Determinants of adoption of electronic payment by small and medium-sized enterprises (SMEs) in Cameroon

Abstract

This paper aims to identify the determinants of the adoption of electronic payment in SMEs in Cameroon. It considers data collected from 117 SMEs. The methodology involves principal component analysis and ordinal logistic regression. The results obtained are at least twofold. First, the leading electronic payment tools adopted by these companies are mobile money, card and Internet payments. Second, their choice can be explained on the one hand by the characteristics of these payment tools such as convenience and cost of use, and on the other hand by contingency factors such as integration level and ICT’s mastery level of the manager. Accordingly, companies should be encouraged to use electronic payment tools based on the driving role they could play in providing basic infrastructure and guarantee financially secure transactions between economic agents. The original contribution of this paper is at least twofold. Firstly, methodologically, this study uses a combination of qualitative and quantitative methods and ordinal logistic regression. Secondly, while previous studies were limited to mobile money adoptions, this study further integrated online and card payments in the analyses.