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Exploring Electronic Payment System Acceptibility Determinants: A Consumer Outlook

Akanksha Upadhyaya, Bhajneet Kaur


Electronic payment system, e-commerce, online transactions, exploratory factor analysis, B2B, B2C, C2C, e-business

PUBLISHER The Author(s) 2018. This article is published with open access at www.chitkara.edu.in/publications

The aim of this research paper is to explore the electronic payment system (EPS) acceptability determinants, from the consumer perspective. Exploratory factor analysis has been used to explore the factors based on different statements. The study has been conducted in North-West region of Delhi. Data has been collected from male-female of different age groups by using the questionnaire tool of data collection. For extraction of factors Principal component analyses and Varimax with Kaiser Normalization rotation method was used. The rotated component matrix shows best fitting of items to form a factor. As per the convergence of items, 4 factors were extracted and named. These factors are security concern, Knowledge, awareness and acceptability & convenience which are contributing for acceptability of electronic payment system among the consumers.


Electronic payment system (EPS) is a way to transact online for the goods and services availed. EPS has gained popularity in recent years due to widespread of various applications dealing online for goods and services. Ranging from B2B, B2C, C2C e- commerce models, digital wallets, EPS has its own benefits in terms of facilitating electronic payments for any kind of payments and transactions. Business to Business (B2B) model basically involves wholesaler and producer as an entity to deal with goods and services and also for the electronic transactions. In Business to Consumer (B2C) model is basically retail electronic commerce trade in which associated entities are business and the end customer. The transactions are done between these two entities. Whereas, in case of Consumer to Consumer (C2C) model transactions are done between two Consumers. Product deals and electronic transactions are performed between these two entities using third party online platform. Digital wallets have its own advantages in terms of transacting electronically for any products and services. These wallets securely store the payment information and e-cash of a user. Using a login id and password the user can transact online and purchases can be done easily and quickly. Therefore, in order to outline the past study conducted in this direction and thereby finding the objective of study, the introduction section is divided into two parts: Background of study and purpose of study. First section includes various studies that have been conducted for identification of contributing factors for widespread acceptability of EPS among consumers and next section deals with the objective of study that has been defined after conducting the review of literature.

Page(s) 21-27
URL http://dspace.chitkara.edu.in/jspui/handle/123456789/770
ISSN Print : 2321-3906, Online : 2321-7146
DOI 10.15415/jotitt.2018.61002

The study explored the factors which are causing acceptability of Electronic payment system among the consumers based on 22 statements. These statements were analyzed using exploratory factor analysis using Principal component analysis and Varimax rotation. The statements prior to exploratory factor analyses were tested for validity and reliability. The implementation of exploratory factor analyses on 22 items revealed that there are 4 major factors i.e. security concern, Knowledge, awareness and acceptability & convenience, which are contributing for acceptability of electronic payment system among the consumers.

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