A Mixed‐Methods Exploration of Mobile Payment Resistance at the Bottom of the Pyramid: Understanding the Rural–Urban Dichotomy

ABSTRACT The swift growth of mobile technology has spurred the adoption of mobile payment systems (MPS) among middle‐ and high‐income groups in emerging economies. However, MPS penetration remains low in the bottom of the pyramid (BOP) segment, necessitating further study. Current research on MPS adoption often shows a pro‐innovation bias, potentially overlooking resistance and challenges faced by BOP populations. This study examines MPS resistance among the BOP population, with a focus on both rural and urban segments, and is grounded in Innovation Resistance Theory (IRT). Employing a mixed‐methods approach, the research uses an exploratory sequential design. 15 semi‐structured interviews were conducted in the qualitative phase with BOP non‐users, selected via purposive sampling across diverse rural and urban locations. Thematic analysis of transcripts identified key factors constituting MPS resistance, informing the design of a structured quantitative survey. The administered survey gathered 354 responses from BOP participants using purposive sampling. Quantitative data were analyzed using SPSS 25.0 and AMOS 23.0, with structural equation modelling employed to test and validate the conceptual model. The study identifies usage, value, tradition, and risk barriers, as well as anxiety and technological alienation, as significant predictors of MPS resistance, with tradition barriers being the most substantial. Moderation analysis reveals that BOP type (rural vs. urban) significantly influences these relationships, with rural individuals exhibiting higher resistance due to elevated concerns about risk, tradition, and technological alienation. This research extends IRT by incorporating affective dimensions such as anxiety and alienation. Findings highlight the need for culturally and contextually sensitive, gradual introduction of MPS in BOP communities to enhance financial inclusion.