Factors Influencing Intention(s) to Use Electronic Payment Systems: The Case of North Cyprus

Ever since the development of commercial space on the internet back in the early 1990s, different types of electronic payment systems (EPS) and vendors have emerged. The popularity of EPS has been facilitated by the growth of the internet and attracted the attention of both academics and practioners. Although numerous studies have been carried out in the field of EPS, none of these have investigated the effect of self-confidence. In this study, self-confidence has been studied in its distinct forms namely general and specific self-confidence. Furthermore, provided benefit and risk have been investigated from the perspective of individuals as opposed to merchants’. In that regard, this study have aimed to established whether: (i) general self-confidence has an effect on individuals’ intention to use electronic payment systems; (ii) specific self-confidence has an effect on individuals’ intention to use electronic payment systems, (iii) any relationship exists between these two types of confidence and perceived risk as well as perceived benefits of using electronic payment systems. A broad literature review was engaged in order to conceptualize the variables of perceived benefit, perceived risk, general self-confidence and specific self-confidence, and their effect on consumer behaviour. Following that, four hypotheses were developed to examine the possible effect of these variables on the intention to use electronic payment systems. The hypotheses were investigated using t-tests, ANOVA tests and regression analysis of data obtained via a survey of 473 respondents in North Cyprus. The findings showed that both general and specific self-confidence do not have a significant effect but perceived benefit and perceived risk have a significant iv positive effect on the intention to use electronic payment systems. Moreover, it was also found that there was a positive relationship between perceived benefit and perceived risk. To conclude, the theoretical and managerial implications of the findings, the limitations of the study and directions for future research are discussed. Keywords: Intention(s) to use Electronic Payment System, General Self-Confidence, Specific Self-Confidence, Perceived Risk, Perceived Benefit.