Factors affecting consumers’ perception of electronic payment: an empirical analysis

Abstract

PurposeIn view of the promising growth of e‐payment in Malaysia, this study aims to discover the factors influencing perception towards electronic payment (e‐payment) from the Malaysian consumers’ perspective.Design/methodology/approachLiterature indicates that factors such as benefits, trust, self‐efficacy, ease of use, and security influence consumers’ perception towards e‐payment. A self‐reporting questionnaire was developed and disseminated to 200 respondents, out of which 183 valid responses were considered for further statistical analysis.FindingsThe multiple linear regression results reveal that benefits, self‐efficacy, and ease of use exert significant influences on consumers’ perception towards e‐payment. However, the insignificant results obtained for trust and security warrant further investigation.Research limitations/implicationsThis study proposes five factors for measuring consumers’ perception towards e‐payment which is replicable across different economies. However, the small sample size raises the issue of generalizability which future studies should seek to address.Practical implicationsThe use of e‐payment by the majority of respondents confirms that there is a great potential for future expansion of such payment devices. The challenge is to ensure that it continues to meet consumers’ expectations which will subsequently lead to its increased adoption and use.Originality/valueThis study has advanced knowledge for it has provided information on the current state of e‐payment acceptance and use, particularly among Malaysians. The significant factors identified are beneficial to the policy maker, banking institutions, online transaction facilities providers, and software developers as they develop strategies directed at increasing e‐payment acceptance and use.

Usage of E-Payment on Bus Rapid Transit (BRT): An Empirical Test, Public Acceptance and Policy Implications in Lagos, Nigeria

“…Trust in the perceived usefulness plays a sensitive role in determining user's intention to adopt electronic payment system. Naturally, an average users believe in finding out about unknown situations by listening to other users experience and comments in terms of usefulness of the technology (Su et al, 2018), the information from this reference group concerning the usefulness can encourage potential user to accept the new technology (Ming-Yen Teoh et al, 2013). Perceived usefulness positive and significance effect on intention to adopt was stated in various studies.…”

“…The growth experienced in the world population at large today has directly have a negative impact on the transportation sector, this has caused citizens to demand from their government an affordable and easy movement from where they live to where they work or spend their leisure time. Electronic payment system has become a popular method of exchanging quick data between two devices, readers and other electronics tags(Ming-Yen Teoh et al, 2013). Generally, these attributes are known to influence people to accept electronic payment system; age, income, sex (Cao et al, 2009).…”

“…Security is very important in electronic payment system to ensure users interest are protected and guarantee for them to have confidence in the managers to encourage acceptance. The perception of electronic payment safety must be regulated for the technology to be successful (Schierz et al, 2010).Therefore, assurance of security of electronic payment system by the managers is one of the preconditions that determines acceptance of the new technology, it measures the belief of uncertainty about possible negative consequences (Ming-Yen Teoh et al, 2013). The level of uncertainty in the electronic payment system today has made the system more ambiguous and uncomfortable (Pavlou & Chai, 2002), this is associated with users perception of security regarding adoption of electronic payment system (Ming-Yen Teoh et al, 2013).…”

“…The benefits of this payment system to users of Bus Rapid Transit (BRT) and the companies entails greater flexibility of payment methods in business transactions, encouraging acceptance of this technology, greater convenience and time saving for the customers and the management of the system (Ming-Yen Teoh, Choy Chong, Lin, & Wei Chua, 2013). Bus Rapid Transit (BRT) is a contemporary breed of urban passenger transportation with frequently growing universal importance due to evidence of an ability to implement mass transportation capacity quickly and at a low moderate cost (Coninck, 2013).…”

The influence of E-Satisfaction, E-Trust and Hedonic Motivation on the Adoption of E-banking and Its Determinants in Nigeria: A Pilot Study

“…Trusting intention implies that intending online shopper is ready to accept any form of vulnerability in the course of shopping online while trusting beliefs center on the faith which online shopper has about benevolence, competence, honesty and predictability of the online store (Dimitriadis & Kyrezis, 2011). Importantly, various scholars have established relationship between e-trust and e-banking adoption (e.g., Al-Majali & Mat, 2011;Akhalq & Ahmed, 2013;Teoh et al, 2013),while the mediating effect of e-trust between and e-banking adoption, and its various determinants as conceptualized in this study has been established empirically (e.g., Eid, 2011;Loureiro, Kaufmann & Rabino, 2014;Yu & Land, 2005) Based on the arguments above, the following hypotheses are proposed: H21: E-trust positively relates to e-banking adoption H22: E-trust positively mediates between perceived usefulness, Perceived ease of use, perceived security, and facilitating condition…”