EFFECT OF E-PAYMENTS ON PERFORMANCE OF COMMERCIAL ACTIVITIES IN YOLA METROPOLIS OF ADAMAWA STATE

Abstract

The study examined the effect of e-payments on performance of commercial activities in Yola metropolis, Adamawa state. Primary data were sourced via the administration of 373 structured questionnaires designed in five Likert scale format out of which 325 were return for analysis. The study covered the period from 2019 to 2020. Structural Equation Modeling (SEM) was employed in identifying the effect of E-payment product (point of sale (POS), mobile banking and challenges of E-payments on the performance of commercial activities) in Yola metropolis of Adamawa state. The data was normally distributed as indicated by confirmatory factor analysis and normality test. The coefficient of mobile banking and point of sale (POS), are positively related to performance of commercial activities. This implies that a unit increase in mobile banking transaction increases the performance of commercial activities in Yola metropolis by 0.433 units. Also one unit increase in point of sale transaction will increase the performance of commercial activities in Yola metropolis by 0.454 units. On the other hand there is negative relationship between performance of commercial activities in Yola metropolis and challenges of e-payments in Yola metropolis. This implies that one unit increase in challenges of e-payments transaction will decrease the performance of commercial activities in Yola metropolis by -.121units. Moreover, the coefficient of mobile banking, point of sale and challenges of e-payments are found to be statistically significant at 1 per cent. Hence, the null hypothesis was rejected. The study recommends that Government and relevant authorities should formulate monetary policies aimed at encouraging and improved E-payment system so as to actualize the objective of E[1]payment system in adamawa state and Nigeria.