Impact of Perceived Risk on Adoption of Online Payment System Moderating Role of Motivation

Abstract

The new era of digitalization has exposed a bundle of opportunities in information and communication technology, which is bringing a revolution to the sector of payment systems. Technology has always played a significant role in the lives of humans and changed their lifestyle as well. It is observed that people are still sceptical about adopting online payment systems because of the risks involved, which include theft of payment data, personal data, financial data, and fraud. We can say that this different fear is also present in consumers, which is why they are not easily accepting the e-payment systems in their regular lives. So, this study focuses on finding out which risk factors (i.e., financial risk, privacy risk, performance risk, psychological risk, time risk, and security risk) are mostly perceived by consumers as a barrier to their adoption of online payment systems and whether they seek emotional behaviour (i.e., hedonic motivation) or rational behaviour (i.e., utilitarian motivation) while using online payment systems. The data was collected through a structured questionnaire using purposive sampling technique and 316 appropriate responses were received. To analyse the proposed relationships, the PLS-SEM tool was used. The results showed a significant impact of privacy risk, performance risk, and security risk on consumer adoption towards online payment system. Further, this study also demonstrated that hedonic motivation moderates the relationship between performance risk and consumer adoption towards online payment system as well as the relationship between time risk and consumer adoption towards online payment system. newline