emerging economies to improve their well-being.

Existing research has predominantly focused on factors influencing technology adoption, such as usability, perceived usefulness and social influence However, there is limited understanding of how consumers in emerging economies navigate and interact with these innovations, particularly in essential service sectors like digital payments. This study aims to address this gap by examining how consumers in these contexts engage with WhatsApp for transportation payment, considering the unique socioeconomic challenges they face.

To explore these dynamics,of this model offers a robust foundation for analysing decision-making processes in consumer behaviour, encompassing stages from problem recognition to post-purchase evaluation. By grounding the study in this theoretical framework, the research integrates insights from previous studies and employs a multi-stranded qualitative approach. The study further enhances its rigour through data triangulation, a methodological strategy that combines multiple data sources to corroborate findings and strengthen the reliability of conclusions . By triangulating data from different sources, including the Meta AI a model for information search, ethnographic observations and qualitative interviews, the research aims to comprehensively understand consumer behaviour towards mobile payment applications in transportation settings. This holistic approach enriches scholarly discourse on technology adoption in diverse socioeconomic contexts. It offers practical insights for stakeholders—such as technology developers, policymakers and entrepreneurs—to enhance inclusive access and adoption of technological solutions.

The study contributes theoretical insights into consumer behaviour with technology, particularly within the contexts of developing countries and emerging economies. The research informs stakeholders—including technology developers, policymakers and entrepreneurs—on enhancing inclusive access and adopting technological solutions by uncovering how consumers interact with digital payment apps. Ultimately, this study seeks to advance scholarly understanding of consumer behaviour in the digital age and facilitate more equitable technological innovations. In subsequent sections, the paper will delve into the methodology, findings and implications, offering a comprehensive exploration of consumer technology engagement in diverse socioeconomic contexts.

The rise of mobile applications has profoundly impacted various sectors in developing economies, including remittances, financial services and personal safety. The critical role of mobile apps in enhancing safety perceptions amongst women at public remittances terminals and facilitating communication and access to emergency services to alleviate safety concerns. Mobile applications, identify perceived value, utility and risk as pivotal factors influencing users' adoption of digital payment solutions like WhatsApp. They emphasise the importance of these factors in shaping user attitudes towards technology adoption.

The use of chatbots by Nigerian banks to improve customer service and promote financial inclusion, employing the Search-Access-Test (S-A-T) model to assess user capabilities influencing technology adoption. In Malaysia, Abdul-Halim examined factors influencing the continued use of e-wallets, underscoring the impact of ease of use and user satisfaction on user attitudes and intentions, insights pertinent to technologies like the Cowry mobile app in Lagos, Nigeria.

Mobile applications also revolutionise remittances, enhancing mobility and user satisfaction. illustrates this with Nigeria's mobile app case study, highlighting features such as registration, payment, and reciving money and app communication that streamline user experiences. Emphasising user experience design's role in meeting evolving user demands.

Research by Liébana-Cabanillas, Japutra, underscores the impact of ease of use, perceived usefulness, risk, trust and satisfaction on WhatsApp payment platform adoption in India. Similarly, found that perceived usefulness and trust significantly influence consumer intentions to use mobile e-payment apps in China. How Identifie branding, social media engagement, customer reviews and app platform updates as practical strategies to enhance interest in mobile remittances payment apps.

Mobile apps prioritise safety and security through features like real-time tracking and driver verification while addressing remittances solutions by promoting friendly options. These adaptations cater to diverse user needs and preferences, facilitating access to essential services and significantly influencing urban solutions. Ultimately, mobile applications play a transformative role in reshaping digital landscapes, fostering economic growth and enhancing the overall quality of life in rapidly growing urban areas of emerging economies. These studies collectively highlight the multifaceted impacts of mobile applications across various sectors, underscoring their role in advancing technological adoption, enhancing user experiences and addressing societal challenges in emerging markets.

Within the financial sector, mobile applications have brought about a revolution in traditional payment systems and the provision of financial services. Liébana-Cabanillas, García-Maroto, explore the factors influencing users' inclination to adopt digital payment solutions, such as WhatsApp. They emphasise the significant impact of perceived value, utility and risk in shaping users' attitudes towards these technologies. Similarly, Abdulquadri highlight Nigerian banks' innovative use of chatbots to enhance customer service and promote financial inclusion. They employed the S-A-T model to examine the influence of users' capabilities on adopting this technology. Building upon this, Abdul-Halim et al. (2022) investigated the factors that affect the continued use of e-wallets in Malaysia. They discovered that perceived ease of use and satisfaction significantly impact users' attitudes and intentions to continue using e-wallets, offering valuable insights for adopting similar technologies in other contexts, such as the Cowry mobile app for transport in Lagos, Nigeria.

Mobile applications have also played a pivotal role in enhancing mobility and user satisfactionremittances. Adewumi present a practical case study on developing and implementing the WhatsApp mobile app for remittances service in Nigeria. They emphasised the app's successful integration of essential features, including registration, security, easy communication. Reveals the profound impact of apps on urban and rural solutions for remittances in Lagos, Nigeria, extending beyond remittances to encompass broader sociological dimensions.Propose an innovative operational model for fixed-real comunication with the costumer, highlighting the significance of user experience design in meeting users' intentions and demands. This underscores the growing demand for user empowerment in urbanremittances systems.

Research conducted on mobile apps provides valuable insights while also identifying significant gaps. The literature acknowledges the role of mobile apps in improving safety, However, further investigation is necessary to examine safety concerns and defence mechanisms across diverse demographics and cultures. Furthermore, it is essential to conduct comprehensive research to understand the impact of digital transformation in financial services on the adoption of mobile payment systems, particularly in public contexts such remittances as Lagos State.

Smart mobility solutions in remittances offer extensive benefits to both urban and rural areas, with the potential to revolutionise easy systems, even in countries like Nigeria. Adopting technology in remittances goes beyond mere convenience; it also aims to address service gaps in developed and developing regions, reflecting a global trend towards more accessible and efficient payment systems. Integrating mobile apps in the remittances sector has led to a significant transformation, particularly in smart solutions.

The usefulness of mobile apps in payments is further supported by their impact on service quality and user experience. Remittances demonstrated that the quality of information, design and system functionality of mobile apps plays a crucial role in meeting the solutions needs of imigrants from Mexico. These findings highlight the importance of app features and functionalities in improving user experiences and satisfaction, emphasising the critical role of mobile apps in modernising remittances services.

Moreover, mobile remittances applications contribute to broader sustainability and inclusivity goals. Both underscore the significance of mobile apps in promoting economical sustainable travel behaviours and enhancing the appeal of demand-responsive remittances services, respectively. Frączek and Urbanek explore the macroeconomic aspects, revealing how digital payments facilitated by mobile apps encourage the use of mobile devices for internet access while on the move, further integrating digital solutions into daily commuting practises. Extend this narrative to the remittances sector, illustrating how digital transformation, driven by innovative technologies like blockchain and autonomous biometrics modalities beyond land regions on Earth.

Extensive research on mobile applications in transportation has revealed significant gaps in our understanding. Specifically, there needs to be more exploration regarding the adoption and impact of mobile apps in developing countriesremittances systems, such as Nigeria . The existing body of literature focuses on the immediate benefits of mobile apps in remittances while neglecting the long-term effects on consumer behaviour. Furthermore, the importance of digital payments and application quality in enhancing user experiences is acknowledged, but their broader impact on public solution is not well understood. Additionally, integrating mobility as a service and digital transformation.

Integrating mobile apps into daily life has significantly impacted consumer behaviour in several areas, including app usage, food delivery, shopping and remittances. Mobile apps' functional, emotional and confocal values shape consumer behaviour. This study emphasises the importance of app ratings in influencing mobile app usage behaviour, highlighting the complex relationship between the various values offered by apps and consumer engagement levels.

Cognitive factors, especially in the remittances sector, have significantly influenced consumer behaviour. This underscores the role of cognitive factors in fostering customer engagement and loyalty. Similarly, Hamouda (2021) reported that mobile apps' affective and cognitive experiences influence purchase intentions. This suggests further exploring customer experiences in mobile app contexts, considering both cognitive and affective dimensions.

Consumer decision-making styles also play a crucial role in adopting and using mobile remittances applications. Decision-making styles significantly impact mobile app adoption, with different consumers having varying perceptions of usefulness and risk. This research provides new insights into consumer behaviour in mobile remittances by linking decision-making styles with mobile shopping app usage.

We examined several studies across various emerging markets to understand the barriers and facilitators of mobile payment adoption in similar socioeconomic contexts. Kumar and Chawla (2023) identified significant obstacles to mobile payment adoption in India, including usage difficulties, lack of facilitating conditions (such as network coverage, device compatibility and user support) and value barriers. In Malaysia, Leong found that usage, tradition, risk and value barriers significantly impact resistance to mobile money adoption, with perceived novelty, education level and income level playing crucial roles. Similarly, Yan highlighted perceived risk, performance expectancy and effort expectancy as key influences on perceived value during the COVID-19 pandemic in Bangladesh, with social influence, perceived trust and perceived value facilitating adoption.

Further emphasising facilitators, argued that convenience, reflection and security have varying effects on mobile payment remittances adoption in India. The role of government is , who highlighted how the Kenyan government's financial inclusion policies significantly promoted mobile money usage. Also identified contextual facilitators such as price benefits, network externalities, trust and habit, as well as barriers like risk and operational constraints, influencing mobile payment intentions. Lastly, Migliore investigated factors driving adoption in China and Italy, noting that social influence is particularly significant in cultures with high uncertainty avoidance, like Italy, where tradition remains the primary barrier, enlightening us about the diverse factors affecting adoption.

Additionally, the influence of digital transformation in financial services on the adoption of mobile payment systems in remittances remains underexplored, particularly in regions like Lagos State. Extensive research is essential to elucidate how advancements in financial technology shape consumer behaviours and preferences towards digital payment solutions in remittances settings. This gap emphasises the need to contextualise financial service innovations within the specific socioeconomic dynamics of emerging markets.

Moreover, there is a dearth of understanding regarding the long-term effects of mobile app usage on consumer behaviour and satisfaction in developing countries. Our study aims to fill this gap by conducting a comprehensive analysis of long-term consumer satisfaction with mobile payment apps inremittancessector in Lagos, Nigeria. By exploring the factors influencing user engagement and satisfaction over time, our research aims to provide valuable insights into the sustainable adoption and utilisation of mobile apps in emerging market contexts.

To address the identified gaps in understanding technology adoption and consumer behaviour in the context of mobile payment apps for remittances in developing countries, we adopted the EKB model as our theoretical framework. The EKB model offers a structured approach to comprehending consumer decision-making processes, spanning from problem recognition through post-purchase evaluation). This choice was motivated by the need to explore broader demographic and cultural contexts, which existing research often overlooks in favour of narrower safety concerns, such as those addressed to women in remittances payments. By leveraging the EKB model, our study aims to delve into how socioeconomic factors and cultural influences shape consumer attitudes and behaviours towards mobile payment technologies, particularly in regions like Lagos, Nigeria, where digital transformation in financial services is rapidly unfolding.

To address identified gaps in our understanding of technology adoption and consumer behavior in the context of mobile remittance payment apps in developing countries, we adopted the EKB model as our theoretical framework. The EKB model offers a structured approach to understanding consumer decision-making processes, from problem recognition to post-purchase evaluation. This choice was driven by the need to explore broader demographic and cultural contexts, which existing research often ignores in favor of more specific security concerns, such as those targeting women in remittance payments. By leveraging the EKB model, our study seeks to delve deeper into how socioeconomic factors and cultural influences shape consumer attitudes and behaviors toward mobile payment technologies, particularly in regions like Lagos, Nigeria, where the digital transformation of financial services is rapidly developing.

The Engel-Kollat-Blackwell (EKB) model is a consumer behavior model that describes decision-making as a five-stage process: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase outcome. This framework, developed in the 1960s, considers the influence of individual (psychological) and environmental (social, situational) factors on consumer decisions.

Stages of the EKB Model:

1. Need (or Problem) Recognition:

The consumer realizes they have a need or problem that needs to be solved.

2. Information Search:

Information is sought about potential products or services that can satisfy that need. This search can be internal (recalling past experiences) or external (asking friends, searching online, etc.).

3. Evaluation of Alternatives:

The consumer compares the different available options based on certain criteria, forming attitudes and beliefs about each.

4. Purchase Decision:

The final decision is made to purchase a specific product or service.

5. Post-Purchase Outcome:

The consumer evaluates satisfaction after using the product or service. This outcome can influence brand loyalty and future purchase decisions.

Factors Influencing the Process:

The EKB model recognizes that the decision-making process is non-linear and is affected by a variety of factors:

Individual Factors:

Include consumer motivations, values, lifestyle, and personality.

Social Factors:

Affect the process through culture, reference groups, and family.

Situational Factors:

They consider the consumer's financial situation and other factors related to the time of purchase.

Usefulness of the model for marketing:

The EKB model is a valuable tool for marketers, allowing them to:

• Analyze and understand: consumer behavior.

• Identify customer motivations at each stage of the process.

• Adapt marketing strategies: to influence the purchase decision, such as offering detailed information or excellent after-sales service.

  
  

Consumer behavior models.

The Engel-Kollat-Blackwell (EKB) Model. This model breaks down the consumer decision process into five stages: recognition...

Buyer behavior model. This model, also known as the Engel-Kollat-Blackwell model, is an extension of the AIDA model that adds...

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What is the Engel-Kollat-Blackwell (EKB) model? - IGI Global

Translated — What is the Engel-Kollat-Blackwell (EKB) model? ... A comprehensive model that describes consumer behavior as...

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The selection of the EKB theory for our study is motivated by several compelling reasons. Unlike theories such as the TAM and the Unified Theory of Acceptance and Use of Technology (UTAUT), which predominantly approach technology adoption from an information systems perspective , the EKB theory is rooted in consumer behaviour, aligning closely with our study's focus on understanding consumer behaviour in the adoption of mobile payment apps (Kaur et al., 2023). Moreover, the EKB model has a well-established history in consumer behaviour research, demonstrating its versatility in understanding decision-making processes across various contexts. For instance, Kaur et al. (2023) extended the EKB model to virtual environments within the metaverse, showcasing its adaptability in examining consumer adoption of emerging technologies.

Furthermore, the EKB model's comprehensive framework delineates the stages of the consumer decision-making process, which closely aligns with our qualitative research approach. Previous studies have successfully applied the EKB model to explore diverse consumer behaviours, underscoring its practical utility in understanding complex decision-making dynamics. By integrating insights from marketing, psychology and information systems, the theory offers a holistic understanding of how individuals engage with and adopt new technologies within specific socioeconomic contexts. EKB facilitates the integration of existing literature on technology adoption, consumer behaviour and socioeconomic factors , allowing for a nuanced examination of the adoption process in diverse socioeconomic contexts. By recognising the stages of the consumer decision-making process—including problem recognition, information search, evaluation of alternatives, purchase decisions and post-purchase evaluation—EKB provides a structured framework for understanding how consumers engage with technology.

Employing the EKB model as our theoretical framework, our research directly addresses several critical gaps identified in the literature. Firstly, the EKB model's structured approach to understanding consumer decision-making—from problem recognition to post-purchase evaluation—aligns perfectly with our goal of exploring the long-term effects of mobile app usage on consumer behaviour and satisfaction in developing countries. Previous research has highlighted this gap, emphasising the need for deeper insights into how technological advancements, such as mobile payment systems, shape consumer preferences and behaviours over time .

Secondly, the EKB model's focus on socioeconomic influences and cultural contexts provides a robust framework for exploring broader demographic considerations in technology adoption. This addresses the existing literature's tendency to narrowly focus on specific aspects, such as safety for women integration, without fully exploring how diverse demographic groups engage with mobile apps.

Finally, by integrating insights from consumer behaviour, marketing and psychology, the EKB model facilitates a comprehensive understanding of the complex interactions between technological innovations, consumer perceptions and adoption dynamics in emerging markets. This theoretical alignment enhances our study's theoretical grounding. It ensures that our findings contribute substantively to academic discourse and practical strategies to foster inclusive and sustainable technology adoption in the transportation sector. In essence, the EKB model serves as a versatile and insightful framework that resonates deeply with our research objectives, guiding our exploration of how mobile payment apps influence consumer behaviour amidst unique socioeconomic challenges in developing countries like Nigeria.

by Temitope Farinloye, Oluwatobi Omotoye, Adeyemi Oginni, Moayad Moharrak, Emmanuel Mogaji.