Empirical Analysis on the Determinants of Electronic Card Payment Technologies’ Adoption (The Case of Commercial Bank of Ethiopia)
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Date
2016-06
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Addis Ababa University
Abstract
The purpose of this paper is to examine the determinants for customers to adopt Electronic Card
Payment Technologies adoption, in the context of the Commercial Bank of Ethiopia. Structured
questionnaire was developed. The hypotheses were tested on customers of the CBE with a
sample of 440 out of which 396 were collected by making use of multistage sampling method.
Both descriptive and inferential analytical techniques were used. To analyze the relationships
among the variables under investigation, multinomial logistic regression were employed. In
addition, Parameter estimate were used to determine the level of influence variables have on
non-adopters, partial adopters and full-adopters. Furthermore, chi-square test was used to analyze
the association between selected demographic factors and adoption. The findings of this study
have shown that, except for Social Influences, Perceived Ease of use, Perceived Risk, Marketing
Communication Influences, Perceived Usefulness and compatibility found to have significant
effect on Electronic Card Payment Technologies’ adoption of CBE’s customers in Addis Ababa.
Furthermore, a significant association exists between ECPT adoption and age, educational level
and income. However no significant association is found between sex and adoption. The results
are very useful for CBE to devise strategies in order to increase the adoption rate of Electronic
Card Payment Technologies. It is recommended for awareness creation in order to change the
perception that ECPTs are difficult and risky. Furthermore, it is recommended for CBE to
intensify its marketing communication activities and introduce more services. As evident from
this study, a different result could be gained if comparative study, on the topic of this study,
among selected banks in Ethiopia is conducted. This study is conducted only for ECPTs. Hence,
the findings might not be applicable to other E-payment services like Internet Banking and
Mobile Banking. Furthermore, this study is conducted from the perspective of customers only.
However, a more comprehensive result could be gained if a study, that takes all stakeholders in
the ecosystem in to account, is conducted
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Keywords
Electronic Card Payment Technologies (ECPTs), Adoption, Commercial Bank of Ethiopia