DRIVING BUSINESS GROWTH THROUGH ELECTRONIC PAYMENT SYSTEMS: THE ROLE OF E-PAYMENTS IN ENHANCING SMES IN NIGERIA

Abstract

This study examines the impact of electronic payment systems on the business performance of small- and medium-scale enterprises (SMEs) in Nigeria. Leveraging survey data from 300 SME owners in Lagos, the research highlights the role of e-payment platforms in enhancing profitability, customer growth, and accountability. Results show that 52% of variations in SME profitability are explained by the adoption of electronic payments, while 48% of customer growth are similarly attributed. Despite challenges like technical constraints and infrastructure inadequacies, findings suggest that e-payment systems are indispensable tools for modern business operations. The study concludes with recommendations for stakeholders, including increased investment in digital infrastructure, training programs for SMEs, and policy support to address system inefficiencies. These findings contribute to the discourse on technology adoption in emerging markets, underscoring the critical role of electronic payment systems in driving SME growth.