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