Pikkarainen et al. (2004) define Internet banking as an “Internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investments.” Internet banking has experienced an explosive growth in many countries and has transformed the traditional banking practice. By offering Internet banking services, traditional financial institutions seek to lower operating costs, improve customer banking services, retain customers, reduce their branch networks, and downsize the number of their service staff (Parisa, 2006). With the exception of cash withdrawals, Internet banking gives customers access to almost any type of banking transaction at the click of a mouse.

The aim of the present study is to find out the factors which influence the acceptance of Internet banking services by retail customers.

Some of the important factors are—Convenience that enables customers to access Internet bank at all times and places, which is a measure of relative advantage (Daniel, 1999; Black et al., 2001; Polatoglu and Ekin, 2001; and Gerrard and Cunningham, 2003). 24-hour service, home access, worldwide access, time savings, and a wide variety of services accessible (Liao and Cheung, 2002; and Gerrard and Cunningham, 2003) are seen as drivers of convenience in Internet banking.