Consumer Trust and Online Payment Options

Abstract

Global business practices are evolving as a result of online sales. These days, shopping is increasingly done online, both for selling and for buying. However, this phenomenon is not very prevalent in under developing nations, particularly in Africa. This study therefore examines the impact of customer trust and online payment options on awareness and perception of electronic commerce in Somalia and East Africa generally, whereas other studies had a focus on the electronic retailers' side. I created a five-construct model and put it to the test empirically on Somalian professionals and university students. For path analysis, we used structural equation modeling SEM to probe responses for the investigated variables. The result of the research conclusions point to strong evidence that Somalia's impression of electronic commerce and its level of awareness are both influenced by online payment options. The awareness and perception of online purchasing in the nation were both found to be influenced by consumer trust. The currently accessible international payment methods also disregard regional technologies that are common in Africa. In Somalia, for instance, just having a mobile payment option would have a significant impact. The thesis finds that consumers have extremely little trust in internet retailers, a problem that can be fixed if they are given guarantees regarding their financial transactions. The report comes to the conclusion that more online payment solutions are required in Somalia and throughout East Africa. At the conclusion of this research work, constraints and ideas for additional research are provided.