User Payment Choice Behavior in E-auction Transactions

Payment is an inborn part in any e-transaction. Risk is also prevalent in e-auction. Payment methods, e.g. online specialized C2C payment services and ATM transfer are used to address such fear. This research uses the buyers and sellers of e-auction as the subjects of investigation. A set of criteria which buyers and sellers consider when selecting the payment method is proposed. Since no single criterion can adequately explain their choice, Analytical Hierarchy Process method is used. Research shows that buyers´ and sellers´ final choice of the payment method is a multi-criteria consideration and the relative importance of the criteria is a reflection of their risk perception. Both parties hope to lower the risk by choosing payment method that best safeguards their interest. However, such concern, especially for buyers, is moderated if the payment method is already widely used.