PERFORMANCE EFFECT OF MOBILE PAYMENT SYSTEMS ADOPTION: A STUDY OF SMALL AND MEDIUM ENTERPRISES

Abstract

Despite the potential of mobile payment systems to mitigate risks associated with cash and facilitate trade, Small and Medium Enterprises (SMEs) in Anambra State have been slow to fully adopt these innovations Hence, this study examined mobile payment systems and business performance of SMEs in Anambra State. The study was anchored on diffusion of innovation theory. The population of the study included unregistered SMEs in rural communities in Anambra State. The study adopted a descriptive research design. The population size was infinite and was determined using Cochran's formula and Taro yamane formula to arrive at a Sample Size of 236. The study used multi- stage sampling which included stratification, proportional probability sampling and Random selection. Data was collected qualitatively using a 5 point Likert scale questionnaire, analysed using correlation analysis, with the statistical package for Social Science (SPSS) version 20.  Hypothesis was tested at 5% level of significance. Correlation results confirmed a positive and statistically significant relationship between MPOS adoption and market expansion (r=0.634, p<0.01). The study concluded that mobile payment technologies are highly influential collective predictors of market expansion for rural SMEs. The study recommends prioritizing an aggressive strategy to intensify the strategic deployment and subsidy of mPOS devices across rural Anambra State