Evaluation Of The Adoption And Acceptance Of Cashless Payment System A Case Study On Commercial Bank Of Ethiopia (Head Office

Abstract

A remarkable increase in the use of non-cash mode of payment has been witnessed in recent times; research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in banking industry. The purpose of this research was to evaluate the adoption and acceptance of cashless banking technology in commercial bank of Ethiopia on Head Office. The study was conducted based on the data gathered through questionnaire from Head Office of Commercial Bank of Ethiopia. Purposive sampling method was employed to draw the sample from the population. Both quantitative and qualitative research approach was employed to answer the research questions that obtained from the survey questionnaire and review of existing documents. The theory of extended Technological Acceptance Model (TAM2) which was developed to better understand relationships between behavioral intention and technology acceptance was used in the theoretical framework. The data were analyzed using SPSS version 22. The findings of this study revealed that Age, Income, Usefulness, Perceived risk, perceived cost, and Ease of use had a great influence on cashless banking adoption. The results of the study also indicated that, the major challenges Commercial Bank of Ethiopian customers faces in the adoption and development of E-banking technology are, lack of awareness, limitation of infrastructure, low levels of computer literacy, fear of risk, power disruption and lack of sufficient legal and regulatory frameworks. The findings that emerged from the primary research proved that the preferred methods of payment in society among cashless banking users to be card payment and mobile banking. The study recommended Commercial Bank of Ethiopia to increasing security for E-banking products, create deep awareness about banking technology to the community while the government should support banking sector by facilitating sufficient infrastructure, development and issue clear and workable legal frameworks to ease the adoption and growth of cashless banking service in Ethiopia