Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Cashless Economy and Sales Performance of Small and Medium- Size Enterprises in Mubi Metropolis, Adamawa State

Abubakar Hammawa Kojoli, Audu Adahzigwai

Abstract

This study examined the Cashless economy and sales performance of Small and Medium-Sized Enterprises in Mubi metropolis, Adamawa State. Adopting a descriptive survey research design, the study targeted SME owners in Mubi, although the total population could not be precisely determined due to its heterogeneous nature. A sample size of 384 respondents was derived using Cochran’s (1977) formula, and data were collected through self- administered questionnaires. Non-probability convenience sampling was employed, allowing access to respondents willing to participate. Data were analyzed using multiple regression analysis via the Statistical Package for Social Sciences at a 0.05 level of significance. The findings revealed that mobile payment services also showed a significant positive effect (β = 0.372, T = 4.331, P = 0.000), indicating their role in enhancing accessibility and expanding customer reach. Similarly, internet banking demonstrated a significant effect on sales performance (β = 0.291, T = 17.249, P = 0.000), highlighting its value in enabling efficient financial management and real-time transaction monitoring. The study concludes that digital financial technologies specifically mobile payment platforms, and internet banking play a crucial role in boosting the sales performance of SMEs in Mubi North. It recommends increased promotion and adoption of these technologies through awareness campaigns, training programs, improved digital infrastructure, and reduced transaction costs. These findings are valuable for policymakers, financial institutions, and development partners seeking to enhance financial inclusion and support the growth of small-scale enterprises in the region.

Keywords

Cashless economysales performanceSMEsmobile paymentsinternet bankingMubi North.

References

Adebisi, A. A., & Afolabi, O. J. (2019). The effect of internet banking on small and medium enterprises in Nigeria. International Journal of Business and Management Studies, 8(3), 12–24. Al-Ajam, A. S., & Nor, K. M. (2018). Influencing factors on behavioral intention to adopt Internet banking. Journal of Competitiveness, 5(2), 139–163. Asiyanbi, H., & Ishola, A. (2018). E-banking services effect and customer satisfaction in selected bank branches in Ibadan metropolis, Oyo State, Nigeria. Accounting, 4(4), 153–160. Bashir, E., Olayemi, T., & Adebanjo, A. (2023). Cashless economy and sales performance: An empirical study of SMEs in Abuja, Nigeria. Nigerian Journal of Business and Technology, 13(1), 22–34. Bharti. (2016). Impact of cashless economy on the sales performance of SMEs in Nigeria. International Journal of Marketing and Financial Studies, 1(4), 11–29. Chijioke, I. (2021). The role of internet banking in improving business performance: Evidence from SMEs in Nigeria. International Journal of Financial Management, 3(1), 45–58. Chong, A. Y. L., Chan, F. T. S., & Khor, W. T. (2012). The business value of IT: An empirical study of the determinants of e-commerce adoption in SMEs. Information & Management, 49(5), 264–271. Cobb, Y. J. (2015). Shifting policy paradigm from cash-based to cashless economy: The Nigeria experience. http://www.onlineresearchjournals.com/aajoss/art/124. Gan, C., Clemes, M., Limsombunchai, V., & Weng, A. (2016). A logit analysis of electronic banking in New Zealand. International Journal of Bank Marketing, 24(6), 360–383. Gounaris, S. P. (2005). Trust and commitment influence on customer retention: A study in the service sector. Journal of Services Marketing, 19(6), 346–366. Ibitomi, G., Nwosu, B., & Eze, S. (2023). Cashless payment systems and SMEs’ sales growth in Nigeria: A study of SMEs in Enugu State. Journal of African Business, 19(2), 76– 90. Ibrahim, A., & Ayeni. (2021). Cashless economy and sales performance: An empirical study of SMEs in Abuja, Nigeria. Nigerian Journal of Business and Technology, 13(1), 22– 34. Igbinovia, E. (2020). Effect of electronic banking on the performance of SMEs in Nigeria. Journal of Banking and Finance, 16(2), 53–67. Ijaiya, M. A., & Longe, O. O. (2018). Mobile payment systems and economic growth in Nigeria: Implications for small and medium enterprises. Journal of Information Technology & Software Engineering, 8(3), 1–9. John, D. (2020). Digital payments and small businesses: Barriers and opportunities. International Journal of Economic Policy, 17(4), 34-50. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. Kolawale et al. (2019). Impact of Cashless economy on sales performance. International Journal of Business and Technology, 1(1), 10–24. Koual, R. G. (2023). The effect of electronic banking on customers’ satisfaction of United Nations (UN) staff in N’Djamena, Chad. Unpublished thesis submitted to United States International University-Africa. Kumbhar, V. M. (2019). Electronic banking services and customer satisfaction in developing economies. International Journal of Banking and Financial Services, 7(2), 115–129. Kumbhar, V. M., & Olayemi, T. A. (2021). Mobile banking adoption and financial service accessibility among bank customers in emerging economies. Journal of Digital Banking and Financial Innovation, 9(1), 44–59. Lee, K. S., & Ching, N. H. (2009). Factors influencing customer satisfaction with mobile banking services. International Journal of Electronic Banking, 5(3), 201–217. Ogbeinde, M. F., & Fapohunda, L. B. (2017). Evolution, problems, and prospects of the Nigerian payments system. Central Bank of Nigeria Bullion, 23(2), 27–30. Ojo, A. O., & Kumbhar, V. M. (2021). Digital banking services and operational efficiency of commercial banks in developing countries. African Journal of Banking and Finance, 13(4), 88–103. Okafor, P., Adekunle, M., & Ojo, L. (2022). Network failures in mobile banking: Causes, effect, and solutions. International Journal of Banking Operations, 9(3), 66–81. Oludare, I. T. (2020). The role of mobile payment in small business growth: Evidence from Nigeria. Journal of Economics and Finance, 9(2), 123–135. Omokugbo, O., & Festus, I. (2020). Cashless policy in Nigeria: Effects, challenges and prospects. Journal of Functional Analysis, 8, (1)8 Omotayo, F. O., & Tony-Olorondu, J. N. (2023). Promoting cashless economy: The use of online electricity payment channels in the Ibadan metropolis, Nigeria. Vision. Omotayo, J. (2023). Blockchain technology and its role in enhancing financial security in Nigeria. International Journal of Financial Innovations, 8(2), 47–60. Oyelaran-Oyeyinka, B., & Aina, O. C. (2016). Information and communication technologies, financial inclusion and economic development in Nigeria. Journal of African Economic Development, 8(2), 67–82. Robinson, T. (2014). Towards a universal model of internet banking adoption: Initial conceptualization. International Journal of Bank Marketing, 32(7), 647–687. Sharma, S., Kharb, P., & Sood, A. (2020). Effect of cashless transactions on security and fraud reduction. International Journal of Economics and Financial Issues, 10(3), 14–22. Siti, N., Aqiliyah, B. S., & Melissa, S. (2023). The effect of electronic banking service quality on customer satisfaction. Romanian Journal of Information Technology and Automatic Control, 33(2), 35–46. Taiwo, J. N., Oluwafemi, A. K., Afieroho, E. O., & Agwu, M. E. (2016). Appraisal of cashless policy on the Nigerian financial system. West African Journal of Industrial and Academic Research, 16(1), 106–126. Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199– 214. Uchenna, C. A., & Oduh, M. O. (2021). Cashless payment systems and the performance of deposit money banks in Nigeria. Nigerian Journal of Financial Studies, 15(1), 25–41. Umeh, M., & Adamu, S. (2023). Assessing the influence of cashless economy on the sales performance of SMEs in Nigeria. International Journal of Marketing and Financial Studies, 9(3), 37–49. Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478. Worku, G., Tilahum, A., & Tafa, B. (2016). Electronic payment systems and customer satisfaction in the Ethiopian banking sector. African Journal of Information Systems and Finance, 8(2), 91–106.