As electronic commerce is
developing, execution of payment transactions is becoming increasingly
important. It has been found that the main obstacle for electronic commerce
development is fear related to safety of the financial transactions over the
Internet. Such situation is more a consequence of people’s perception and not so
much of inadequate security. One can assume that rational consumer enters into a
transaction if he believes that he will actually get the goods or services he is
about to pay for, or that something can be done if he dose not get what he paid
for. Thus, as electronic commerce is developing, the confidence in the Internet
payment system is becoming increasingly important. Therefore, a framework to
provide a richer explanation of trust in the context of electronic commerce is
in great need today.
Previous research has resulted in contradictory findings concerning the
relationship between confidence and trust, and between trust and perceived risk.
This work proposes a theoretical model that reconciles these unresolved
contradictions by distinguishing between trust in three different levels:
personal, interpersonal, and system level. Based on this, it is posited that
perceived risk is intermediate between trust and confidence, and that trust and
confidence do not work alone in the context of electronic commerce, but they
need each other. Propositions derived from the conceptual model provide an
agenda for empirical research.
This work employed cross-sectional survey methodology to examine the potential
factors inducing different forms of trust in online buyers and sellers and the
effects of trust. Findings indicate that the proposed model is able to explain
and predict buyer and seller acceptance of the Internet payments substantially
well. The results reveal that trust in third-party impresses both buyer and
seller by increasing perceived security and perceived control. The results show
that trust in wider meaning increases the level of security and reduces the
level of risk perception, and consequently increases confidence in the Internet
payments. The results also show that confidence in the Internet payments
increases buyer and seller’s willingness to make an online payment. The
dissertation concludes with a discussion of the implications of this work to
both researchers and practitioners. In sum, trust is multidimensional and
complex construct composed of combined bases of expectations, which are mediated
by perceived risk and conditioned by preference structure of the trustor, i.e.
risk propensity and propensity to trust.