Effects of User’s Perceived Security on their Usage of Online Banking and e-Payment Facilities

With the innovative changes in everyday life since the creation of the internet, the banking sector is no exception. The creation of value-added services through the internet such as online transactions and online banking, the traditional landscape of banking has been transformed to new lengths. Day to day banking and similar financial transactions through the digital medium have positively affected the live of many due to the derived benefits such convenience to complete financial transactions at their leisure.

Banking institutes are often associated with having high levels of trust in relation security and privacy factors with regard to its physical environment. However this perceived notion has yet to be associated to the digital realm in its full potential. With the lack of physical interaction received through a brick and mortar setting, this creates a unique environment in which trust becomes a vital factor. For majority of users of online banking facilities, security and privacy concerns become of utmost importance as well as a deciding factor regarding the usage of such facilities (Turner et al. (2001)). Given these concerns, the lack of uncertainty and user’s trust in such conveniences creates and obstacle in the extensive adoption of internet banking and online transactions.

Online banking transactions have unique characteristics such as the impersonal nature in relation to the online environment, reliance on technology usage and the uncertainty perceptions with regard to the open infrastructure used for transactions. As a result of these unique characteristics there is a tentative approach by consumers to utilize available online banking and financial services. Continues growth of the internet has lead to the cr...

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...ent facilities have an impact on the consumer’s usage of such facilities. Additionally these perceptions have a significant role in the future development of online banking and e-payment facilities.

The objective of this proposed paper is to identify and understand what factors affect user’s trust & perceived security in online banking and e-payment vendors.

Works Cited

1. Lee, K.O., Turban, E. 2001. A Trust Model for Consumer Internet Shopping. International Journal of Electronic Commerce, 6(1): 75-91

2. Maijala, V. (2004). Outlook of the Information Security in E-Business

3. Suh, B., & Han, I. (2002). Effect of trust on customer acceptance of Internet banking. Electronic Commerce Research and Applications, 1, 247-263.

4. Turner, C. W., Zavod, M., & Yurcik, W. (2001). Factors that Affect the Perception of Security and Privacy of E-Commerce Web Sites.