THE IMPACT OF ELECTRONIC PAYMENT SYSTEM ON THE FINANCIAL PERFORMANCE OF SMALL MEDIUM ENTERPRISES (SME'S)

ABSTRACT

The objective of the study is to evaluate the impact of electronic payment systems on the financial performance of Small and Medium Enterprises (SMEs) in Nigeria. Data were collected through a questionnaire. A total of 50 questionnaire were administered, to Respondents' from four registered SMEs ,( Nadia bakery, Mat Ice, Lawson and Precious Palm Royal hotel which are all situated in Edo state, Benin City.) that are suitated in Edo state in Edo state, Nigeria. The 50 questionnaire were retreived and the respondents we're Managers, Auditors, Accountants, Cashiers, Storekeepers,Customer, supervisors , senior Staffs, Junior staffs and other key stakeholders. The analysis employed the Eviews statistical package, using OLS regression to test hypotheses at a 0.05 alpha level of significance. The study's results indicate a positive and significant relationship between electronic payment systems and the financial performance of SMEs. Additionally, the study shows a positive and significant relationship between the benefits of electronic payment systems and SMEs' financial performance. Furthermore, the study reveals a positive and significant relationship between EPS operations and SMEs' financial performance. Finally, the study explores the impact of EPS challenges on SMEs' financial performance.