Decision Factors for the Adoption of an Online Payment System by Customers

Decision Factors for the Adoption of an Online Payment System by Customers

Fang He, Peter P. Mykytyn
Copyright: © 2007 |Pages: 32
DOI: 10.4018/jebr.2007100101
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Abstract

Along with the exponential increase in online business transactions, the online payment system has gained in popularity because vendors and creditors realize its growing importance as a foundation to improve their information infrastructure and to achieve “paperless” operating efficiency. However, due to per se different characteristics among customers and Web-systems, both sides’ perspectives and technology factors could cause a significant level of variation in customers’ acceptance of online payment methods. Our research involving 148 subjects who participated in a field survey examined the impact of a series of possible decision factors including perceived risk, perceived benefits, vendor’s system features, and customers’ characteristics on the intention to use an online payment system by customers. Some significant associations are observed and their implications are discussed.

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