Factors influencing adoption of electronic payment systems by small scale businesses in Uganda: a case study of small scale businesses in Makerere Kikoni
Abstract
This research study was conducted in Makerere Kikoni, Kampala District Uganda located in the
central region of Uganda. The main objective of the study was to determine the factors
influencing the adoption of EPS by small scale businesses using a case study of Makerere
kikoni.The study majorly investigated the extent, benefits and challenges of EPS.The study
employed a cross sectional study design and using a sample of 96 respondents determined using
Cochran’s formulae and applying a simple random sampling method to select the SMEs. The
study indicated that 68% of the respondents were females and only 32%were males,29% of the
respondents were aged 18-25 years,32% of the respondents were aged between 26-35 years,20%
were aged between 36-45 and 19% were aged above 46%.43% of the respondents had attained
secondary education,27% had primary education,19% had acquired university education whereas
4% had attained none. The study findings indicated that 44% of the respondents had adopted
EPS and most of them used Airtel money. Findings also indicated that most of them adopted
EPS due to speed and convenience. All this data was analyzed using univariate, bivariate and
multivariate analysis. The study concluded that number of factors like cost, speed and
convenience influenced the adoption of EPS whereas several challenges like poor internet
connection have still limited its adoption. The study recommended that government should
improve the internet services so as businesses can adopt EPS