AMOR

Article Details

Vol. 8 No. 1 (2026): August

Mobile Payment Systems for Small and Medium Enterprises in Rural Areas: A Business Performance Context

https://doi.org/10.35912/amor.v8.n1.p107-124.2026

Abstract

Purpose: This study examined the relationship between mobile payment systems and the business performance of Small and Medium-Sized Enterprises (SMEs) in Anambra State, Nigeria. Specifically, this study investigated how mobile wallets and Unstructured Supplementary Service Data (USSD) platforms influence market expansion.

Methodology: This study adopted a survey research design. Data were collected from 157 unregistered SMEs operating in rural Anambra State using a pre-validated questionnaire. The analyses were conducted using the correlation method, and the hypotheses were tested at the 5% significance level.

Results: The findings showed a positive and statistically significant relationship between mobile wallet adoption and market expansion, with a correlation coefficient of 0.295 (p < 0.01). The results also indicate a stronger positive relationship between USSD usage and market expansion, with a correlation coefficient of 0.511 (p < 0.01).

Conclusions: The study concluded that mobile payment systems are not merely transactional tools but strategic enablers of business growth and financial inclusion.

Limitations: The study was limited to unregistered SMEs operating in rural communities of Anambra State, which may have restricted the generalization of the findings to registered SMEs or businesses in urban areas. In addition, the reliance on self-reported questionnaire responses may make the findings from the study subject to respondents’ bias and perception errors.

Contributions: This study provides empirical evidence on how mobile payment systems enhance market expansion among SMEs in rural communities in Anambra State, Nigeria. 

Keywords

Business Performance Market Expansion Mobile Payment Systems Mobile Wallet Small and Medium Enterprises USSD

How to Cite

Nwakoby, . P. N., Anagwu, V. K., Essell, B. O., & Arachie, A. E. (2026). Mobile Payment Systems for Small and Medium Enterprises in Rural Areas: A Business Performance Context. Annals of Management and Organization Research, 8(1), 107–124. https://doi.org/10.35912/amor.v8.n1.p107-124.2026

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

References

  1. Abubakar, A., Mishra, A., Badeggi, A. Y., & Abdulkadir, A. (2022). USSD system for monitoring and management of employee leave in a higher educational institution. International Journal of Information Engineering and Electronic Business, 14(1), 37. https://doi.org/10.5815/ijieeb
  2. Acheampong, W., & Boateng, W. K. (2023). Assessing the impact of mobile money interoperability on small and medium-scale enterprises' payments and receipts in Ghana. Asian Journal of Economics, Business and Accounting, 23(20), 14-25. https://doi.org/10.9734/ajeba/2023/v23i201090
  3. AfriGoPay. (2023). CBN launches AfriGoto to boost local card issuance. Retrieved from https://afrigopay.com.ng
  4. Aikor, S., Ejem, C. A., & Nwoko, C. (2025). Cashless policy and SME performance in Nigeria: The gains, challenges and consequences for SMEs in Lagos State. Impact International Journals and Publications, 13(2), 88-104.
  5. Anagwu, V. K., Arachie, A. E., & Ifeanyi, T. T. (2026). Performance effect of mobile payment systems adoption: A study of small and medium enterprises. International Journal of Business and Management Research, 7(1), 214-232.
  6. Anyaeneh, V. K., & Nkamnebe, A. D. (2021). Mobile payment system adoption among the informal sector in Anambra State. Contemporary Marketing Research Journal, 8(1), 1–14.
  7. Aprisca, D. P., & Aligarh, F. (2024). Revolutionizing MSMEs: The impact of mobile payment readiness through TOE framework. Innovation, Technology, and Entrepreneurship Journal, 1(1), 28-41. https://doi.org/10.31603/itej.10657
  8. Arachie, A. E., Nzewi, H. N., Emejulu, G., & Kekeocha, M. E. (2020). Digital literacy in a post Coronavirus era: A management perspective for small businesses in Africa. Annals of Management and Organization Research, 1(3), 203-212. https://doi.org/10.35912/amor.v1i3.410
  9. Arachie, A. E., Dibua, E., & Idigo, P. (2023). Artificial Intelligence as a catalyst for the Sustainability of Small and Medium Scale Businesses (SMEs) in Nigeria. Annals of Management and Organization Research, 5(1), 1-11. https://doi.org/10.35912/amor.v5i1.1719
  10. Arum, O. M., Achi, A. D., & Ewuzie, C. O. (2024). Effect of the application of cashless policy on the sales performance of SMEs in Enugu Metropolis, Nigeria. International Journal of Multidisciplinary Research and Growth Evaluation, 5(5), 688-697. https://doi.org/10.54660/.IJMRGE.2024.5.5.688-696
  11. Aydın, G., & Burnaz, S. (2016). Adoption of mobile payment systems: A study on mobile wallets. Journal of Business, Economics and Finance, 5(1), 73-92. https://doi.org/10.17261/Pressacademia.2016116555
  12. Banda-Nyirenda, E., Seleka, G. G., Mwanza, C. C., & Phiri, T. (2024). A leapfrog to financial inclusion: The role of mobile money and digital financial services on financial inclusion and its implications for other developing economies. International Journal of Entrepreneurship and Business Development, 7(4), 1-10. https://doi.org/10.29138/ijebd.v7i4.2604
  13. Bhattacharya, S., & Bera, S. (2023). A PLS-SEM approach to investigate the effect of satisfaction on willingness to recommend m-wallet services. SAGE Open, 13(4), 1-15. https://doi.org/10.1177/09721509231202315
  14. Binitie, A. P., & Odetayo, B. J. (2024). Evaluating the privacy issues, potential risks, and security measures associated with using social media platforms. International Journal of African Research Sustainability Studies, 3(2), 105-120.
  15. Boden, J., Maier, E., & Wilken, R. (2020). The effect of credit card versus mobile payment on convenience and consumers’ willingness to pay. Journal of Retailing and Consumer Services, 52. https://doi.org/10.1016/j.jretconser.2019.101910
  16. Chatterjee, P. (2025). Innovative disruption in financial technology and payment systems. International Journal of Financial, Accounting, and Management, 7(2), 289-301. https://doi.org/10.35912/ijfam.v7i2.3133
  17. Chete, F. O., & Abandy, R. (2022). Integration of Unstructured Supplementary Service Data (USSD) into a University’s Portal. NIPES-Journal of Science and Technology Research, 4(4), 27-39. https://doi.org/10.5281/zenodo.7391237
  18. Chiejina, O. J., & Ike, R. C. (2025). Impact of mobile payments on financial inclusion in Nigeria. Journal of Applied Finance and Management, 11(2), 227-247. https://doi.org/10.56201/jafm.vol.11.no2.2025.pg227.247
  19. David, W. O., & Umukoro, I. O. (2019). Mobile money as a frugal innovation for the bottom of the pyramid: Cases of selected African countries. Africa Journal of Management, 5(3), 274–302. https://doi.org/10.1080/23322373.2019.1652023
  20. Ezenwa, P. I., & Okafor, C. N. (2024). Digital literacy and operational efficiency of SMEs in Anambra State, Nigeria. Journal of Scientific Research and Development, 11(1), 214-229.
  21. Ezeocha, C. M. (2024). Digitalized banking in a globalized World: A review of Nigeria’s digital banking transformation. African Journal of Management and Business Research, 16(1), 53-68. https://doi.org/10.62154/ajmbr.2024.016.010362
  22. Februadi, A., Firmansyah, Y., & Rafdinal, W. (2025). Adoption of Mobile Business Applications by MSMES: Integrating Application Quality, Toe Model and Diffusion of Innovation. Pakistan Journal of Life & Social Sciences, 23(1). https://doi.org/10.57239/PJLSS-2025-23.1.0010
  23. Gartner. (2023). Mobile Payment. Retrieved from https://www.gartner.com/en/information-technology/glossary/mobile-payment
  24. George, A., & Sunny, P. (2021). Developing a research model for mobile wallet adoption and usage. IIM Kozhikode Society & Management Review, 10(1), 82–98. https://doi.org/10.1177/2277975220965354
  25. Hitlar, I., Usman, I. C., & Ibrabim, A. J. (2025). Electronic payment system and the growth of small and medium-scale enterprises in Nigeria. International Journal of Advanced Economics, 7(2), 40-50. https://doi.org/10.51594/ijae.v7i2.1817
  26. Hoernig, S., & Bourreau, M. (2023). Mobile money, financial inclusion, and competition. Telecommunications Policy, 47(3).
  27. IGI Global. (2024). Business performance.Encyclopedia of Management and Organisation (3rd ed.). Retrieved from https://www.igi-global.com/dictionary/business-performance/12345
  28. ILO. (2003). Drivers of strong business performance in SMEs.ILO Publications. International Labour Organisation. Retrieved from https://www.ilo.org/public/libdoc/ilo/2003/103B09_401_engl.pdf
  29. Kafetzopoulos, P., Psomas, E., & Katou, A. A. (2023). Promoting strategic flexibility and business performance through organizational ambidexterity. Sustainability, 15(17), 12997. https://doi.org/10.3390/su151712997
  30. Kapoor, A.,Sindwani, R., & Goel, M. (2024). Mobile wallets: Theoretical and empirical analysis. Global Business Review, 25(2), 1-18. https://doi.org/10.1177/0972150920961254
  31. Karnouskos, S. (2004). Mobile payment: A journey through existing procedures and standardisation initiatives. IEEE Communications Surveys & Tutorials, 6(4), 44–66. https://doi.org/10.1109/COMST.2004.5342298
  32. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
  33. Lamoyero, Z., & Fajana, O. (2023). Exposed: Critical vulnerabilities in USSD banking authentication protocols. 2023 IEEE International Conference on Cyber Security and Resilience (CSR), 275-280. https://doi.org/10.1109/CSR57506.2023.10224933
  34. Ledi, K. K.,Ameza-Xemalordzo, E., Amoako, G. K., & Asamoah, B. (2023). Effect of QR code and mobile money on performance of SMEs in developing countries: The role of dynamic capabilities. Cogent Business & Management, 10(2), 1-19. https://doi.org/10.1080/23311975
  35. Lottu, O. A., Abdul, A. A.,Daraojimba, D. O., Alabi, A. M., John-Ladega, A. A., &Daraojimba, C. (2023). Digital transformation in banking: A review of Nigeria's journey to economic prosperity. International Journal of Advanced Economics, 5(8), 215-238. https://doi.org/10.51594/ijae.v5i8.572
  36. Mabaso, N. (2023). Digital Payments Adoption of Informal Small and Medium Enterprises in South Africa’s Township Economy (Doctoral dissertation). University of the Witwatersrand, Johannesburg.
  37. Mensah, N., & Adukpo, T. K. (2025). Financial technology and its effects on small and medium-scale enterprises in Ghana: An Explanatory Research. Asian Journal of Economics, Business and Accounting, 25(3), 268-284. https://doi.org/10.9734/ajeba/2025/v25i31709
  38. Mishra, V., Walsh, I., & Srivastava, A. (2024). Merchants’ adoption of mobile payment in emerging economies: The role of digital financial capabilities and perceived value. Information Systems Frontiers, 26, 1-8. https://doi.org/10.1080/0960085X.2021.1978338
  39. Mustafa, M. (2021). The technology of mobile banking and its impact on the financial growth during the COVID-19 pandemic in the Gulf region. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(9), 389-398.
  40. Nguyen, T. H. U. (2019). Consumer Intention to Adopt Mobile Wallet in Vietnam (Doctoral dissertation). Thammasat University, Bangkok.
  41. Nudurupati, S. S., Garengo, P., & Bititci, U. S. (2023). Impact of the changing business environment on performance measurement and management practices. International Journal of Production Economics, 232. https://doi.org/10.1016/j.ijpe.2020.107942
  42. Obidile, J. I., Ogukwe, C. D., & Opara, L. U. (2025). Influence of digital payment platforms on the growth of small and medium scale enterprises (SMEs) in Anambra State. American Journal of Business and Cooperative Research, 10(3), 1-11. https://doi.org/10.5281/zenodo.16038735
  43. Okoli, N., Nuel-Okoli, M., & Ibekwere, M. (2024). Innovation Practices: Catalyst for SMEs Performance in Anambra State, Nigeria. International Journal of Entrepreneurship and Project Management, 9(1), 1-17. https://doi.org/10.47604/ijepm.2248
  44. Owoeye, O. A. (2023). Towards a Framework for Improving Unstructured Supplementary Data Service (USSD) Technology Adoption for Digital Financial Services (Doctoral dissertation). University of the Western Cape, Cape Town.
  45. Paystack. (2025). Company Overview. Retrieved from https://en.wikipedia.org/wiki/Paystack
  46. Popa, I. C., & Luca, G. (2022). Digitisation of banking services before and after the pandemic. Finance - Challenges of the Future, 1(24), 163-173.
  47. Reuters. (2024). Moniepointraises $110 million, Becomes Nigeria’s Newest Unicorn. Retrieved from https://www.reuters.com
  48. Talom, F. S. G., & Tengeh, R. K. (2019). The impact of mobile money on the financial performance of the SMEs in Douala, Cameroon. Sustainability, 12(1), 183. https://doi.org/10.3390/su12010183
  49. Tanha, M., Dolon, M. M.A., Al-Amin, A., and Nadi, N. A., Islam, M. M., & Ali, M. H. (2024). Factors influencing the development of the cashless payment system: Comprehending the functions of the participants involved. Annals of Management and Organization Research, 5(4), 255-270. https://doi.org/10.35912/amor.v5i4.1959
  50. Thuy, V. T. T., Nhung, P. T. H., Oanh, L. T. T., & Hoa, N. T. K. (2023). Factors affecting business performance: Expanding theoretical measurements. International Journal of Professional Business Review, 8(5), 1-18. https://doi.org/10.26668/businessreview/2023.v8i5.2134
  51. Vation, J. K. (2024). Market Development and Business Growth in Emerging Economies. Cambridge: Cambridge Business School Press.
  52. Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed). New York: Harper & Row.
  53. Zahoor, N., Donbesuur, F., Nwoba, A. C., & Khan, H. (2023). Regional expansion of emerging market SMEs: The roles of domestic market environmental uncertainty and international alliance partner diversity. Asia Pacific Journal of Management, 40(2), 613-643. https://doi.org/10.1007/s10490-021-09799-1
  54. Zahra, S. A., Ireland, R. D., & Hitt, M. A. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925-950. https://doi.org/10.5465/1556420
  55. Ziegler, M., Weld, G., Tang, E., & Daum, M. (2022). Visualising USSD and IVR Usage Data with Icicle Charts. Proceedings of the 5th ACM SIGCAS/SIGCHI Conference on Computing and Sustainable Societies, 707-710. https://doi.org/10.1145/3530190.3542934

Authors

1 Peace Nkiru Nwakoby
Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
https://orcid.org/0000-0003-3402-3975
2 Victoria Kenechukwu Anagwu
Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
https://orcid.org/0009-0006-6410-904X
3 Blessing Obiageli Essell
Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
4 Augustine Ebuka Arachie
Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
https://orcid.org/0000-0002-4004-1830

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Downloads

View PDF

Statistics

Downloads

Download data is not yet available.

Issue

Vol. 8 No. 1 (2026): August
Section: Articles
WhatsApp Instagram Facebook LinkedIn Email