The economy of Ghana is seen to be adjusting itself gradually with the innovation of advanced systems of payments as a result of a steady rise in technology and this has made the economy very reactive to any new electronic payment system. Also for the above reason, competition is now getting very keen especially in the financial service industry of Ghana as to which electronic payment system or categories of payment systems best satisfies the desires of merchants and users. The purpose of this research is to investigate and analyse the strength of the E-Zwich payment system and determine its level of adoption amongst users and merchants in the financial service industry. Questionnaires administered to some banks, insurance companies and other players within the financial service industry enabled the researcher to ascertain information on the actual activity that goes on concerning the E-Zwich. Most merchants indicated their mistrust in the E-Zwich and rather preferred to champion their own traditional systems of electronic payments whiles other merchants believed that the penetration of the E-Zwich would be satisfactory if steps are put in place to efficiently manage it as any other reliable electronic payment system. Quantitatively, a convenience sampling approach was employed to ascertain certain responses from a total of 100 responses as questionnaires were administered. The study indicated that just a few of them have the card and this few represented mainly National Service personnel due to the compulsory nature of using the card indicating an overall low patronage of the E-Zwich card.
Table of Contents
1.0 Background of the Study
1.1 Statement of the Problem
1.2 Research Objectives
1.3 Research Questions
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Organisation of the Study
2.0 Introduction
2.1 Penetration of E-Zwich in Ghana
2.1.1 Measurement of E-Zwich Penetration Rate
2.2 The Financial Service Industry
2.2.1 E-zwich in the Banking and Finance Sector
2.2.2 E-Zwich in the Financial or Capital Markets
2.2.3 E-Zwich in the Insurance Companies
2.3 Electronic Payment Systems
2.3.1 Evolution of Electronic Payment Systems
2.3.2 Automated Teller Machines (ATM)
2.3.3 Credit Cards
2.3.4 Debit Instruments
2.3.5 Mobile Money Payment Systems
2.3.6 Telephone Banking
2.3.7 Internet Banking
2.4 Challenges of Adopting Electronic Payment Systems
2.5 Benefits of the Use of E-Zwich
2.6 Using E-zwich to enhance Financial Services
2.7 General Constraints that influences the E-Zwich
2.7.1 Security
2.7.2 Infrastructure
2.7.3 Legal and Regulatory Matters
2.7.4 Socio-Cultural Issues
2.8 Constraints on Merchants’ Use of E-Zwich
2.8.1 Migration Disincentive
2.8.2 Inadequate Proposition of Value
2.8.3 Merchants’ Degree of Economics
2.8.4 Insufficient Aggregate Demand of Customers
2.9 Constraints on Users/Customers’ use of E-Zwich
2.9.1 The Cash Tradition
2.9.2 Frequent Breakdown of E-Zwich Machine
2.9.3 Inaccessibility of Cash from POS Device
3.0 Introduction
3.1 Research Design
3.2 Population of the Study
3.3 Sample Size and Sampling Technique
3.4 Sources of Data
3.5 Data Collection Instruments
3.5.1 Interview
3.5.2 Interview Guide
3.5.3 Questionnaire
3.5.4 Documentary Research
3.5.5 Observations
3.6 Data Analysis
3.7 Validity and Reliability of Data
4.0 Introduction
4.1 Personal Statistics of Respondents
4.2 Shop and Merchants’ Responses on E-Zwich POS Availability
4.3 E-Zwich Card Usage
4.4 Frequency of Patronage as informed by Shop Owners and Merchants
4.5 Customers’ Demand to pay bills through E-Zwich Card
4.6 The Adoption of E-Zwich in the Financial Service Industry
4.7 E-Zwich’s Reliability and Convenience
4.8 Individuals’ Preferred Option of Electronic Payment Systems vis-à-vis E-Zwich
4.9 Constraints of the E-Zwich
4.10 General Assessment of the E-Zwich
5.0 Overview
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
Research Objectives and Themes
This thesis aims to assess the penetration rate of the E-Zwich payment system within the financial service industry in the Accra Metropolis. It specifically investigates the usage patterns among customers and merchants, identifies the challenges hindering the adoption of the system, and evaluates the relationship between stakeholders and the system's overall penetration.
- Electronic payment systems and digital financial transformation
- E-Zwich adoption in banking, insurance, and capital markets
- User and merchant constraints regarding electronic payments
- Biometric security and point-of-sale terminal accessibility
- Comparative analysis of alternative payment channels
Excerpt from the Book
1.0 Background of the Study
In some decades ago, people were seen to be exchanging goods for other similar goods and services for other similar services in payment of their transactions and these were the times when money was not in existence. This medium of trade was called the barter trade system, though well recognised, was not convenient due to certain disadvantages it had. Some of these disadvantages were the double coincidence of wants, difficulties in exchanging goods of bulky or large quantities and situations where goods or services lacked the ability of being properly divided to suit the particular goods or services rendered.
Due to necessity, the Bimetallism era evolved before 1875 where a free coinage was maintained for both silver and gold and then used as the medium of exchange. Several countries at the time such as USA, China, Germany and France all adopted the use of gold and silver as an international means of payment which was strictly reliant on the contents of gold or silver one had. After that period, countries also experienced a period known as the classical gold standard where gold was assured and known as an unrestricted coinage for payments of goods and services. In support of gold which began to gain a higher value prominence, notes then became fully recognised as it helped to resolve lots of financial service exchange problems such as paying for goods or services according to their value.
Obviously in Ghana, this evolution was not fully complete as people were known to be hiding their money in places that were not deemed at safe and in the long run, loosed their money in such events as of robbery or flood. Others also adopted the process of giving their money to individuals for safe keeping which was not the best as these people could either abscond with their money or in worst cases die along the line.
Summary of Chapters
CHAPTER ONE - INTRODUCTION: This chapter provides the foundation for the research, outlining the historical evolution of payment systems, the statement of the problem, and the specific objectives guiding the investigation.
CHAPTER TWO - LITERATURE REVIEW: This chapter reviews existing academic and professional literature regarding electronic payment systems, the specific functionalities of E-Zwich, and the theoretical challenges associated with its adoption in the financial sector.
CHAPTER THREE - RESEARCH METHODOLOGY: This chapter details the research design, the selection of the population and sample size, and the instruments used for data collection, including interviews and questionnaires.
CHAPTER FOUR - DATA ANALYSIS AND DISCUSSIONS: This chapter presents the empirical findings gathered from the field, utilizing tables and descriptive statistics to analyze respondent feedback on E-Zwich usage and reliability.
CHAPTER FIVE - SUMMARY, CONCLUSION AND RECOMMENDATIONS: This chapter synthesizes the main research findings and provides strategic recommendations for stakeholders to enhance the penetration and operational efficiency of E-Zwich.
Keywords
E-Zwich, Financial Service Industry, Accra Metropolis, Electronic Payment Systems, Cashless Economy, Biometric Verification, Point of Sale, Merchant Adoption, User Patronage, Payment Innovation, Banking Technology, Digital Finance, Financial Inclusion, Transaction Reliability.
Frequently Asked Questions
What is the primary focus of this thesis?
This work fundamentally examines the penetration rate of the E-Zwich payment system within the financial service industry, specifically focusing on its usage and acceptance among merchants and users in the Accra Metropolis.
What are the core thematic fields covered?
The study covers electronic payment systems, financial technology adoption, challenges in the Ghanaian financial sector, biometric-based security mechanisms, and consumer behavior regarding digital transactions.
What is the main objective of the research?
The primary goal is to determine the current level of E-Zwich penetration by assessing user ownership and usage frequency, while simultaneously investigating the specific challenges faced by industry players in the Accra Metropolis.
Which methodology was employed for this study?
The researcher utilized a descriptive research design, employing a convenience sampling technique to administer 100 questionnaires to merchants, shop owners, and other respondents, supplemented by interviews and documentary research.
What topics are discussed in the main body?
The main body covers the evolution of payment systems, a review of constraints affecting E-Zwich (such as security and infrastructure), detailed data analysis on card usage, and a thorough assessment of the system's perceived reliability by the public.
Which keywords define this research?
The study is best characterized by terms such as E-Zwich, Cashless Economy, Electronic Payment Systems, Merchant Adoption, Accra Metropolis, Financial Inclusion, and Biometric Verification.
Why is E-Zwich considered unique among payment systems in Ghana?
E-Zwich is unique because it uses a biometrically recognized indexing system where the account holder's fingerprints are captured on the card for security and identification, making it distinct from standard magnetic strip or chip-and-pin cards.
What major constraints to E-Zwich penetration are identified?
The research identifies several barriers, including customer ignorance of the system's benefits, frequent technical breakdowns of the POS devices, high setup costs for merchants, and a deep-rooted societal preference for physical cash.
- Arbeit zitieren
- Richard Asante (Autor:in), 2017, Penetration Rate of E-Zwich in the Financial Service Industry, München, GRIN Verlag, https://www.grin.com/document/426232
