Abstract:
Purpose: The world is gradually heading towards a digital future in which cashless
transactions will play an increasingly crucial part in regular business operations.
However, an analysis of the digital behavior of Sri Lankan consumers revealed that,
despite high internet penetration and digital literacy, consumers engaged in online
transactions were low. Therefore, this study focuses the impact of fear of online
identity-theft on online purchase intention in Sri Lanka and to examine the role of
trust in e-payment systems on the relationship between fear of online identity-theft
and online purchase intention.
Method: This is a quantitative study involving 300 customers from the Colombo
and Gampaha districts. Data was gathered using a self-directed online questionnaire.
Five hypotheses were tested in the study, one of which was a mediator.
Findings: A series of multiple regression analyses revealed that fear of financial
losses had a significant negative influence on online purchase intention, whereas
fear of reputational damages had no substantial impact. The mediation analysis
observed that trust in e-payment systems has a mediating effect between fear of
online identity theft and online purchase intention.
Implications: The outcomes of this study aid the government, banks, and businesses
in determining what prevents customers from making online transactions and what
efforts they may use to promote online transactions. The findings are important in
drafting relevant laws and policies since it stresses the importance of trust in epayment systems.
Future Research: The scope of this study has been limited to fear of financial losses
and reputational damage; however, there may be other fears that prevent a consumer
from conducting online transactions. Extending this research, further research can
be conducted on how related laws can aid to escalate online transactions.
