Risk, Trust, & Digital Payment Adoption

Risk, Trust, and Digital Payment Adoption: Consumer Behavior Perspectives in the Digital Economy examines how consumers respond to the rapid transformation of payment systems in the digital economy. While digital payments offer convenience, speed, and efficiency, their adoption is also shaped by concerns about financial loss, fraud, privacy, security, and technological reliability. Drawing on international literature and empirical insights from Merauke, South Papua, Indonesia, this book explains that digital payment adoption is not simply a matter of acceptance or rejection. Consumers may use digital payments selectively, limit transaction values, retain cash as an alternative, or expand their usage as trust and positive experiences develop. The book highlights the important roles of perceived risk, trust, digital financial literacy, perceived control, and consumer capability. It introduces the Risk-Trust-Literacy-Adoption Framework to explain how these factors interact throughout the consumer adoption journey. Ultimately, the book emphasizes that successful digital payment transformation should extend beyond increasing transaction volumes. It should foster a trusted digital payment ecosystem supported by reliable infrastructure, secure technology, capable consumers, prepared merchants, effective consumer protection, and strong institutional trust. The book is relevant for academics, students, policymakers, financial institutions, FinTech providers, MSMEs, and readers interested in consumer behavior and the digital economy.