Consumers’ concerns about payment security have been recognized as an obstacle to the growth of Internet shopping. The purpose of our study was to investigate the influence of payment security concerns on Internet purchases. We proposed that consumers’ concerns about payment security mediate the relationship between attitude toward Internet shopping and actual purchases. Using data from the Georgia Institute of Technology Graphics Visualization and Usability Center’s 10th WWW User Survey, we found empirical evidence supporting the mediating relationship. Attitude toward Internet shopping was found to be negatively related to security concerns, and security concerns were found to be negatively related to Internet purchases. Furthermore, it was found that providing alternative off-line payment methods reduces security concerns and therefore promotes on-line purchases. Limitations on generalizing the findings were discussed.
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