Consumer Perceived Risk and Trust for Online Payments in China

Perceived risk and trust are the most important factors influencing consumer behavior in the context of online payment in e-commerce. This paper aims to extend research into consumers' online payment behavior by looking into the elements of trust and facets of perceived risk in China. A conceptual model introducing new constructs like comparison and evaluation is proposed based on the framework of TRA, TPB, TAM and DTPB. The research methodology improves previous efforts by first studying perceived risk of 8 facets at a more granular level and then further refines the nomological fit of perceived risk within the research model framework. The results show that privacy risk is negatively related to trust, while service risk and psychological risk respectively has a positive effect on comparison and intention; perceived usefulness and ease of use still play important yet different roles with consumers mastering online payment experience in the later stage of e-commerce.