An empirical study of customers' perceptions of security and trust in e-payment systems

It is commonly believed that good security improves trust, and that the perceptions of good security and trust will ultimately increase the use of electronic commerce. In fact, customers' perceptions of the security of e-payment systems have become a major factor in the evolution of electronic commerce in markets. In this paper, we examine issues related to e-payment security from the viewpoint of customers. This study proposes a conceptual model that delineates the determinants of consumers' perceived security and perceived trust, as well as the effects of perceived security and perceived trust on the use of e-payment systems. To test the model, structural equation modeling is employed to analyze data collected from 219 respondents in Korea. This research provides a theoretical foundation for academics and also practical guidelines for service providers in dealing with the security aspects of e-payment systems. (C) 2009 Elsevier B.V. All rights reserved.