Can Cryptocurrency Be a Payment Method in a Developing Economy?: The Case of Bitcoin in South Africa

Can Cryptocurrency Be a Payment Method in a Developing Economy?: The Case of Bitcoin in South Africa

Adheesh Budree, Tawika Nkosana Nyathi
Copyright: © 2023 |Pages: 21
DOI: 10.4018/JECO.320223
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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.
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Background

In the last two decades e-payment systems have garnered substantial focus from both researchers and systems specialists owing to their crucial role played in facilitating e-commerce (Kabir, Saidin, & Ahmi, 2015). There are four main types of e-payment systems, namely electronic cash, online credit card payments, electronic checks and smaller payments. All of these offer different pros and cons impacting both merchants and consumers in different business environments (Yu, Hsi, & Kuo, 2002).

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