THE EFFECT OF DIGITAL PAYMENT SYSTEMS ON FINANCIAL PERFORMANCE OF SMALL RETAILERS: EVIDENCE FROM A SOCIAL MEDIA-BASED SURVEY IN NIGERIA
Keywords:
Digital payment systems, Financial performance, Small retailers, Social media survey, NigeriaAbstract
Objective: This study examines the effect of digital payment systems on the financial performance of small retailers in Nigeria using primary data collected through a social media-based survey. Material and Methods: A cross-sectional research design was employed. Data were collected from 350 small retail business owners through structured questionnaires distributed via social media platforms, including WhatsApp and Facebook. A non-probability convenience sampling technique was adopted. The collected data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Financial performance was measured using indicators such as revenue growth, transaction volume, and customer retention. Statistical significance was set at p < 0.05. Results: The findings indicate that digital payment system usage has a significant positive effect on financial performance (β = 0.59, p = 0.001). Retailers who adopted mobile payment solutions and electronic transfer systems reported higher revenue growth (mean = 17.8%) compared to non-adopters (mean = 8.6%). Additionally, customer retention improved significantly among users of digital payment platforms. Conclusion: Digital payment systems significantly enhance the financial performance of small retailers. The study recommends increased adoption of digital payment technologies and targeted digital literacy programs to support small business growth.
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