The Impact of Two-Factor Authentication Technology on the Adoption of Internet Banking

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 twofactor 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. Key Word: Two-Factor Authentication; Internet Banking; Security; Adoption