Perceived Trust and Payment Methods: An Empirical Study of MarkaVIP Company

Abstract

This empirical study focused on investigating the perceived trust surrogated by a number of hypothesized factors and its effect on the choice of method of payment. The data were collected using a questionnaire, as the instrument for the primary data collection, with total collected back responses of 214 from customers of MarkaVIP. Structural equation modeling technique was used to fully analyze the data in order to determine what level of the relationship between the constituting factors of the perceived trust and the method of payment. The main findings were related to confirming the seven main hypotheses of the research that were related to testing if some factors were important to forming perceived trust by customers. Four factors (reputation, security, familiarity, and ease of use) were found to have a positive effect and the remaining three were not (privacy, size and usefulness). In addition, having perceived trust meant no preference to any method of payment by the customers. Keywords E-Payment, Perceived Trust, EPS, E-Commerce, Security, Structural Equation ModelingM. Maqableh et al. 410payment system designed to preserve security and privacy. PayCash had special techniques to generate trustworthy records of transactions and fraud detection [2]. Trust issues that are necessary for an electronic payment system to be utilized as a common medium of financial transactions are: identification, authentication, accountability, authorization, and availability [3] [4]. Some payment systems like the ones on mobile can provide independence in time and place, remote payments, availability, and queuing avoidance [5] [6]. Currently, payment systems support environments where traditional payment systems could not function properly.Experts usually divide payment systems into four categories: Credit Card Payment System, Online Electronic Cash System, Electronic Cheque System and Smart Cards based Electronic Payment System. The said categories can be distinguished based on what is being transmitted over the network and could be evaluated based on their requirements such as: security, acceptability, convenience, cost, anonymity, control, and traceability [7] [8]. Subsequent to Sumanjeet's (2009) stated methods of e-payment systems and their challenges, there had been a discussion covering different aspects including security measurements which had been suggested for these aspects as well as conducting possible solutions [7]. For example, when using debit cards, it is easier to perform many payment transactions for different pay services but, convincing the majority of customers to use this method of payment requires much convincing as people at large are still not satisfied and would prefer to perform payments physically which raise the consideration of trust factor in those plastic cards. One possible reason behind this is the lack of trust in some e-payment transactions due to frequent malfunctioning, potential fraud, and the unavailability of e-payment machines on demand which raises uncertainty among the public about th...

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