Factors Affecting CBE-Birr Payment Service Adoption by University Students in Ethiopia: Case study on Universities collected school fee through CBE-Birr
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Date
2022-12-06
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A.A.U.
Abstract
This paper aims to identify the factors affecting the adoption of CBE-Birr payment services by university students in Ethiopia. As you all know that the business dynamic is changing continuously reserving its own development cycle. Moreover, the covid-19 pandemic has completely changed the way banks and other institutions interact with their customers, forcing them to accelerate their digital transformation strategies. Even before covid-19, the world has been amidst a process of moving towards a cashless economy, and the use of wallets and alternative payment methods was already on the rise. Among the various schemes that need digital intervention, school fee is the one and the most challenging for families and the school too. The researcher used primary data collected from 388 sample respondents. The sample students were selected randomly, and simple random sampling technique was employed to select the sample respondents. The researcher used the binary logit model to identify factors that significantly affect student’s adoption of CBE-Birr payment service and analyzed through SPSS 26. The study used CBE-Birr payment service adoption as a dependent variable and perceives usefulness, perceived ease of use, perceived risk, perceived trust, and awareness and transaction value as independent variable. The findings of analysis showed that perceive usefulness, perceived ease of use, perceived risk, perceived trust, and awareness and transaction value have significant effect and positive relationship on CBE-Birr payment service adoption with p-value of 0.042, 0.000, 0.042, 0.001, 0.014 and 0.039 respectively. Perceived risk and transaction value was found to be significant at p-value 0.042 and 0.039 and negatively correlated with the coefficient value of -1.286 and -1.080 respectively with the probability of CBE-Birr payment services adoption decision. Finally, this thesis can forward suggestions for services providers aimed to enhance adoption of CBE-Birr payment services by students need to be diversified with emphasis on increasing student’s awareness and their perception about CBE-Birr usefulness, ease of use and trust. Based on the research finding, the researcher recommended that the services provider should emphasize on and aware to the benefits that students and universities will obtain in the aspects of cost savings, ease, and flexibility when using CBE-Birr payment services. And also Commercial Bank of Ethiopia/services providers enforce National Bank of Ethiopia to amend mobile money limit on deposit in that account and daily transaction limit to increase CBE-Birr payment services adoption
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Keywords
CBE-Birr payment services, NBE, CBE, Adoption