THE ADOPTION AND USE OF ELECTRONIC PAYMENT SYSTEMS IN GHANA

ABSTRACT

E-payment system is increasingly becoming a daring means of payments in today’s business world. This is due to its efficiency, convenience and timeliness. It is a payment system that is continuously being embraced and adopted in the financial system of both developed and developing countries with a view to simplify and ease payments in business transactions. This study was carried out to look into the adoption and use of electronic payment systems in Ghana by business owners with e-zwich as case study. This was done with questionnaires to business owners, to identify the forms of electronic payment systems in use by business owners, to identify the factors affecting the choice of payments systems by business owners, to evaluate the challenges involved in the existing payment systems in Ghana and to examine the challenges involved in the adoption and use of the e-zwich payment system using Accra Metropolis as a study area. The adoption and use of the e-zwich was found to be low mainly due to the inadequate availability of point of sale terminals at shopping points among others. These are affecting the perceived ease of use even though the perceived usefulness of electronic payment systems is strongly present among individuals and businesses. The study recommended customer education and widespread deployment of e-zwich point of sale terminals to merchants.

 

TABLE OF CONTENTS

CONTENTSPAGE

DECLARATIONi

DEDICATIONii

ACKNOWLEDGEMENTSiii

ABSTRACTiv

TABLE OF CONTENTSv

LIST OF TABLESviii

LIST OF FIGURESix

CHAPTER ONE1

INTRODUCTION1

1.0 Background of the Study1

1.1 Problem Statement3

1.2 Objectives of the Study4

1.2.1 Main Objective4

1.2.2 Specific Objectives4

1.3 Research Questions5

1.4 Significance of the Study5

1.5 Scope of the Study6

1.6 Limitations of the Study6

1.7 Organisation of the Study6

CHAPTER TWO8

LITERATURE REVIEW8

2.0 Introduction8

2.1 Definitions of Electronic Payment Systems8

2.2 Payment Systems in Ghana9

2.3 E-zwich Payment System10

2.4 Types of Electronic Payment Systems11

2.4.1 Debit Card Payments11

2.4.2 Credit Card Payments11

2.4.3 Mobile Phone Payments12

2.4.4 Online Payment Method12

2.5 Factors Influencing the Choice of Payment Systems13

2.6 Benefits of Electronic Payments13

2.7 Challenges of Electronic Payment Systems15

2.7.1 Security15

2.7.2 Infrastructure16

2.7.3 Regulatory and Legal Issues17

2.7.4 Socio-cultural Challenges17

2.8 Challenges of Electronic Payment Systems in Ghana18

2.9 Services offered by the E-zwich Payment Services20

2.9.1 Transactional Type20

2.9.2 Merchant Type21

CHAPTER THREE23

METHODOLOGY23

3.0 Introduction23

3.1 Research Design23

3.2 Study Area24

3.3 Population24

3.4 Sample Size and Sampling Technique25

3.5 Source of Data27

3.5.1 Primary Data27

3.5.2 Secondary Data27

3.6 Data Collection and Instrument28

3.7 Administration of Instrument28

3.8 Data Analysis29

3.9 Conclusion29

CHAPTER FOUR30

DATA ANALYSIS AND DISCUSSION OF RESULTS30

4.0 Introduction30

4.1 Socio-Demographic Characteristics of Respondent30

4.2 Forms of Electronic Payment System33

4.3 Factors Affecting Customer choice of Payment Systems34

4.4 Challenges Involved with the Current Cash Payment System37

4.5 Challenges Involved in the Adoption of E-zwich39

CHAPTER FIVE44

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS44

5.0 Introduction44

5.1 Summary of Major Findings44

5.2 Conclusion45

5.3 Recommendations46

REFERENCES49

APPENDIX54