Effects of Digital Payment Systems on the Promotion of Business Activities in Rwanda. Case study of SIMBA (2018-2024)

Abstract

The study sought to examine the effects of digital payments system in promoting business activity in Rwanda. It was conducted explicitly at SIMBA Supermarket with the following specific objectives: to assess the digital payment systems used in SIMBA and to examine the effects of digital payments systems in promoting business activity in Rwanda The study has collected data through mixed approaches to achieve the above-stated objectives. Data were collected from 30 respondents who were employees of SIMBA and its customers and were selected purposively. Research indicated that 66.6% of the majority of the respondents have agreed that SIMBA uses mobile money in different financial services such as sending money, visiting the accounts and making payments of different services’. Secondly, 30% of the respondents also agreed that SIMBA uses internet banking or enables customers to make an electronic payment system to conduct a range of financial transactions through the financial institution’s website while 3.3 % of respondent were not sure. Furthermore, 50% of the respondents confirmed that SIMBA uses electronic cards such Visa cards, and ATM cards for different financial services to pay the services. At last 33.3% of the respondents also confirmed that SIMBA uses mobile banking as a system that allows its customers to conduct financial transactions remotely using mobile phones. The results indicated the effect of the digital payment system on promoting business activity in SIMBA as the most respondents at 66.6% agreed that digital payment system helped SIMBA to make streamlining transactions. Besides, 30% of respondents agreed that SIMBA digital payments system reduce cash. 50% 13 agreed that that SIMBA digital payments system handle the risks. Meanwhile, 33.3% agreed that digital payment system improve cash flow. 66.6% of the majority of the respondents agreed that digital payment system offer convenience for customers. . Furthermore, 56.6% of respondents agreed that SIMBA digital payment system increases sales. The researcher recommends the SIMBA Supermarket teach all its customers about all the services offered through digital payment systems because most customers are unaware of these services and to mobilize customers to use of digital payments systems because it is cost-effective