Can Cryptocurrency Be a Payment Method in a Developing Economy?

Author:

Budree Adheesh1ORCID,Nyathi Tawika Nkosana2

Affiliation:

1. University of Cape Town, South Africa

2. University of the Western Cape, South Africa

Abstract

This study sought to understand the factors driving the consumer adoption of a cryptocurrency, in particular Bitcoin, as an electronic payment (e-payment) system for electronic commerce (e-commerce) transactions within a developing economy such as South Africa. The advent of e-commerce has led to increased online transactions facilitated by e-payment systems, which can fall prey to opportunistic hackers. Cryptocurrencies have been pegged as a solution to this security issue. However, little is currently known around consumer propensity to use a cryptocurrency as an e-payment option, particularly within a developing economy. The investigated factors that could influence user adoption were based on literature and tested on a South African representative sample of 814 respondents. Of the factors identified from literature, the study found that “perceived usefulness and perceived ease of use,” “self-efficacy,” “awareness,” “trust,” and “security” have the most significant influence on South African consumers adopting a cryptocurrency as an e-payment system.

Publisher

IGI Global

Subject

Marketing,Strategy and Management,Computer Networks and Communications,Computer Science Applications

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