Consumer trust’s impact towards continuance usage intention regarding biometric authentication for digital payment of gen Z and the mediating role of perceived risk — Study in Ho Chi Minh City

Abstract

This paper aims to evaluate the impact of consumer trust on continuance usage intention regarding biometric authentication for digital payment in Ho Chi Minh City, employing an alternative perspective that positions perceived risk as a mediator. Partial Least Squares Structural Equation Modeling was used to analyze data gathered from 313 undergraduate students in the city through personal contacts through a self-administered questionnaire distributed via Google Forms. The findings reinforce previously published results indicating that consumer trust significantly influences the intention to continue using biometric authentication in digital payments. Notably, consumer trust substantially impacts on perceived risk and encourages continued usage, contrasting with the prevailing findings in extant studies. The rise in trust correlates with a heightened interest in comprehending the associated dangers of biometrics. Gen Z raises a demand for risk disclosure, implicitly highlighting that payment providers must prioritize and implement promptly. This research contributes to the existing literature on e-commerce, particularly in the digital payment context, by proposing an interactional model demonstrating the relationship between consumer trust and continuance usage intention, with perceived risk serving as a mediating factor. This study underscores the importance of policymakers and businesses strengthening consumer trust within the digital payment landscape by developing and promoting stricter security regulations concerning biometrics in online transactions. Accordingly, performance risk, time risk and security risks emerge as critical components of perceived risk in evaluating the intention to continue using biometric authentication in digital payments. Therefore, service providers, technicians, and management must prioritize enhancing system performance to prevent disconnections, latency, or diminished responsiveness. Future research should aim to enlarge the sample size of diverse respondents or incorporate additional factors, such as perceived benefits and customer loyalty, thereby providing a more thorough understanding of biometric authentication in online payments.