An Examination of Individual’s Perceived Security and Privacy of the Internet in Malaysia and the Influence of This on Their Intention to Use E-Commerce: Using An Extension of the Technology Acceptance Model

This study explores the impact of perceived security and privacy on the intention to use Internet banking. An extended version of the technology acceptance model (TAM) is used to examine the above perception. A survey was distributed, the 187 responses mainly from the urban cities in Malaysia, have generally agreed that security and privacy are still the main concerns while using Internet banking. The research model explains over half of the variance of the intention to use Internet banking [R2 = 0.532 (adjusted)], the unexplained 47 percent of variance suggests that the model may have excluded other possible factors influencing the acceptance of Internet banking. Interaction in the local language (Bahasa Malaysia) did not have an impact on the ease of use of Internet banking. Internet security, Internet banking regulations and customers’ privacy would remain future challenges of Internet banking acceptance. The value of this study may provide an updated literature in the field of Internet banking acceptance in Malaysia.