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Abstract: This study aims to observe the impact of m-payments on purchase intention and customer satisfaction by considering perceived flow as a mediator in the online shopping context of China. A theoretical stimulus-organism-response (S-O-R) framework was used in this study to explain the effect of m-payments on customer satisfaction and purchase intention. Primary data were collected by online questionnaires from 350 valid respondents, who purchased a product online via M-Payments system. The partial least square path modeling approach was used to test the structural model and measurements. This study showed that m-payments have an enormous impact on customer satisfaction and purchase intention. The findings of this study also showed that m-payments influence perceived flow, which, in turn, influences online shoppers’ satisfaction and purchase intention. Findings of this study are practically significant for both marketers and customers. Because of usability, emotion, and security of m-payments system, marketers should accept m-payment as an easy payment tool that will lead to more profitability for organizations. Not only that but also customers can learn their behavior regarding online and mobile payment in the online shopping context. This study has significant implications in the field of online marketing, retailing and consumer behavior.
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