Beruflich Dokumente
Kultur Dokumente
Rito Septi Tombe Rika K. Ekawati N. F. Ayuning Budi A. Nizar Hidayanto P. Anussornnitisarn
Department of
Faculty of Computer Computerized Faculty of Computer Faculty of Computer Industrial
Science Accounting Science Science Engineering
University of Indonesia STMIK GI MDP University of Indonesia University of Indonesia Kasetsart University
Jakarta, Indonesia Palembang, Indonesia Jakarta, Indonesia Jakarta, Indonesia Bangkok, Thailand
ritotombe@gmail.com rika@mdp.ac.id nurfitriah@cs.ui.ac.id nizar@cs.ui.ac.id fengpta@ku.ac.th
Abstract—Consumer-to-consumer (C2C) e-marketplace is One of the reasons for the popularity of cash payments in
one of the most popular forms of e-commerce today, where trust C2C transaction is the interaction between sellers and buyers in
plays important role in it. This study aims to investigate the trust the C2C e-marketplace without face-to-face contact. This leads
transfer process between sellers and e-payment systems, as well to the need for the buyer to trust the seller before the
as analyze their impact on e-payment systems acceptance in C2C transaction is made [6]. Trust is a person's belief that is driven
e-marketplace. The data was collected by distributing online and by evidence where the person's needs are fulfilled by the
offline questionnaires to C2C e-commerce users in Indonesia. We person entrusted [7].
obtained data from 249 respondents and then subsequently
processed the data using structural equation modeling (SEM) Previous works that discussed the trust and its impact on
with the help of AMOS 22.0 software. The result of this study intent to buy on the C2C e-marketplace have been pretty much
shows that trust to the seller is influenced by disposition to trust done [2, 8, 9]. However, these studies only focus on the
and positive reputation. In addition, this study also concludes antecedents and outcomes of trust. In earlier literature, a trust
that the trust in the e-payment system is affected by the quality of may move from one entity to another independent, but related
e-payment and the recommendations of others. Furthermore, this entity, this is called the trust transfer theory [10]. This trust
study proved that the transfer of trust from the seller to the e- transfer process is evident in various contexts such as e-
payment system can affect the intention to use the e-payment government [11] and the transfer of trust in e-commerce
systems. acceptance [12] which demonstrates the importance of this
trust transfer process in influencing user decisions.
Keywords—AMOS, C2C e-marketplace, e-payment, Trust ,
intention to use , the displacement of the trust , SEM , a source of In this research, we are interested to find out how the
trust process of trust transfers occurred in the context of e-payment,
so that recommendations can be formulated to increase the use
I. INTRODUCTION of e-payment in C2C e-martketplace and reduce transactions
using cash. In sum, our research questions are as follows: 1)
The rapid growth of Internet usage in Indonesia drives the What are the factors that affect the trust on the seller and the e-
increase of online transactions, particularly on the consumer- payment system? 2) Can the trust on the seller can be
to-consumer (C2C) e-marketplace sites. Examples of C2C e- transferred to the e-payment system? 3) How trust in e-
marketplace sites in Indonesia are Lazada, FJB Kaskus, payment systems can influence customers to use e-payment
Tokopedia, Bukalapak, and others. C2C e-marketplace is a system?
unique business concept because all users can become sellers
or buyers at the same time [2].
II. THEORETICAL BACKGROUND
Each C2C e-marketplace site typically adopts a particular
payment system for making the transactions. The most widely A. E-Payment
used payment system in Indonesia is bank transfer and cash on E-payment systems can be interpreted as payment that is
delivery (COD) [3]. Although cash on delivery (COD) is one initiated, processed, and received electronically [13]. The
of the most frequently used payment systems in online definition is similar with the opinion of Kim et al. [14] which
transactions, COD is not an electronic payment system [4]. stated that e-payment is the transfer of payer’s electronic
COD does not include electronic payments because the method payments to payee via a web-based IT infrastructure. Based on
used in COD involves cash or physical meetings between the these two opinions, it can be concluded that the e-payment
buyer and the seller/courier [5]. Unfortunately, in Indonesia, system is any form of payment made through internet media
COD which is synonymous with cash payments, becomes one (web based). There are several existing or frequently used
of the popular payouts even though the Indonesian government payment systems, including credit cards, bank transfers,
is vigorously promoting cashless. electronic wallets, cash on delivery, loans, and postal orders
[15]. However, according to Falkner et al. [16], the most
widely used payment systems for e-commerce are credit & perform a transaction. In order to ensure the transaction
debit cards and electronic wallets. Meanwhile, loan can be running succesfully, it requires a reliable internet network.
categorized as credit card. Having this, the buyers do not have to worry that their
transactions using the e-payment system will fail. Transaction
B. Trust Transfer failures can cause more efforts to be done by the buyer, such
Trust is a person's belief driven by evidence where the as contacting the seller or other parties such as the bank. Thus,
person's needs are fulfilled by the person entrusted [7]. Trust confidence in the reliability of the internet can affect the trust
can be enhanced by taking into account the quality of security, of e-payment system and the seller, so formulated hypothesis
privacy, and service [17]. Doney and Cannon [10] gave an as follows:
example that people can trust in a company if they trust the H4: The buyer’s trust in the internet has a positive impact on
company's salesperson. The example shows the relationship his/her trust to the e-payment systems
between salesperson and company, each of which is a
different entity in which they have no dependence on each H5: The buyer’s trust in the internet has a positive impact on
other but remain related, in this case the salesperson can be his/her trust to the seller
trusted even if the company is not trusted and vice versa. This
is in line with the opinion of Belanche et al. [11], the trust in C. Source of Trust in E-payment Systems
an entity may be transferred or transferred to another entity, or High quality of e-services indicates the goodwill of the
simply called as trust transfer. company and will increase the buyer's trust so that the
transaction will be successful [11]. The quality of the e-
III. HYPOTHESES DEVELOPMENT payment systems can be seen from the security protection
provided by the system [14], so that all financial transactions
C2C e-commerce marketplace involves several important and buyer’s personal data are kept confidential [19]. Thus, the
entities like the seller and buyer, as well as supporting quality of the e-payment system will affect the buyer’s trust on
infrastructure namely the internet and the e-payment systems. the e-payment system. Therefore, we posit a hypothesis as
Piarna [18] showed that the website quality significantly follows:
affects the trust of e-commerce customers. This implies that
buyers usually rely on cues of trust before making transaction, H6: The quality of the e-payment system will have a positive
which may come from the seller or the system used to transact effect on buyer’s trust to e-payment system
(website). The proposed research model will evaluate the
In addition, according to Belanche et al. [11], positive
signals/cues of trust in the seller and e-payment systems, as
information from non-commercial sources may affect the use
well as how the trust transfer process takes place in the C2C e-
of e-services as it can reduce hesitancy in the use of electronic
commerce marketplace.
services. E-payment related information from non-commercial
sources such as close friends or relatives can certainly be more
A. Sources of Trust to Seller reliable because it is not usually aimed at making money or
Prior to making a purchase, the buyer usually evaluates personal gain, thereby leading to a higher trust in e-payment
cues of trust, either in form of disposition to trust [19], the systems that may have been unknown to buyers [22]. Thus, we
positive reputation owned by the seller [20], or the can formulate a hypothesis as follows:
geographical distance that separates the buyer and the seller
[21]. The buyer's experience will then shape the buyer's trust H7: Recommendations have a positive impact on buyer’s
in others [19]. Thus, if a person has a high tendency to trust trust to e-payment systems
others, then the disposition to trust of buyer should have a
positive effect on trust to the seller in C2C e-marketplace, and D. Trust Transfer from Seller to E-Payment Systems
vice versa. A seller will certainly also maintain his/her Meents & Verhagen [2] said that consumers usually want
positive reputation in order to be trusted by the buyers. to meet with sellers on the C2C e-marketplace site to make
Furthermore, distance is also a cue of trust to the seller. The payments due to lack of trust between sellers and buyers. So, it
further the distance between the buyer and the seller, they are can be concluded if the buyer can trust the seller then the
less likely to meet [21]. The face-to-face meeting between the buyer should also be able to trust the use of e-payment
seller and buyer is an important factor to reduce the risk of systems. Hence we draw the following hypothesis:
transacting [2]. Considering this, we propose the following
hypotheses: H8: Buyer’s trust to the seller has a positive impact on
H1: Disposition to trust of buyer has positive impact on trust buyer’s trust to the e-payment systems
to the seller
H2: Positive reputation of seller has positive impact on trust E. Antecedent of the Buyer’s Intention to Use E-payment
to the seller Systems
H3: Geographical distance between seller and buyer has The intention to use of e-payment systems is generally
negative impact on trust to the seller determined by the buyer’s attitudinal belief on the e-payment
systems. Buyer’s perceived benefits to the e-payment system
B. Impact of Trust in the Internet
will surely increase the intent to use of the system [19, 23],
According to Belanche et al. [11], Internet is the main and the risks perceived by the buyer on the e-payment systems
medium that allows buyers and sellers do not need to meet to usage may degrade buyers' intention to use the system [19]. In
addition, the buyers’ trust in the e-payment system may also platform for online trading in Indonesia and trading forums on
increase the intention to use the e-payment systems because Facebook. The offline questionnaire was spreaded in public
the buyer will be sure that the e-payment system will perform places such as shopping centers in Depok area. We also ensure
its functions properly as a medium of financial transactions the respondents have experiences in using the e-payment
even without any face to face meeting with the seller. Thus, systems in C2C e-marketplace.
we can posit the following hypothesis:
H9: The benefits perceived by the buyer have a positive C. Data Evaluation Method
effect on the buyer's intention to use e-payment systems Data collected was subsequently processed using
Structural Equation Modeling (SEM) technique with the help
H10: The risks perceived by the buyer have a negative effect of Amos 22.0. The SEM data analysis consists of two main
on the buyer intention to use e-payment system step processes [27]. The first step is to test the reliability and
H11: The buyer’s trust in e-payment system has a positive the validity of the questionnaire’s indicators or called
effect on the buyer intention to use e-payment systems measurement model test by looking at the loading factor,
composite reliability, convergent validity, and discriminant
Based on the above hypotheses, our research model can be validity [28]. The second step is the structural model test [27],
seen in Figure 1. which can be performed by looking at the coefficient of
determination (R2) and path coefficient [28].
A. Demographics of Respondents
From the data collection process, we obtained 249
respondents who are e-payment users in C2C e-marketplace.
Of the 249 respondents, male respondents amounted 144
(58%) and women amounted to 105 (42%). From the age
demographics, respondents aged under 20 years were 67
respondents (27%), 21 to 30 years old were 16 respondents
(65%), 31 to 40 years old were 17 respondents (7%), and the
remaining 3 respondents (1%) . In terms of employment, 142
respondents were student (57%), 81 respondents were
employee (32%), 17 respondents were entrepreneurs (7%) and
the rests as many as 4% were housewives, etc. The most
Fig. 1. Research Model common e-payment systems used by the respondents to
conduct online transactions are internet banking as many as
133 (53%), credit/debit card as many as 66 (27%) and escrow
IV. RESEARCH METHODOLOGY accounts as many as 30 (12%). Other payment systems
include e-cash (9 respondents), m-banking (8 respondents),
A. Research Instrument and electronic vouchers (3 respondents). Most respondents
This research used a quantitative approach by have also used the e-payment system more than five times
disseminating a questionnaire to C2C e-marketplace users in (64%).
Indonesia. The respondents should express their agreeness to
each statement in the questionnaire by using 5-point Likert B. Analysis with SEM Method
scale (1 represents strongly disagree and 5 represents totally
agree). The questionnaire was prepared by adapting previous As has been explained earlier, the SEM processing
studies such as disposition to trust [19, 24], positive reputation involves two main stages, namely the measurement model test
[8, 19], perceived geographical separation [21], and the structural model test. The measurement model test was
recommendation [11], trust to seller [11], trust to e-payment conducted by examining the value of loading factor, Average
systems [8], trust to Internet [11], perceived benefits [19], Variance Extracted (AVE), and Composite Reliability (CR),
perceived risks [9, 25], and intention to use [9, 19]. The e- as well as discriminant validity. From 51 indicators, the
payment systems quality is represented as a second order loading factor of PB2, PSP2, SA3, and RISK1 did not fulfill
construct consisting of perceived privacy protection [19], the criteria of validity (>= 0.7) so that these indicators were
perceived security protection [19], and system availability removed. As Zeinita and Otok point out [29] that the
[26]. In total, there are 51 indicators used in the questionnaire. minimum value used to assess CR (or said to have good
reliability) is 0.70. After all indicators that fail to meet the
loading factor load were removed from the model, the
B. Data Collection Procedure calculation results showed that all variables have met the
To speed up the data collection process, the questionnaire requirements of AVE> 0.5 and CR> 0.7 so that all variables
was distributed both online and offline. The online are said to be reliable. The full results of AVE and CR
questionnaire was prepared using Google form application, calculation for each variable can be seen in Table I.
which subsequently distributed to Kaskus as the biggest
TABLE I. THE VALUES OF AVE AND CR
Hypothesis PATH C.R p Conclusion
Construct AVE CR Trust_Sellerĸ
H3 Perceived_Geographical_S -,684 ,494 Rejected
Perceived_Benefit 0.717 0.909 eparation
Perceived_Risk 0.617 0.793 Trust_EPayment_System
H4 ĸ 5,773 *** Accepted
Intention_to_Use 0.663 0.885 Trust Internet
Trust_Internet 0.654 0.850 Trust_Sellerĸ
H5 7,115 *** Accepted
Trust_Epayment_System 0.859 0.960 Trust_Internet