We use logit analysis to exploit a self-collected dataset on the payment and delivery options offered by the vast majority of B2C websites in 5 Central Asian transition economies. Specifically, we conduct a supply-side test of (elements of) the Transaction Context Model, which highlights the role of perceived risk. Our results confirm that e-retailers in sectors with higher average transaction values are more likely to adopt ‘pay in advance’ instruments – such as debit cards – that have a lower payment risk for the seller. We also find that merchants who offer higher-risk delivery options are more prone to also adopt higher-risk payment instruments (such as credit cards). Our control variables also yield interesting results. In particular, in line with the network externalities theory, we find evidence that the offline penetration of a payment instrument positively affects online merchant adoption.
Original languageEnglish
Pages (from-to)27-72
Number of pages46
JournalElectronic Commerce Research
Issue number1
Publication statusPublished - 15 Feb 2016

    Research areas

  • online payment methods, transaction context, risk, delivery methods, B2C e commerce, transition economies

ID: 11400179