An Integrated Model of the Factors Influencing the Adoption and Extent of Use of E-Payment Systems by SMEs in Nigeria

Abstract

This paper investigates the factors influencing the adoption and extent of use of e-payment systems by SMEs in Nigeria. The paper develops an integrated model following a comprehensive review of literature in IS/IT adoption and diffusion in organisations. The paper used primary data culled from a survey conducted in Lagos state of Nigeria in 2012 for a PhD thesis. 239 SMEs were involved. Results of the  logistic regression analysis show that three technology attributes (perceived benefits, perceived trust and perceived security), one organisation factor (firm IT infrastructure), one environmental factor (favourable government support policy), and two individual characteristics factors (IT knowledge and educational level) facilitated EPS adoption by SMEs in Nigeria. Furthermore, perceived complexity and age inhibited e-payment systems adoption by SMEs in Nigeria. With regard to the extent of use, perceived benefits, age, and perceived trust facilitated volume of use while perceived complexity and age influenced the breadth of use.

Keywords: E-payment adoption, e-payment in Nigeria, IT/IS adoption by SMEs