Abstract

The security risks of Internet banking have always been a concern to the service providers and users. There has been a global trend to adopt a multi-factor authentication scheme to increase the security of Internet banking. However, the introduction of two-factor authentication has not been well received. Particularly, there has been a conception that it creates barriers to Internet banking use because extra efforts are required to perform transactions online. This study explores the impact of the two-factor authentication on the adoption of Internet banking in Australia as perceived by the users, through a qualitative survey. The findings show that the two factor authentication does not affect most of the key factors affecting Internet banking adoption including ease-of-use and it helps reduce the perceived risks. However, it increases the security awareness and concern of the users and it somehow affects users’ trust in using Internet banking.

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