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The role of risk in e-retailers’ adoption of payment methods: evidence for transition economies


  • Leo Van Hove

    (Vrije Universiteit Brussel)

  • Farhod P. Karimov

    (Westminster International University in Tashkent)


We use logit analysis to exploit a self-collected dataset on the payment and delivery options offered by the vast majority of B2C websites in five Central Asian transition economies. Specifically, we conduct a supply-side test of (elements of) the Transaction Context Model, which highlights the role of perceived risk. Our results confirm that e-retailers in sectors with higher average transaction values are more likely to adopt ‘pay in advance’ instruments—such as debit cards—that have a lower payment risk for the seller. We also find that merchants who offer higher-risk delivery options are more prone to also adopt higher-risk payment instruments (such as credit cards). Our control variables also yield interesting results. In particular, in line with the network externalities theory, we find evidence that the offline penetration of a payment instrument positively affects online merchant adoption.

Suggested Citation

  • Leo Van Hove & Farhod P. Karimov, 2016. "The role of risk in e-retailers’ adoption of payment methods: evidence for transition economies," Electronic Commerce Research, Springer, vol. 16(1), pages 27-72, March.
  • Handle: RePEc:spr:elcore:v:16:y:2016:i:1:d:10.1007_s10660-015-9203-6
    DOI: 10.1007/s10660-015-9203-6

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    References listed on IDEAS

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    1. Nicole Jonker, 2018. "What drives bitcoin adoption by retailers," DNB Working Papers 585, Netherlands Central Bank, Research Department.
    2. Anirban Adhikary & Krishna Sundar Diatha & Sourav Bikash Borah & Amalesh Sharma, 2021. "How does the adoption of digital payment technologies influence unorganized retailers’ performance? An investigation in an emerging market," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 882-902, September.
    3. Xuechao Sui & Xianhui Geng, 2021. "Continuous usage intention to e-transaction cards in wholesale markets of agriproducts: empirical evidence from China," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    4. Xuyang Li & Tongping Li & Hui Li & Junmei Qi & Linjie Hu, 2019. "Research on the Online Consumption Effect of China’s Urbanization under Population Aging Background," Post-Print hal-03007148, HAL.
    5. Xuyang Li & Tongping Li & Hui Li & Junmei Qi & Linjie Hu, 2019. "Research on the Online Consumption Effect of China’s Urbanization under Population Aging Background," Sustainability, MDPI, vol. 11(16), pages 1-14, August.

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