Digital Payment System and Performance of Small and Medium Scale Enterprises in Anambra State and Enugu State, Nigeria

Abstract

The study aimed at investigating the effect of digital payment system and
performance of small and medium scale enterprises in Anambra State and Enugu state, Nigeria.
The specific objectives were; To determine the effect of Point of Sale (POS) on Speed of
Service Delivery in Small and Medium Enterprises (SMEs); To investigate the degree to which
Online Banking affect Customer Satisfaction in Small and Medium Enterprises (SMEs).
Relevant literature on digital payment system and performance of small and medium scale
enterprises in Anambra State and Enugu State, Nigeria were reviewed under conceptual review,
theoretical framework, and empirical review. The research work was anchored on The
Diffusion of Innovation (DOI) Theory. Survey research design was adopted. The population of
the study was 3450. The statistical formula devised by Krejcie and Morgan (1970), was
employed to arrive at a sample size of 345. Multiple regression analysis method was used in
testing the hypotheses. The result of the hypotheses showed that Point of Sale (POS) has a
significant effect on Speed of Service delivery in Small and Medium Enterprises (SMEs) in
Anambra State and Enugu State, Nigeria (t=, 7.026, p=,.000 ). Online banking had a
significant effect on customer satisfaction in small and medium enterprises (SMEs) in Anambra
State and Enugu State, Nigeria (t=, 2.211, p=,..028). The study concluded that digital payment
system play a significant role in improving the performance of small and medium enterprises
(SMEs) in Anambra State and Enugu State, Nigeria. The study recommended that SMEs
owners and managers in Anambra State should encourage the effective use of POS systems in
their businesses by providing functional POS terminals and ensuring that staff are adequately
trained in their use. Business owners should also patronize reliable financial service providers
to minimize transaction failures and delays. This will enhance the speed of service delivery,
improve customer convenience, and contribute to better business performance.