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

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.