Volume 18, No. 6, 2021

Impact Of Perceived Security And Perceived Trust On Intention To Use Digital Payments – A Study On Indian Customers



Introduction: As the internet and communication technologies are getting developed, commercial transaction is becoming more electronic. This change also brings new approaches to a new payment mechanism. Security and trust are major issues that need due consideration while adopting these payment methods. Purpose: This study attempts to examine the interaction between perceived security, perceived trust, and intention to use digital payment systems. The technical protection, transaction procedures, and security behavior adopted by customers have been studied to understand the security and trust perception of customers. Methodology: The sample of the study was reached by using the judgment sampling method and data from 460 respondents was collected using a structured questionnaire. The compiled data was tested with Structural Equation Model. Findings: A statistically significant and positive relationship was found between transaction procedure, technical protection, and security behavior adopted by customers on perceived security and perceived trust which in turn have a positive and significant impact on intention to use digital payments. The findings of the study are expected to contribute to the extant literature and explain the security and trust perception of individuals to increase the usage of digital payments.

Pages: 169-181

Keywords: Digital payments, Security, Trust, Transaction procedure, Technical protection, Intention to use

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