Determinants of Attitude and Intention to Use Virtual Credit Cards in Indonesia

Virtual credit cards represent a promising cross-border payment alternative in Indonesia, offering lower costs compared to traditional wire transfers. However, a critical issue remains: ensuring security to protect customers from risks, which is essential for building trust and preventing potential...

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Bibliographic Details
Main Authors: Budi Hartono, Suci Nasehati Sunaningsih, Mumpuni Wahyudiarti Sitoresmi
Format: Article
Language:English
Published: Qubahan 2025-03-01
Series:Qubahan Academic Journal
Online Access:https://journal.qubahan.com/index.php/qaj/article/view/1103
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Summary:Virtual credit cards represent a promising cross-border payment alternative in Indonesia, offering lower costs compared to traditional wire transfers. However, a critical issue remains: ensuring security to protect customers from risks, which is essential for building trust and preventing potential losses. This research aims to examine the effects of key determinants—security, privacy, and reputation of virtual credit card providers—on customer attitudes and intentions. A sample of 126 respondents was surveyed using a 7-point Likert scale questionnaire distributed via social media. Data analysis was conducted using path analysis, revealing that all variables significantly influence trust and perceived risk, with t-statistics below 0.05 and 0.01. The findings indicate that enhanced security, robust privacy protections, and a strong reputation positively affect customer trust while reducing perceived risk. Furthermore, trust and perceived risk significantly impact customer attitudes and intentions towards using virtual credit cards, with positive attitudes leading to a higher likelihood of adoption. This research contributes new evidence supporting the viability of virtual credit cards as a cross-border payment solution in Indonesia. It suggests that banks, as providers of virtual credit card services, should focus on improving security systems, privacy measures, and reputation management to foster customer trust. Limitations of the study include reliance on social media for respondent recruitment and a relatively small sample size. Future research should aim to include a larger and more diverse sample, as well as incorporate insights from banks' internal management to enhance the evaluation of security and privacy measures.
ISSN:2709-8206