Analysis of technological and socio-economic factors influencing the adoption of cashless transactions in small and medium-sized enterprises (SMES)

Abstract

This paper examines the antecedents of cashless payment systems among businesses in Uganda. The adoption of cashless payment systems by businesses has the potential to reduce the costs related to handling huge amounts of cash in the market and enhance transaction speed. Unfortunately its current adoption in Uganda is still small and very little is known about the factors. A seven factor model was developed and tested. The results revealed that compatibility and technology competence have higher significant relationships with the adoption of cashless payment systems. Management support, firm critical mass, competitive pressure and information intensity are significantly related to adoption of cashless payment systems. The findings of this study provide significant practical impressions for business stakeholders to recognize social and technological factors that affect firms adoption of cashless payment systems to support businesses The findings of this study provide significant practical implications for business stakeholders and technology vendors to recognize factors that affect a firm’s adoption to cashless payment systems to support business transactions, our findings also offer guidance for future application of cashless payment system. The paper provides a more holistic understanding of the factors influencing cashless payment systems among businesses.