What drives self-disclosure in mobile payment applications? The effect of privacy assurance approaches, network externality, and technology complementarity

Drawing on the control agency theory and the network effect theory, the purpose of this paper is to examine the effect of privacy assurance approaches, network externality and technology complementarity on consumers’ self-disclosure in mobile payment (MP) applications. The authors identify four types of privacy assurance approaches: perceived effectiveness of privacy setting, perceived effectiveness of privacy policy, perceived effectiveness of industry self-regulation and perceived effectiveness of government legislation. The research model considers how these privacy assurance approaches influence privacy concerns and consumers’ self-disclosure in MP applications under boundary conditions of network externality and technology complementarity.

An online survey with 647 sample users was conducted to empirically validate the model. The target respondents were current consumers of a popular MP application. The empirical data were analyzed by a structural equation modeling approach.

The empirical results reveal several major findings. First, privacy assurance approaches can effectively decrease privacy concerns, which ultimately formulates consumers’ self-disclosure in MP applications. Second, network externality and technology complementarity weaken the effect of perceived effectiveness of privacy setting on privacy concerns. Third, network externality and technology complementarity strengthen the relationship between perceived effectiveness of government legislation and privacy concerns, while they have non-significant interaction effect with perceived effectiveness of privacy policy and industry self-regulation on privacy concerns.

MP providers and stakeholders can harness the efficacy of privacy assurance approaches in alleviating privacy concerns and promoting consumers’ self-disclosure in MP applications.

The authors’ work contributes to the information privacy literature by identifying effective privacy assurance approaches in promoting consumers’ self-disclosure in MP applications, and by highlighting boundary conditions of these privacy assurance approaches.