Point of Sale and Decision to Use e-Payment Channel
The purpose of this research was to determine the impact of network externality of e-payment channel and factors at the point of sale on the decision to use the e-payment channel. The conceptual framework was applied from hierarchical elimination-by-aspect decision-making concept, two-sided market concept, network externality, diffusion of innovation theory, and factors at the point of sale. A stratified random sampling technique was applied to select 3,000 customers from mobile applications to answer the self-report choice experimental questionnaire. Data were organized as scenario-based panel data and analyzed by a multinomial logit model and nested logit model. Research findings revealed that the IIA assumption was violated; thus, the nested logit model should be applied in explaining the two hierarchical steps of payment channel decision. The major factor that determines the first step of e-payment decisions was the customer’s perception of the network externality of e-payment. The decision to use a particular e-payment, either mobile banking, QR code payment, or e-wallet, was determined by factors at the point of sale, including availability, reward, transaction fee, perceived convenience, and security of that payment channel. Additionally, the effects of gender, age, and income of customers also significantly influenced the payment channel decision.
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