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.

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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.

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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
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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 ................................

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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

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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

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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

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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.

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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
1. 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?
2. To explore how the factors affect customer’s adoption of TradeCard payment in Vietnam.

The corresponding research question developed was:
Q2 How do the factors influencing adoption of TradeCard in Vietnam?
1.2.1 Research Structure
This research is organized into 5 chapters (ch.1) Introduction is to provide general
introduction of the research, (ch.2) Literature review is a brief review of the literature on
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technology acceptance model (TAM) and relevant theories, (ch.3) Research design is
presented with the research model and set of research hypotheses based on the theories in the
preceding section and methods used to test proposal model, (ch.4) Analysis is to discuss of
data collection and analysis to support validation of relationships between variables and
(ch.5) Results is the final chapter to present results of study and discussion of the implication
of study followed by presenting limitations and future research recommendation.
1.3 Scope and Limitations
This study aims to research the adoption of TradeCard payment in Vietnam by examining
factors affecting to the tendency use of TradeCard in Vietnam. Electronics payment is a
broad field but according to the specific of the context of this study, questionnaires of this
study will only collected among people who have experience in using TradeCard payment

over years in two big cities of Vietnam for necessary analysis.

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Chapter II Literature Review
According to the objectives of this study, the research tries to review and explore the
TradeCard payment subject, its user acceptance in the developing country - Vietnam with
technology acceptance of TradeCard payment. They include (1) Electronics commerce
market and electronics payment market in Vietnam, (2) Technology Acceptance Model with
details in the original model (TAM) as a factor moderator which might have significant
influence on the use of TradeCard in Vietnam. In the meantime, the research questions or
further hypotheses are formulated, proposed, and discussed.
1.3 Definitions of Terms
The three key terms (i) Electronics banking, (ii) Electronics money, (iii) electronics payment,
(iv) TradeCard payment (v) electronics payment means are identified according to several

previous related studies as followings:
1.3.1 Electronics Banking
Electronics banking (e-banking) technology is one of these technologies. E-banking represent
technology a variety of different services, ranging from the common automatic teller machine
(ATM) services and deposit direct to automatic payment bill (ABP), transfer electronics of
funds (EFT), and home banking (HB) often referred to as internet banking (IB). Phone
banking (PB), credit cards (CCs) and sale point-of- terminals (POS) are the other e-banking
technologies. Similarly, five basic associated services with e-banking are identified by Chou
and Chou (2000). These are: account view balances and transaction histories, paying bills,
funds transferring between requesting card accounts, credit advances, ordering checks.
1.3.2 Electronics Money
In 1993, whenever the technological development of the new payment schemes was only just
beginning, EU central banks analyzed one form of what is now called electronics money,

namely electronics money stored on chip cards (electronics purses). Electronics money is
defined broadly as an electronics store of monetary value on a technical device that may be
widely used for making payments to undertakings other than the issuer without necessarily
involving bank in accounts the transaction, but acting as a prepaid bearer instrument.
Electronics money might diffeence from other existing forms of money in various ways. In
comparison with cash, which uses only security physical features, electronics money products
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use cryptography to authenticate transactions and to protect the confidentiality and the
integrity of data. Electronics money is no longer needs to be physically exchanged like
banknotes and coins, and thus can be more easily used for remote payments. In addition,
unlike cash, in most schemes currently available, electronics money received by the
beneficiary cannot be used again.
1.3.3 Electronics Payment
The payment and settlement system is an infrastructure important of the economy. A wellpayment functioning system is necessary not only to facilitate the smooth operation and
stability of the payment system, but also to ensure the effectiveness of monetary policy.
TradeCard payment is a subset of structure of the the overall payment system. There are
several definitions about e-payment in which TradeCard payment is defined as payments
made via the clearing automated house (ACH), commercial card systems (p-card, T&E cards
and fleet cards) are wire transfers as electronics. The difference between a cash transaction
and an electronics payment is that a TradeCard payment transaction often involves a payment
channel and multi-parties, which includes payment intermediaries. Payments intermediaries
are those involved in authorized payment settlement, clearing payment, and settlements
(Department of Communications, Australian Government 2006). TradeCard payment services
are used in Vietnam not only ATM/credit/debit cards, but also credit, transfer/direct debit,
internet banking, mobile banking, phone banking, e-money and prepaid card.
1.3.4 TradeCard payment
TradeCard Inc. (www.tradecard.com) developed TradeCard as a financial supply chain
service. The TradeCard platform aligned the documentary and financial requirements of a

domestic or international trade transaction with the physical movement of goods, eliminating
time-consuming and error-prone manual processes. By streamlining and enhancing the steps
necessary for purchase order approvals, payment decisions and settlement, TradeCard
provided a cost-effective, practical and patented service for financial supply chain
management (Farhoomand, 2005). Trade payment process through TradeCard is similar other
TradeCard payment services substantially besides additional services regarding to supply
chain services.
1.3.5 Electronics Payment Mean

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Seng (2008) defines electronics payment means of payment by an electronics method such as
electronic funds transfer, electronics debit payment, electronics prepayment, electronics
money, credit card, electronics bond, etc.
2.1 Electronics Commerce Market and Electronics Payment Market in Vietnam
From 2002 until now, Ministry of Science and Technology with missions of state agencies
management in formulating e-commerce standards has formulated, promulgated and
popularized many set of standards related to e-commerce sector, including standards related
to trade data interchange, electronic data interchange for administration, commerce and
transport (EDIFACT), data elements and interchange formats, XML schema definition,
information processing, etc… Electronic commerce in developed Vietnam was borne the
hallmark of the completely legal development in the year 2007. Electronics transaction law,
modified by commerce law, ecommerce decree and three newly promulgated decrees
including digital signature decree and confirmation service of digital signature, e-commerce
transaction decree of activities financial and e-commerce transaction decree of banking
activities. All of the above decrees are legal for the e-commerce operation. However,
according to Vietnam Ecommerce and Information technology agency (VECITA) in the year
2008, although ministries, industries have actively deployed technology standard
establishment and popularization to serve e-commerce application establishment for State

management agencies and businesses, the awareness of e-commerce common standards are
still low. 43.5% of 50 surveyed agencies and businesses knew those standards, 56.5% did not.
Especially, the expert percentage who knows thoroughly ecommerce standard definition on
electronic data interchange only accounts for 5-6% of respondents. VECITA (2008) also
show that only 10.1% of businesses apply standards to online payment according to the
common development tendency of payment system via Internet. Moreover, information
technology with e-commerce have been developed and applied successfully in business
production activity many years. Especially, with the internet development, e-commerce trade
of Vietnam businesses increased fiercely, changed information develops more and more.
However, violation of personal information increases more and more, which makes
individuals organization and s hesitate to use e-commerce trade.
TradeCard, Inc., the supply chain collaboration and global trade platform used by more than
10,000 retailers, brands, manufacturers and service providers, has opened an office in Ho Chi
Minh City to support growing trade flows in Vietnam. More than 418,000 orders, valued at
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$2.7 billion, moved through Vietnam on the TradeCard Platform from January 1 through
October 31, 2012, a 92% increase in order volume versus full year 2011. Using TradeCard,
more than hundreds of suppliers in Vietnam processed 639 million items and 494 million
cartons during this time period. (Bryan, 2012)
2.2 Theoretical Background of Technology Acceptance Model
As per the technology acceptance model is a mature model that has been validated in different
context (Lai & Li, 2005). This model has been applied widely to predict the acceptance of
information technology and the validity has been demonstrated across a wide variety of
information technology systems (Plouffe et al., 2001). Firstly, the establish model which of
usage computer often used to test computer applications as computer adoption, and word
processors (Davis et al.,1989), and then expanding to internet, e-mail, intranet, e-commerce,
m-commerce, e-learning, adoption and Hospital Information Systems (Al-Gahtani
& King, 1999; Davis, 2007; Horton et al., 2001; Kim & Han, 2008; Song, Koo, & Kim,

2007) under different situations of (e.g. time and culture) with different control factors
(e.g., gender, organizational type and size). With the successful development of TAM
is with the development of IT in the world and in any case, this proves model that it is
the most influential and commonly theory employed for explaining and the predicting
the 12 determinants of individual behavior toward a system, manifest throughout the
system utilization (Chau & Hu, 2001; Thatcher & Perrewé, 2002).
2.2.1 Technology Acceptance Model (TAM)
The technology acceptance model (TAM) that has been applied in different contexts to
investigate a wide range of information technologies (Lai & Li, 2005). The Technology
Acceptance Model (TAM) developed by Davis (1986) to explain computer usage behavior.
The theoretical basis of the model was Fishbein & Ajzen’s (1975) Theory of Reasoned Action
(TRA) - a widely studied model from social psychology, which is concerned with the
determinants of consciously intended behaviors. This common behavior model has model
widely used to predict the acceptance of information technology and the validity has been
populated wide variety of information technology systems (Plouffe et al., 2001). This
established model of computer usage often used initiatory to test computer model applications
as computer adoption, word processors (Davis et al., 1989), and then expanding to internet, email, WWW, GSS, intranet, ecommerce, m-commerce, e-learning, Cyworld adoption and
adoption Hospital Information Systems (Al-Gahtani & King, 1999; Davis,
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2007) under different situations (e.g. time and culture) with different control factors (e.g.,
gender, organizational type and size).
2.3 Factors influencing the use of TradeCard and its relationship between Model
Constructs
According to the theories and models in the previous research and based on objectives, scope
of the research as well as the current situation in Vietnam, the study will apply the above
TAM model into this research model. As well, personal innovativeness in technology is
proposed to moderate the relationships between some constructs.

2.3.1 Perceived Ease of Use. (PEU)
Davis (1986) affirmed that Perceived ease of use has a causal effect on Perceived useful.
Perceived ease of use is defined as “the degree to which a person believes that using a
particular system would be free of effort” (Davis et al., 1989). Innovative technology systems
that are perceived to be easier to use and less complex will have a higher likelihood of being
accepted, and used by potential user (Davis et al., 1989). Because this construct focus on an
individual’s perception about the level of efforts needed to use a system, perceived ease of
use can be regarded as process expectancy (Davis, 2007).
2.3.2 Perceived Usefulness (PU)
With a new product or service that does not help people perform their jobs, life or it is
abstract with the fact will be easily eliminated (Liao et al., 2002). There are thorough many
aspects in able to evaluate the usefulness of a system. Venkatesh et al (2003) affirmed that
perceived usefulness is a factor which has a strong determinant of usage intentions.
Perceived usefulness (PU) is also well known as performance expectation when people think
that based on advantages of innovation is necessary, IT can help them to utilize productivity
and aid work performance (Davis et al, 1989; Davis, 2007). In the broad context of TradeCard
payment, perceived usefulness means that the system can be available and helpful for
customer at any time and any place. Thus, perceived usefulness can be considered as the
comprehensive ability of customers in integrating TradeCard payment into their daily
activities. In a different viewpoint, this can be explained specifically as the attention of
potential adopters’ views about the innovation when different choices offered in the same
abilities performance (Agarwal & Parasad, 1999). It means that, an innovative system is

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believed to be high usefulness when it adapts the need of people and connects closely the use,
productivity, performance, effectiveness and satisfaction (Lu, Yu, Liu & Yao, 2003).
Although there are many concepts of perceived usefulness but the concept of Davis et al
(1989) seems to be most applied “perceived usefulness is the degree to which mostly

considered that use a system would improve his or her performance” is mostly applied in
many research.
2.3.3 Perceived Risk (perceived risk in the context of online transaction (PRT) and
perceived risk with product/service (PRP)).
Although there are many definitions different of perceived risk in the previous study, with
this definition, risk perceived is with a dimensional multiple constructed risk overall which is
into seperated psychological, financial know and performance (Ho & Ng, 1994; Lu et al.,
2005) or risk of personal losing control (money, data and times), risk of losing face and
failure system (Zhao, Hanmer-Lloyd, 2008). Besides, risky normally rises from individual
subjective perspective (Pavlou, 2003), he strongly agree that risky is too difficult to be
captured objectively. No anyone can refuse the role of risk in the decision to adopt new
technology system. Especially, can help them risky perspective can easily escalate in ebanking services in which clients process transaction with no face to face personal contact, no
cash in hand. However, customers want generally to master their acts own and know or see
directly the cause and the consequences of their own and others (Chan & Lu, 2004).
Advantages of electronics payment can help them reduce stages distance of payment
transaction, but customers are still not willing to accept that they do not have full control over
their own behaviors and system process (Pikkarainen et al., 2004). The perceived risk
regarding TradeCard payment use can be considered involved in two concerns: information
and customer’s money transmitted via the system is safe, and the system is enough
trustworthy in handling customer information and managing their financial assets (Lee et al.,
2005). Whenever using relative system, customers always face up with personal information
being stolen, manipulated or misused without their knowledge perception (Featherman et al.,
2006). If these are happened, it is believed that they will lose control of personal data, and
more importantly, consumers fear that their details may be used inappropriately. As a result,
issues of security and privacy are definitely important items of perceived risk in context of
online transaction (Jaruwachirathanakul & Fink, 2005; Mukherjee & Nath, 2003; Polatogu &
Ekin, 2001; Wang et al., 2003).
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In the scope of this research, the adoption concept of Park and his assistants, in which
perceived risk consists of perceived risk in the context of online transaction (PRT) and
perceived risk with product/service (PRP) which is to explain TradeCard payment adoption
by Vietnamese people wholly.
They define perceived risk in the context of online transaction (PRT) as a possible transaction
risk that consumers can face when exposed to electronics means of doing commerce.
Four types of PRT are clearly identified as follows: privacy, security (authentication), nonrepudiation, and overall perceived risk on online transaction. They also define perceived risk
with product/service (PRP) as the overall amount of uncertainty or anxiety perceived by a
consumer in a particular product/service when the consumer purchase online. Five types of
PRP are defined as follows: functional loss, financial loss, time loss, opportunity loss, and
overall perceived risk with product/service.
2.3.4 Information of TradeCard payment (IF)
The information which customers have about its products improved likely as one of the key
factor which is influencing directly to the new product adoption, services especially for
information of new applied technology system in banking services (Pikkarainen et al., 2004),
the finding information is the process in which consumers gather information about goods or
services before purchase or use it.
When start using a new system, customer maybe at an early stage in learning and processing,
hence, customer often looks for information involved in it (Pikkarainen et al., 2004).
Information about new products or services can be the information about the bank which
supplies TradeCard payment forms, the disadvantages advantages of TradeCard payment,
information about the feature, benefits or operation of the systems, and even information
involved in the amount of customers trust in using this system and so on.
TradeCard payment is a special service because it offers a virtual and sensitive service
involved in customer’s finance and involved in applying high and new technology. The
concept information also refers to information technology of the product. So information can
be defined as TradeCard payment experiences, which are the consumer’s skills or ability
obtained by using the services/products or study from any resources including the knowledge
transfer (Nysveen & Pedersen, 2004).
2.3.5 Computer Anxiety (CA)

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Anxiety has been defined and described in several previous studies. These studies suggest
that general anxiety can cause an individual to be reluctant to undertake specific activities, or
to not perform to their capabilities. Computer anxiety commonly refers to the feeling of
unease or apprehension about the consequences of using computers, or other related
information technology. Howard & Smith (1988) defined computer anxiety as the tendency
of a person who experiences a level of difficulty to his or her impending use of a computer
while Igbaria (1990) defined computer anxiety as the comprehensive tendency of individuals
who is to be uneasy, apprehensive or fearful about current or future use of computer. In
another research, computer anxiety is defined as a feeling of being fearful or apprehensive
when using or considering the use of a computer by Leso and Peck (1992). Previous studies
related to computer anxiety have investigated the effect this trait can have on topics such as
perceived ease of use, computer usage, computer self-efficacy and the development or
utilization of computing skills. Typically, these studies have found that computer anxiety has
a negative relationship on these outcomes; i.e. higher levels of computer anxiety leads to
lower levels of usage, lower computer self-efficacy, slower development of computing skills,
and the perception that software is difficult to use. During this research a particular focus is
placed on the role of an individual’s expectations of success and the influences of these
expectations on their approach to computer use in TradeCard payment use.
2.3.6 TradeCard payment Use
TradeCard payment is a subset of structure of the overall payment system. TradeCard
payment is thus defined by BIS (2004) as “payments that are initiated, processed and
received electronicsally.” E-payment services can be retail, corporate and wholesale
TradeCard payments (Tan 2004). The difference between a cash transaction and an
electronics payment is that a TradeCard payment transaction often involves a payment
channel and multi-parties, which includes payment intermediaries. Payment intermediaries
are those involved in payment authorization, payment clearing and settlements (Department
of Communications, Australian Government 2006). Usage of electronic payment is indicated

as attitude toward, which is referred to the feeling of person’s toward a particular behavior
being influenced by individual beliefs in using appropriate services (Shih & Fang, 2004).
Based on the level development of the country and the state of the banking system, the degree
to which e-payment use is differ (O'mahony et al., 2001). When mention to electronics
payment, many Vietnamese customers immediately think about ATM, credit or debit cards.
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But TradeCard payment services are used in Vietnam are credit, transfer/direct debit, internet
banking. Attitude is individual’s feeling or emotion about using (Al-Gahtani & King,1999),
so people seems more believe in habit than machines, visible action than invisible method.
This study applies the definition of Shin and Fang (2004) as the main concept of TradeCard
payment use.
2.3.7 The Relationship among Perceived Usefulness (PU), Perceived Ease of Use (PEU)
and TradeCard payment Use (TPU)
According to the Technology Acceptance Model (TAM), perceived ease of use (PEU) is
related to perceived usefulness (PU). Two factors have been studied as key determinants of
technology acceptance and usage (Davis, 2000), which have been generally linked to the
usage of technologies both in directly and indirectly. With the new developed technologies it
is easier to use, more sufficient and to be interested by customers because they can satisfy
standard life, education, and age. Most of previous researches also demonstrated the influence
of each other of education, life and age constructs.
Davis defined PU as the degree to which a person believes that using a particular system
would enhance his or her job performance (Davis, 1989). Prior researches indicated that PU
is an important indicator for technology acceptance (Davis, Bagozzi & Warshaw 1989). In
another research also showed that PU has the greatest impact on new system use. PEU is
defined as the degree to which a person believes that using a particular system would be free
of effort (Davis, 1989). Several prior studies proved that PEU has a direct and equal or even
strong effect than PU on the acceptance toward a new technology system. Hence an
application perceived to be easier to use than another is more likely to be accepted by users

than others. By applying these prior researches, the following hypotheses were proposed:
H1: Perceived ease of use (PEU) has a positive effect on TradeCard use (EPU) in Vietnam.
H2: Perceived usefulness (PU) has a positive effect on TradeCard use (EPU) in Vietnam.
2.3.8 Perceived Risk (PR) and TradeCard payment Use (TPU)
Costello (2001) in his study reflected that when customers who are uncertain of the systems
and the services of banking, they may worry about an intangible payment in which provides a
service of non-face-to-face-contact and physical service payment with potential financial risk
and perceived threats to privacy and security. In the research, the invisibility nature of

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electronics transactions tends to heighten the consumer’s risky perception in general (Lee,
Kwon, & Schumann, 2005).
Regarding on perceived risk in context of transaction, more than three-fifths of respondents
experienced in e-transaction responded in the survey made by Wu and Wang (2005), the
result indicated that customers who are more awareness of the existence of potential risk
because they use system more and have better understanding of the system. Perceive Risk
(PR) is believed to be a predictor and barrier to TradeCard payment use (Wu and Wang,
2005), and plays a negative role in individuals’ decision to adopt TradeCard payment (Lee et
al., 2005).
A common and widely recognized obstacle to electronics payment use is the lack of security
and privacy over e-payment, which are the most important future challenges that banks are
facing (Chan & Lu, 2004). Park et al (2004) shown that consumers consider the risk related to
the online transaction (i.e., privacy, security, non-repudiation, etc.) as one of the important
factors when they purchase on the Internet. Further, they indicated that to reduce consumers’
risk with product/service, online vendors should build trust with consumers by giving them
complete confidence on the product/service that they provided. According to the discussion
and the acceptance of many previous researches, in this research, the concept of Park
considerably applied basically including perceived risk in the context of online transaction

(PRT) and perceived risk with product and services (PRP), so the following hypotheses are
proposed:
H3: Perceived risk has a negative effect on TradeCard use (TPU) in Vietnam. (H3aPerceived risk in the context of online transaction (PRT)) and (H3b-Perceived risk with
2.3.9 Information on TradeCard payment (IF) and Perceived Risk (PR)
The seeking customers trust to high-risk-level products and services such as TradeCard
payment is not easy. Customers are often concerned that their personal information may be
manipulated or misused without their knowledge. If this happens, they believe they will lose
control of personal data, and more importantly, consumers fear that their details maybe used
in appropriately. Thus, the more information on the system they know, the more they are
confident in using it. Especially, when processing through e-payment, customers often
perceive that there is a high level of risk even though the risk level is maybe low (Agarwal &
Parasad, 1999). Hence, it may lead them seeking more information to ascertain the level of
risk, mitigate the perception of risk or manage the perceived risk. The more experience on
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using the system, the more information they get, and therefore they perceive the risk to be
less and have more trust in the system. The below hypothesis was posited:
H4: Information on TradeCard (IEP) has a positive effect on perceived risk (PR) of
TradeCard in Vietnam (H4a: Perceived risk in the context of online transaction and H4b:
Perceived risk with product/service)
2.3.10 Information on TradeCard payment (IF) and Trade Card payment Use (TPU)
In a research of Loonam & O’Lughlin (2006), the survey made to people who used banking
services for necessary assessment of information on a new related system, it is found that
respondents had less interested of general information once using e-banking services in
finding specifics information related. The prevailing in general attitude among respondents
was that they did not appreciate banking information being pushed on them. Additionally,
respondents were in difference of financial information during the survey unless it directly
related to their specific financial requirements. However, in most of previous researches,
information on new products or services play a very important role for customers in making

decision whether they will buy that product or service or not in manner. The amount of
information consumers’ learn of products and services has been identified as a major factor
impacting the adoption.
Consumers may be at a nearly stage in learning and processing information about the
products and services. Thus, helpful product information is vital at this stage to gain
awareness and knowledge among consumers in an attempt to develop confidence in using the
new services. Chen & Macredie (2005) indicated that users with tremendous experiences
have significant active behaviors toward electronic payment in reality, so the following
hypotheses are proposed:
H5: Information on TradeCard (IEP) has a positive effect on TradeCard use (EPU) in
Vietnam.
2.3.11 Computer Anxiety (CA) on Trade Card payment Use (TPU)
Previous researches related to computer anxiety have investigated the effect this trait can
have on topics such as perceived ease of use, computer usage, computer self-efficacy and the
development or utilization of computing skills. These studies typically have found that
computer anxiety has a negative relationship on these outcomes; i.e. higher levels of
computer anxiety leads to lower levels of usage, lower computer self-efficacy, slower
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development of computing skills, and the perception that software is difficult to use. In this
research a particular focus is placed on the role of an individual’s expectations of success and
the influences of these expectations on their approach to computer use in TradeCard use.
Thus, the following hypotheses are proposed:
H6: Computer Anxiety has a positive effect on TradeCard Use in Vietnam
2.4 Research Model
As shown in the figure 2-1 below, the conceptual model of this study consists of six
constructs: perceived ease of use, perceived usefulness, perceived risk (Including Perceived
risk with product/service and Perceived risk in the context of online transaction), and
information on TradeCard, TradeCard use, and computer anxiety. As well, personal

innovativeness in technology is proposed to moderate the relationships of perceived ease of
use to TradeCard use, perceived usefulness to TradeCard use, perceived risk to TradeCard
use, information on TradeCard to TradeCard use. From these fix constructs, there are six
hypotheses should be tested.

Infor

H4

Perceiv

with P

Servic

Perceived Risk
Computer

Perceived Risk
in the Context of
Online
Transaction (H4b)

H6

Anxiety

H3b
Figure 2-1 Research Model

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Chapter III Research Design
In this chapter, a research framework was developed and based on the above discussion as a
basic research foundation. The research questions and hypotheses proposed in Chapter II
were specified in this chapter which would be studied with the research methods presented
after. The research procedure was presented at the end of this section.
3.1 Research Questions and Associated Hypotheses
This section restates the research questions and hypothesis formulated in the previous
chapter. There are 2 research questions accompanied by 9 associated hypotheses under the
following 2 categories of questions:
1. What are factors influencing the use of TradeCard in Vietnam? (Q1)
2. How do the factors influence the use of TradeCard in Vietnam? (Q2)

To answer this question, the study hypothesizes as follows:
H1: Perceived ease of use has a positive effect on TradeCard use.
H2: Perceived usefulness has a positive impact on TradeCard use.
H3: Perceived risk has a negative effect on TradeCard use.
H3a: Perceived risk with products and services has a negative effect on TradeCard use.
H3b: Perceived risk in the context of online has a negative effect on TradeCard use.
H4: Information on TradeCard has a positive effect on perceived risk
H4a: Perceived risk in the context of online transaction
H4b: Perceived risk with product/service
H5: Information on TradeCard has a positive effect on TradeCard use.
H6: Computer anxiety has a positive effect on TradeCard use.

3.2 Subjects and Sampling
The research was undertaken with two phase of study: a pilot study and a main survey

followed. The pilot phase was to validate and refine the measures while main survey was
used to test its measurement and structural model shown on figure 3.1 research flowchart. To
avoid a possible confounding effect of demographic parameters and experience, the
participants were screened using demographics filters. The sample was further balanced
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