TRUST AND TRANSACTION IN CROSS-BORDER TRADE: A PRIMARY STUDY ON HOW DIGITAL PAYMENT SYSTEMS INFLUENCE INTERNATIONAL BUSINESS PARTICIPATION AMONG YOUNG ENTREPRENEURS

Abstract

The current study is focused on the impact of digital payment adoption and trust on cross-border trading activity of young entrepreneurs (18-35 years old). Based on a cross-sectional study conducted among 49 young entrepreneurs (mainly at an early stage of development in such fields as e-commerce, IT, and creative industries), the hypotheses have been developed. According to H1 and H2, digital payment adoption and trust have a positive impact on engaging in international business. Both hypotheses received statistical support - adoption correlated strongly with participation (r = 0.534) and trust had moderate correlation (r = 0.357). Descriptively, about half of the respondents were in a pre-participation planning stage, security/fraud protection was the most important feature of platforms, and regulatory measures were viewed as the most valuable for building trust. Thus, barriers for cross-border trading activities of young entrepreneurs are related to relational and institutional factors but not technological ones. The study develops technology acceptance theory and trust theory; however, it is constrained by its sample size and cross-sectional character.