E-Payment Methods and E-Commerce Growth in Uganda: Evidence from Kampala - Uganda’s Central Business District

https://doi.org/10.35912/ijamis.v2i1.2565
Published: Jul 22, 2025

Abstract:

Purpose: The study assessed the effect of e-payment methods on the growth of e-commerce in Uganda, specifically focusing on the impact of e-wallets/e-cash, debit/credit cards, and money transfer services on e-commerce growth in Kampala.

Research/methodology: A cross-sectional design was used with a sample of 384 participants. Data were collected through structured questionnaires, cleaned, organized, and analyzed using SPSS, employing correlation and regression models for inferential analysis.

Results: The study found that e-payment methods, including debit/credit cards, money transfer services, and e-wallets/e-cash, positively and significantly associate with e-commerce growth. However, while debit/credit cards and money transfer services significantly predict e-commerce growth, e-wallets/e-cash have a positive but insignificant effect. Overall, e-payment methods account for 33.1% of the variation in e-commerce growth.

Conclusions: E-payment methods, especially debit/credit cards and money transfer services, significantly contribute to e-commerce growth in Kampala. E-wallets show a positive but insignificant effect. To achieve sustainable impact, further support is needed for e-payment adoption.

Limitations: The study focused on a limited range of e-payment methods, excluding others used in the sector, which affects generalizability. Additionally, only Kampala was studied, though other regions in Uganda also engage with e-payment systems. Kampala, as the central business hub, is a key area for innovations that spread to other cities.

Contribution:. E-payment systems significantly predict e-commerce growth. Key e-commerce players should encourage the use of e-payments to foster trade growth, as their adoption will help stimulate e-commerce activity.

Keywords:
1. E-commerce Growth
2. E-payments Systems
3. Developing Economies
4. Digital Payment Adoption
Authors:
1 . Martin Kasenge
Uganda Martyrs University, Nkozi, Uganda
2 . Arthur Butime
Easternand Southern African Management Institute, Arusha, Tanzania
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How to Cite
Kasenge, M., & Butime, A. . (2025). E-Payment Methods and E-Commerce Growth in Uganda: Evidence from Kampala - Uganda’s Central Business District. International Journal of Accounting and Management Information Systems, 2(1), 61–72. https://doi.org/10.35912/ijamis.v2i1.2565
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Issue & Section
Vol. 2 No. 1 (2024): February
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Aldaas, A. (2021). A Study on Electronic Payments and Economic Growth: Global Evidences. Accounting, 7(2), 409-414. doi:https://doi.org/10.5267/j.ac.2020.11.010

    Alnsour, I. R. (2022). Impact of Fintech Over Consumer Experience and Loyalty Intentions: An Empirical Study on Jordanian Islamic Banks. Cogent Business & Management, 9(1), 1-17. doi:https://doi.org/10.1080/23311975.2022.2141098

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    Oyelami, L. O., Adebiyi, S. O., & Adekunle, B. S. (2020). Electronic Payment Adoption and Consumers’ Spending Growth: Empirical Evidence from Nigeria. Future Business Journal, 6(1), 1-14. doi:https://doi.org/10.1186/s43093-020-00022-z

    Rao, P. H. N., Vihari, N. S., & Jabeen, S. S. (2021). Reimagining the Fashion Retail Industry Through the Implications of COVID-19 in the Gulf Cooperation Council (GCC) Countries. FIIB Business Review, 10(4), 327-338. doi:https://doi.org/10.1177/23197145211039580

    Turban, E., King, D., Lee, J. K., Liang, T.-P., & Turban, D. C. (2015). Electronic Commerce: A Managerial and Social Networks Perspective: Springer.

    Wahyudi, H., & Sumahir, G. N. (2020). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, and E-Commerce Transaction Volume on Economic Growth in Indonesia 2010Q1–2020Q4. Studi Ilmu Manajemen Dan Organisasi, 1(2), 153-165. doi:https://doi.org/10.35912/simo.v1i2.1416

    Xiang, X. (2021). Factors that Influence Consumers’ Behaviors in Fashion Market. Open journal of business and management, 9(6), 2772-2779. doi:https://doi.org/10.4236/ojbm.2021.96154

  1. Adam, I. O., Alhassan, M. D., & Afriyie, Y. (2020). What Drives Global B2C E-commerce? An Analysis of the Effect of ICT Access, Human Resource Development and Regulatory Environment. Technology Analysis & Strategic Management, 32(7), 835-850. doi:https://doi.org/10.1080/09537325.2020.1714579
  2. Ahmed, S., Ahmad, A., & Abid, G. (2024). Service for Sustainability and Overall Value for Money: Sequential Mediation of Customer-Generated Communication on Social Media and Perceived Value. Journal of Hospitality and Tourism Insights, 8(3), 1114-1132. doi:https://doi.org/10.1108/JHTI-02-2024-0187
  3. Albashrawi, M. (2021). Intention to Adopt E-Commerce: A Comparative Review Across Developed and Developing Economies. The African Journal of Information Systems, 13(1), 6.
  4. Aldaas, A. (2021). A Study on Electronic Payments and Economic Growth: Global Evidences. Accounting, 7(2), 409-414. doi:https://doi.org/10.5267/j.ac.2020.11.010
  5. Alnsour, I. R. (2022). Impact of Fintech Over Consumer Experience and Loyalty Intentions: An Empirical Study on Jordanian Islamic Banks. Cogent Business & Management, 9(1), 1-17. doi:https://doi.org/10.1080/23311975.2022.2141098
  6. Amofah, D. O., & Chai, J. (2022). Sustaining Consumer E-Commerce Adoption in Sub-Saharan Africa: Do Trust and Payment Method Matter? Sustainability, 14(14), 1-20. doi:https://doi.org/10.3390/su14148466
  7. Broome, P. A. (2016). Conceptualizing the Foundations of a Regional E-Commerce Strategy: Open Networks or Closed Regimes? The Case Of CARICOM. Cogent Business & Management, 3(1), 1-32. doi:https://doi.org/10.1080/23311975.2016.1139441
  8. Charan, J., & Biswas, T. (2013). How to Calculate Sample Size for Different Study Designs in Medical Research? Indian journal of psychological medicine, 35(2), 121-126. doi:https://doi.org/10.4103/0253-7176.116232
  9. Coffie, M., Nunoo, J., Karakara, A. A.-W., Opoku, A., & Boahen, E. A. (2024). Mobile Money Regulation and Financial Behaviours of Rural Population: Evidence from sub-Saharan Africa Financial Inclusion and Sustainable Rural Development (pp. 485-508): Springer.
  10. Datsko, E. (2019). Successful Factors and Barriers for E-Commerce Business Within Fashion Industry.
  11. Fletcher, R. H., Fletcher, S. W., & Fletcher, G. S. (2012). Clinical Epidemiology: The Essentials: Lippincott Williams & Wilkins.
  12. Ghosh, G. (2021). Adoption of Digital Payment System By Consumer: A Review of Literature. International Journal of Creative Research Thoughts, 9(2), 2320-2882.
  13. Hartanto, S. (2020). Addressing the Tax Challenges of E-Commerce Transactions. International Journal of Financial, Accounting, and Management., 2(1), 29-39. doi:https://doi.org/10.35912/ijfam.v2i1.162
  14. Hoang, D. P., & Vu, T. H. (2020). Debit Card Usage as a Rational Choice: The Moderating Effect of Cash Habit. Journal of Economic Development, 45(1), 159-183.
  15. Høgevold, N. M., Rodriguez, R., Svensson, G., & Roberts-Lombard, M. (2022). Validating the Sequential Logic of Quality Constructs in Seller-Customer Business Relationships–Antecedents, Mediator and Outcomes. Journal of Business-to-Business Marketing, 29(1), 43-67. doi:https://doi.org/10.1080/1051712X.2022.2039480
  16. Kadaba, D. M. K., Aithal, P., & KRS, S. (2023). Impact of Digital Financial Inclusion (DFI) Initiatives on the Self-Help Group: For Sustainable Development. International Journal of Management, Technology, and Social Sciences (IJMTS), 8(4), 20-39. doi:https://doi.org/10.2139/ssrn.4674709
  17. Kotei-Sass, N. N. (2019). Mobile Money Services and Growth of Small and Medium Scale Enterprises: SMEs in Ledzokuku, La Dade Kotopon And Kpone Katamanso Municipalities. University of Ghana.
  18. Lee, Y. Y., Gan, C. L., & Liew, T. W. (2022). Do E-Wallets Trigger Impulse Purchases? An Analysis of Malaysian Gen-Y and Gen-Z Consumers. Journal of Marketing Analytics, 11(2), 244-261. doi:https://doi.org/10.1057/s41270-022-00164-9
  19. Mishra, A. K. (2023). Payment Banks in India: Review and Research Agenda. Management Dynamics, 23(2), 214-222. doi:https://doi.org/10.57198/2583-4932.1326
  20. Oney, E., Guven, G. O., & Rizvi, W. H. (2017). The Determinants of Electronic Payment Systems Usage from Consumers’ Perspective. Economic research-Ekonomska istraživanja, 30(1), 394-415. doi:https://doi.org/10.1080/1331677x.2017.1305791
  21. Oyelami, L. O., Adebiyi, S. O., & Adekunle, B. S. (2020). Electronic Payment Adoption and Consumers’ Spending Growth: Empirical Evidence from Nigeria. Future Business Journal, 6(1), 1-14. doi:https://doi.org/10.1186/s43093-020-00022-z
  22. Rao, P. H. N., Vihari, N. S., & Jabeen, S. S. (2021). Reimagining the Fashion Retail Industry Through the Implications of COVID-19 in the Gulf Cooperation Council (GCC) Countries. FIIB Business Review, 10(4), 327-338. doi:https://doi.org/10.1177/23197145211039580
  23. Turban, E., King, D., Lee, J. K., Liang, T.-P., & Turban, D. C. (2015). Electronic Commerce: A Managerial and Social Networks Perspective: Springer.
  24. Wahyudi, H., & Sumahir, G. N. (2020). The Effect of Research and Development (R&D) Investment, E-Commerce Company Employee, and E-Commerce Transaction Volume on Economic Growth in Indonesia 2010Q1–2020Q4. Studi Ilmu Manajemen Dan Organisasi, 1(2), 153-165. doi:https://doi.org/10.35912/simo.v1i2.1416
  25. Xiang, X. (2021). Factors that Influence Consumers’ Behaviors in Fashion Market. Open journal of business and management, 9(6), 2772-2779. doi:https://doi.org/10.4236/ojbm.2021.96154