Consumer Perception toward Digital Payment System

Abstract

In the modern world, where the current electronic payment system is replacing the traditional payment method, the e-payment system is becoming popular among the new generation and gaining popularity among the older generation. With the gain of popularity, security, and privacy issues are also increasing. The study examined the impact of security and privacy on customers’ trust in the case of the e-payment system and its resultant effect on customers’ perceived Quality. Descriptive research has been conducted using online responses from 390 customers using e-payment. The study also examined the impact of perceived ease of use and usefulness on perceived quality. The collected data was analyzed by using the structural model and measurement model. The study concluded that trust depends on the security and privacy factor, where privacy and security strongly impact customers’ trust in the e-payment platform. And it is also concluded that trust positively impacts customers’ perceived quality of the e-payment platform. In Nepal, security and privacy issues are increasing with the increased use of e-payment platforms, so security and privacy are significant factors to consider. Also, Perceived ease of use and usefulness positively impact customers’ perceived quality of the system for online transactions.