People’s Perception Towards After-Pay as a Payment Tool Report

This report investigates people's perceptions of Afterpay as a payment tool, examining consumer behavior and payment trends within the retail sector. The research explores the background of Afterpay, its benefits and drawbacks, and the factors influencing consumer payment choices, such as cost, security, and transparency. It delves into consumer behavior theory and its application to Afterpay, outlining research objectives, questions, and methodology, including quantitative and qualitative approaches using questionnaires and interviews. The study aims to understand how consumers view Afterpay's user-friendliness, security, transparency, and associated costs, using a conceptual model to illustrate the relationships between these factors and consumer perception. Survey questions are provided to assess consumer demographics, shopping habits, payment preferences, and experiences with Afterpay, aiming to determine the tool's impact on purchasing behavior and the potential for increased sales in retail settings, particularly in the context of a business named Rebel. The report concludes with a list of references used to support the research.

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 1
People’s Perception towards After-Pay as A Payments Tools
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PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 2
Introduction
In the current business operation, customers are more concerned with the level of
payment methods adopted by business operations. Safe and efficient systems are major
preconditions among millennium's customers. A well-functioning payment stimulates
consumers to desire to purchase goods, services and assets in various business sectors and the
cost differs depending on the amount of the transaction and the payment tool Chen, Henry,
Huynh, Shen &Vincent 2016). Studies indicate that this cost tends to reduce with the adoption of
efficient payment tool, thus the main objective of the current paper is to explore "people
perception to after-pay as a payment tool.
Background
Over the past years, Australia and the entire world retail industry is experiencing stiff
competition from one another as well as from other related business enterprises. The high
competition for customers is based on numbers activities such as product and service provision
quality, prices, location of the stores among many others. Over the past few years, the mode of
payment has been of great concern to a large number of consumers especially the youngsters of
the current generation. Most of the young generation is fully focused on trending activities such
as after pay method as the purchasing tool across the world.
Problem statement
The current business environment experiences stiff competition, thus every business is
striving at adopting any strategy that would attract and retain customers to ensure continuous
survival. Retail store, thus is adopting various payment methods that do not only retain but
increase sale volume. Payment methods such as After pay, however, there might be misused or

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 3
the exploitation of the credit provided to customers that might eventually result into an increase
of sales of the retail store, and at the same time negatively impact the purchasing power of the
consumer (Penz & Sinkovics,2013). Thus this brings the problem of the current paper that aims
at identifying how people feel about Afterpay as a payment tool.
Research aim and Objectives
The major purpose of the research is to explore the people perception towards Afterpay as a
payment tool.
Objectives
a) The objective of the current study thus would be:
b) To explore the customer behaviours over time
c) To explore the customer behaviour theory and its application on the after pay methods
Research questions
The research questions of the current paper thus will be:
a) What is consumer behaviour theory?
b) How does consumer behaviour theory affect market sales?
c) What is the effect of digital payments methods on consumer behaviours?
d) What are the effects of the After-play payments methods on consumer behaviours?
Literature Review
After-pay Payment tool

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 4
After pay refers to the payment method that accepts debit and credit cards that allows
customers to either make payments at the time of purchase or later after the purchase, normally
in a fortnight. The system allows the customer to purchase goods and make partial payment
depending on the amount available in the respective cards and the total value of the purchased
items (Humbani & Wiese2017). Since its launch in 2015 in Australia, about 160 online retailers
have embraced the payment system as a way of attracting customers and gaining more revenue
to remain relevant in the competitive business environment (Cooper 2017). The rise of the
Aterpay method among the retailers is attributed to the changing consumer behaviours and the
benefits attributed to the system.
Consumer Behavior Theory
Consumer behaviours refer to how an individual or a group select a product, purchase,
use, and imposed to satisfy respective needs and wants ( Khan 2018). Park and Ha (2014)
express that consumers behaviours dictate the purchasing decisions towards goods and services
as a dynamic that depend n on the supply and demand of goods and services. The study of
consumer behaviours towards a product thus it refers to has consumer behaviour theory.
Consumer payment trends
Over the past decade, retail payments methods have shifted transactions from paper
checks to cards and to electronic payments, a transformation attributed to the technological
development and consumer behaviours. In the past, Most of the consumers in the world have
relied on the cash and the credit card as a form of payments. However, over the past decade,
debit card formed one of the most noncash payments by consumers.
Factors affecting consumer payments choice

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 5
Although most of the consumer payments are based on personal preference, they are
always controlled by supply-side factors such as cost, technology, acceptance of payment tool,
and regulation among others (Saini & Sharma 2017).
Cost
The cost of payment is one of the important factors considered by both the consumer and
the merchant although is not always transparent to both parties. The cost of payment can be
either direct or indirect resulting in a positive or negative influence on the counter purchasing
decisions. When the cost incurred is high on the consumer's side, and then most of the consumers
tend to look for better and cheaper payments methods. While there is little evidence on the effect
of the payment method on the consumer behaviour in Australia, there is empirical evidence
across the world. For example, Drechsler, Smith, Sturm and Wätzold (2016) found out that there
is a positive impact of price incentives on the payment method on both the demand of products
in Norway and the Netherlands. the united states, retailers use price discounts and offer
incentives to stimulate customers to use pay tools that are perceived that are less cost let to
enhance sales of products in respective stores.
Security
Payment security is currently becoming an important aspect of the developing
technological world. This is attributed to the result to be presented by Consumer Payment Choice
Annual Survey that always presents security as the topmost aspect above cost, convenience, and
other aspects (Waller 2017). Past studies indicate that widely security breaches during the
payment process have a direct impact on consumer behaviour and payment choice since there
subjective belief is affected.

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 6
Transparency
According to Gafeeva, Hoelzl and Roschk (2017) many consumers, purchasing decisions
are governed by the transparency of the payment. The authors express payment transparency as
the virtual salience of compensation both in terms of tangible form and the value. Over the years
cash has been perceived as the most transparent form of payment since both the stakeholders
have the capability to see, touch and feel the amount of money being exchanged as well as the
service and the product. Herbst (2015) argues that transparency is directly connected to purchase
experienced during payment thus the use of cash compares absolutely with the level of pain felt.
Most of the customers thus feel that the after pay method as more transparent than any other
current form, since they have the capacity to use and learn about the purchased products before
completing the payment, thus leading to the acquirement of high-quality products. Afterpay has
numerous benefits such as easy and efficient refund system remains same, a better alternative to
the credit card, fast payment process, includes both online and offline payment process and
attracts not a fee and interest-free terms (Herbst 2015). However, the tool also poses some
disadvantages to consumers such as impulse buying increasing spending thus might affect the
customer in future.
User-friendliness – Consumer’s attitudes towards the payment instrument are associated
with factors such as safety and speed, thus when the payment has high speed and adequate
safety, and then people tend to have a positive attitude towards the tool. Most of the people adopt
the usage of different payment tools due to their usability. Uncomplicated tools tend to create a
strong urge among the people to use the tools during their purchases process since they are easy
to remember in future thus creating a positive attitude, unlike a complicated tool.

User-friendliness
Security
Transparency
Cost People Perceptions
on After-pay
payment tools
PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 7
A conceptual model for payment perception
The conceptual model for payment perception is constructed from different socio-
psychological factors such as attitude, intention and actual behaviour towards their drivers.
Figure 1: Shows Conceptual framework created by researcher
Research Methodology
The current paper aims at identifying the customer’s perception of the Aftrepay payment
method by people, thus the research methodology of the paper will be based on the quantitative;
however qualitative methods had been used in reviewing the literature of the topic under the
study.
Population, sample, sample size and sampling procedure

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 8
The population of the current paper wills students who will be found at the university
undertaking their shopping activities. A sample size of 50 students obtained from the entire
population will be randomly approached, provided with all information regarding the purpose of
the paper as well as a consent form (Omair 2014). The sample size will consist of men and
women of all ages above 18 years old.
Data collection sources
The researcher will employ both the questionnaire and interview in collecting relevant
information (Fletcher 2016). The questionnaire that will be provided to consumers found in the
store will majorly focus on the students’ perceptions on the past payments methods. The
interview will be conducted to the employees majorly the marketing and sales department
managers, to provide specific information regarding the impact of Afterpay on the marketing and
sale of the store (Linder 2017).
Data analysis
Data analysis on the collected information will focus on establishing students
‘perceptions on the Afterpay payment method by retails shops, thus the numerical data will be
analyzed through the application of descriptive data analysis method. The descriptive data tools
such as SPSS will be used to bring together similar responses, to generate mean, mode and
medium variance as well as standard variation (Martínez & Corral 2011).
Sample Survey Questions on people perception towards after-pay as payments tools
1. What is your

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS 9
a) age……?
b) Sex….?
2. Educational level
a) Basic education
b) Secondary School
c) Polytechnic school
d) Campus
3. What is your annual income?
a) Below $ 50,000
b) 50,001- $100,000
c) $ 100,000- $ 200,000
d) Above 200,000
4. How often do you shop?
a) Everyday
b) Once in a week
c) Once in a month
d) Others sate
5. How much do you spend per purchase?
a) Below $ 100

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
10
b) 101$ - $ 300
c) $ 301- $ 600
d) $ 601-$ 900
e) 901 and above
6. What the preferred payment method while shopping ?
a) Credit card
b) Cash
c) Debit card
d) Mobile payment app
e) Others state
7. Select the reason why you prefer the above method?
a) Convenience
b) Security
c) Transparency
d) Others state
8. What has been your major issue with your preferred payment method?
9. Have you ever used after pay payment method during your purchase?
a) Yes
b) No

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
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10. If yes, what was your experience?
a) Good
b) Better
c) Best
11. Mark reason for the above
a) Cheap
b) Convenient
c) Transparent
d) User-friendliness
e) Fast
f) Secure
g) Others state……………………………….
12. If no, why haven’t you tried?
a) Not sure of security
b) Not convenient
c) Not easy to use
d) Not transparent
13. Suppose you adopt Aftrepay payment method, what is your perception on the purchase
amount?
a) Amplify by 10%
b) Amplify by 50%

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
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c) Shrink by 10%
d) Shrink by 50%
14. Do you agree or disagree with the following statement?
15. I would prefer to make my future payments through the use of Afterpay?
a) Strongly reject
b) Strongly reject
c) Neither Accept or Reject
d) Accept
e) strongly Accept
16. What is the reason why you feel you will use or not use the above payment method?
a) Security
b) Transparency
c) Convenience
17. Do you think the adoption of the Afterpay by the retail shop will address the issue you have
been experiencing with your preferred payment method?
a) Strongly reject
b) Reject
c) Neither Accept or Reject
d) Accept
e) Strongly Accept

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
13
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List of References
Chen, H., Henry, C., Huynh, K., Shen, Q. and Vincent, K. (2016). Measuring Consumer
Cash Holdings: Lessons from the 2013 Bank of Canada Methods-of-Payment Survey. Survey
Practice, 9(4), pp.1-7.
Drechsler, M., Smith, H., Sturm, A. and Wätzold, F. (2016). Cost-effectiveness of
conservation payment schemes for species with different range sizes. Conservation Biology,
30(4), pp.894-899.
Fletcher, A. (2016). Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), pp.181-194.
Gafeeva, R., Hoelzl, E. and Roschk, H. (2017). What else can your payment card do?
Multifunctionality of payment modes can reduce payment transparency. Marketing Letters,
29(1), pp.61-72.
Herbst-Murphy, S. (2015). Trends and Preferences in Consumer Payments: Updates from the
Visa Payment Panel Study. SSRN Electronic Journal.
Khan, S. (2018). Factors Affecting Consumer Buying Behaviour and Consumer Preference
towards Organized Retail Outlets in India. Journal of Advances and Scholarly Researches in
Allied Education, 15(5), pp.202-211.

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
14
Omair, A. (2014). Sample size estimation and sampling techniques for selecting a
representative sample. Journal of Health Specialties, 2(4), p.142.
Park, J. and Ha, S. (2014). Understanding Consumer Recycling Behavior: Combining the
Theory of Planned Behavior and the Norm Activation Model. Family and Consumer
Sciences Research Journal, 42(3), pp.278-291.
Penz, E. and Sinkovics, R. (2013). Triangulating consumers' perceptions of payment systems
by using social representations theory: A multi-method approach. Journal of Consumer
Behaviour, 12(4), pp.293-306.
Saini, G. and Sharma, S. (2017). Factors Affecting Consumers' Perception towards E-
Payment Systems in India. Indian Journal of Computer Science, 2(3), p.23.
Waller, P. (2017). Electronic payment mechanisms in social security: Extending the reach of
benefit and contribution transactions. International Social Security Review, 70(2), pp.3-30.
Linder, F. (2017). Improved Data Collection from Online Sources Using Query Expansion
and Active Learning. SSRN Electronic Journal.
Martínez-Camblor, P. and Corral, N. (2011). Repeated measures analysis for functional
data. Computational Statistics & Data Analysis, 55(12), pp.3244-3256.
Humbani, M. and Wiese, M. (2017). A Cashless Society for All: Determining Consumers’
Readiness to Adopt Mobile Payment Services. Journal of African Business, 19(3), pp.409-
429.

PEOPLE’S PERCEPTION TOWARDS AFTER-PAY AS A PAYMENTS TOOLS
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Cooper, J. (2017). A Chip Off the Old Block or a New Direction for Payment Cards
Security? The Chip & PIN Debate, Apple Pay, and the Law & Economics of Preventing
Payment Card Fraud. SSRN Electronic Journal.
Appendices 1: Gnat Chart