The Mediating Role of Perceived Trust on Consumer Adoption of Point of Sale (POS) e-Payment System in Awka, Anambra State

Abstract

The aim of this research is to assess the mediating role of perceived trust (PT) on consumer adoption of POS e-payment system. The population of the study comprise of all bank account holders and this is an unknown population hence Cochran formula was used to determine a sample of 400 respondents in Awka, Anambra State out of which 282 responded. Questionnaire was used to collect data while partial least squares structural equations modelling was used to analyse the data with the aid of XLSTAT-PLSPM 2018 and based on 2000 bootstrap resample. The results of the study show that all the variables: consumer awareness (CA), perceived ease of use (PEOU) and perceived usefulness (PU) as well as the mediator perceived trust (PT) have statistically significant effect with the adoption of POS, which are in line with literature. The results of the study also show that PT partially mediates the effects of CA, PEOU and PU on POS adoption. These findings have implications for research, as it will spur further studies that further integrate how the causal variables transmit effect on POS and other e-payments adoption. Most studies have concentrated on direct effect with measures and studies of indirect effect still scanty. For practice, the study points to the need for operators and regulators to create stronger awareness and change behaviour as it concerns POS usage.