Analysis of factors influencing adoption of electronic payment systems in public sectors: a case of selected public organizations

Technological advancement has created an opportunity for electronic payment systems (EPS) in both private and public sector organizations. This study investigated organization, government and customer related factors for public sectors’ adoption of electronic payment systems in Tanzanian context. This was a cross sectional Case study design with the use of quantitative method to determine the relationship between organization, government and customer related factors and successful adoption of EPS in terms of revenue collection, processing time and customer satisfaction. The questionnaires were received from 120 IT and accounts officials who were randomly selected to participate in the study. Both primary and secondary data were collected, analyzed and presented into bivariate Spearman rho correlation, mean and standard deviations were used to test hypotheses on perceived factors influencing EPS adoption. Findings of the study have shown that there is positive correlation on the existence of comprehensive set of policies and internal systems for successful adoption of EPS. IT infrastructure processes are prepared to support the provision of electronic transaction services, e-payment system work within clear lines of responsibility, authority based on control and power of political leaders, existence of legal frameworks regulating the partnership between public sector organizations, local and foreign investors on electronic payment system networks, existing legal environment to respond positively to the needs of technology, and applicability of existing laws and regulations to increase the perceived risk of adopting EPS, perceived security and customer’s personal information. Perceived customers’ trust and successful electronic transactions and customer perceptions of security-enforcement principles contribute to their perceptions of trust for electronic transactions. Lastly, it was recommended that organizations should provide adequate and supportive IT infrastructure, and sustain the quality of the EPS services.