Why Australian Merchants Aren't Adopting E-Money

The level of usage of modern e-money systems in Australia remains low, despite potential benefits and widespread use internationally. This study investigated the characteristics of modern Australian e-money products perceived as most problematic by Australian merchants. Forty-one merchants accepting e-money online and 41 merchants accepting alternative online payments methods identified which of a series of product characteristics would require most improvement before either initial adoption or more prominent usage would be undertaken. It was found that merchants using e-money products primarily required a higher level of consumer participation and lower price, but were relatively satisfied with the levels of usability and number of features offered. In contrast, merchants without any experience using e-money systems distrusted them, and required more information about the products and their features before they made a decision to adopt. The study lends support to the ‘bundle of goods’ view rather than the pure price or ‘rational consumer’ theory as an explanation for e-money adoption behaviour. ACM Classification: J.1 (Administrative Data Processing – Finance)