Mobile payment, financial behavior and financial anxiety: a multi-group structural equation modeling study

Purpose This study aims to examine the association between mobile payment usage and financial anxiety and explore the mediating role of financial behavior. Moreover, this research also compares the moderating effects of financial education and financial knowledge. Design/methodology/approach A sample of 18,584 consumers from the 2021 National Financial Capability Study in the USA was analyzed. Structural equation modeling (SEM) was employed to explore indirect associations between mobile payment usage and financial anxiety. Two undesirable financial behaviors, overspending and overindebtedness, were used as mediators between mobile payment and financial anxiety. Moreover, multi-group analyses were conducted for two financial knowledge groups and two financial education groups to examine the heterogeneity. A robustness test is employed to ensure the reliability of the results. Findings The SEM results showed that the positive association between mobile payment and financial anxiety was mediated by overspending and overindebtedness in a parallel multiple mediation relationship. In addition, financial knowledge moderated the relationships between financial behaviors (overspending or overborrowing) and financial anxiety, while financial education moderated the associations between mobile payment use and overspending and between overspending and financial anxiety. Research limitations/implications This study is limited by its use of cross-sectional data, which restricts conclusions on causality and temporal dynamics. Additionally, the study does not account for the potential bidirectional relationship between financial anxiety and mobile payment usage, which warrants further exploration. The mediating variables examination focus mainly on overspending and overindebtedness, suggesting the need to explore other factors like budgeting and saving. Finally, the study’s findings may not generalize to other populations, highlighting the need for research in diverse cultural contexts. Practical implications Consumers should be cautious of increased financial anxiety linked to overspending and debt. Platforms can help by enabling spending limits, sending alerts and providing detailed expenditure analysis. Stricter controls on loans and government regulations may also be needed to curb overindebtedness. Additionally, financial knowledge does not mitigate these risks, so even knowledgeable users should be cautious. Financial education programs should address debt management alongside overspending to provide a more comprehensive understanding of financial well-being. Originality/value This study explored the association between mobile payment use and financial anxiety and how undesirable financial behaviors like overspending and overindebtedness mediate this process. Furthermore, multi-group analyses were employed in financial education subsamples and financial knowledge subsamples. Based on the findings, implications were discussed for individual users, government regulation and education programs of mobile payment.