Do Perceived Risk and Trust affect Consumer Adoption of Mobile Payments? A Study of Indian Consumers

India has over one billion mobile users of mobile phones of which a very meagre proportion are active users of mobile payment services. As seen from technology adoption literature, trust issues and risk perception were probable hindrances in consumer adoption of mobile payments. To understand this further, the structural associations between predictor variables trust, perceived monetary risk, perceived privacy risk, perceived security risk on the dependent variables behavioral intention and attitude towards adoption of mobile payment services were explored. Exploratory factor analysis, confirmatory factor analysis and structural equation modeling was conducted using Lavaan package in R studio (version 0.99.879). The SEM output revealed that four out of twelve hypothesized associations were statistically significant. Trust emerged as a significant predictor with strong association on consumer attitude towards adoption of mobile payments.