Reputation, familiarity and use intention for e-payment services: a comparison of pure-play and click-and-mortar e-payment services

As e-payment services gain popularity, the competition for users between third-party pure-play e-payment services (PPEPS) and click-and-mortar e-payment services (CMEPS) has become intense. Understanding of the differences between consumer motivation to use PPEPS or CMEPS will help service providers be competitive. Based on a trust-based valence framework, we studied the role of familiarity and reputation in driving user perception of benefits, risk and trust of e-payment services, which in turn affect user intention. Paired responses of 260 subjects about PPEPS and CMEPS were collected. Data analysis reveals that familiarity plays both direct and indirect roles in driving use intention, while the role of reputation is indirect. A comparison of the path coefficients indicates that PPEPS in general are in a more advantageous position in leveraging the roles of familiarity and reputation to improve user perceptions and intention. The research offers nuanced guidelines for e-payment service providers to improve service adoption.