TRNG I HC M TP. HCM UNIVERSITÉ LIBRE DE BRUXELLES
HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBAVB4 PHAN VU AN FACTORSAFFECTINGCONSUMER’SUSEOFBANKCARD
PAYMENTATPOSTERMINAL
ASTUDYOFTECHNOLOGYACCEPTANCEMODEL
MASTER PROJECT
MASTER OF BUSINESS ADMINISTRATION
(PART-TIME)
S
UPERVISOR: DR. LE THAI THUONG QUAN

HO CHI MINH CITY
2012
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I would like to express my warmest thanks to my supervisor, Dr. Le Thai Thuong Quan,
for all challenges, enthusiastic encouragement and precious comments. Although I am the only
author reported on the cover of this thesis, and I take full responsibility for the views
expressed here or any remaining errors, I would like to highlight that the fingerprint of Dr. Le
Thai Thuong Quan is well anchored in the following pages. His striving for clearness of
exposition and challenges improved my work considerably.
I would like to express my thanks for my sponsors, Mr. Le Tri Thong and Mr. Tran Duy
Khiem at Dong A Bank, for your great sponsorships from the beginning to the end. Banking
and financial card are quite new and challenge for technical guys. At the first steps to find out
project’s idea, your supports helped me to understand from first cut to deep dive in specific
problems. I would believe this report is worthy of your great supports.
I would like to express my thanks for my friends, especially Ms. Nguyen Thi Kim Thoa
and Ms. Vu Phuong Nghi, who helped me to review this report many times, corrected my
English and gave valuable comments. Every time I talk with you, I always explored something
new which helped me to improve towards betterment. To other friends who gave me a hand in
data collection as well as discussion and opinions, please know that your comments are of
great value to the completion of my project.
Last but not least, I would like to express my thanks to Solvay program, all professors, all
coordinators and all friends at MBAVB4 who have accompanied me in this journey. I would
take this chance to wish you all the best in your future endeavors
HCMC, January 26
th
, 2012
Phan Vu An
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SUPERVISOR’SCOMMENTS

consumer. After reliability tests, in-depth analysis is conducted to understand factors affecting
consumer’s use and independent sample t-tests/ANOVA are used to examine difference of
demographic dimensions.
Key Findings – Toward consumers who have used card payment in POS terminal,
demographic dimensions are not the keys drive usage behavior. Consumers recognize
Perceived Usefulness, Perceived Ease-of-Use and Perceived Creditability affecting to their use
significantly. Top 3 recommendations are (1) banks need better care for debit card users by
product/service diversification, (2) the target consumer group are recommended, and (3)
personal finance education.
Originality/Value – Study helps to conceptualize factors affecting to consumer’s use of
card payment at POS terminal in Vietnam context. However, the respondents received
questionnaire via email. 80% of our survey population merely consisted of white collar
officers mostly in Hanoi and Ho Chi Minh City, two major cities in Vietnam. There are other
potential groups left open, such as housewife/househusband, students. These are opportunities
for further studies to explore potential loyal consumers.
Key words – Card payment, POS terminal, debit card, credit card, ATM card,
Technology Acceptant Model (TAM), Vietnam.

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TABLEOFCONTENTS
STATEMENT OF ORIGINAL AUTHORSHIP i
ACKNOWLEDGMENTS ii
SUPERVISOR’S COMMENTS iii
ABSTRACT iv
TABLE OF CONTENTS v
LIST OF FIGURES viii
LIST OF TABLES ix
LIST OF ABBREVIATIONS x
CHAPTER 1: INTRODUCTION AND RESEARCH PROBLEM 1

1.3. Research Strategies 26
2. Questionnaire and Sampling 27
3. Data Analysis Procedures 30
3.1. Descriptive statistics analysis 30
3.2. Data Examining and Reliability Test of the Measurement Variables 30
3.3. Compare Means: Independent Sample T-test & One Way Analysis of Variance
(ANOVA) 31
CHAPTER 4: ANALYSIS & DISCUSSION 32
1. Descriptive Analysis 32
1.1. Demographic Characteristics of Respondents 32
1.2. Behavioral Characteristics of Respondents on Bank Card Use 36
2. Reliability Test 40
2.1. Non-Credit Respondent 41
2.1.1. Perceived Usefulness 41
2.1.2. Perceived Ease-of-Use 42
2.1.3. Perceived Creditability 43
2.2. Credit Respondent 44
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2.2.1. Perceived Usefulness 44
2.2.2. Perceived Ease-of-Use 45
2.2.3. Perceived Creditability 46
3. Factors affecting Actual Use 49
3.1. Perceived Usefulness 49
3.2. Perceived Ease-of-Use 52
3.3. Perceived Creditability 54
4. Differences on Demographic Dimensions 55
4.1. Gender of Respondents 55
4.2. Age-Group of Respondents 56
4.3. Education Level of Respondents 57

Figure 14 - Cross Tabulation of Income and Occupation 38
Figure 15 - Preferable Places to Use Card Payment 39
Figure 16 - Perceived Usefulness of Non-Credit Respondents 50
Figure 17 - Perceived Usefulness of Credit Respondents 51
Figure 18 - Perceived Ease-of-Use of Non-Credit and Credit Respondents 53
Figure 19 - Perceived Creditability of Non-Respondents and Credit Respondents 54
Figure 20 - Perceived Creditability by Income if Non-Credit Respondents 61
Figure 21 - Frequency Use of Card Payment at POS terminal 62
Figure 22 - Reason of NO use Card Payment at POS terminal 63
Figure 23 - Vietcombank promotes card payment at Big C supermarket 68
Figure 24 - 5-step model 71
Figure 25 - ATM Cards 85
Figure 26 - ATM Cards Category Performance (2005 - 2010) and Forecast (2010 - 2015) 86
Figure 27 - Debit Card 88
Figure 28 - Credit Card 89
Figure 29 - Prepaid Cards of Sacombank and Asia Commercial Bank 91
Figure 30 - Typical Configuration of POS terminal 93


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LISTOFTABLES
Table 1- Financial Cards: Number of Cards in Circulation 2005-2010 2
Table 2 - Financial Cards and Payments in Vietnam in 2010 2
Table 3 - Applications, participants, country and setting used for applying TAM 15
Table 4 - Questionnaire for measuring factors 28
Table 5 - Cross Tabulation of EVER-USE-CARD-PAYMENT and INCOME 33
Table 6 - Cross Tabulation of Sector and Occupation 34
Table 7 - Reliability of Perceived Usefulness for Non-Credit Respondents 41
Table 8 - Reliability of Perceived Usefulness for Non-Credit Respondents after removal


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CHAPTER1:INTRODUCTIONANDRESEARCHPROBLEM
1.Introduction
1.1.BankCardOverview
In comparison with Payment Activities through Financial Card developed from 1920s in
over the world, Payment Activities through Financial Card in Vietnam has more than 20 years
younger in development. In the beginning years, some banks, such as Vietcombank (VCB),
Asia Commercial Bank (ACB) which were pioneers in this sector were merchants of
International Card Operators, such as MasterCard®, Visa®. In 1996 – 1997, some commercial
banks of Vietnam became official members of those organizations, established the network to
provide international payment services and issue international cards. However the consumer’s
understandings on cashless payment were quite limited, so these kinds of product and services
were segmented for high income class to do international payments. From 2002, on the
foundation of core banking upgraded, banks deployed the specific applications, such as local
debit card, while Vietcombank installed ATM network, the market had a milestone change at
that time. Following that, other banks invested to develop local debit cards. People had known
about payment via bank card as convenient payment which is easy to use, easy to issue by
personal bank account. From there, there has been a significant change of payment services
and card issue, inclusion of more banks in this market and more modern card products with
more functions and features.
There were 28.6 million ATM cards accumulated issued up to 2010. Let assume there are
only 50% of consumers, which means 15 million consumers open bank account with the
average monthly balance is 2 million VND per account (Nguyn Thu Hà, 2011); local
payment activities contributed 30,000 billion VND for capital collection. It is a remarkable
number in current financial activities.
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Up to 2010, there were 49 banks that had issued financial card, among these 18 banks


Figure 1 - Number of ATMs and POS terminals, 2005-2010
Source, Euromonitor International, 2010
1.2.2.POSterminal
Figure 1 shows a 4-time increase of number of POS terminal from 2005 to 2010, banks
were proactive in broadening the businesses that accept payment through POS terminal,
especially retail business, daily service supply, such as flight ticket, taxi, etc.
With the strong development of payment system infrastructure, State Bank required
about the connection of Switch Operators to synchronize the country acceptance network for
financial card. From 2008, banks in Vietnam and Switch Operators, such as Smartlink
1
,
Banknet
2
and VNBC
3
, have continued to widen their own system by connecting more banks to
system. Up to now, ATM system has nearly covered all market. Consumers can make their
transaction in ATM of other banks with a fee to Switching Operators. Follow the success of
ATM synchronization, POS has been connected in Hanoi in October 2010, Ho Chi Minh City
in December 2010, and Danang in March 2011 and deploying in over country now. This is the

1
www.smartlink.com.vn
2

www.banknetvn.com.vn
3
www.vnbc.com.vn
2005 2006 2007 2008 2009 2010

many modern retail outlets. The popularity of cash transactions also remained strong because
some retailers charged an extra fee to consumers who paid by card, which thus deterred some
consumers from engaging in card transactions. In addition, staff members in many retail
outlets were not properly trained in conducting card transactions. As a result, many errors
were made when performing card transactions, which resulted in annoyance among
consumers. Furthermore, lack of promotion by banks and retailers to raise consumer
awareness of card transactions meant that consumer preference for cash remained strong.
The strong custom of using cash to make purchases and lack of promotion of cards as a
means of making purchases meant that cash was still very much the preference of Vietnamese
consumers in 2010. Many consumers, although they were accustomed to using cards when
they travelled overseas, returned to making cash payments when they were back in Vietnam.
In addition, various consumers, in particular those who seldom travelled and those who had
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little education on the use of cards, continued to use cash as they were unaccustomed to using
cards and often unaware that cards could be used to make purchases.
The popularity of using cash to make payments is expected to remain very strong in the
short term, as many consumers are expected to continue to prefer using cash. However,
governmental initiatives to pay the salaries of employees in all state-owned companies through
bank transfers are expected to force many consumers to open bank accounts, which will
provide banks with a strong platform on which to promote card payments.
Although the custom of using cash to make payments is expected to remain in Vietnam
for quite some time, there is potential for financial cards and payments to grow over the
forecast period. The Vietnamese population includes many young consumers who are strongly
affected by western culture and who adapt quickly to cultural changes. They are expected to
be the target consumers when banks start to promote modern payment methods and to speed
up the transition from cash to cards. Also, competition among retailers will lead to better
training of staff and increased service, which is expected to make card transactions more
convenient.
In summary, the growth of new young/dynamic consumers and the diversity of

15%
13%
13%
11%
9%
39%
MarketShareofATMmachinesin2010
Agribank
Vietinbank
Vietcombank
DongABank
BIDV
Other
6%
18%
27%
8%
8%
33%
MarketShareofPOSTerminalsin2010
Agribank
Vietinbank
Vietcombank
PGBank
BIDV
Other
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To contribute on the understanding on market’s opportunities, this study is addressed to
find out any factors affecting consumer’s use of bank card payment at POS terminal.

the data collected and presents the findings of research. Chapter 5 points out the key
conclusions and learning from research.

Figure 3 - Thesis Structure
Chapter1
•Introduction
•ResearchProblem
Chapter2
•LiteratureReview
Chapter3
•ResearchDesign
•Methodology
Chapter4
•Analysis
•Discussion
Chapter5
•Conclusion
•Reccomendation
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CHAPTER2:LITERATUREREVIEW&RESEARCHFRAMEWORK
The previous chapter provided the background and problem area for this research. In this
chapter, the theoretical framework that supports the purpose of this study will be presented.
Cashless society is the acceptance by consumers of the credit and debit card which has
largely led to the decline in the cheque or cash as a payment method. This appears to have
major advantages on the supply sides and few disadvantages for consumers. The next step in
plastic card development would appear to lay with the smart card and in particular its use as
electronic purse. Smart card, known as electronic cash, has been defined as a payment card
that carries an embedded computer chip with memory and interactive capabilities that allow it
to exchange data at an electronic point of service (POS) terminal (Worthington, 1998b, p.137;

credit card’s brands are provided by big card operators in the worlds, such as VISA,
MasterCard, American Express, JCB, etc. Prepaid card is new product in Vietnam market
which target to some special segments or need. However, it is not popular in Vietnam up to
now and just few banks issuing this kind of card, such as Sacombank, Asia Commercial Bank.
Card payment brings many advantages for consumers. Consumers do not need to carry
cash is the best feature that consumers get. They can avoid the risk of fake money, lost money
or tracing back transaction in the past. Debit card protect consumers from themselves, they
cannot make purchases over budget they have. Credit card gives consumers the power of
paying first and depositing later, making large purchases, getting saving/promotion from
banks and or somewhat, prestige when use. In other hand, they also have some disadvantages,
such as over-budget consumption, fee, card fraud, and lack-of-cash inconvenience. Toward
banks, they have got advantages on mobilization to keep and collect capital, building bank
branding for their business but they have faced to a difficult problem is effective investment to
develop infrastructure of POS terminal, ATM network.
Point of sale (POS) (also sometimes referred to as Point of Purchase – POP – or Point of
Service – POS) or checkout is the location where a transaction occurs. A point-of-sale (POS)
terminal is an electronic device used by businesses to process payment transactions from
credit cards, debit cards and individual checking accounts.
Let’s understand how consumers use their card at POS terminal. Assume that a consumer
has a VISA card. He goes to a store (called merchant) and sees VISA logo which means that
store accept payment by VISA card. When he buys goods, merchant will swipe his card in
dock, called EDCT – Electronic Data Capture Terminal. EDCT read information about his
account and merchant’s bank stored in card. Then all information needed including his
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payment amount and card information will be sent to merchant’s bank. Merchant’s bank will
check in VISA master database to know whether card is valid (not card stolen, not expired, not
over account balance, etc.). If there is no issue, merchant’s bank informs EDCT that payment
is approved. At that time, EDCT will print out a sale slip with payment amount they have to
pay, transaction code for consumers to sign in. The consumer will keep original sale slip,

will use it.
By relying on prior work by Fishbein and Ajzen (1975), who formulated the Theory of
Reasoned Action (TRA), and other related research studies, Davis further refined his
conceptual model to propose the Technology Acceptance Model. Both TRA and TAM which
have strong behavioral elements assume that when someone forms an intention to act, that
they will be free to act without limitation.
In this proposal, Davis (1985) suggested that users’ motivation can be explained by three
factors: Perceived Ease of Use (PEOU), Perceived Usefulness (PU) and Attitude Toward
Using (ATU) the system. He hypothesized that the attitude of user toward a system was a
major determinant of whether the user will actually use or reject system. The attitude of the
user, in turn, was considered to be influenced by 2 major beliefs: Perceived Ease of Use and
Perceived Usefulness, with perceived ease of use having a direct influence on perceived
usefulness. Finally, both these beliefs were hypothesized to be directly influenced by the
system design characteristics, represented by X
1
, X
2
and X
3
in Figure 4.

Figure 4 - The Original TAM proposed by Fres Davis (Davis, 1986, p.24)
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Later development of TAM would include behavioral intention as new variable that
would be directly influenced by perceived usefulness of a system (Davis, Bagozzi and
Warshaw, 1989). Davis et al. (1989) suggested that there would be cases when, a given system
which was perceived useful, an individual might form a strong behavioral intention to use the
system without forming any attitude, this giving rise to a modified version of the TAM model
as illustrated in Figure 5.

(Davis, 1989) has been adapted and extended in many ways. To date, there have been several
attempts to consolidate the results obtained from these studies. The most recent one is by
Yousafzai, Foxall and Pallister (2007) who did meta-analysis of 145 articles publishing on
TAM. Table 3 highlights some main applications, participations, countries and setting for
which TAM was used (Chuttur M.Y., 2009)