The adoption of tradecard payment in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Luong Tung Bao Thesis The Adoption of TradeCard payment in Vietnam Supervisor: Prof Nguyen Dong Phong November 2013 Acknowledgement The process of writing this thesis is a challenging task and an insightful research Without the love, the care, the full support and guidance from my professors and my friends, I may not reach the target and complete the journey successfully First and foremost, I would like to express great gratitude to my thesis advisor, Dr Nguyen Dong Phong for his help and guidance in conducting this research and thanks for his generous as well as his support during the time I study here Special thanks to Dr Dinh The Hoang for his dedicated guidelines in data analysis section And further thanks go to the members of my thesis committee for their feedback, comments and encouragement The thesis would not have achieved this quality without their assistance Great thanks to my special friends in for their assistance in my life and my study Special thanks to responders for their enthusiasm to help me collect the data and thanks to ISB friends for happy moments we spent together Finally, I would like to give my deepest and greatest thanks to my family for their love and their encouragement Thank to my Dad who always trust me, teach me to be more patient to achieve success in study and life; thank to my sweet Mom who always gives me tender cares and encourages my dreams and aspirations Page i Abstract “Vietnam continues to be one of the world’s fastest growing sourcing locales, particularly for footwear and apparel,” said Drew Dempsey, Vice President of Global Services, TradeCard Asia-Pacific in celebration of opening new offices in Vietnam in 2012 TradeCard is one of among electronics payment methods applied for over eight years in Vietnam, marking a significant development for society in general and in banking particularly Besides that, more and more Vietnamese companies have started using TradeCard to support its business but it is still an unpopular concept for many Vietnamese people It has not caught on with the banks customer in Vietnam Thus, the main purpose of this study is to identify the adoption of TradeCard in Vietnam The study starts with the bases on some theory models such as Technology Acceptance Model (TAM), and computer anxiety in performing TradeCard payment as a moderator to employ for the analysis TradeCard payment adoption, specifically for TradeCard in Vietnam Data of the quantitative survey is gathered from Vietnamese users in two biggest cities Ha Noi and Ho Chi Minh, who have been using this payment method with a snow ball sampling method was used to sample the subjects The results are expected to support the proposed hypotheses They are expected to provide trading companies, bankers, and government with more information about the adoption of TradeCard in Vietnam Limitations, discussions and suggestions will be explained the results in research and practice Page ii Acknowledgement Abstract Table of Contents List of tables List of figures Chapter I: Introduction 1.1 Background 1.2 Research Purpose, O 1.2 Scope and Limitatio Chapter II Literature Review 2.1 Definitions of Terms 2.2 Electronics Commer 2.3 Theoretical Backgro 2.4 Factors influencing Constructs and perceived risk w 2.4.4 Information on Page iii 2.4.5 2.4.6 2.4.7 Use (PEU) and TradeCard payment U 2.4.8 2.4.9 2.4.10 Information on TradeCar (TPU) 2.4.11 Computer Anxiety (CA) on T 2.5 Research Model Chapter III Research Design 3.1Research Questions and Associated H 3.2Subjects and Sampling 3.3 Instrument design 3.4Expert Validity 3.5Pilot Test and Face Validity 3.6Quantitative Research 3.7Data Analysis Chapter IV Data Analysis 4.1Data Collection 4.2Descriptive Analysis 4.2.1 Respondents’ Demographics 4.2.2 Descriptive Statistics 4.3 The Validity and Reliability 4.4Explanatory Factor Analysis 4.5Regression Analysis 4.5.1 Product/Service Page iv 4.5.2 Information on TradeCard payment Predicting Perceived Risk in The Context of Online Transaction 32 4.5.3 Variables Predicting TradeCard Payment Use 33 4.5.4 Comparisons between Two City Groups in Regression Analysis 35 4.6 Path Analysis 36 4.6.1 Effective Estimation of Perceived of Use on TradeCard payment Use 37 4.6.2 Effective Estimation of Perceived Usefulness on TradeCard payment Use 38 4.6.3 Effective Estimation of Computer Anxiety on TradeCard payment Use38 4.6.4 Effective Estimation of Perceived Risk with Product/ Service on TradeCard payment Use 38 4.6.5 Effective Estimation of Information on TradeCard payment Use 38 Chapter V Results 41 5.1 Findings and Conclusions 41 5.1.1 What Significant Factors Affecting the Use of TradeCard payment in Vietnam 41 5.1.2 How Significant Factors Affect the Use of TradeCard payment in Vietnam 42 5.3 Managerial Implication 43 5.3.1 Perceived Ease of Use 43 5.3.2 Perceived Usefulness 43 5.3.3 Perceived Risk with Product/Service 44 5.3.4 Information on TradeCard Use 44 5.3.5 Computer Anxiety 45 5.4 Limitations and suggestion 46 References 47 APPENDIX A – QUESTIONARE (ENGLISH/VIETNAMESE) 49 APPENDIX B – PILOT TEST ANALYSIS 54 APPENDIX C – TEST OF ASSUMSION OF REGRESSION 56 Page v List of Tables Table 3-1 Measure of research variables for designing questionnaire……………………… 17 Table 4-1 Response rate in Questionnaire Survey 23 Table 4-2 Response rate in Questionnaire Survey among professional groups 23 Table 4-3 Demographic Statistics with Frequency and Percentage 24 Table 4-4 Demographic Statistics with Frequency and Percentage 26 Table 4-5 Reliability of the Developed Questionnaire 28 Table 4-6 Principal Component Analysis of the Developed Questionnaire 29 Table 4-7 Correlation Coefficients among Independent Variables under Study .30 Table 4-8 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived Risk in the Context of Online Transaction 31 Table 4-9 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived risk with product/service 32 Table 4-10 Regression Analysis for Variables Predicting TradeCard payment use 33 Table 4-11 Hypothesis Test Summary of the Predictors Effect on Criteria 35 Table 4-12 Summary of the Regression Analysis for Separate City, Ha Noi and Ho Chi Minh 36 Table 4-13 Summary of Estimating Direct and Indirect 38 Table 5-1 Summary of Hypothesis 42 Page vi List of Figures Figure 2-1 Research Model 15 Figure 3-1 Research Flowchart 21 Figure 3-2 The Structure of the Method approach for this Research 22 Figure 4-1 Association of the Factors in Regression Analysis Model 34 Figure 4-2 Relationships in Path Analysis Model 37 Page vii Chapter I: Introduction 1.1 Background The Internet has grown at a remarkable pace over years, while e-commerce has become important issues nowadays, especially for international trade, TradeCard payment has been becoming an indispensable payment trend in a modern society However, the development banking system has largely been impacted by the dominance of cash in Vietnam For many years, cash is still the “king” in Vietnam and most transactions are dominated by cash since the considerable personal consumption is done through the medium of cash up to now For corporations in particular, this has resulted to problems of cost and delay, arising from the counting, bundling, transporting and depositing of large volumes of cash which has to be handled manually, as well as the risk and inconvenience in transactions with their fellow trader The State Bank of Vietnam (SBV) made efforts in reducing the volume of cash payment transactions in the year 2006 by issuing non-cash-transaction project launched in 2006, and expect to finish this project on 2020 (SBV, 2008) The result is total liquidity composition in Vietnam changed significantly in a positive manner when the ratio of cash in total liquidity continued reducing to 14,6% in the year 2008 (as compared to that of 16,36% and 17,21% in 2007 and 2006 respectively) (SBV, 2008) Soon after joining WTO in the year 2004, many opportunities and threats for Vietnam economic in general and banking industry are brought up for enterprises Vietnam has to change payment transaction behaviors to adapt the inevitable trend in the world Recent years, many new models of business have been appeared such as e-commerce, e-business, thus, IT has to be equipped in banking system to enhance their quality of services in satisfying customer’s expectation Since almost banks offer same services, the application of new technology in bank becomes the determinant factors deciding the success of bank in compete customer’s belief in long term resulted to many kinds of modern banking applications are now applied in Vietnamese bank The State Bank of Vietnam has made efforts in reducing the volume of cash payment transactions by issuing non-cash-transaction project in 2006 throughout 2020 Besides, banks alliances are formed and developed quickly, TradeCard payment forms are more diversified as a standard payment term for international trading Thereby it is time to enhance customer awareness and disseminate the TradeCard payment system in society Page There have been some previous research on e-commerce and e-banking before, but they only focus on developed countries with the advantage in IT technology For example, researches on the adoption internet banking in European, North America, and Finland the leading countries in online banking technology and usage Later other researchers extent in other regions including a mix of developed and developing countries are Singapore (Tan &Teo, 2000), Hong Kong (Chan & Lu, 2004; Ho & Ng, 1994) Despite a few works are done to address the electronics payment (Ho & Ng, 1994; Plouffe, Hulland & Vandenbosch, 2001), however, authors just focus on developed countries with advantage in IT knowledge Therefore, this research will analyze the TradeCard payment in Vietnam, which is known as a developing country Differently, this study focuses on TradeCard payment which is a typical TradeCard payment of e-commerce and e-transactions in a developing country in which IT and e-banking systems are still young 1.2 Research Purpose, Objectives, and Research Questions The main purpose of this study is to identify adoption of TradeCard payment in Vietnam through factors influencing directly to its payment process for a developing country case as well as how the factors influencing the adoption of TradeCard payment in Vietnam The study hopes to bring general knowledge about electronics payment transaction to Vietnamese customers by clarifying which factors are essential and critical for TradeCard payment use Factors influencing the adoption of TradeCard payment may be the foundation of related organizations that can help them can propose programs in order to approach and serve the customers effectively This study aims to examine the factors influencing the adoption of TradeCard payment with the these specific objectives identified as following To identify significant factors that influence customer’s adoption of TradeCard payment The corresponding research question developed was: Q1 What are main factors influencing adoption of TradeCard in Vietnam? To explore how the factors affect customer’s adoption of TradeCard payment in Vietnam The corresponding research question developed was: Q2 How the factors influencing adoption of TradeCard in Vietnam? 1.2.1 Research Structure This research is organized into chapters (ch.1) Introduction is to provide general introduction of the research, (ch.2) Literature review is a brief review of the literature on Page c – years d – years e More than years How you know of the Trade Card payment? a From business partners b From the mass media c From the conference d From the banks e Others How many transactions under the Trade Card you use in a month averagely? a Less than transactions b - transactions c 10 - 20 transactions d 21 - 30 transactions e More than 30 transactions Page 53 PART II: ABOUT TRADECARD PAYMENT This section includes items concerning your behavioral intention toward the use of TradeCard payment and how you are willing to accept TradeCard payment Items are assumed statements of your intention and willingness Please circle the numbers corresponding with your degree of agreement to each item with the denoted scale: “1”= strongly disagree; “2”= disagree; “3”= Neutral; “4”= agree; “5” = strongly agree Measure of research variables for designing questionnaire: Perceived Ease of Use It is easy to become skillful at using the TradeCard I find TradeCard payment easy to what I want to It is easy for me to learn how to use the TradeCard payment I find TradeCard payment to be flexible to interact with understandable My interaction with TradeCard payment is clear and Overall, I find TradeCard payment easy to use Perceived Usefulness banking service Using TradeCard payment improve performance of utilizing banking service Using TradeCard service more quickly Using TradeCard 10 Using TradeCard payment for banking service increase productivity Perceived risk with product/service 11.Not the same as the introduced and advertised functions 12.Waste time using TradeCard payment in transactions Page 54 13 It may lose the opportunity to use other payment services that have the same quality with lower cost 14 Users may have to pay other fees when using TradeCard payment Perceived risk in the context of online transaction 15 It may have problems on transmission line so TradeCard payment trade is failed to complete 16 payment money…) Payment information is not secured (account name, password, 17 by other users Payment information (account name, password…) may be used 18 TradeCard payment The suppliers may say that they still haven’t got money by Information on TradeCard payment 19 payment I have a generally received enough information about TradeCard 20 I have received enough information about the benefits of using the TradeCard payment services 21 I have received information about using TradeCard payment service from a bank, a phone bank, the internet, a friend, an advertisement and another source Computer Anxiety 22 I am confident that I can learn computer skills 23 Computers not scare me at all 24 Using Computers makes me feel easy 25 Working with a computer makes does not make me feel nervous 26 Computers make me feel comfortable TradeCard payment Use 27 I feel using TradeCard payment is a wise idea 28 I feel using TradeCard 29 I like to use TradeCard Page 55 PART III: COMMENTS & SUGGESTIONS This section is administered for your comments on current applications of TradeCard as well as your any suggestions to its improvement Moreover, please feel free let me know your thoughts and ideas concerning your intentions for using TradeCard payment and how you are willing to accept TradeCard payment beyond the above mentioned items Thank you very much for your help Page 56 TRANSLATION - VIETNAMESE QUESTIONARE Mục đích đề tài nhằm xác định nhân tố ảnh hưởng đến việc sử dụng toán TradeCard Việt Nam, nước phát triển nghiên cứu nhân tố tác động đến việc sử dụng tốn TradeCard Việt Nam Tơi thực biết ơn Quý Anh/Chị dành chút thời gian để điền vào bảng câu hỏi https://docs.google.com/forms/d/1k0WZFugSk2BlHLORVUx0LJWqvBJntEYiVu1ZdhhFEn Y/viewform Mọi thông tin cá nhân phần trả lời Quý Anh/Chị giữ kín dành cho mục đích phân tích nội dung nghiên cứu Sự tham gia Quý Anh/Chị thực có giá trị kết nghiên cứu đề tài Xin trân trọng cảm ơn PHẦN I: THÔNG TIN CƠ BẢN Phần nội dung liên quan đến số thơng tin cá nhân Xin Q Anh/Chị vui lịng chọn câu trả lời tương ứng với câu hỏi thông tin cá nhân Công ty Anh/Chi thuộc lĩnh vực nào? a Sản xuất b Bán lẻ c Phân phối sỉ d Khác, xin vui lòng liệt kê _ Anh/Chị làm việc phòng ban nào, xin vui lịng chọn a Thanh tốn b Logistics c Tài Chính d Quản lý cấp cao e Khác, xin vui lòng liệt kê _ Anh/Chị vui lịng dự đốn doanh số dự kiến công ty trọng năm 2013 a Dưới triệu US$ b Từ US$ triệu - $2.5 triệu c Từ US$ 2.5 triệu - $4 triệu d Từ US$ triệu - $6 triệu e Trên US$ triệu Công ty Anh/Chị sử dụng phương thức toán TradeCard trọng Page 57 a Dưới năm b Từ – năm c Từ – năm d Từ – năm e Trên năm Công ty Anh/Chị biết vể phương thức tốn TradeCard từ nguồn thơng tin nào? a Khách hàng b Phương tiện truyền thông c Hội thảo d Ngân hàng e Khác, xin vui lòng liệt kê _ Trung bình hàng tháng cơng ty Anh/Chị có giao dịch TradeCard? a Dưới b Từ5-9 c Từ10-20 d Từ21-30 e Trên 30 Page 58 PHẦN II: VỀ THANH TOÁN TRADECARD Phần gồm ý 1iên quan đến nhận định quan diểm Quý Anh/Chị thực trạng toán TradeCard Việt Nam Mỗi câu có thang đánh giá mức độ cảm nhận đánh số từ đến phần bên phải Anh/Chị lựa chọn số tương ứng với cấp độ miêu tả cảm nhận Sẽ khơng có câu trả lời hay sai, Anh/Chị thấy câu đánh dấu vào số (hồn tồn đồng ý), thấy khơng với cảm nhận đánh dấu vào số (hồn tồn khơng đồng ý) Nhận thức tính dễ sử dụng Tơi thấy dễ dàng có kỹ thành thạo việc sử dụng tốn TradeCard Tơi cảm thấy dễ dàng thao tác đói với tốn TradeCard Đối với tôi, học cách sử dụng tốn TradeCard.thật dễ dàng Tơi cảm thấy việc sử dụng tốn TradeCard.là linh hoạt Tơi thấy tương tác với toán TradeCard.là rõ dàng dễ hiểu Nói chung, tốn TradeCard.dễ sử dụng tơi Nhận thức hữu ích Sử dụng toán TradeCard cải thiện hiệu suất sử dụng dịch vụ ngân hàng Sử dụng toán TradeCard tăng cường hiệu việc sử dụng dịch vụ ngân hàng Sử dụng dịch vụ toán TradeCard cho phép sử dụng dịch vụ ngân hàng nhanh chóng 10 Sử dụng toán TradeCard làm tăng suất dịch vụ ngân hàng Nhận thức rủi ro với sản phẩm, dịch vụ Page 59 11 Tơi thấy sản phẩm, dịch vụ tốn điện tử khơng tính giới thiệu, quảng cáo 12 Tôi thấy tốn thời gian để chờ đợi việc thực tốn 13 Tơi thấy hội sử dụng dịch vụ tốn khác có chất lượng tương tự với chi phí thấp 14 tốn TradeCard Tơi thấy phải trả thêm phí khác phát sinh thực Nhận thức rủi ro giao dịch 15 Tơi thấy xảy trục trặc đường truyền nên giao dịch tốn điện tử khơng thể hồn tất 16 Tơi thấy khơng đảm bảo bí mật thơng tin toán (tên tài khoản, mật khẩu, số tiền toán …) 17 bị đối tượng khác sử dụng Tôi thấy thơng tin tốn (tên tài khoản, mật khẩu…) 18 Tơi thấy nơi cung cấp từ bỏ trách nhiệm ( thông báo chưa nhận tiền qua tốn điện tử) Thơng tin tốn TradeCard 19 TradeCard Nhìn chung, tơi có đủ thơng tin hình thức tốn 20 Tơi có đủ thơng tin lợi ích sử dụng hình thức tốn TradeCard 21 số nguồn thích hợp Tơi có đủ thơng tin cách sử dụng tốn TradeCard từ Sử dụng máy tính 22 Tơi tin tưởng tơi học hỏi kĩ máy tính 23 Máy vi tính khơng làm cho cảm thấy e sợ 24 Tôi thấy dễ dàng sử dụng máy vi tính 25 Tơi khơng thấy lo lắng sử dụng máy vi tính 26 Tôi thấy thoải mái sử dụng máy vi tính Sử dụng phương thức tốn TradeCard 27 Tơi thấy sử dụng tốn tốn TradeCard ý tưởng sáng suốt 28 Tôi thấy sử dụng tốn TradeCard ý tưởng tốt 29 Tơi thích sử dụng hình thức tốn TradeCard Page 60 PHẦN III: Ý KIẾN ĐÓNG GÓP Phần dùng dể ghi nhận ý kiến dóng góp Quý Anh/Chị trạng áp dụng toán TradeCard Việt Nam qua ảnh hưởng yếu tố: nhận thức hữu dụng, nhận thức tính dễ dàng sử dụng, nhận thức mức độ rủi ro, thơng tin hệ thống tốn điện tử, lo lắng máy tính ảnh hưởng tư tưởng đổi công nghệ Việt Nam tương1ai Những ý kiến đặc biệt có giá trị, góp phần nâng cao chất 1ượng việc ứng dụng tốn khơng dùng tiền mặt Việt Nam Xin chân thành cảm ơn giúp đỡ Quý Anh/Chị Page 61 APPENDIX B – PILOT TEST ANALYSIS Table 3A Principal Component Analysis of the Developed Questionnaire Item A4 Flexible A3 Easy to learn A5 Clear & Understandable A6 Easy to use A1 Easy to become skillful A2 Controllable F25 Emotional2 F22 Cognitive F23 Cognitive F24 Emotional1 F26 Emotional3 B10 PU Productivity B9 PU Quickness B8 PU Effectiveness B7 PU Performance D17 Privacy D15 Security D16 Security (authentication) D18 Non-repudiation C14 Financial loss C13 Opportunity loss C12 Time loss C11 Functional loss E21 Information on the procedures/ how to operate the TradeCard payment E20 Incentive benefit E19 Enough information G28 Performing Behavior2 G27 Performing Behavior1 G29 Performing Behavior3 Kaiser-Meyer-Olkin 636 Bartlett's Test 000 Page 62 Note: CA = Computer Anxiety; PU = Perceived Usefulness; IF = Information in TradeCard payment;PRT = Perceived Risk in the Context Online Transaction; TPU = TradeCard payment Use ; Table 3B Reliability of the Developed Questionnaire Principle components Perceived Ease of Use Perceived Usefulness Perceived risk with product/service Perceived risk in the context of online transaction Information on TradeCard payment Computer Anxiety TradeCard payment Use Overall Page 63 APPENDIX C – TEST OF ASSUMSION OF REGRESSION Page 64 Model Summary b Model R 821 a a Predictors: (Constant), F_CA, F_PRT, F_PRP, F_IF, F_PEU, F_PU b Dependent Variable: F_TPU ANOVA b Model Regression Residual Total a Predictors: (Constant), F_CA, F_PRT, F_PRP, F_IF, F_PEU, F_PU b Dependent Variable: F_TPU Coefficients a Model (Constant) F_PEU F_PU F_PRP F_PRT F_IF F_CA a Dependent Variable: F_TPU Page 65 ... associated hypotheses under the following categories of questions: What are factors influencing the use of TradeCard in Vietnam? (Q1) How the factors influence the use of TradeCard in Vietnam? (Q2)... that influence customer’s adoption of TradeCard payment The corresponding research question developed was: Q1 What are main factors influencing adoption of TradeCard in Vietnam? To explore how the. .. factors affect customer’s adoption of TradeCard payment in Vietnam The corresponding research question developed was: Q2 How the factors influencing adoption of TradeCard in Vietnam? 1.2.1 Research