Electronic payment system adoption and performance of trading enterprises in Lagos State,Nigeria
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Date
2014
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Economics,Obafemi Awolowo University
Abstract
The study examined the extent of electronic payment adoption among trading enterprises and assessed the challenges confronting the trading enterprises in adopting electronic payment channels in Lagos State. It also examined the effect of the adoption of electronic payment on performance of trading enterprises. These were with a view to examining the impact of electronic payment system adoption on performance of trading enterprises in Lagos State.
Primary sources of data collection were used for this study. The data were sourced in four dense and concentrated market- places in Lagos State, namely: Alaba Suru, Lagos Island, Alaba International and Ladiipo Markets. These traders specialise in the sales of electronics, spare parts, marbles and tiles. The study population were traders who operate electronic payment system. Purposive sampling technique were used in selecting 100 traders who operate electronic payment system in each of Alaba Suru, Lagos Island, Alaba International and Ladiipo Markets, totally 400 respondents. A detailed structured questionnaire was employed to elicit information from eligible respondents on variables such as use of technology, age of the owner/manager of the enterprise, business strategy, operating location, size of the firm, and electronic payment channels. Data collected will be analysed using both descriptive and econometric techniques of analysis.
Results of the analysis showed that majority of the respondents have continued to patronize electronic payment system since the inception, due to the fact that the system is more convenient, secure, and easy to use and saves time than the traditional or paper-based means of payment. While only few traders did not concur that the electronic payment is convenient, secure, and easy to use and saves time for their payment transactions. The result further showed that the traders were confronted with various challenges; internet/e-fraud, dilatory network, and frequent breakdown of machines, and power failure when using electronic payment system for their payment transactions. However, analysis of the Logistic model showed that there was significant negative relationship between electronic payment channels, operating location and the performance of the traders (t = -3.159, -3.76; p < 0.05), it also showed that there was significant positive relationship between interacted variables (that is computer literacy*point of sale, computer literacy*Mobile payment and computer*electronic funds transfer) and performance of the traders (t = 2.281, p < 0.05). When the size of the firm and business strategy were confirmed, the result also showed significant positive relationship with the performance of the traders (t = 4.380, p < 0.05).
The study therefore concluded that the effect electronic payment system adoption on performance of the trading enterprises was negative.
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Citation
Arulena,O.F (2014). Electronic payment system adoption and performance of trading enterprises in Lagos State,Nigeria. Obafemi Awolowo University