A Study on Impact of online payment system on customer trust and loyalty in E-Commerce, analyzing security and convenience

Abstract

This study investigates how online payment systems enhance belief and E-Commerce customer loyalty in the presence of secure and friendly E-Commerce environment. Researchers have conducted a significant amount of work into the digital payment systems and the impact that they can have on consumer behavior. This study is conducted to investigate the role of perceived security and convenience. Specifically, it investigates whether the higher level of security of web based payment systems contributes to the trust and loyalty of customers. These customers are in turn willing to provide continuous business. This study also examines the extent to which convenience characteristics gain wide acceptance in terms of transaction speed which leads to customer retention. The findings from present research suggest that customer retention can be attributed to factors such as faster transactions and user experience of giving smooth online payment experience by providing other payment methods options such as credit cards, wallets and UPI, transparency in payment process, reliable transaction processing, and trust building through providing clear information, while loyalty programs and personal incentives lead to better satisfaction of customers.