EFFECTS OF THE DIGITAL PAYMENT SYSTEM ON SMES PERFORMANCE IN DEVELOPING COUNTRIES; A CASE OF GHANA

Small and medium enterprises can employ a digital payment system to increase the trade and satisfy the trading partners and other stakeholders. The use of digital payment system faster the business transactions, and decrease the cost among parties. This study conducted to examines the effects of the digital payment system on SME’s performance. This study used a technology-organizational-environmental framework to investigate the effects of the digital payment system. This study used a closed-ended self-administered questionnaire to collect data. Data collected from September 2019 to November 2019. The respondents of the study were executives and owners of SMEs. The partial least squares structural equation modeling approach utilized to analyze the data. The findings of the study include significant effects of technology, organizational, environmental, and use of digital payment systems on SME’s performance. This study helps the owner of SME’s to execute the digital payment system to foster trade and relationship with stakeholders. KEYWORDS: Small and medium enterprises, Digital payment system, technological-organizational-environmental framework, Developing countries, SME’s performance, Ghana