Adoption of NFT transaction in metaverse platform: a trust transfer approach to leverage trust among users

Abstract

Purpose

Recent growth of metaverse adoption has impacted the adoption of nonfungible tokens (NFTs) which is becoming increasingly attractive. Recently, researchers have explored the adoption of NFTs in metaverse platform. However, considering the risk involved in the transaction, the need for trust on NFT transaction arises. Drawing on trust transfer theory, this study aims to fill this gap by investigating the trust transfer process from trust on metaverse platform and online payment. Moreover, the moderating effect of perceived effectiveness of dispute resolution (PEDR) between trust and adoption of NFT transaction in metaverse platform is explored.

Design/methodology/approach

This study adopts an empirical approach using a questionnaire survey in India based on simple random sampling technique and is analyzed using structural equation modeling through the Smart PLS software.

Findings

The findings reveal that users with a higher trust disposition will trust the metaverse platforms, online payments and NFT transactions in the metaverse. Also, the study reveals that trust transfers from the metaverse platform and online payments toward NFT transactions in the metaverse, which further leads to the adoption intent of NFT. The study provides information for platforms on how the trust transfer process occurs and how to manage conflict resolution to attract the trust of users to use NFTs in their transaction.

Research limitations/implications

The study makes a valuable contribution by identifying the significant impact of trust disposition and social influence in explaining user trust in NFT transactions within the metaverse. Also, the study explores how established trust in conventional online payment mechanisms translates and contributes to trust-building on NFTs and transactional contexts within virtual worlds.

Practical implications

This study implies that ensuring robust security measures for NFT transactions, such as two-factor authentication, blockchain verification and secure wallets, can reassure users with different levels of trust disposition.

Social implications

Metaverse platforms should focus on educating users about how trust operates within their environment by providing tutorials, FAQs and support channels to help users navigate the process confidently. Highlighting security measures, user rights and privacy protections can enhance trust toward NFT payment.

Originality/value

To the best of the authors’ knowledge, this study contributes to research as it is the first of its kind study to explore the factors affecting adoption intent of NFTs transaction in metaverse platform using trust transfer theory. Thereby, developing substantial theoretical and practical contributions by considering an emerging technology.

Citation

P., P., Natarajan, T. and Dhalmahapatra, K. (2024), "Adoption of NFT transaction in metaverse platform: a trust transfer approach to leverage trust among users", Digital Policy, Regulation and Governance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/DPRG-08-2024-0178