Factors Affecting Customers Adoption of Digital Payment Systems Evidence from selected commercial Banks in Ethiopia

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Addis Ababa University


The latest advancements in the field of financial technologies are the emergence of digital payment instruments in the banks. The aim of this paper is to identify factors affecting customer adoption of digital payment evidence from selected commercial banks in Ethiopia. Such as; Awash Bank and Wegagen Bank. This study used descriptive and explanatory for research designs through quantitative research approach. To obtain representative samples, in selecting the research respondents as target bank customers, Purposive sampling methods were used and data collection is made using questionnaire. Out of the 197 questionnaires distributed 176 were collected and were complete. The Data collected is then, analyzed using descriptive statistics, one-way ANOVA to compare mean analysis; correlation and multiple linear regression analysis. The main findings of the study demonstrates customer adaptation to digital payment systems through the following variables: Relative advantage; compatibility; complexity; perceived Risk; consumer innovativeness positively and significantly affect customer adoption of digital system. The results I have found are promising but it also indicates the need for conducting of further research by incorporating other commercial banks located in other geographical areas of the country



Digital payments, innovation Adoption, diffusion innovation