ONLINE PAYMENT SYSTEM IN NEPAL: A STUDY OF FACTOR INFLUENCING CUSTOMER TRUST IN ONLINE TRANSACTION

Abstract

This study aimed to explore the factors that shape trust among Nepalese customers in online transactions. It employed a survey approach, adapting and adjusting a questionnaire derived from previous research, which was administered to 432 participants. The questionnaire's reliability was assessed using the Cronbach Alpha Formula. Data analysis utilized statistical methods and SPSS software. The research specifically investigated the impact of independent variables such as Perceived Risk, Perceived Technology, Perceived Online Security, Dispute Management, and Perceived Reputation on customers' trust in online transactions, the dependent variable. Descriptive analysis, mean calculations, and logistic regression models were applied to assess the relationships among these variables. Significant findings revealed that several factors positively influence customers' trust in online transactions. Notably, Perceived Online Security and Perceived Reputation were identified as significant influencers of customer trust. These insights could be valuable for banking professionals and policymakers aiming to bolster trust in online transactions. The study suggested further research to uncover additional factors that affect customer trust and influence decisions regarding the adoption of online payments.