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

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.