CUSTOMERS’ PERCEPTION OF DIGITAL PAYMENT MODES IN BENIN CITY

ABSTRACT

This study, Customers’ Perception of Digital Payment Modes in Benin City, investigated the acceptance (adoption), benefits, and the challenges of online or electronic payments (epayments) that are currently en vogue in business transactions, the world over. The Innovation Diffusion Theory and Technological Acceptance Model were adopted as theoretical framework to systematically explain the phenomenon. The online Survey design and the Convenience Sampling Technique were used. Questionnaire was administered online as instrument of data collection. The population was 1,904,631, and the Sample Size was 400 while 385 was the response rate. The study revealed, that customers in Benin City have accepted the digital modes of payment despite the challenges which include high service charges, fraud and technical problems since the benefits of the e-payments outweigh the disadvantages. The researcher therefore, recommended that digital payment service providers (banks) should reduce their service charges to cushion the economic crunch and ensure adequate security for customers’ transactions to avert cybercriminals from defrauding them.