Empirical Study on Consumer Perceived On-line Payment Risk

This paper takes the potential release of online transaction market size as the starting point of research, and discusses how Chinese consumer perceived risks influence online payment willingness. This study divides consumer perceived risks of online payment into eight dimensions: Economic risk, Functional risk, Private risk, Security risk, Time risk, Service risk, Psychological risk and Social risk. Furthermore, it explores the influence of multi-dimensional perceived risks on the willingness of consumers’ online payment on the basis of 616 samples from Shanghai. The empirical results show that there is a significant negative correlation between perceived economic risks and the willingness to pay online; perceived security risks and some other risks have significant positive effect on payment willingness, which shows that certain perceived risks are becoming systemic risks in accordance with the principle of finance. So, the paper imply that both Private and Government third payment platforms shall take certain measures to reduce consumers’ specific perceived risk for promoting the development of online transaction market in China.