[Research Contribution] Factors Affecting the Intention to Pay Online for Power and Water Consumers in Vinh Long Province

11 April, 2025

Keywords: Intention, Online payment, Power and water, Vinh Long province

In the context of increasingly profound digital transformation, online payment has become an inevitable trend, especially in essential areas such as power and water. However, the level of acceptance and the use of this form of payment varies widely between localities, requiring a clear understanding of the influencing factors. In this research paper, the author group from UEH Mekong, University of Economics Ho Chi Minh City (UEH), analyzed the current situation and identified factors affecting the intention to pay online for power and water by consumers in Vinh Long province.

Research background and development of online payment in the public sector

In the current digital era, online payment has become an essential part of daily life, for not only convenience but also promotion the development of the digital economy.

The rapid advancement of mobile technology has brought essential opportunities for agencies and businesses to create new payment solutions and to provide value-added services to their customers. In particular, non-cash payment applications (like e-wallets, mobile banking, and Internet banking) have allowed consumers to pay their consumption bills more flexibly, safely, and cost-effectively.

Nevertheless, unlike conventional commercial transactions, paying power and water bills has its own characteristics. If using cash, people have to wait for staff to record power and water meters and come to collect money according to a regular schedule, which can be time-consuming and inconvenient, especially when the customer is absent from home or when there are errors in recording consumption indexes. Therefore, consumer characteristics along with the development of digital technology platforms have a significant impact on the intention to use online payment services in this field.

Understanding the perceived value of digital financial products is crucial for technology designers and marketing managers in the context of increasingly fierce competition. On that foundation, the research by the author group from UEH Mekong focused on analyzing the factors affecting the intention to pay online of power and water consumers in Vinh Long province to provide a theoretical and practical basis to promote digital transformation in the field of public utility payments.

Measuring the intention to use online payment services: An approach from a quantitative model

In order to evaluate the factors affecting the intention to pay online in the power and water sector in Vinh Long province, the authors conducted a survey on 250 consumers, of which 220 valid responses were processed using SPSS software. The authors applied the multivariate regression method to examine the impact of each factor on consumers’ intention to pay online. The analysis indicated that the perceived ease of use is the most crucial factor, having the strongest impact on the decision to use power and water payment services. This is reasonable because when payment applications are designed simply, easy to operate, and fast processing time, consumers will find it more convenient and willing to use the service.

The second impact factor is perceived reputation. When consumers trust the security and safety of online payment systems, they tend to use the service more frequently. This is an important factor in the context of increasingly popular online financial transactions, requiring high transparency and security from service providers. Favorable conditions are the third factor that has an impact on the intention to use online payment services. With the popularity of smartphones and bank accounts, consumers have been facilitated in accessing and using digital payment platforms.

Next, expected performance has a significant impact, reflecting consumers’ interest in service quality. When online payment systems operate stably, process quickly, and minimize transaction errors, users will have a better experience and increased usage.

Finally, the social influence factor has the lowest impact in the research model. Although this factor does not have a significant impact on online payment intentions, with the increasing trend of people using this service after the COVID-19 pandemic, the impact from friends, family, and the community still plays a certain role in changing consumers’ payment habits.

Practical significance and development orientation of online payment

The study provides important insights into power and water bill payments, contributing to improving convenience for people and optimizing operations for service providers. Online payment not only saves time and costs but also minimizes risks and errors in manual transactions.

In addition, the study supports managers and policy makers in Vinh Long in developing strategies to promote cashless payments. Analyzing consumer behavior helps orient solutions to upgrade technical infrastructure, ensuring a safe and stable payment system and meeting digital needs.

Finally, expanding online payments contributes to minimizing the risk of loss and fraud while enhancing financial security and protecting consumer rights in the digital economy.

Implications, policies, and solutions to promote online payments

The authors suggested solutions to increase the intention to use online payments for power and water bills, aiming to promote digital transformation, to improve user experience, and to enhance the efficiency of public service management, specifically including:

First is to improve awareness of online payments: Service providers need to implement communication programs, to educate the community the benefits of online payments. Using illustrations, instructional videos, and communication campaigns will help consumers easily access and change their payment habits.

Second is to optimize the interface and user experience: Online payment systems need to be designed to be simple, friendly, and easy to use for all audiences. Adding images, intuitive graphics, and support tools like voice instructions or video instructions will help consumers access the service more efficiently.

Finally is to promote social influence on consumer behavior: Although social influence factors have not shown a strong impact in this research, implementing social media campaigns still plays a vital role in changing community awareness. Encouraging support from friends, family, and social networks will positively influence the decision to use online payments.

In general, the research results, as a theoretical basis, contributes to the literature as well as helps managers have a more comprehensive and in-depth view of the factors affecting the acceptance of new technologies, contributing to improving the quality of public services to meet the increasing needs of people in the digital age.

The full-text research article on Factors affecting online payment intentions of power and water consumers in Vinh Long province can be accessed HERE.

Author group: Phan Thi Tiem, Dr. Truong Thi Hoang Oanh, Nguyen Vu Tram Anh, Nguyen Trung Tien, Pham Minh Triet – University of Economics Ho Chi Minh City (UEH)

This article is part of the series spreading research and applied knowledge with the message “For a More Sustainable Mekong”, under the program “Research Contribution For All – Research for the Community” implemented by UEH. UEH cordially invites readers to read the next UEH Research Insights newsletter.

News, photos: The authors, UEH Mekong Department of Admissions and Communications, UEH Department of Communications and Partnerships