The impact of electronic payment systems on e-commerce conversion rates

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School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2022

Major/Subject

Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

28

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Abstract

Most of the payment transactions today happen electronically. Electronic payments are essential for functional e-commerce websites and are a key part of the overall shopping experience. This thesis investigates the links between electronic payment systems (EPS) and e-commerce conversion rates through a literature review. It analyses the efficiency of EPS by reviewing it through three constructs related to technology acceptance and usage: perceived ease of use, perceived usefulness, and perceived trust. This thesis also assesses the impact of flow-inducing features on conversion rates and their possible effects on electronic payment systems. The findings of this thesis suggest a connection between an efficient electronic payment system and improved conversion rates in e-commerce websites. Furthermore, the thesis findings connect the impact of the three perceived factors on EPS efficiency and increased use of the EPS, and give suggestions on how to improve those aspects in an EPS. It also highlights the impact flow experiences can have on conversion rates and the positive effects of flow-inducing features on EPSs. This thesis provides EPS vendors with support in creating and improving efficiency from a user- centred perspective. Further investigation on specific features is needed by utilizing conversion rate optimization tools such as A/B testing and multivariance testing. Flow-inducing features also require further studies, but they indicate clear potential in meaningfully improving EPS efficiency.

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Thesis advisor

Bragge, Johanna

Keywords

electronic payment system, e-commerce, conversion rate, flow experience, technology acceptance

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