Role of customer perceptions in the usage of electronic payment systems

Abstract

Banking industry across the world witnessed radical transformation due to significant changes that took place in the Information Technology (IT) sector. Technological innovations made the whole world a global village and brought remarkable changes in the banking industry. Branch banking in the conventional brick and mortar mode has been transformed into click and order channel mode. The deployment of self-service technologies makes the service delivery process simple and provides the option of "do it yourself". The dependence on electronic payment systems is growing steadily, and development of electronic commerce has given birth to electronic payment options. Electronic/ online payments played a key role the proliferation of banking and financial services. In comparison to the traditional payment methods, online payment techniques have several differentiating characteristics that include online security, reliability, acceptability, perceived usefulness, perceived ease of use, trust, convenience, etc. This paper addresses the customer perceptions related to security in online financial transactions with a specific focus on electronic banking.