Cloud-Based Payment Systems in Australia: How Security Affects Consumer Satisfaction ^†

Abstract

Over the past years, online payments or cloud-based payments have significantly increased around the globe. Cloud-based payment systems (CBPS) are more involved in the payment process due to their convenience and flexibility. Although CBPS offers obvious benefits, their adoption rates among Australian users are comparatively lower compared to those in other countries. People are dissatisfied with current payment methods or are unaware of the advantages of CBPS. Using the technology acceptance model (TAM) with perceived ease of use and perceived usefulness, a qualitative research method was applied through semi-structured interviews to collect data from 20 consumers in Australia. The findings pointed out an appreciation for security features such as two-factor authentication and cutting-edge technologies. The banks were trusted by Australians, but a lack of education and additional fees on digital payment platforms were sources of concern. In the context of CBPS, it was observed that electronic devices were easy to use and proved to be useful. Service providers need to improve security measures and implement innovative technologies to enhance user privacy and prevent fraudulent activities. Overall, Australians expressed satisfaction with their banks; however, there are opportunities for enhancement, particularly in bolstering security measures and providing education on emerging payments options.

1. Introduction

The development of technology has significantly impacted traditional payment systems, leading to the advent of innovative methods such as contactless payments and online banking [1]. This has resulted in a reduction in dependence on cash transactions, moving towards a cashless system. Several studies [2,3,4] have shown a notable decline in cash transactions and an increased preference for electronic payment methods. Cash is only used for a small portion for daily transactions, mostly for payments of small amounts [5]. The decline in cash use can be attributed to the growth of e-commerce, which provides consumers with more electronic payment options [6,7]. Technologies such as cloud computing and mobile technology have transformed the modes of commerce transactions, making it easier for businesses and consumers to conduct transactions [8]. By leveraging these technologies, banks increase their profits and gain a competitive advantage [9].

The widespread use of the Internet and mobile technology has also contributed to the development of online banking and digital payment systems [10]. In this sense, cloud-based payment systems (CBPS) are gaining extensive popularity as they enable the acceptance and processing of payments through the Internet instead of physical devices [1]. CBPS offers customers ubiquitous and diverse payment options, allowing individuals to use any mobile device at any time and location [11,12]. However, despite the advantages of CBPS, Australians use it at a lower adoption rate compared to other countries [13]. This indicates that users are either dissatisfied with existing payment systems or are unaware of the benefits of CBPS [12].

This study was carried out to examine the impact of security on user satisfaction with CBPS. We explored the technology acceptance model (TAM), integrating security as an external variable alongside the key factors of perceived ease of use and perceived usefulness. Additionally, trust and price value were added to the model as constructs given their recognition in prior research as significant factors influencing the acceptance of CBPS [1].

2. Literature Review

Satisfaction plays a pivotal role in assessing the overall experience of shopping or using a service or product [12]. It is a critical construct influencing long-term consumer responses [12]. User satisfaction encompasses the emotional responses, expectations, and attitudes that individuals have regarding the high-quality service delivered by providers through various interactions [1,14]. It essentially reflects the level of pleasure derived from perceiving exceptional service [15]. Given that user satisfaction significantly impacts the continued usage of information technology [16], banks and financial institutions are meticulously monitoring key areas such as security and privacy. As financial institutions offer comparable products and services, it becomes crucial to differentiate and consider customer preferences to enhance user satisfaction with the provided services [17].

2.1. Constructs

The primary focus of this study was placed on TAM, a widely employed framework for forecasting the acceptance of technology and its determinants [1,12]. TAM comprises four components: attitude towards use, actual system use, perceived ease of use, and perceived usefulness [1,18]. Nonetheless, in this investigation, only two primary constructs (perceived usefulness and perceived ease of use) were utilized, alongside other factors such as security, trust, and price value. Through this methodology, the study explored the influence of these additional variables on users’ intention to embrace new payment systems. While prior studies delved into diverse aspects involving users, merchants, banks, and providers [1] affected by technological evolution and study duration, our focus predominantly centered on consumers.

2.1.1. Security

The concept of security is to protect personal information and ensure its confidentiality, integrity [19], authenticity, and non-replicability [20]. User perception of security is crucial in e-payment service providers’ ability to safeguard sensitive data [21]. With the increase in e-commerce and, as a result, the growth of CBPS interactions [12], technology is being used to detect and prevent fraud [22], which has become more prevalent due to the lack of face-to-face interactions [23]. In this context, technology has become an essential tool in combating fraud and ensuring the security of e-commerce transactions [24,25].

2.1.2. Trust

Trust is crucial in payment systems, serving to authenticate monetary systems and ensuring confidence in the fulfillment of obligations by involved parties [1,7]. Trust plays a significant role in risky financial transactions, particularly when users are vulnerable to financial loss [26]. Research in Singapore [27] and China [28] highlighted the importance of trust in mobile payment adoption. The process of trust is dynamic, evolving from the initial establishment of trust to the ongoing development of trust over time [29]. Continuous trust is based on the performance of artificial intelligence and its ability to serve its objective [29].

2.1.3. Perceived Usefulness

The term perceived usefulness (PU) is characterized by an individual’s belief that their performance at work will be improved through the utilization of a particular system [17]. This belief is an important construct in TAM, explaining the acceptance and use of technology by users [17]. Extensive research has delved into PU, establishing it as a pivotal element in TAM, with multiple studies showcasing its beneficial influence on the acceptance and adoption of technology by users [1]. Its relevance extends to online environments, illustrating how a particular technology can assist individuals in attaining their desired outcomes [30]. Furthermore, PU positively impacts acceptance and adoption by enabling individuals to discern the prospective advantages of employing a financial transaction platform [31].

2.1.4. Perceived Ease of Use

Perceived ease of use (PEOU) refers to an individual’s perception of the minimal effort required when utilizing a specific system [18]. It holds significance in embracing emerging technologies [1], playing a crucial role in influencing consumers’ acceptance of technology [32]. The assessment of PEOU revolves around evaluating how systems contribute to accomplishing tasks, enhance output, improve overall execution, and optimize effectiveness [33]. PEOU is influenced by both the concrete benefits of using technology and the act of utilizing it [6].

2.1.5. Price Value

Price value is the exchange value that users make between the perceived advantages of an application and its associated economic expenditures [26]. This exchange reflects the concession users make between the costs and benefits of using the application [34]. Besides, when development does not consider values, each demand is viewed as equally important, leading to a product with numerous important features that may not offer substantial benefits to the overall consumer base [35].

2.2. Proposed Conceptual Research Framework

We used TAM by incorporating three new constructs including security, price value, and trust to investigate the impact of security constructs on other variables (trust, PU, PEOU, and price value) and assess the influence on user satisfaction. We analyzed the security construct from an organizational perspective. Security constructs are widely utilized by organizations globally for anti-fraud measures, risk management, anti-money laundering initiatives, and identity verification [36]. Figure 1 illustrates the proposed conceptual research framework:

3. Research Method

Semi-structured interviews were employed as a qualitative approach to collect information from users of the CBPS in Australia. The data were collected from 20 Australian participants, 18 years old or older, who fully responded to the semi-structured interviews. We conducted interviews, recorded the content, and transcribed it. The transcripts were meticulously examined and categorized. Open coding was employed to analyze the combined constructs within the theoretical framework.

Following the collection of qualitative data through semi-structured interviews, content analysis was employed to scrutinize the acquired information. Content analysis is a systematic and impartial method that condenses words into a smaller number of categories based on their content to delineate and measure research issues [37]. The interpretation of the findings took into account the social context of every interview environment [6]. The primary aim of content analysis is to objectively and systematically classify and analyze information in order to derive valuable insights and draw conclusions [1,38]. Hence, the manual coding process was employed to analyze the qualitative data gathered from each interview. This involved considering the participant’s exact words to comprehend the importance of each research question. This approach was chosen to prevent any potential oversight of data patterns that automated coding systems might encounter.

4. Data Analysis

Most consumers prefer using debit cards for in-store payments. When it comes to online payments, debit cards are still popular, followed by credit cards and PayPal. Customers also use their debit cards on mobile phones. While a considerable number of consumers opt for desktop computers when making online payments, there is a segment that favors the use of mobile phones. Computers are considered practical, safe, and time-saving by most consumers. However, several individuals felt nervous about making payments over the Internet due to potential issues it may present. C6 hesitates to employ electronic devices for payments, citing concerns about potential errors and a lack of fully grasping the procedure. Security concerns were common among consumers, including C17. Nevertheless, consumers such as C1 expressed a willingness to engage in online payments after gaining greater familiarity with the process.

4.1. Security

Participants were presented with statements and a security question. The first statement asked about the safety of electronic payment methods in Australia, with most participants expressing their willingness to use them if assured of security. Several believed security had to be the responsibility of both companies and the government, while others acknowledged the inherent risk in all payment methods. The second question inquired about security measures provided by Australian financial providers, with the majority expressing confidence in their banks’ measures, such as two-construct authentication. Several participants had positive experiences with additional security layers, while others suggested that banks should consider improvements such as facial recognition. When asked to prioritize security and cost, participants prioritized security over cost, being willing to pay more for a secure payment method.

4.2. Trust

The following set of questions pertained to consumers’ trust in CBPS (Appendix A). The majority of participants (18) trusted their banks, while two participants (C4 and C17) did not. C4 had issues with extra fees charged by banks, while C17 felt compelled to trust financial service providers due to government and organizational influence. Regarding trust in mobile devices for payments, the majority of participants expressed a favorable attitude towards their use, but reported infrequent utilization. Factors contributing to this included a lack of awareness (C6) and understanding of device features (C1), concerns about the loss of control (C3), and gadget malfunctions. However, several participants appreciated features such as such as two-factor authentication, facial recognition, and fingerprint recognition. The third question focused on the impact of family and friends on trust in emerging digital payment methods. The majority of participants (13) disagreed, citing it being the first opportunity in their family to experiment with new technologies (C12 and C13), convenience (C20), and a preference for making their own decisions (C20). On the other hand, seven participants concurred, expressing a hesitancy to be early adopters in trying out new services (C10) and preferring to trust methods endorsed by family or friends (C3).

4.3. PU

When questioned about the usefulness of electronic devices for paying bills (Appendix A), all respondents expressed agreement that computers contribute to the convenience of their daily routines. One respondent (C1) emphasized that digital gadgets empower them to complete various tasks from the comfort of their homes, rendering them particularly valuable. Furthermore, C20 asserted that digital gadgets prove particularly beneficial for individuals who are frequently on the move or have hectic schedules, as they streamline the process. C8 highlighted the discomfort associated with conventional banking strategies, pointing out that the time and effort involved in physically visiting financial institutions and waiting in line can be extensive. Finally, C7 emphasized the expediency of digital devices as a quicker and more efficient alternative, resulting in substantial time savings.

4.4. PEOU

When asked about the ease of using electronic devices (Appendix A), all participants responded that they were user-friendly. Three participants (C13, C15, and C16) acknowledged that, despite not being tech-friendly, managing payments using digital gadgets was achievable. C14 noted that individuals might make mistakes when first learning to use electronic devices, but the majority of financial institutions assisted with any issues. One participant, C10, mentioned that electronic devices were usually designed to be user-friendly and had self-help or click-on buttons to assist people, while C15 emphasized that the only obstacle involved adjusting to the digital tools and being receptive to its usage. Finally, C18 proposed that users facing challenges with technology could encounter difficulty in operating electronic devices, whereas those with greater technological familiarity likely found it effortless.

4.5. Price Value

When asked about the possibility of customers being open to paying higher fees for financial services incorporating cutting-edge technologies such as cloud computing and artificial intelligence to protect their privacy and detect fraud, just over half of the participants (C8, C9, C10, C11, C12, C13, C14, C15, C16, C17, and C18) disagreed with the statement. Several cited reasons such as believing it was just an excuse to charge more money, that these companies already make a lot of money, and that protecting customer information is just part of doing business. On the other hand, 9 participants stated that they would pay more for better data privacy protection, as long as the cost is not extreme and only a small percentage of their transactions. One participant was unsure about the cost, and another noted that the services were currently free.

4.6. User Satisfaction

The final section of the study included a set of five questions (Appendix A) regarding user satisfaction. In the first question (security), all participants expressed contentment with their bank’s security protocols, as they had not experienced any difficulties. Several reasons were provided, such as the highly regulated nature of the financial services sector in the country (C15), the use of secure browsers by banks (C2), and the financial incentive for banks to maintain strong security measures to prevent financial losses (C4). However, participant C18 indicated that there is still potential for enhancement. They specifically mentioned implementing two-construct authentication and biometric measures such as facial recognition and fingerprint identification to enhance customer data security further.

For the second question (trust), most participants (16) expressed agreement with the satisfactory performance of their banks. However, C2, C3, C4, C5, and C8 expressed uncertainty about this claim. One participant (C1) emphasized the importance of financial service providers making every effort to protect customers. C3 stated that, although they are not completely certain, they must trust that their financial institutions deploy the best technology to secure their accounts. On the other hand, C2 argued that there is no definite way to know. C11 disagreed and mentioned that determining if banks are using the latest technology is challenging but they still use the services regardless.

In the third question (usefulness), all participants agreed that CBPS is convenient and useful. Responses ranged from ‘really useful’ to ‘extremely useful’ and ‘convenient’. One participant mentioned that they would not want to go back to the previous method of payment as it was much more convenient now. Several participants pointed out that they do not need to physically go to the bank anymore, and everything can be conducted through their computer or mobile phone. While CBPS is considered safe and easy to use, one participant still felt hesitant and preferred handling things over the phone due to concerns about information security due to the lack of security and the potential for someone to misuse their information at any time.

In the fourth question (easy to use), the majority of participants (19) agreed with the question and gave reasons such as it being fairly easy to use (C1 and C14), relatively user-friendly (C5, C18, and C20), and relatively self-explanatory (C20), stating that with the apps, they could use services while they were outside (C2). The services can be accessed from almost anywhere, making it much easier. However, C3 responded that it was complicated, but admitted to not being tech-friendly and usually requiring assistance in understanding how to use it.

For the last question (price value), the majority of participants (16) believed that the amount of money they paid for the financial services offered by their banks was reasonable. C14 said that, while they would like to pay less, they believed that the services provided were fair considering the costs incurred by banks. C15 stated that they were unaware of the cost but assumed that it must be fair since they did not notice it. However, C3 and C6 disagreed with the statement, with one participant saying that banks make a lot of money while providing the same services at a higher cost. C5 and C15 did not know how much they paid for the services, while others (C8, C11, and C12) believed that they paid little for them. C8 stated that it was almost free. One participant (C11) believed that the cost was competitive but not necessarily fair.

5. Findings and Discussion

Most Australian consumers prefer using debit cards as their primary mode of payment, with credit cards and Paypal ranking next in preference. Although cash continues to be employed for transactions, desktop computers take precedence as the preferred device for online payments, followed by mobile phones. However, consumers avoid using electronic devices due to concerns about potential issues and financial costs. In terms of security, participants felt secure with their bank’s security procedures, especially with two-factor authentication. Several participants did not mind paying more for added security. However, it was suggested that banks improve security by using biometrics such as face recognition or fingerprint identification for online purchases instead of relying on passwords.

Regarding trust, most participants had confidence in their banks and did not complain. However, they were concerned about the additional charges imposed by financial institutions and governmental pressures advocating for opening a bank account. The participants generally trusted mobile devices for payments, but their use was limited due to a lack of education. Better demonstrations of features could increase usage, but they were concerned about losing control and device failures. Critical security protocols, such as two-step verification, fingerprint identification, and facial recognition were required. Family and friends significantly influenced the adoption of innovative digital payment methods.

Concerning PU, all participants agreed that electronic devices proved advantageous for bill payments due to their convenience, enabling payments to be made from home or while traveling. Besides, electronic devices eliminated the need for daily visits to financial institutions and to endure long queues, thereby saving time and facilitating faster decision-making. For PEOU, participants unanimously agreed that the digital gadgets were simple to learn (meaning easy to use), even for individuals not highly proficient in technology, such as bank support customers. Electronic devices were user-friendly, with self-help options and intuitive buttons. However, the necessity of technology in payments and the ease of using these devices was found to be affected by proficiency in technology use. Those who were comfortable with technology found it simple to use, while those who struggled with it found it challenging.

In terms of price value, financial service providers utilized advanced technologies, including cloud computing and artificial intelligence, to detect fraud and enhance customer privacy without imposing additional charges. Safeguarding customer data was a crucial aspect of banking, and a significant number of customers were willing to contribute a small amount for enhanced privacy protection.

Regarding consumer satisfaction with financial service providers in Australia, participants generally expressed contentment with the security features implemented by their financial institutions. However, they recommended additional improvements, such as the incorporation of biometric measures and two-step verification. Most survey respondents expressed trust in their financial institutions’ utilization of advanced technologies to safeguard their information and deter fraudulent activities. Although many respondents pointed out CBPS as convenient and beneficial, concerns emerged regarding data security and the complexity of the system. In general, the majority of participants felt that the fees associated with financial services were fair, although there were dissenting opinions among some individuals.

6. Managerial Implications

TAM was revised in this study to evaluate the satisfaction levels of consumers who used CBPS. The updated model included four new elements that measure how satisfied the consumers are with the system. The outcomes of this investigation provided useful information for businesses and organisations operating in the payment system, offering potential practical guidance and strategic direction. The findings of the study suggested that financial institutions improve electronic payment systems, offering biometric measures for security, providing better education and transparency to increase usage and trust, investing in user-friendly technology, advanced security measures, and exploring the impact of friends and family and information security concerns on consumer satisfaction. Additionally, the importance of improving electronic payment systems was emphasized to keep up with the increasing demand for cashless transactions. Furthermore, potential benefits were highlighted for both consumers and financial institutions, such as increased convenience, cost-effectiveness, and security. We also acknowledged the challenges associated with implementing and maintaining these systems, such as ensuring user privacy, addressing technology literacy gaps, and mitigating fraud risks.

7. Conclusions

In this study, we provided consumers’ insights into payment preferences, security, trust, PU, PEOU, price value, and satisfaction with Australians banks. The results indicated a preference for debit cards as the primary mode of payment, with credit cards and PayPal coming afterward. Cash is still in use for minor transactions. Personal computers were the favored choice for online transactions, and participants emphasized the importance of security features like authentication and biometrics using advanced technologies. While participants expressed confidence in their banks, concerns were raised regarding additional fees and insufficient knowledge regarding the utilization of mobile payments. Nevertheless, electronic devices were regarded as easy to use, convenient, and useful. Financial service providers are urged to enhance security measures and adopt advanced technologies to prevent fraudulent activities and safeguard user privacy, all while minimizing additional costs for consumers. Overall, the majority of participants expressed satisfaction with their financial institutions, although there is potential for improvement, especially in bolstering security measures and offering guidance on emerging payment methods.

There were some constraints to consider in this study. In terms of geolocation, the participants were recruited only in one region (NSW) of Australia. The queries were formulated to capture precise information, leading to a restricted scope. The possibility of sampling bias arises due to the challenge of interviewing every representative across demographic categories such as gender, income, age, and education. Additionally, social desirability bias may be present, as some participants might be reluctant to disclose information, leading to socially desirable responses. Finally, these biases can constrain the accuracy of the collected data, influenced by the body language, beliefs, or assumptions of the participants.

To address the gaps in the current literature, further studies are required to explore the personal characteristics of consumers. Additionally, it is essential to conduct comparative studies spanning various regions and countries to explore both the similarities and differences related to geographical location and culture. Furthermore, a more comprehensive investigation into constructs such as trust, education, and influence from social networks that affect the adoption of electronic payment methods must be conducted. Additionally, a comparative study is needed to compare the efficacy of biometric measures such as facial recognition or fingerprint identification for online purchases with traditional security measures such as PIN codes and passwords. Moreover, it is necessary to explore the effects of service quality improvements on customer satisfaction and willingness to pay. Finally, further investigation is required to understand how technology affects pricing in financial services to identify the elements that influence the expenses linked with the adoption of new technological advancements.