Retention Using Electronic Payment Systems: An Empirical Study of Consumer’s Perspective in Vietnam

Abstract

In Vietnam, electronic payment (e-payment) is growing actively, but it only accounts for a tiny percentage compared to cash payment. The findings of this study are valuable to service providers as well as the Government. To encourage consumers to use e-payment, service providers and governments are required to understand their behavior. Thereby they can improve the quality of products and services. The paper aims to identify the factors influencing the retention using electronic payment systems (EPS) through individual users’ personal experience in Vietnam. This paper proposes a combined method with qualitative and quantitative research. The qualitative method is conducted in a group discussion with 49 consumers in Vietnam. The questionnaire is sent to 349 consumers by using the convenience sampling method. The reliability and validity of the instruments are fit and show high values to be used in the actual study. Analysis of structural equation modeling is conducted to identify the impact of the relationship between concepts. The results of the study also indicate that perceived security and perceived trust are mediator role in the effect of technical protection, transaction procedure, security statement, past experience, and perceived benefit on retention using EPS. The results also show that a strong definite link between perceived security, perceived trust, technical protection, and retention using the EPS.