E-commerce, which is a combination of conventional commerce and web, has brought dramatic changes of the way commerce exchanges are conducted not as it were in Lebanon but across the world. This study will look for to set up the variables influencing electronic payment adoption by the Lebanese market. This study embraces a cross-sectional design and is guided by the following research objective; to set up the factors affecting electronic payment adoption by the Lebanese market by investigating the impact of multiple variables namely; statistics about electronic payments, perceived usefulness, perceived ease of use, and perceived amusement associated with e-commerce attractiveness. Additionally, this paper will investigate how the interrelationship between electronic payment services and the food industry, has changed the manner of doing commercial enterprise within this region, viewing its impact on service, delivery, and alternatively connected issues.
Keywords: electronic payment, online banking, networks, market business.
Background of the study
The fast rise within the development of e-payment technology throughout the world may be the phenomenon that has been particularly surprising among numerous economies, generally since the e-payment model has the capacity to store and exchange cash. As a result, all classes of society presently have access to financial services as individuals ended up progressively recognizable with e-payment money charge system.
E-payment innovation, seen as an installment or benefit channel, has the potential to permit two important measurements to be addressed at the same time: on the demand side, it speaks to an opportunity for monetary consideration among a population that’s underserved by traditional services. On the supply side, it opens up conceivable outcomes for benefit businesses to provide a great diversity of services at low cost to a large number of clients of the poorest areas of society and people live in inaccessible zones, (Trim ; Tanudjaja, 2013).
A few hypotheses and models have been proposed as suitable for the study of technology adoption. Each hypothesis or model has been utilized in various studies that have centered on the intention to receive or to utilize a particular data innovation. the foremost prevalent of these incorporate the Theory of Planned Behavior, Innovation Diffusion Theory by Roger, (1982).
The concept of electronic payment
An electronic payment system is a way of paying for products and services electronically, instead of using cash or a check, individually or by mail. Nowadays numerous clients make payments electronically rather than individually. Hundreds of electronic frameworks have been created to create secure Web exchanges. Electronic payment frameworks are by large classified into four categories: credit cards and debit cards; electronic cash; micropayment systems; and session-level protocols for secure communications (Maiyo, 2013).
E-payment includes integration of the web and related ICTs into the commercial institution or organization and has two features. One is the integration of supply chain so that production and delivery get to be a consistent process. The other is the creation of modern commercial transaction models based on open frameworks of communication between clients, and partners. Where the integration of the supply chain gives expanded proficiency and significant cost advantages through squander minimization, the advancement of modern products and services are facilitated by four ways of conducting commercial exchanges between institutions, organizations, and individuals, (Windrum ; De Berranger, 2002).
E-payments in Lebanon
To be the portion of the world’s advanced economy, Lebanon witnessed two points of interest within the past. The primary point of interest was at the end of 1997 when Master Card issued a special cash card that might be utilized to conduct electronic buys online. The second point of interest was the presentation of e-commerce innovation in 1998, primarily the result of endeavors made by Master Card, Bank of Lebanon and the Gulf and Global Sign (Asmar 200: 14-15). Other points of interest were initiated within the banking sector driven by Bank Audi and Credit Libanais with their presentation of online banking (Asmar 200: 15). Lebanon’s Banque Audi offers secure online exchanges, whereas credit Libanais offers WAP services.
Adoption of New Technologies
Customer’s continuous requests for comfort, security, speed, and luxury are driving Lebanese banks to supply services with increasingly progressed innovation. Bank’s portable apps permit clients to helpfully make exchanges on the go. Contactless cards let clients pay by tapping their cards to contact-less enable pre-users, rather than swiping or inserting them and using a PIN.
Worldwide, the developing trend is turning away from cash and toward cards and other more innovatively progressed payment methods. For its portion, Lebanon’s Bank Audi is aiming to direct its client base into a cashless society. Bank Audi has been advertising contactless cards since 2012, and by 2014, it had updated its NFC innovation to permit clients to create secure payments using mobile that are NFC-enabled. For non-NFC empowered gadgets, it propelled the same benefit through a sticker that attaches to any mobile. Nowadays, the majority of Bank Audi’s newly issued cards are contactless.
Going forward, Hatem Chaarani, division head of electronic delivery channels and card products at Bankmed, says that developing consumer’s mindfulness and an ensuing developing craving for mobile-based banking arrangements is pushing the bank to create unused forms of its services. It is within the process of propelling MedPay, which can empower shoppers to form exchanges utilizing their Bankmed account at MedPay dealers and MedCash ATMs so clients can perform their buys and other operations without having to be physically present at the store. Chaarani says, “Contactless innovation, coupled with smart devices, is replacing the need for utilizing physical plastic cards and decreasing the volume of physical cash notes in circulation, just as the attractive strip and chip innovation revolutionized payment by plastic money”.
A few banks moreover offer wearables that can be utilized to create buys. Since 2015, Bank Audi has advertised colorful wearable watches and bracelets, which give an on-the-go payment solution that empowers wearers to conduct contactless payments by waving them over any contactless POS machine. BSL BANK plans to empower payments through mobiles and wearables, with Paul Wehbe, head of cards and alternative channels, explaining that rolling out the innovation that gives comfort for clients adjust with BSL BANK’s computerized strategy.
Banks are not only offering innovation and security but a more extensive cluster of card choices that cater to distinctive sorts of clients and their particular needs. Most banks have loyalty rewards programs to induce cardholders to utilize cards more, offering various gifts, discounts, and benefits. As Lebanese people regularly travel for work, many banks offer card in different monetary standards. For example, LGB BANK offer cards in UAE dirhams, Saudi riyals, Turkish Lira, euros, and pound sterling in expansion to US dollars and Lebanese Lira. BSL BANK’s credit cards target sections like new card-users and dynamic youthful individuals with a range of valuable benefits like discount Careem rides, and those who need prestigious benefits with highlights like airport lounge access across the world. FNB’s Visa signature Trade Card offers imaginative highlights particularly planned for the trade segment, like recognizing trade and individual costs, rearranging account administration, and advertising extraordinary highlights like tax saving, unlimited access to airport lounges, and concierge services. Bankmed has included interesting features to its “Be My Guide” mobile app that not only collects miles but incorporates a notification feature to direct clients to air terminal lounges and partner vendors that offer complimentary services. Byblos Bank targets clients aging between 18 and 24 with a specialized comprehensive bundle that incorporates an account and debit card, and has all the highlights the demographic needs, such as rebates with local businesses and an online debit card. Byblos Bank moreover makes it truly simple to urge a card in the first place with its instant issuance benefit that lets clients open an account, get a card, and immediately enroll in mobile banking and access various other services in a single visit to any department.
Issues with e-payment in Lebanon
Online payment, security, and fraud
The greatest concern for online buyers in Lebanon is credit card extortion. However, it appears that extortion is additionally the vendors’ concern as well. Many endeavors such as R. Hallab, Hallab & Sons, Douaihy, were a casualty to an extortion activity in 2003. The ventures received orders received orders paid with stolen credit cards. The ventures had to bear all the costs. Today, many ventures accept only the credit card as the method of payment. Clients who pay by means of secure online payment are guaranteed full security and privacy of credit card numbers. Many ventures utilize NetCommerce payment portal for online payment validation and approval. NetCommerce is one of the world’s most secure online payment companies “using encrypted information on a secure server”. NetCommerce “enables the merchant’s site to execute and acknowledge online payments in real time.
The purpose of this research paper is to establish the variables influencing electronic payment adoption by Lebanese consumers and to connect these variables to the customer’s acceptance of this innovation.
This section reviews literature related to the area of study. It covers a hypothetical establishment of the study, review of related writing, challenges of adopting electronic payment and summary of the knowledge gap.
Diffusion of Innovations Theory
As the study analyzes some fundamental components that were derived from Rogers (2003) diffusion of innovations theory; this segment recognizes and clarifies its most vital aspects. According to Rogers (2003), diffusion is “the method by which an innovation is communicated through certain channels over time among the individuals of a social framework”. Additionally, Rogers (2003) expressed that innovation is an “idea, practice, or protest that’s seen as modern by a person or other unit of adoption”. Rogers (2003) classified five characteristics of innovation that can influence people’s rate of adoption as follows:
Relative advantage: the degree to which an innovation is seen as way better than the idea it supersedes.
Compatibility: the degree to which an innovation is seen as being consistent with the existing values, past encounters, and needs of potential adopters.
Complexity: the degree to which an innovation is seen as difficult to understand and use.
Trialability: the degree to which an innovation may be tested with on a restricted basis.
Observability: the degree to which the results of an innovation are obvious to others.
Rogers (2003) moreover proposed that innovations with high relative advantage, observability, trialability, compatibility, and less complexity will be adopted more than other innovations.
Theory of Planned Behavior
The theory of planned behavior builds up that, a small business executive’s or behavioral intention to seek after a course of action, such as creating a presence on the web or embracing e-commerce, may be a work of attitude, subjective norm, and perceived value. The theory of planned behavior moreover theorizes that behavioral intention will eventually result in the behavioral control activity. Subjective norm is the degree of seen social weight that the executive feels to embrace an innovation. Perceived behavioral control is how simple or difficult an executive think that adoption will be, including potential obstacles. (Riemenschneider et al., 2003).
Technology Acceptance Model (T.A.M)
An exceptional model for investigating data framework acceptance is the Technology Acceptance Model offered by Fred Davis (1989) which was based on the Theory of Reasoned Action by Fishbein and Ajzen (1975). According to the Technology Acceptance Model, behavioral intentions to utilize an information technology are decided by the individual’s state of mind toward utilizing information technology, as well as convictions the handler handles around its perceived value. Attitude is affected by perceived usefulness and its perceived ease of use. Davis characterizes perceived usefulness as “The degree to which a person accepts that use of a framework would progress his or her performance”, whereas he alludes perceived ease of use to “The degree to which a person believes that employing a specific framework would be effortless”. Other components such as socioeconomics, individual characteristics, and technology attributes were proposed to be included in a cluster of outside factors which aggravate states of mind over and done with the arbitrating Technology Acceptance Model factors of perceived usefulness and perceived ease of use. Technology Acceptance Model as proposed by Davis et al. (1989).