Trust Perception and Payment Method on Marketplace in Indonesia (Study on Shopee)

Abstract

The rapid development of e-commerce in Indonesia has led to the emergence of competition. One of the e-commerce platforms that is aggressive in promoting and widely used by Indonesian consumers is Shopee. Shopee conducts promotions in Indonesia to bring new shopping experiences to facilitate easy sales and provide shoppers with secure payment processes and integrated logistics arrangements.The research purpose is to determine reputation’s effect, privacy, size, safeguard, web familiarity, and ease in creating a positive effect on confidence; and trust variable will have a positive effect on payment methods using the electronic payment system (EPS), credit cards and cash on delivery on product purchases at online shops in Indonesia. The research methodology uses quantitative methods with a cross-sectional research design by distributing questionnaires online with a Google Form, with 248 respondents. The study led to the findings of the perceptions of trust significantly influenced by security, benefits, and convenience, while reputation, privacy, size, and web familiarization do not affect trust. Furthermore, trust affects the electronic payment method (EPS), credit card, and cash on delivery. The limitation of the study is in the sampling method which covers not all regions in Indonesia. Contribution: as a company, Shopee should maintain security, the benefits, and convenience to develop strategies using electronic payment methods.