Factors Affecting e-Payment Adoption in Nigeria

Abstract

The payment system of a country plays a crucial role in its economy; however, despite the benefits of e-Payment and efforts by financial authorities, Nigeria still has a low e-Payment adoption rate. In this regard, there is an urgent need to investigate the factors that affect individuals’ intention to adopt e-Payment. Drawing on the unified theory of acceptance and use of technology (UTAUT) model, this paper develops a theoretical model for e-Payment adoption in Nigeria. Additionally, a survey was conducted on 500 respondents with 213 complete responses received to test the model, and results show that perceived benefits, effort expectancy, social influence, trust, awareness, and demographic variables affected individuals’ intention to adopt e-Payments. Based on the findings, managerial and theoretical implications are deliberated.

Facilitating the Intention to Expand E-business Payment Systems Use in Nigerian Small Firms: An Empirical Analysis

“…The banks and electronic switching companies have also rolled out infrastructure to facilitate the use of e-payments." In spite of such various efforts and commitments, banking reports and academic studies indicated that the adoption of ebusiness payment systems in Nigeria continue to be low and unimpressive (Babalakin & Co;, Agbada, 2008Akpan, 2008;Gholami et al, 2010;Ayo et al, 2011)…”

“…It is worth pointing out that Nigeria is largely a cashbased country in which a high percentage of its economic transactions are conducted with cash (Gholami et al, 2010;Ayo et al, 2011). This is partly due to the country's socio-cultural imperatives (Ifinedo, 2005b) and the embryonic development of e-business payment systems acceptance among businesses and the population.…”

“…The Central Bank of Nigeria (CBN) is concerned about the risks involved in issuing, storing, processing, distributing, and transporting cash in the country (Babalakin & Co, 2002;Gholami et al, 2010). The CBN laments the slow pace of e-business payment systems adoption in the country and is actively promoting the use of such systems in the country (Akpan, 2008;Emordi, 2007).…”

“…Despite the slow progress of e-business payment systems adoption in the country, recent studies have shown that Nigerian businesses and the population are familiar with the benefits of such payments systems and may be interested in continuing the use of such solutions if the right facilitating conditions are provided (Chiemeke et al, 2006;Akpan, 2008;Adesina et al, 2008). Some of the noted benefits include convenience, efficiency, and the ease of use associated with such payment platforms (Akpan, 2008;Gholami et al, 2010).…”

“…With e-business payment systems, individuals and organizations have the opportunity to pay for goods and services over the counter or online without using cash (Gholami et al, 2010). The role of e-payment systems is paramount to the growth of e-business itself (Vassiliou, 2004) and the emergence of such methods of payment has had a significant impact of global e-business (Leadpile, 2006;EIU, 2011).…”