Cashless Payment and Financial Performance of Selected Small and Medium Enterprises in Nyarugenge District, Rwanda
DOI:
https://doi.org/10.53819/81018102t2589Abstract
This study examined the effect of cashless payment systems on the financial performance of Small and Medium Enterprises in Nyarugenge District, Rwanda. Specifically, the research assessed the influence of internet banking, mobile card payments, and mobile wallets on SME financial performance. The study was guided by the Diffusion of Innovations Theory and the Technology Acceptance Model. A descriptive survey and correlational research design were adopted, targeting 100 respondents comprising managers and employees from selected SMEs. Data were collected using questionnaires and analyzed using SPSS Version 28 through descriptive and inferential statistics, while thematic analysis was used for qualitative data. The findings revealed that internet banking positively and significantly influences financial performance (r = 0.742; β = 0.621, p < 0.05), enhancing transaction efficiency and cost management. Mobile card payments also demonstrated a significant positive effect (r = 0.689; β = 0.547, p < 0.05), contributing to improved revenue collection, customer satisfaction, and financial security. Mobile wallets showed the strongest relationship with financial performance (r = 0.781; β = 0.642, p < 0.05), promoting transparency, sales efficiency, and operational cost reduction. The study concluded that cashless payment systems significantly improve SME financial performance by increasing efficiency, profitability, and competitiveness. It recommends wider adoption of digital payment technologies, improved financial service reliability, enhanced digital infrastructure, and strengthened financial literacy programs to support sustainable growth of Small and Medium Enterprises in Rwanda.
Keywords: Cashless Payment Systems, Internet Banking, Mobile Card Payments, Mobile Wallets, Financial Performance, Small and Medium Enterprises, Digital Financial Services.
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