The development of the Internet and the arrival of e-commerce fostered digitalization in the payment processes by providing a variety of electronic payment options including payment cards (credit and debit), digital and mobile wallets, electronic cash, contactless payment methods etc. Mobile payment services with their increasing popularity are presently under the phase of transition, heading towards a promising future of tentative possibilities along with the innovation in technology. At this point of the development, we look at the current state of the payment services market from a literature review perspective. We review prior literature on technology adoption and analyze the various factors that impact choice of payment method, specifically mobile payment. To facilitate the analysis of literature, we propose a framework based on The Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) developed by Venkatesh, Thong and Xu in 2012. Notably, we have expanded the model by introducing the impact of contextual factors such as product involvement of item purchased, time pressure and whether the purchase happens online or offline on the choice of the payment method.