Track

Information Systems Security and Privacy

Abstract

New web vendors emerge daily as business-to-consumer e-commerce grows substantially over the years. However, new webvendors may be regarded with skepticism in an existing marketplace, and may require third party support to reduceuncertainty. This study investigates the effect of consumer’s perceived security and reputation of web vendors on consumer’spurchase intention and third party payment choice. Our study examines under what condition adopting a reputable third partypayment system is beneficial to web vendors. Applying trust transference theory, we found that website with high reputationand high security may not benefit from having a third party payment presence, while website with low reputation and lowsecurity will benefit the most for having an alternative financial payment mechanism. Our study also found that onlineconsumers tend not to choose to use third party payment system when the website is perceived as high security regardless ofthe reputation of the website.

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