1

DECLARATION A
I, MAZIRUNGU Merci do declare that this dissertation is my own work. To the best of my
knowledge, I have acknowledged all authors or sources where I got information. I further declare
that this work has not been submitted to any other university or institution for the award of a
degree or any of its equivalents.

Signature………………………… Date.............................................
 2

DECLARATION B
I, UMUHOZA Soleil hereby declare that this research report is entirely my own work. It has
never been submitted before by any person to any University for award of any degree.
Furthermore, this is my own work to the fulfillment of the bachelor’s Degree in Accounting.

Signature: …………………………..

Date……………………………………
 3

APPROVAL
This is to certify that this dissertation has been under my supervision and was submitted with my
approval.

Supervisor: Lecturer KARARA ALEXIS

Signature.................................................. Date…………………………………….
 4

DEDICATION A
To the Almighty God for the gift of life, love and protection,

To our beloved parents and the whole family,

To ULK staff,

To our friends for moral support,

To the government of Rwanda,

We dedicate this work.

MAZIRUNGU Merci
 5

DEDICATION B
To the Almighty God for the gift of life, love and protection,

To our beloved parents and the whole family,

To ULK staff,

To our friends for moral support,

To the government of Rwanda,

We dedicate this work.

UMUHOZA Soleil
 6

ACKNOWLEDGEMENT A
First of all I would like to thank the Almighty God Who gave me the courage, health, and energy
to accomplish my work in due time and without Whose help this study which required untiring
efforts would have not been possible to complete within the time limits.

I would like to thank the government of Rwanda for the empowerment of education. I am also
deeply grateful to the founder and President of Kigali independent university ULK, Prof Dr
RWIGAMBA Balinda who provided efficient academic advice during my study

It is a matter of utmost pleasure for me to extend my gratitude and give due credit to my
supervisor Lecturer KARARA Alexis whose support has always been there in need of time and
who provided me with all these key elements to complete my dissertation within the time frame.

I am forever grateful and would like to extend my heartfelt thanks to Seba N Osee family,
Munyamahoro Richard and Nkurunziza Emile family as my parents for parenting and investing
generously on my education and give me the chance to get here and pray for my health and
successful completion of my dissertation within time limits. I thank you for everything you have
done for me!

Finally, I also wish to extend my gratitude and special thanks to all the Academic staffs of
Accounting Department and other departments at Kigali independent university, for their
valuable coaching and insights throughout my courses.

MAZIRUNGU Merci
 7

ACKNOWLEDGEMENT B
The accomplishment of a dissertation requires great assistance; therefore, thanks are tendered to
the following people for the abundant assistance freely given during the writing of this
dissertation.

First of all I would like to thank the Almighty God Who gave me the courage, health, and energy
to accomplish my work in due time and without Whose help this study which required untiring
efforts would have not been possible to complete within the time limits.

I am deeply grateful to the founder and President of Kigali Independent University ULK, Prof Dr
RWIGAMBA Balinda who provided efficient academic advice during my study

It is a matter of utmost pleasure for me to extend my gratitude and give due credit to my
supervisor Lecturer KARARA Alexis whose support has always been there in need of time and
who provided me with all these key elements to complete my dissertation within the time frame.

I am forever grateful and would like to extend my heartfelt thanks to MUFUNGA family, FELIX
family and PHILIPPE family for parenting and investing generously on my education and give
me the chance to get here and pray for my health and successful completion of my dissertation
within time limits. I thank you for everything you have done for me!

Finally, I also wish to extend my gratitude and special thanks to all the Academic staffs of
Accounting and insights throughout my courses.

UMUHOZA Soleil
 8

ACRONOMYS AND ABBREVIATIONS

ICT: Information and communication technology
IDC: Diners club international
POS: point of sales
ATM: Automated Teller Machines
B2B: business to business
B2C: business to consumer
C2C: consumer to consumer
SMEs: small and medium enterprises
OTP: one time password
PIN: person identification
EPS: electronic payment system
ACH: automatic clearing house
EAP: electronic account payment
VCN: virtual card number
CVN: card verification number
SA: strong agree
A: agree
SD: strong disagree
D: disagree
N: neutral
 9

Catalog
DECLARATION A...........................................................................................................................................1
DECLARATION B...........................................................................................................................................2
APPROVAL...................................................................................................................................................3
DEDICATION A.............................................................................................................................................3
DEDICATION B.............................................................................................................................................5
ACKNOWLEDGEMENT A..............................................................................................................................6
ACKNOWLEDGEMENT B..............................................................................................................................7
ACRONOMYS AND ABBREVIATIONS............................................................................................................8
GENERAL INTRODUCTION.........................................................................................................................11
I.BACKGROUND OF THE STUDY.............................................................................................................11
II. Statement of the Problem.................................................................................................................15
III.RESEARCH QUESTION........................................................................................................................15
IV. Objectives of Study...........................................................................................................................16
General Objective..................................................................................................................................16
Specific Objectives...........................................................................................................................16
V. Hypotheses........................................................................................................................................16
VI. Scope of the study............................................................................................................................16
VI.1. in domain..................................................................................................................................16
VI.2. in Time.......................................................................................................................................16
VI.3.In Space......................................................................................................................................16
VII. SIGNIFICANCE TO STUDY.................................................................................................................16
CHAP1: LITERATURE REVIEW.....................................................................................................................18
1.0. INTRODUCTION..............................................................................................................................18
II. CONCEPTUAL REVIEW.......................................................................................................................20
1.2.0. Electronic payment.................................................................................................................20
1.2.1. Customer.................................................................................................................................21
1.2.2. Customer satisfaction.............................................................................................................21
III. THEORIES REVIEW............................................................................................................................21
1.3.0. Electronic payment system.....................................................................................................21
1.3.2.0. Objectives of electronic payment system...........................................................................23
1.3.3.0. What are the different types of e-commerce payment systems?....................................................26
 10

1.3.3.0. The different types of e-commerce payments in use today...............................................27

Types of customers................................................................................................................................30
1.3.5.2. Impulse customers................................................................................................................31
4. Insistent customers........................................................................................................................32
IV. Review of related literature..............................................................................................................35
CHAPII.RESEARCH METHODOLOGY...........................................................................................................38
2.0. INTRODUCTION..............................................................................................................................38
2.1. Research Designs............................................................................................................................38
2.3. The population study......................................................................................................................39
2.4.0. SAMPLING TECHNIQUE AND SAMPLE SIZE..................................................................................39
SAMPLE SIZE......................................................................................................................................39
2.5.0. DATA COLLECTION TECHNIQUES AND TOOLS..............................................................................39
SOURCE OF DATA..............................................................................................................................39
2.5.1. Primary data............................................................................................................................40
2.5.2. Secondary data.......................................................................................................................40
2.5.3. Data collection techniques.....................................................................................................40
2.5.4. Questionnaire technique........................................................................................................40
2.5.5..Interview technique................................................................................................................40
2.5.6. Sampling technique................................................................................................................41
2.5.7. Data process............................................................................................................................41
2.5.7.1. Editing..................................................................................................................................41
2.5.7.2. Coding..................................................................................................................................41
2.5.7.3. Tabulation............................................................................................................................41
2.6.0. Methods of data analysis........................................................................................................41
2.7.0. Validity and reliability of the research...................................................................................42
2.8. Limitations.................................................................................................................................44
2.9. Ethical consideration..................................................................................................................44
CHAP III. PRESENTATION OF THE FINDING................................................................................................45
3.1. Identification of respondents.........................................................................................................45
3.1.1. Age structure of the respondents................................................................................................45
3.1.3. Education of the respondents................................................................................................46
3.3. The contribution of electronic payment system to the customer satisfaction...............................51
3.4. Measure customer satisfaction in 5 ways.......................................................................................51
 11

3.4.1. Customer surveys....................................................................................................................51

Table8. Show the contribution of electronic payment on customer satisfaction..................................52
3.4.2. Focus groups and advisory boards.........................................................................................55
3.4.3. Social media............................................................................................................................55
Source: primary source...................................................................................................................56
3.3.5. Churn rate...............................................................................................................................56
Source: primary source...................................................................................................................57
3.4. GENERAL CONCLUSION AND RECOMMENDATIONS.......................................................................57
3.5. Suggestions to Boulangere ET alimentation de gisenyi ltd.............................................................59
3.6. Recommendations for further researchers....................................................................................59
 12

GENERAL INTRODUCTION
I.BACKGROUND OF THE STUDY
The birth of information and communication technology (ICT) as a result of the merging of
computer science and telecommunication engineering, brought about the dramatic changes in the
way business is conducted in order to compete in the global market place and this trend has
spread throughout the globe (Schneider, 2011). The combination of traditional commerce and the
Internet, providing opportunities for business or organizations to develop new business models to
take advantages of globalization is known as electronic commerce or e-commerce.
Although the idea of using electronic payment systems originated many decades ago, where
efforts for the proposal of the use of prepaid cards for settlements and the handling of
transactions through the use of prepaid cards, this idea didn’t kick off right away even though
there were various attempts to utilize the idea of cards for payments as a principle of the idea of
electronic money and payments (Moreton, 2011).
In the early 20th century, the Diners Club International (IDC) issued its first electronic payment
card known as the Diners Club card. A few years after, a coalition of banks in the United States
of America and subsequently various other banks joined together and issued the first universal
payment card which is now known as VISA. As a competitor to VISA some majors banks in
California, USA started to issue what is now known as MasterCard and what eventually followed
is the development of appropriate information technologies applicable in the banking industry
(E-Money, 2013).
In the 2013 Rwanda ICT Sector Profile, this can be seen for Rwanda through the utilization of
Points of Sales (POS) where statistics show that value of transaction through POS grew
exponentially in 2013 reaching close to 18billion Rwandan francs (RWF) and in 2012 it stood at
8.5billion RWF.A trend can be observed on the increased preferred choice of payment in
electronic payments over cash while conducting business in Rwanda.
There are different methods of online payment which are identified according to the parties
involved, the major four types of e-Commerce are as follows; Business to Business (B2B); in
this type of e-commerce, two different businesses exchange information electronically between
each other (Chaffey, 2002). In this category, companies who do business with other companies
like suppliers and retailers, manufacturers and distributor all fall under this. Business to
Consumer (B2C); in this type of ecommerce, it involves the business transactions between
organizations and consumers (Chaffey, 2002).Consumer to consumer (C2C); in this type of e-
 13

commerce, it involves business transactions between two different consumers on a dedicated

website which specializes in online auctions where buyers can also be sellers and the vice-versa
(Chaffey, 2002).Consumer to Business (C2B); in this type of ecommerce, it involves situations
where the consumer makes online transactions from a business. This can be done with businesses
which specialize in providing consumers with discount or sales information regarding all
available services in a particular area or for a particular product (Chaffey, 2002).
So e-commerce involves the movement of real money from the person who pays through the
issuer and the acquirer and then to the person accepting payment (Kalinga, 2010). There are
other models of electronic payment systems, but for the purpose of this study the researcher
looked at Credit cards and Debit cards.
Credit Cards: with credit card payment systems, the account of the person receiving the payment
is credited with the amount of sales before the account of the person making the payment is
debited (Chaffey, 2002). They are also known as ‘pay-later’ systems.
Debit Cards; with debit cards, the account of the person paying is directly debited upon payment
using the card. This is same system through which Automated Teller Machines (ATM) operate.
When debit card holders use their cards, the amount is directly charged to the funds in their
account. The shift from cash to electronic payments can dramatically reduce costs for
governments, the development community, the private sector, and recipients. A recent report by
the World Bank found that governments can save up to 75 percent with electronic payment
programs (World Bank, 2012). Electronic payments can eliminate the handling, transportation
and distribution fees associated with cash based payments and also can eliminate the risk of
fraud and theft, which is a persistent challenge of both in-kind and cash distributions. Security:
The security of data and information is very important in all systems built to relay such
information. When it comes to Electronic payment systems, it is paramount that all information
and data relayed through are safeguarded against unauthorized access and easy modifications and
of course the system has to be available upon request by the authorized user.
Technological Infrastructure: Proper and modern Infrastructure is crucial for the successful
implementation of electronic payments systems as well as it is a challenge too. This type of
infrastructure has to be cost effective to the entity establishing it, and then reliable and accessible
to the users. The type of infrastructure used for electronic payment systems is built and based on
a network which can be a computer or mobile network and most cases both. A network that links
 14

banks and other financial institutions for clearing and payment confirmation is a requirement for
electronic payment systems (Taddesse&Kidan, 2005). The level of penetration of these networks
limits the development and progress of e-Commerce in general.
There is the need for national regulatory and legal framework that is in alignment with regional
and international standards is very important in creating a trustworthy and business friendly
environment (Taddesse&Kidan, 2005). Social and Cultural influences: Cultural and historical
differences in attitudes and the use of different forms of money (e.g. use of credit card in North
America and use of debit cards in Europe) complicate the task of developing an electronic
payment system that is applicable at international level (Taddesse&Kidan, 2005).
Through the introduction and usage of social media platforms such as Facebook, Twitter,
Instagram accessible through smart phones and interactive devices, the exposure and awareness
on the possibilities of online payments are becoming more evident for their regular users and this
is leading to the increased demand for such services (Idisemi, 2011). Lack of such services for
online users could lead to a decline or loss of customers and the introduction to these kind of
payment options could spur the local tech-scene into the building of local systems hence an
increase in experienced human resource. According to Petrakis (2012), in the role of
interpersonal trust and knowledge in the number of small and medium enterprises, they conclude
that knowledge positively affects the number of SMEs, which in turn, positively affects
interpersonal trust. From the SMEs toolkit.(Ministry of Commerce. Rwanda, 2010) in Rwanda,
Small and Medium enterprises can be defined as; Small
Enterprises: enterprises in this category have0.5 to 15
Million (RWF) net capital investments, 0.3 to 12 Million
(RWF) Annual turn-over and 4 to 30 employees. Medium
Enterprises: enterprises in this category have 15 to 75 Million (RWF), net capital investments, 12
to 50 Million (RWF) annual turn-over and 31 to 100 employees.
This has led to the creation of mobile money payments platforms and such examples include the
M-Pesa which was first heard of in Kenya and initiated by Safaricom which is one of the leading
mobile phone network operators in the sub-Saharan region. Statistics show that over 85% of
Kenyans use the M-Pesa system daily and by 2013 this amounts to 677,205,000,000 Kenyan
Shillings (KShs) in total which shows a rapidly growing increase in the usage for various
 15

activities which include transfers, withdrawals, deposits and person-to-person payments

(Safaricom, 2014).
There are various developments globally when it comes to electronic payment systems of which
there are very few innovations generally in Africa which could include; credit and debit cards
and ATMs, digital cash, electronic cheques, and electronic wallets. A report from the Rwanda
Ministry of Youth and ICT (MYICT) indicates that the volume of ATM transactions have
increased from 1,976,376 in 2011 to 7,774,053 in 2013 and the value of ATM transactions (In
million RWF), increased from 122,536 in 2011 to 260,585 in 2013 (Ministry of Youth and
Information Communication and Technology. Rwanda, 2013). And the type of cards used for
ATM transactions are mainly debit cards which are issued by a majority of the banks here in
Rwanda.
According to statistics from the National Bank of Rwanda, the majority of card holders in
Rwanda have debit cards that are issued through R-Switch which is the National Electronic
payment switch responsible for enabling electronic payment settlements but the local banks are
only offering credit cards built on foreign platforms and networks which are the only ones with
the capabilities to work on the available online payment platforms (National Bank of Rwanda,
2014).
R-Switch functions on a local network used mainly for its ATM transactions for direct
withdrawals, but this same network can be used to build upon local electronic payment systems
which will in turn enable local SMEs to be able to incorporate alternative and attainable payment
options for local customers.
II. Statement of the Problem
Statement of the Problem Digital Payment is a financial exchange that takes place online
between buyers and sellers. The content of this exchange is usually some form of digital
financial instrument (such as encrypted credit card numbers, digital cheque or digital cash) that is
backed by a bank or an intermediary, or by a legal tender. E-payment system in India, has shown
tremendous growth, but still there has lot to be done to increase its usage. Still 90% of the
transactions are cash based. So, there is a need to widen the scope of digital payment. Innovation,
incentive, customer convenience and legal framework are the four factors which contribute to
strengthen the E-payment system. Studies show that Kerala has 96.97% literacy rate but has this
helped in improvement of digital payments and similar transactions. The aim of this study is to
 16

explore the problems, challenges and perception of digital payment system. The study also
focuses on the different modes of digital payment system is most preferred by the customers as
an easy payment mechanism.
III.RESEARCH QUESTION
1. How is electronic payment system conducted in Boulangere et alimentation de gisenyi ltd?
2. Is there a impact of electronic payment system to the customer satisfaction?
IV. Objectives of Study
General Objective
Impact of electronic payment system on customer satisfaction in SMEs (small and medium
enterprise) case study Boulangere et alimentation de gisenyi ltd
Specific Objectives
Specifically, this study sought;
1. To access how electronic payment system is conducted in SMEs
2. To access the contribution of electronic payment system to the customer satisfaction
V. Hypotheses
1. Electronic payment system is effectively conducted in Boulangere et alimentation de gisenyi ltd
2. Electronic payment system impact positively to the customer satisfaction
VI. Scope of the study
Our research was limited in three areas in (domain time space) as the following
VI.1. in domain
We choose electronic payment because it is our domain of accounting and especially cover the
matter related to impact of electronic payment system on customer satisfaction and we also cover
it in course of money and banking
VI.2. in Time
This research covered a period of three years from 2019 to 2021.
VI.3.In Space
This research conducted in Boulangere et alimentation de gisenyi ltd. The researcher prefer this
area because in SMEs is one of business using electronic payment
 17

VII. SIGNIFICANCE TO STUDY

This study was to highlight the need for a change in the current methods of online payments so
as to encourage the establishment and use of debit cards which work on local Electronic payment
platforms. The study worked on highlighting this need for a change by looking at how factors
regarding social and cultural, technological, regulatory and legal frameworks and security
influences affecting existing in methods of operation of electronic payment systems for online
transactions. The study aimed at looking into how this strategy would be helping to foster the
socio-economic empowerment of the Rwandan SMEs and its citizens through attainable
resources for online businesses. The study also provided more viable options for the ordinary
Rwandan consumers who would rather use local payment systems as opposed to foreign
payment systems which come with unreachable conditions.
18
 19

CHAP1: LITERATURE REVIEW

1.0. INTRODUCTION
Electronic payment system is a form of financial commitment that involves the buyer and the
seller facilitated via the use of electronic communications. Also, Briggs and Brooks (2011) sees
e-payment as a form of inter-connections between organizations and individuals aided by banks
and inter-switch houses that enables monetary exchange electronically. The emergence of
Information and Communication Technology (ICT) had completely changed the lives and
operations of individuals and organizations respectively. ICT and Digital technologies had made
great evolutionary development in finance, economics, operational costs (Slozko&Pello, 2015)
and enhanced organizational performance (Ali, 2010). The era of ICT and digital innovations has
come along with a dynamic change in the world business environment, whereby business
transactions are constantly shifting from cash-based transactions to electronic-based ones
(Mohamed, Haroon, &Najiran, 2009). Also, the global proliferation of the internet and its rapid
use over the years had contributed much in facilitating electronic commerce in global business
environment (Fernandes, 2013).
Consequently, as transactions among business partners continue to proffer on the e-commerce
platform, an electronic payment solution emerged to replace the former cash-based payment
systems (Dennis, 2004). The advent of this development in the global business environment
challenged most organizations to automatically switch from the conventional paper-based money
transactions to an electronic payment system which is widely known as the e-payment system.
Generally, electronic payment can be defined as a platform used in making payments for
goods/services purchased online through the use of internet (Roy & Sinha, 2014). Subsequently,
with the introduction of e-payment system, the world payment system turned out to align with
the current trend of cashless transactions among individuals, businesses and governments (Odi&
Richard, 2013). As a result of this, the world payments system is gradually changing from coins
and paper based money to electronic forms that provide more convenient, fast and secured
process of making payments among individual and organizations (Premchand& Choudhry,
2015). Similarly, the global annual non-cash transactions being facilitated by e-payment and
mobile payment (m-payment) had been on the increase over the years, except for 2012 where it
decelerates from an annual growth rate of 8.6% in 2011 down to 7.7% in 2012 (World Payment
Report, 2014).
 20

E-payment systems are important mechanisms used by individual and organizations as a secured
and convenient way of making payments over the internet and at the same time a gateway to
technological advancement in the field of world economy (Slozko&Pello, 2015). In addition, it
has also become
The major facilitating engine in e-commerce through which electronic business success relied
upon. Electronic payment system had also brought about efficiency, fraud reduction and
innovativeness in the world payment system (Oladeji, 2014).
Furthermore, e-payment system tends to bring many electronic modes of payments through
which financial institutions offer different e-payment opportunities and services to their
customers such as the credit cards, debit cards, on-line banking and mobile banking
(Premchand& Choudhry, 2015). As a result, the adoption of e-payment technology is ever
increasing in today’s business environment (Balogun, 2012) and public sector establishments
(Kaliannan&Awang, 2010; Hussein, Mohamed, Ahlan, & Mahmud 2010; Gil-Garcia & Luna-
Reyes, 2003). However, despite all these benefits associated with e-payment, adequate ICT
know-how among users and fear of security breach remain the most concern of individuals,
organizations and experts in the field of information system (Khairun& Yasmin, 2010).
However, much empirical studies had been conducted on e-payment systems with the aim of
investigating factors that influence its use and adoption. In view of this, this aim of this paper is
to review the findings from such previous studies and to suggest directions for further research in
that field.
The main sections of the paper will discuss the various definitions of e-payment, types, and its
brief historical development. Last sections of this paper provides an analysis of various empirical
studies conducted on e-payment adoption around the globe based on critical issues ranging from
methods used, adapted models, and scope with a view to recommend areas that need further
research.
 21

II. CONCEPTUAL REVIEW

1.2.0. Electronic payment
In the last two decades, electronic payment systems (EPS) have attracted much attention from
researchers and information system designers due to their vital role in modern electronic
commerce.
This led to wide and in-depth researches that produced different perspectives on e-payment
definitions among others. These definitions were mainly viewed from different perspectives
ranging from scholars in the field of accounting and finance, business technology to those in
information systems. For instance, Dennis (2004) defines e-payment system as a form of
financial commitment that involves the buyer and the seller facilitated via the use of electronic
communications. Also, Briggs and Brooks (2011) sees e-payment as a form of inter-connections
between organizations and individuals aided by banks and inter-switch houses that enables
monetary exchange electronically.
In another perspective, Peter and Babatunde (2012) viewed e-payment system as any form of
fund transfer via the internet. Similarly, according to Adeoti and Osotimehin (2012), electronic
payment system refers to an electronic means of making payments for goods and services
procured online or in supermarkets and shopping malls. Another definition suggests that e-
payment systems are payments made in electronic commerce environment in the form of money
exchange through electronic means (Kaur & Pathak, 2015).
Furthermore, Kalakota and Whinston (1997), sees electronic payment as a financial exchange
that takes place online between the seller and the buyer. Moreover, Humphrey and Hancock
(1997) are in the opinion that electronic payments refer to cash and associated transactions
implemented using electronic means. E-payment is also defined as payment by electronic
transfer of credit card details, direct credit or other electronic means other than payment by
cheque and cash (Agimo, 2004).
Antwi, Hamza, and Bavoh (2015) defined e-payment as a payer’s transfer of a monetary claim
on a party acceptable to the beneficially. Lin and Nguyen (2001) define e-payment as payments
made via the automated clearing house, commercial card systems and electronic transfers. Shon
and Swatman (1998) define e-payment as any exchange of funds initiated via an electronic
communication channel. Gans and Scheelings (1999) define e-payment as payments made
through electronic signals linked directly to deposit or credit accounts. Hord (2005) also sees e-
payment as any kind of non-cash payment that does not involve a paper cheque.
 22

Also, Teoh, Chong, Lin, and Chua (2013) viewed e-payment as any transfer of an electronic
value of payment from a payer to payee through an e-payment channel that allows customers to
remotely access and manage their bank accounts and transactions over an electronic network. In
a nutshell, going by the above definitions, e-payment system can simply be defined as a
collection of components and processes that enables two or more parties to transact and
exchange monetary value via electronic means.
1.2.1. Customer
In sales, commerce and economics customer is the recipient of a good, service, product or any
idea obtained from a seller, vender or supplier via a financial transaction or exchange for money
or some other valuable consideration.
1.2.2. Customer satisfaction
Is term frequently used in marketing? It is a measure of how products and services supplied by a
company meet or surpass customer expectation. The customer satisfaction is defined as the
number of a customer or percentage of total customer whose reported experience with firm, its
products, and services (rating) exceeds specified satisfaction goal.
III. THEORIES REVIEW
1.3.0. Electronic payment system

1.3.1. important of electronic payment system

Electronic payment is becoming a seamless, fast and simple way for making payments. But
many businesses still not accepted electronic payments because they do not know much about it.
In this blog, we will discuss with you the advantages of electronic payments and also show you
how it can be best for your business.
Every business needs to maintain a higher cash flow for operation smoothly that is why many
business have started inclining towards accepting their payments electronically. Electronic
payment systems can help business to save their time and money. With electronic payments, you
can process your payments speedily.
The electronic payment systems will also allow you to make cash applications instantly and let
you reconcile your financial records with great accuracy. This will eliminate your accounting
errors and help you to keep your records more clear. But the advantages of using an electronic
solution for payment are not just limited to this, here are some essential benefits of electronic
payment:
 23

1.3.1.1. Instant payment

Electronic payment is much faster than traditional methods of payments such as cash or cheques.
In this case of online payments, you do not have any constraint of time or location. You can
easily make payments at anytime from anywhere across the globe. E-payment have eliminated
the need for going to the banks to make payments. Now your customer do not to waste their time
standing in the long lines at banks. They can easily pay you by using an electronic payment.

1.3.1.2. Higher payment security

Despite its robust features, electronic payments system has not become so popular among the
merchants. They are still using the same old methods for accepting payments. Due to which, they
are missing out the opportunity for serving more customer.
Electronic payment systems offer you multiple ways of securing your payments such a
tokenization, encryption, SSL etc. now your customers do not have to enter their card details
every time as they can save their card details or complete their transactions by using a one-time
password.
1.3.1.3. Better customer convenience
Electronic payment can help you to provide convenient payment experience to your customers. It
allows your customer to purchase goods on credit by offering them with the pay later facility.
Instead of sending constant reminders for payment to your customers, you can automatically
collect money offer after specific period.

1.3.1.4. Saves processing costs

If you want to provide payment services to your customer then you first need to tie up with a
card processor. The processor will provide you with payment gateway for processing and in
exchange, it will charge a fixed cost from you. This cost is very high. On other hand, if you are
using an electronic payment system in your business then you do not have to pay fixed
subscription to your service provider.

1.3.1..5.Low risk of theft

The phrase “cash is the king” is popular in the business world, but the king has also had some
limitations. If you are using cash for accepting payments from customers, chances are there it
can be stolen. Also, you need to take high safety measures in depositing cash into your bank
account. But this risk can be decreased if you are using a secure electronic payment system in
 24

your business. By using it, you do not have to worry about your payment record. You can easily
get an accurate record of all transactions at the end of the day.

1.3.1.6. Contactless
In the time of covid-19 pandemic, people have started finding ways of avoiding human touch to
save themselves from getting affected by coronavirus. Due to this, the need for contactless
payment has increased. You can use contactless POS terminals in your business to avoid the
human touch. In this system, the payee needs to hold his phone near the terminal and his
payment will get automatically processed. Make payments by using QR code or one time
password (OTP).

1.3.1.7. It generates more revenue

Multiple studies have shown that consumers tend to spend more when using electronic methods
of payment compared to when they’re paying with cash.

1.3.1.8.It increases confidence and security

Consumers don’t need to carry large amounts of cash around with them. This makes them feel
safer and more confident shoppers, knowing that the impact of theft or loss can be offset by
quickly blocking their cards or mobile wallet. Meanwhile, the advantages of contactless
payment, in particular, for the customer include:

1.3.1.9. There are no extra costs involved

You don’t have to worry about any additional fees when you start accepting contactless
payments if you already accept chip and PIN. You’ll simply pay the same as you would for
regular card transactions. There are plenty of packages out there to cater for businesses of all
sizes, budgets, and transaction volumes
1.3.2.0. Objectives of electronic payment system

1. Timeliness
Not all payments are time-critical, but users of the system should at least have options available
that provide timely payment. Timeliness has at least two elements. In some cases, such as
emergency government payments, the timing of the availability of funds to the recipient is
critical. In other cases, such as point-of-sale or online retail transactions, it is important that the
merchant has immediate confirmation that the payment is on its way so that the transaction can
be completed, even if the funds will not be available until sometime later.
 25

2. Accessibility
It is desirable that everyone who needs to make and receive payments should have ready access
to the payments system. Once again this may have different elements. One is the ability to access
the payments system when and where required. Cash, and more recently credit and debit cards,
have provided ready access for face-to-face transactions, but ‘remote’ transactions have
historically been more difficult, typically requiring the use of cheques or a visit to a bank branch.
Innovations over recent years have of course dramatically improved access, with first telephone,
then internet banking, and more recently mobile banking and payments.
Another element of accessibility is the availability of accounts on which payments can be made.
Australia has a highly banked population, which means that access to bank-based payment
methods is ubiquitous. In many lesser developed countries this is not the case. In some of these
countries the introduction of mobile phone based payment systems has dramatically increased
access to the payments system, even if one not necessarily based on banks.
Accessibility should not be thought of just in a domestic context. Many end-users have a need to
make and receive payments across national borders.

1.3.2.1. Ease of use

It goes without saying that systems that are easier to use are preferable to those that are more
cumbersome. But this is not just an issue of convenience. Systems that require manual entry of
account and transaction details are prone to errors that can be costly to correct and can
discourage use. That is one reason why payment cards are popular – because most of the need for
manual entry is removed. The need to know a recipient's account details is another challenge for
many payment instruments. One of our oldest payment methods – the cheque – deals with this by
requiring only the recipient's name. The burden of course is placed on the recipient who must
then manually deposit the cheque, providing their own account details. The challenge for
electronic payment systems is to provide solutions that are easy for both the payer and the
recipient.

1.3.2.4.. Ease of integration with other processes

Payments are rarely made in isolation. Typically they are made as part of a process that requires
some form of information exchange and reconciliation. Payment systems should be able to
integrate efficiently with these processes. Key examples are the capacity of payment systems to
 26

carry additional information relevant to the payment and the ability of payment messages to be
easily integrated with accounting and other business systems.

1.3.2.5. Safety and reliability

End-users of a payment system need to have confidence that the system will be available when
expected and that payments will reach the intended recipient at the time promised. They also
need to be confident that the system is secure, so that using it will not expose them to future
losses as a result of information being fraudulently obtained. Some of these problems can be
addressed by system participants providing a guarantee of one form or another, but good system
design is a more fundamental solution.

1.3.2.6. Low and transparent prices

If two systems perform exactly the same function, users can be expected to prefer the cheaper
one. However, each system typically has different attributes, and end-users make choices by
weighing up those attributes and relative pricing. This means that both prices and the systems’
attributes need to be transparent, so that those choices can be well informed. Given the two-sided
nature of payment systems, this does not of itself guarantee economic efficiency because prices
are often skewed in favor of the party with the greatest decision-making power. Pricing is most
likely to be efficient where there is a reasonable alignment between the relative prices faced by
those with decision-making power and the relative resource costs of different payment
instruments.
The above attributes are those that are directly relevant to the end-users of payment systems.
There are other attributes of the design of payment systems that are less obvious to end-users, but
which are important to ensuring that payment systems are efficient and are well placed to deliver
the sorts of attributes discussed above. These include the following.

1.3.2.7. Efficient design

Payment systems should be designed in a way that achieves the system's objectives in an
efficient and cost-effective manner.

1.3.2.8. Security and robustness

The system should have a level of security and operational robustness commensurate with the
importance of the system. For instance, disruption of a system delivering salary and social
security payments can have widespread impacts, even if not considered to have implications for
financial stability.
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1.3.2.9. Interoperability
Payment systems should aim to achieve a high degree of interoperability with other systems. For
instance, to the extent possible, message standards should be consistent with international
standards to allow the easy flow of payments across borders and to simplify access for new
entrants. It is also desirable to maximize the extent to which different payment systems can use
common infrastructure.

1.3.2.10. Open access

Systems should be designed in a way that makes the entry of new participants easy, quick and
inexpensive for both the new entrant and incumbents. This may be dependent on the architecture
of the system, the standards applied and the business arrangements in place.

1.3.2.11. Risk management

Payment systems have the potential to generate a number of risks for participants, most notably
credit risk. Managing these risks is an important focus of design for systems processing large
values, but all systems should have risk-management features commensurate with the level of
risk generated.

1.3.2.12. Ease of adaptation to changing needs

For many reasons the needs and preferences of both payment system users and operators evolve
over time, often in response to changing technology. Systems should be as adaptable as possible
so that changing needs can be met in an inexpensive manner. The ability to do so would ease
some of constraints on innovation discussed later in this paper.
1.3.3.0. What are the different types of e-commerce payment systems?
When you purchase goods and services online, you pay for them using an electronic medium.
This mode of payment, without using cash or cheque, is called an e-commerce payment system
and is also known as online or electronic payment systems.

The growing use of internet-based banking and shopping has seen the growth of various e-
commerce payment systems and technology has been developed to increase, improve and
provide secure e-payment transactions.
Paperless e-commerce payments have revolutionized the payment processing by reducing paper
work, transaction costs, and personnel cost. The systems are user-friendly and consume less time
than manual processing and help businesses extend their market reach.
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1.3.3.0. The different types of e-commerce payments in use today

1.3.3.1. Credit Card

The most popular form of payment for e-commerce transactions is through credit cards. It is
simple to use; the customer has to just enter their credit card number and date of expiry in the
appropriate area on the seller’s web page. To improve the security system, increased security
measures, such as the use of a card verification number (CVN), have been introduced to on-line
credit card payments. The CVN system helps detect fraud by comparing the CVN number with
the cardholder's information

1.3.3.2. Debit Card

Debit cards are the second largest e-commerce payment medium in India. Customers who want
to spend online within their financial limits prefer to pay with their Debit cards. With the debit
card, the customer can only pay for purchased goods with the money that is already there in
his/her bank account as opposed to the credit card where the amounts that the buyer spends are
billed to him/her and payments are made at the end of the billing period.

1.3.3.3. Smart Card

It is a plastic card embedded with a microprocessor that has the customer’s personal information
stored in it and can be loaded with funds to make online transactions and instant payment of
bills. The money that is loaded in the smart card reduces as per the usage by the customer and
has to be reloaded from his/her bank account.

1.3.3.4. E-Wallet
E-Wallet is a prepaid account that allows the customer to store multiple credit cards, debit card
and bank account numbers in a secure environment. This eliminates the need to key in account
information every time while making payments. Once the customer has registered and created E-
Wallet profile, he/she can make payments faster.

1.3.3.5. Net banking

This is another popular way of making e-commerce payments. It is a simple way of paying for
online purchases directly from the customer’s bank. It uses a similar method to the debit card of
paying money that is already there in the customer’s bank. Net banking does not require the user
to have a card for payment purposes but the user needs to register with his/her bank for the net
banking facility. While completing the purchase the customer just needs to put in their net
banking id and pin.
 29

1.3.3.6. Mobile Payment

One of the latest ways of making online payments is through mobile phones. Instead of using a
credit card or cash, all the customer has to do is send a payment request to his/her service
provider via text message; the customer’s mobile account or credit card is charged for the
purchase. To set up the mobile payment system, the customer just has to download a software
from his/her service provider’s website and then link the credit card or mobile billing
information to the software.

1.3.3.7. Amazon Pay

Another convenient, secure and quick way to pay for online purchases is through Amazon Pay.
Use your information which is already stored in your Amazon account credentials to log in and
pay at leading merchant websites and apps. Your payment information is safely stored with
Amazon and accessible on thousands of websites and apps where you love to shop.
1.3.4.0. Component of effective electronic payment system

1.3.4..1. Commercial cards

Starting with the component that gives businesses the most return on the time and effort it takes
to migrate to e-payments, the core products that make up a commercial card program are each
useful for different reasons:
 A purchasing card (p-card) goes beyond a traditional business credit card with advanced
features like virtual card numbers (VCNs). These are single-use, unique credit card numbers
generated in real time for a specific purchase amount, date and supplier. VCNs enable a
company to use a p-card with greater confidence for larger purchase amounts. In 2007,
the average p-card purchase was under $1,000; in 2013, many companies used p-cards for
purchases up to $2,500. In addition, p-cards are being used for a wider variety of purchases, with
some companies using p-cards to pay for goods and services in 59% of purchase categories.A big
part of the reason for growth is improved efficiencies: p-card use eliminates the requisition,
purchase order and invoice parts of the purchasing process.
 Travel and entertainment (T&E) cards are effective for companies that don't want their
employees to purchase items on their own credit cards or for employees who don't want to worry
about receiving timely reimbursement. According to RPMG, 68% of corporations expect travel
card spending to increase through 2015. Spending controls, continuous monitoring and detailed
reporting are key program features that improve employee compliance and curtail misuse.
 30

 Electronic accounts payable (EAP) accounts are non-plastic purchasing accounts used to pay
for invoiced goods and services. EAP accounts can be integrated with a direct file transmission
platform which centralizes all payments processing (virtual card numbers, ACH and wires). EAP
accounts can also enable different departments to issue distinct credit card numbers (through the
use of ghost card accounts) that roll up to one corporate account. This allows finance to easily
assign costs to departments and allows suppliers to charge the account directly (e.g., when a
plastic p-card can't be used), while providing the company with payment float, insight and
controls. EAP accounts also allow you to set dynamically adjustable spending limits that are
assigned to match the transaction amount. According to RPMG, the number of companies using
EAP accounts is expected to rise from 18% in 2013 to 43% in 2016. RPMG also revealed that
the average EAP transaction was $4,727 in 2013, over 10 times larger than a typical purchasing
card account transaction. Research shows that EAP use complements p-card spend, with 73% of
EAP-using organizations indicating that EAP spending will not cannibalize purchasing card
spending.

1.3.4..2. ACH payments

The automated clearing house (ACH) network was originally established in the 1970s to provide
an alternative to using paper checks. The ACH uses a batch process, in which the individual
transactions are created/initiated and then batched as one or many for release to the bank. These
transactions typically take a few days to process. Today ACH payments are used for large
volumes of credit and debit batched transactions, including regular direct deposit payroll and
vendor payments. In fact, in 2013, $38.7 trillion was transferred over the ACH Network, an
increase of nearly 5% over the previous year. According to the Electronic Payments Association
(NACHA), the types of ACH transactions seeing increased use include online payments,
business-to-business (B2B) payments (CTX and CCD transactions), consumer-initiated
payments (CIE transactions) and recurring payments (PPD transactions) such as direct deposit
via ACH.

1.3.4.3. Bill payments

A bill payments solution makes sense for regular or one-time small to mid-sized payments
managed and distributed online, including recurring expenses, such as rent and equipment leases.
Conveniently, web-based bill pay enables companies to view, manage and pay bills online and
 31

set up future and recurring payments from anywhere, any time. Companies also can define
multiple users and establish various approval limits.

1.3.4.4. Wire transfers

Wire transfers are used to make domestic and international high value and rapid direct bank-to-
bank payments, including ad-hoc and one-time payments. Businesses typically use wire transfers
to pay or receive funds same day—benefitting from nearly immediate and guaranteed availability
of funds via secure, non-reversible transactions. This can be important for businesses that need to
make an immediate purchase or cover an urgent business need.

1.3.4.5. The backend stuff

Supporting all of these solutions are several essential backend systems, including an automated
payment platform that integrates bill payment and accounting systems, a purchase control portal
that securely generates virtual accounts for purchase requests, and a direct file transmission
platform that centralizes all payments processing and that integrates with your ERP systems.

1.3.5.0. Theories on customer

Types of customers
1. New customer
2. Impulse customers
3. Insistent customers
4. Loyal customer

1.3.5.1. New customers

Newcomers are always going to have a few questions about how things work but might not
always know how to ask.
If they’re in your help-center already, they clearly liked something about your product and
probably aren’t looking for you to upsell them.
New customer needs most likely involve looking for guidance through an issue that agents might
find simplistic. However, just because these tickets aren’t always the most challenging, it is still
important to serve them to the best of your ability.
If their first customer experience with support is a good one, there is a great opportunity to create
brand loyalty and hopefully turn them into repeat customers.
 32

Retained customers are easier to convert than first-time buyers because they already have a
foundation of trust with a company they’ve bought from before.
That’s why patiently guiding new customers through their problems will set your company up
for success by showing customers from the start that your business is one that cares about the
people they serve. Rotating who deals with new customer tickets can also give your agents a
break from more complicated work and help remind them that it's not always about getting
bogged down in the details.
What new customers need from customer service professionals?
 Guidance for more simple issues
 Help onboarding
 A good first impression
1.3.5.2. Impulse customers
This customer is quick to buy when something catches their eye, but aren’t always the best at
reading the fine print. So in situations where these types of customers get a product that isn’t
exactly what they thought it was, they might be impulsive in calling customer support as well.
The impulse customer does sometimes have a legitimate support concern and so initially they
should be approached as you would any other ticket.
Yet if it becomes clear that they called your department a bit prematurely, then it’s time to get
them redirected as soon as possible. Impulse customers tend to contact support centers with
questions about product use cases, warranty, or return policy, so it can be helpful to have a short
on-brand script prepared for these situations.
Utilizing macros that send automated responses when triggered by certain questions can also
save your agents' valuable time while keeping customers engaged.
If the customer is frustrated about being rerouted, sympathize with their position but be sure not
to promise anything that is out of your purview as a support agent. Of course, retention should be
the goal of most customer interactions but if someone truly bought something they didn’t know
what was then helping a customer out of a bad situation should be your first priority.
What impulse customers need from customer service professionals?
 Help with product use cases, warranty, or return policies
 Empathy over making a sale
 33

1.3.5.3. Angry customers

Whether they are just having a bad day or have encountered the same issue one too many times,
you will have to deal with some customers that aren’t being very friendly.
As difficult as this category can be to handle, it is important to remember that they are frustrated
for a reason.
Having a strategy in place for angry customers can have a huge impact, so you never want to
seem unsure of the situation as this could frustrate the customer even more.
Speak clearly and calmly while explaining to the customer exactly what needs to be done for
them to get out of their predicament.
If the customer is being rude or hurtful try not to take it to heart and remember that they probably
see you as another cog in a machine that has caused them a lot of trouble.
Working to improve your empathy skills can be very effective in dealing with frustrated
customers. Being able to see a situation from the customer’s point of view might allow you to
reimagine the ways in which you could provide support.
Yet just because a customer is angry does not mean the rules do not apply to them. Don’t be
afraid to ask if they would like to speak with a supervisor if your interaction is reaching a dead
end.
Be sure to try and collect customer feedback from angry customers, as there was likely a part of
their customer experience that could be improved for the next person.
What angry customers need from customer service professionals?
 Empathy
 An agent who is willing to listen and can speak clearly while putting their own emotions aside
4. Insistent customers
Here we have a case of the highly informed customer types.
These shoppers usually do quite a bit of research before finalizing any sales and so have
probably tried a number of solutions before they contacted customer service.
When dealing with an insistent customer, it is important to provide proof that you have a more
effective way of solving their issue. Easy access to a knowledge base or other informational
content can greatly improve this process.
At the same time, it is crucial to be polite and accommodating with insistent customers to satisfy
their need to feel influential.
 34

These types of customers can easily be turned into angry customers if they feel the support your
company provided was condescending.
One strategy that could provide a boost for marketing is to ask these customers to share their
experience on your company’s FAQ page. This is a customer-focused way to let them feel heard
while adding user-generated content to your knowledge base.
What insistent customers need from customer service professionals?
 Proof that you have a more effective way of solving their issue
 Informational content
 Someone who is willing to listen

1.3.5.5. Loyal customers

This should be one of your favorite types of customers, but they may also be expecting an even
higher standard of service.
Having been a part of your customer base for years, the loyal customer is the joy of the sales
department. Yet there is added pressure for the support team to be aware of and able to handle
any specific needs this customer might have.
Since they already have a preference for your company, loyal customers can be a way to foster
organic marketing if you can get them to share their story on social media.
Yet this requires that their support experience is a positive one. Your organization could benefit
from having a way to identify loyal customers with relevant context such as their previous issues,
purchase history, and contact information for personalized interactions.
It also helps to be proactive when it comes to loyal customers. That means getting ahead of an
issue before it escalates or even happens.
And even if the issue they have isn’t completely your company’s fault, offering some discount
or loyalty reward can be a great way to appease loyal customers and increase the likelihood that
they will tell other potential customers about your business.
What loyal customers need from customer service professionals?
 Exceptional support
 Proactive service
 A personalized experience

1.3.6.0. The customer are categorize into two classes

 External customer
 35

 Internal customer
External customers are the people that pay for and use the products or services your company
offers. When brainstorming problems and designing solutions, these customers are who you’re
designing for.
To be clear, an external customer is a person who is not directly connected to your organization
other than by purchasing your product or service. This customer could be a one-time purchaser
or a person who’ve you worked with long-term and to whom you’ve provided add-ons or
customization options. External customers are also known as “clients” or “accounts.”
The goals for your external customer can depend on your product or service, i.e., repeat
purchasing, referrals, positive reviews, and otherwise supporting your company. You might
follow up after-purchase or during to conduct formal or quick-pulse surveys. “The customer is
always right” is generally the guiding principle when serving this group and the revenue they
generate is the lifeblood of your company. Without them, your company fails.
Internal customers have a relationship with, and within, your company, either through
employment or as partners who deliver your product or service to the end user, the external
customer. Less obvious but certainly still significant, stakeholders and shareholders are also
internal customers. All of these may or may not purchase your product or service.

1.3.7.0. Comparing internal and external customers

External customers have been inherent in business since people started making and selling
products a long time! The idea of an internal customer, however, is a more modern one. For
instance, Six Sigma encourages identifying internal customers as a way of creating a more
positive work environment.
That positive work environment includes things like kind and empathetic leadership, fair and
equitable pay, comfortable working conditions, the latest technology, and so on. The thinking
goes: the higher employee morale, the more those employees work with integrity and
productivity. That morale can also come from the idea that they are contributing to something
larger, which ripples out positively to improve how they work. One school of thought
connects satisfied internal customers with happy external customers.
Beyond the feel-good psychology, though, using the term “internal customers” may have some
tangible benefits. For teams who work with both internal and external customers, it can help
them prioritize problems and timelines to improve inter-department communication. Treating
 36

everyone as a customer may also encourage employees to take each other just as seriously as
they would take a referral or complaint from an external customer.

Given below in a tabular column are the difference between Customer and Consumer.

Customer Consumer

Definition

Customer is the one who is purchasing the goods. Consumer is the one who is the end user of any
goods or services.

Ability to resell

Customer can purchase the good and is able to Consumers are unable to resell any product or
resell service.

Need for purchase

Customers need to purchase a product or service in For a consumer purchasing a product or service is
order to use it. not essential.

Motive of buying

The motive of buying is either for resale or for The motive of buying is only for consumption
consumption

IV. Review of related literature

Adoption of Electronic payment system. The adoption of EPS involves universal acceptability
and cooperation between institutions such as Information Technology (IT) providers, businesses,
banks and central government (Baddeley, 2004, Lim et al., 2007). The effect of electronic
commerce on the accounting information systems, the importance arises from the need to
recognize electronic commerce, electronic payment and accounting information systems, as the
greatest development in the world of business (Qatawneh, 2012). Security and trust in the
payment system are other primary factors impacting the adoption of EPS (Schwartz, 2001; Chau
and Poon, 2003; Yu et al., 2002; Lim et al. 2007). Costs matter (Yu et al., 2002), and the
 37

simplicity of dealing with electronic payment solutions in terms of the technology use (Schwartz,
2001; Lim et al., 2007) and the marketing initiatives by the EPS developer to capture the public
market attention have also been found to be significant factors in increasing EPS adoption (Lim
et al., 2007). Eastin (2002) further states that prior adoption of IT had an identifiable impact
because customers will usually adopt a new service only when they have similar experiences
before. In addition, the feasibility of technology in terms of security, trust, and efficiency will
also affect users’ decision to use E-payment. The following factors may make consumers are
ready to adopt E-payment system in their works: 1- Self-efficacy: users with higher self-efficacy
tend to experience more kinds of communication media and function, while users with lower
self-efficacy may be confined to fewer operations (Burton-Jones and Hubona, 2006; Li et al.,
2011). Venkatesh and Davis (1996) suggest that users strongly anchor ease of use perceptions
about any system to their computer self-efficacy. In the context of E-payment, self-efficacy
refers to the judgment of one’s ability to use E-payment systems. It has been an important
determinant of users’ perception toward (Electronic banking) E-banking. 2- Trust: Trust is
defined as a function of the degree of risk involved in financial transactions, and the outcome of
trust is reduced perceived risk, leading to positive intentions toward E-payment adoption
(Yousafzai et al., 2003).
Many researchers found that trust is essential for understanding interpersonal behavior and
economic exchanges which affects customers’ perception toward E-payment systems
(Abrazhevich, 2001; Chou et al., 2004; Tsiakis and Sthephanides, 2005). Kurnia and Benjamin,
(2007) Found that customers trust the paymentsystem adopted by the other user and pointed out
that high level of user confidence and trust in EPS is a contributing factor for the successful
adoption of E-payment system. 3- Ease of Use: Abrazhevich (2001) concludes that a successful
design of E-payment systems from the user standpoint is important to attract user’s acceptance
toward E-payment. In short, content, design, bank image and management, and speed are very
important characteristics leading to perceived ease of use and subsequently influence consumers’
perception of E-payment systems (Wendy, Et al., 2013). 4- Security: with regards to E-payment,
security can be categorized into three areas. They are systems security, transaction, and legal.
This is because E-payment can only be considered as confidential when all phases of the
transaction process are capable of satisfying users’ needs and their security expectations
(Baddeley, 2004). Security could be a determinant of users’ decision to utilize E-payment
 38

systems (Abrazhevich, 2004). “Adoption” is a term that is hard to explain, since it is based on a
person’s unpredictable behavior. However, this behavior can be explained by behavioral theories
such the theory of reasoned action (TRA) (Fishbein and Ajzen, 1975) and the subsequent
technology acceptance model (TAM); (Davis, 1989; Bagozzi et al., 1992)
V.CONCEPTUAL FRAMEWORK
 39

CHAPII.RESEARCH METHODOLOGY
2.0. INTRODUCTION
This chapter was concern with methodology; it attempts to describe the methods of
investigations from which data will be collected to meet the objectives of the study. It consists of
the research design, the study population, the sample size and how it is used methods of data
collection, data processing, tools of analysis, tools of testing hypothesis and the limitation of the
study. In addition to that it indicates different methods and technique will be used collecting and
interpretation of information either from the field or other sources.
2.1. Research Designs
The research design refers to the overall strategy that one may choose to integrate the different
components of the study in a coherent and logical way. This is done in order to ensure that one
effectively addresses the research problem. Research design constitutes the blueprint or the
roadmap for the collection, measurement, and analysis of data. According to kothari (2004),
research design is a plan, a roadmap and blueprint strategy of investigation conceived so as to
obtain answers to research questions (kothari, 2004), it is the heart of any study.
Students of research (and even practitioners) more often than not confuse between research
designs and research approaches. Research design is a model or an action plan upon which the
entire study is built; dictates the manner in which a study is conducted and provides the road map
of a study in terms of the sample, data collection instruments and analysis procedure.
Approaches on the other hand, are paradigms, research frameworks, which may be either
quantitative or qualitative or both (mixed approach (Creswell, 2003)). A particular research
design may adopt one approach or both. For instance, in a cross-sectional survey design, one
may decide to use quantitative approach or both (mixed approaches); other studies like a case
study, ethnography study, phenomenological study, grounded theory study and content analysis
study are mainly qualitative. 
There is one major factor that one should consider before deciding on what research design to
adopt, namely knowing the type of research being undertaken. When undertaking a research, one
does not have to collect data or even begin without first knowing what type of study one is
undertaking. Research design is dictated by the type of research. Therefore, having an idea of
what type of research one is to undertake directs the study so as to come up with a sketch plan or
model (design) which will guide the study.
 40

2.3. The population study

A research population is generally a large collection of individuals or objects that is the main
focus of a scientific query. It is for the benefit of the population that researches are done.
However, due to the large sizes of populations, researchers often cannot test every individual in
the population because it is too expensive and time-consuming.
A research population is also known as a well-defined collection of individuals or objects known
to have similar characteristics. All individuals or objects within a certain population usually have
a common, binding characteristic or trait. The study population will be 10 employees and
30customers of SMEs using electronic payment system. This have been chosen because would
provide relevant information on study.
2.4.0. SAMPLING TECHNIQUE AND SAMPLE SIZE
SAMPLE SIZE
The sample size is defined as the number of observations used for determining the estimations of
a given population. The size of the sample has been drawn from the population. Sampling is the
process of selection of a subset of individuals from the population to estimate the characteristics
of the whole population. The number of entities in a subset of a population is selected for
analysis.
While selecting the sample size of the study the researcher used universal sampling technique
because in this research 30respondent’s customers were selected from customers of Boulangere
et alimentation de gisenyi ltd.
2.5.0. DATA COLLECTION TECHNIQUES AND TOOLS
SOURCE OF DATA
Wikipedia (2016) defines data as a set of values of qualitative or quantitative variables.
Data is facts or figures from which conclusions can be drawn. Before one can present and
interpret information, there has to be a process of gathering and sorting data. Just as trees are the
raw material from which paper is produced, so too, can data be viewed as the raw material from
which information is obtained.Gathering data can be accomplished through a primary source
(researcher is the first person to obtain the data) or a secondary source (the researcher obtains the
data that has already been collected by other sources, such as data disseminated in a scientific
journal) (Mesly, 2015).
 41

2.5.1. Primary data

According to Saunders et al. (2012) the primary data are the data that are collected during
conducting the current study. The manner in which the primary data are collected helps in
differentiating the quantitative method and qualitative method. As the numerical form of data
suite the quantitative method and nonnumeric data collected suite the qualitative. Hair et al
(2009) suggests that the quantitative method is the approach that provides the data to be
analyzed. According to Jankowicz (2005) the qualitative method provides the data in detail and
the collects data are used for depth analysis and this approach provides the data in the non-
numerical way. As a writer of this research we are use the primary data, as the core approach for
collecting the data and analyzing the data for the research purpose. Moreover, this study employs
the deductive research that aids in choice approach known as the quantitative, as it suite the
study objectives.
2.5.2. Secondary data
The secondary data are referred as the data of past studies and the academic literature, researches
or studies of the past, theories and any academic or non-academic data are the main source of the
secondary data that the researcher can use in their research. According to Saunders et al (2012)
the past research does deliver the researcher with the theoretical framework and other features
which can be used for the new primary research.
2.5.3. Data collection techniques
The primary data will obtained by using questionnaire, interview and documentary was used to
obtain secondary data.
2.5.4. Questionnaire technique
According to Saul McLeod, (2018) A questionnaire is a research instrument consisting of a
series of questions for the purpose of gathering information from respondents. Questionnaires
can be thought of as a kind of written interview. They can be carried out face to face, by
telephone, computer or post. Questionnaires provide a relatively cheap, quick and efficient way
of obtaining large amounts of information from a large sample of people. The whole process of
distribution questionnaires will be follows the researchers first contact the managing director of
chezhabibumoussa.We used question to gain relevant information quickly and effectively.
 42

2.5.5..Interview technique
Structured interviews have predetermined questions in a set order. They are often closed-
ended, featuring dichotomous (yes/no) or multiple-choice questions. While open-ended
structured interviews exist, they are much less common. The types of questions asked make
structured interviews a predominantly quantitative tool. We used interview technique to asking
questions customer and employees in order to collect data
2.5.6. Sampling technique
In order to answer the research questions, it is doubtful that researcher should be able to collect
data from all cases. Thus, there is a need to select a sample. The entire set of cases from which
researcher sample is drawn in called the population. Since, researchers neither have time nor the
resources to analysis the entire population so they apply sampling technique to reduce the
number of cases. We use sampling technique because we can’t take all population we select
among them small number who participate in our research.
2.5.7. Data process
Data processing is concerned with editing, coding, classifying, tabulating and charting and
diagramming research data. The essence of data processing in research is data reduction. Data
reduction involves winnowing out the irrelevant from the relevant data and establishing order
from chaos and giving shape to a mass of data
2.5.7.1. Editing
According to Armstrong (2003) editing survey is intended to detected and as far possible to
eliminate errors in the completed questionnaire. This method helped the researchers to check
during the submission of the questionnaire, if all questions answered in right way.
2.5.7.2. Coding
The researchers used codes in order to obtain collected data to be entered into tables.
2.5.7.3. Tabulation
According to Joseph (2006) tabulation refer to the part of technical process is statistical analysis
of data that involves counting to determine the number of cases that fail into various categories.
These methods helped the researchers to put together the collected data into tables to allow them
to be statistically presented and analyzed.
 43

2.6.0. Methods of data analysis

2.6.1. Historical method

Historical method in research is the application of scientific method of inquiry to historical
problems. It demands standards of careful methodology and spirit comparable to those which
characterize other types of research. Although everyone is a historian in that, he remembers what
occurred in the past, such history does not meet the criteria of historical research. It is to be a
science and it must achieve some standards of excellence as other forms of research.We use
historical methods to gather evidence of past events and review theories of other author written.

2.6.2. Analytical Research method

Analytical research is a specific type of research that involves critical thinking skills and the
evaluation of facts and information relative to the research being conducted. A variety of people
including students, doctors and psychologists use analytical research during studies to find the
most relevant information. We used analytical method to analyze the data we have collect on
field.

2.6.3. Statistical method

According to Indian J Anaesth.( 2016) Statistical methods involved in carrying out a study
include planning, designing, collecting data, analyzing, drawing meaningful interpretation and
reporting of the research findings. The statistical analysis gives meaning to the meaningless
numbers, thereby breathing life into a lifeless data. The results and inferences are precise only if
proper statistical tests are used. This article will try to acquaint the reader with the basic research
tools that are utilized while conducting various studies. The article covers a brief outline of the
variables, an understanding of quantitative and qualitative. We used the statistical method to give
meaning of number we collect on finding.

2.6.4. Quantitative research method

Quantitative research is perhaps the simpler to define and identify.The data produced are always
numerical, and they are analyzed using Mathematical and statistical methods. if there are no
numbers involved, Then it’s not quantitative research. We use the quantitative research method
to interpreting the numeric information.
Qualitative research is any which does not involve numbers or numerical data.
It often involves words or language, but may also use pictures or photographs and observations.
 44

2.7.0. Validity and reliability of the research

According to Drost (2011), reliability is “the extent to which measurements are repeatable when
different people perform the measurement on different occasion, under different condition,
supposedly with alternative instruments which measure the construct or skill”. It can also be
defined as the degree to which the measure of a construct is consistent or dependable. For
instance when several people guess your own weight, the value of the weigth might not be
necessarily correct since it will be inconsistence with the accurate value hence the measurement
is said to be unreliable. If a weighing scale is used by different people to give the value of your
weight then there is likelihood of getting the same value every time a measurement is done hence
this measurement would be said to be reliable. “The extent to which a measure adequately
represents the underlying construct that it is supposed to measure” (Drost, 2011) is called
validity. The term construct refers to the skill, knowledge, attribute or attitude that the researcher
is investigating. For instance if a researcher wanted to measure compassion ,it is vital to know if
the measure would accurately measure compassion or empathy because the two terms are closely
related. Some of the constructs under investigation might be imaginary (they don’t exist in
reality) it is important to develop a scale that would consistently and precisely measure the
intended unobservable construct. Reliability and validity form psychometric properties of
measurement scales that are very important in estimating adequacy and accuracy procedures of a
scientific research as mentioned by Bajpai and Bajpai (2014). The next section discusses types of
reliability and how to use them in designing instrument for educational research.

2.7.1. Validity
According to Bollen (1989), as cited in Drost (2011) content validity is a qualitative type of
validity where the domain of the concept is made clear and the analyst judges whether the
measures fully represent the domain (p.185). The researcher should design a research instrument
that adequately addresses the construct or area under investigation. For instance if a researcher
wants to cover an investigation on implementation of a new curriculum then the research
instrument or test items designed by the researcher must adequately address the domain to yield
valid research findings. A group of judges or experts that have content in the area under
investigation can be used to assess this type of validity.
Definition of Reliability and Validity
 45

According to the analysis made by mugenda (2003), reliability is the consistence of research
instruments to measure the degree of which the tools can yield better results or data after
repeated trials. Validity is regarded as the accuracy and meaningless of inferences which are
based on the research results (Mugenda&Mugenda, 1999). In other words, Validity is the degree
to which results obtained from the analysis of data actually represents the phenomenon under
study to ensure that the questionnaires were reliable and valid, the researcher used simple and
clear language and terms that could be understood by the respondents. Closed ended questions
were used as they have been proven in most researches to be most reliable for analysis.
To ensure validity, the researcher was sure that questions used relate to or covered all the
variables of the study
2.8. Limitations
Study limitations represent weaknesses within a research design that may influence outcomes
and conclusions of the research. Researchers have an obligation to the academic community to
present complete and honest limitations of a presented study. The challenge was to get the
respondent because many was not understanding the objective of the study and even to get
respondent who will gives you time and understanding it was very serious. And the
management of the Boulangere et alimentation de gisenyi ltd to give the information because
they think if data goes out and took by wrong hand or person can be used affects their business.
2.9. Ethical consideration
This regards seeking permission by the researcher from the Boulangere et alimentation de
gisenyi ltd and use information for Research purposes. The researcher used the accepted research
methods in the entire research process in planning, collecting, organizing and interpretation of
the data. And ensured that data was interpreted according to general methodological standard and
made sure that element that are irrelevant to data interpretation are excluded from the report. The
researcher kept all information given to him very confidential and used it only for academic
purposes. The researcher ensured that the study fulfill moral considerations of research by
ensuring respect for confidentiality of information from the respondent. To mint research ethics,
the following activities were implemented by the researcher:
1. Names of respondents will not appear in this study.
2. Respondent signature for consent.
3. Permission will be solicited from the concerned officials of Chez HABIBU MOUSSA.
 46

4. Authors cited will appear in the references to avoid plagiary

5. The findings will be presented in generalized manner.

CHAP III. PRESENTATION OF THE FINDING

This chap focus on the presentation, analysis and interpretation of data .this chapter presents
information collected from the fields. It covers the research findings, analysis of data collected
and interpretation of the primary data collected from the field.

3.1. Identification of respondents

This section presents the identification of respondents. Data displayed are gender, age and
education level. These data helped in the study to know the characteristics of study participants
and ensure that information collected was reliable and accurate for the purpose of the study.

3.1.1. Age structure of the respondents

Table below shows age structures of the respondents.

Table1. Classification of respondents by age

age frequency Percentage %

under 18 4 10

19-29 12 30

30-44 12 30

45-59 10 25

60+ 2 5

total 40 100
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Source: primary data, 2022

The result of this table above shows that 10% of population is aged of less than 18 years, 30% in
aged between 30 and 44 years old. And 30% is aged between 19 and 29 years old and 25% is
aged between 44 and 59 years old and also 5% in aged of 60 years above old. The study obtained
details about age group of the respondents for purpose of understanding their age.

3.1.2. Gender of the respondents

Table2. Gender structure of respondent

Gender frequency Percentage %

Male 23 57.5

Female 17 42.5

Total 40 100

Source: Primary Data, 2022

Table shows the respondents distribution according the gender. From the analysis, it occurred
that, majorities (57.5%) of respondents on study were male and female represented only 42.5%
of them as shown in table above. This finding indicates that most of respondents who answered
the questionnaires of the study were male.
3.1.3. Education of the respondents
The respondents of the study were of diverse demographic characteristics. The study
investigated the social economic characteristic of respondents. Some of the importance aspects
such as length of services in the Boulangere et alimentation de gisenyi ltd the level of education
of respondents were considered. The purpose of this was to know how the reliable and relevant
the information from respondents can be. The table below summarizes the information got on
education level and experience of respondents.
Table3. Education structure of respondent
 48

Level of education frequency Percentage %

Not educated 4 10

primary 6 15

secondary 10 25

Bachelor’s degree 18 45

Master’s degree 2 5

total 40 100

Source: Primary data, 2022

From the table above, 10% of respondents have been not educated, 15% of respondent have
been finished primary level, 25% finished secondary level, 45%% of respondents hold
bachelor’s level, 5% of respondent hold Master’s level. This shows us that the respondent
employees and customers are excellent position in terms of educational level. From the year
2020, the enterprise continued to recruit staff for new branches and departments and retained the
best talented in the market. The enterprise choice was to recruit the young graduates from
various universities.
3.1.4. Experienced of respondent

The level of experience cunsumer and employees helps researcher to take good decision on use
of electronic payment. The table given below demonstrates the education background of the
respondents.

Table4. Experienced respondent

Experience Frequency Percentage %

Below 1 year 15 37.5

2 years 10 25

3 years 10 25

4years above 5 12.5

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Total 40 100

Source: Primary Data, 2022

The above table shows that 37.5% has the experience of less than 1years, 25% of respondents
have the experience of 2years using electronic payment system SMEs and 25% of respondents
have the experience of 3years using electronic payment system SMEs while 12.5% of
respondents have the experience of 4years using electronic payment system in SMEsThe
implication of this high degree of employees experience is that experience may lead to a good
performance in general. For the purpose of this research, the information given by highly
experience respondents is relevant and highly reliable.
3.2. Electronic payment system in Boulangere et alimentation de gisenyi ltd
Simply put, electronic payments allow customers to pay for goods and services electronically.
This is without the use of checks or cash bout Using electronic card or mobile payment.
3.2.1. Types of electronic payment system used in Boulangere et alimentation de gisenyi ltd
We have three types of internal control as mentioned and explained in chapter one, that’s why
this question was asked to Boulangere et alimentation de gisenyi ltd order to know if credit card,
debit card, smart card, E-wallet, net banking, mobile payment those are types of payment used in
Boulangere et alimentation de gisenyi ltd.
Table5. Types of electronic payment system in Boulangere et alimentation de gisenyi ltd
types frequency Percentage %

Credit card 4 10

Debit card 7 17.5

Net baking 6 15

Smart card 8 20

Mobile payment 15 37.5

Total 40 100

Source: Primary Data, 2022

The above table shows that in Boulangere et alimentation de gisenyi ltd 10% credit card is used
in payment of good in order to provide good service to customer and satisfied the need of
 50

customer. Also 17.5% debit card is used in payment of good .also 20% smart card is used in
payment of goods. Also 15% net banking is used in payment of goods. Also 37.5% mobile
payment is used in payment of goods this most popular ways of payment and it easy ,fast and the
country is encourage people to used cashless because its helps enterprise income and easy to
calculate tax payment also help country controlling the movement money.

3.2.2. How is electronic payment system conducted in Boulangere et alimentation de gisenyi

Descriptive table below refer to the use of electronic payment system conducted in boulangere et
alimentation de gisenyi ltd analyzing each of them as shown below.

Table6. Performance of electronic payment

electronic payment systematically Number of respondents Percentage

Strongly agree 25 62.5

Agree 8 20

neutral 2 5

Disagree 5 12.5

Strongly disagree 0 0

Total 40 100

Source: Primary Data, 2022

Based on the above information as provided by respondents 62.5% strongly agreed that
electronic payment system is planned systematically in chez habibu moussa, 20% agree that
electronic payment, 12.5% disagree that electronic payment is not well done, and none strongly
disagree. 5% neutral it means that means that the electronic payment system is conduct effective.

3.2.3. How electronic payment system works

Table below shows the way electronic payment system is work in Boulangere et alimentationde
gisenyi ltd if it is done well and the customer understand the system of electronic payment .
Table7.show the process of payment system conducted

Process of payment SA A N SD D F %
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F % F % F % F % F %

Easy to find 18 45 12 30 4 10 2 5 4 10 40 100

information in the
electronic payment

Electronic payment is 20 50 14 35 2 5 0 0 4 10 40 100

easy to use

The language in the 16 40 18 45 2 5 1 2.5 3 7.5 40 100

electronic payment is
easy to understand

I find electronic 20 50 10 25 1 5 1 5 8 20 40 100

payment useful

It takes a short time to 21 52.5 11 27.5 1 5 1 5 6 15 40 100

make payments

It’s not costly to 10 25 30 75 0 0 0 0 0 0 40 100

move money from
card to pay goods

I trust the quality of 14 35 18 45 4 10 2 5 2 5 40 100

service

Electronic payment is 15 37.5 15 37.5 10 25 0 0 0 0

used at anytime

Source: Primary Data, 2022

The above table shows that in Boulangere et alimentation de gisenyi ltd the electronic payment
system is conduct 75% of population are agree(A) and strong agree(SA) on easy to find
information in the electronic payment the remaining 25% of population are the one who use the
cash payment. Also 85% of population are agree (A) and strong agree(SA) on Electronic
payment is easy to use the remaining 15% are for disagree, strong disagree and neutral used cash
 52

payment. Also 85% of population are agree (A) and strong agree (SA) on the language in the
electronic payment is easy to understand and remaining are 15% are for disagree (D), strong
disagree (SD)and neutral (N) used cash payment. Also 75% of population are agree (A) and
strong agree (SA) on I find electronic payment useful and the 25% for disagree, strong disagree
and neutral used cash payment. Also 80% of population are agree (A) and strong agree (SA) on
It takes a short time to make payments and the 20% for disagree, strong disagree and neutral
used cash payment. Also 100% of population are agree (A) and strong agree (SA) on It’s not
costly to move money from card to pay goods there are no other chargers. Also 80% of
population are agreed (A) and strong agree (SA) on the trust of the quality of service electronic
payment offers. And the 20% for disagree (D), strong disagree (SD)|and neutral (N)used cash
payment. Also 75% of population are agreed (A) and strong agree (SA) on Electronic payment
is used at any time and the remaining are neutral. This show that the electronic payment is
conducted in Boulangere et alimentation de gisenyi ltd at any time the electronic payment it is
become more popular in nowadays.

Conclusion

The first hypothesis is well done Based on the tables above shows that the electronic payment
system in Boulangere et alimentation de gisenyi ltd is conducted 100% the respondent shows
that electronic payment available on Boulangere et alimentation de gisenyi ltd and is also easy to
use it doesn’t take much time even the language is easy to understand for everyone especially
customer and employees.

3.3. The contribution of electronic payment system to the customer satisfaction

When you measure customer satisfaction, you can gauge customer sentiment and respond
accordingly. If you don’t measure customer satisfaction, it’s hard to tell whether your products,
services, and overall brand experience are resonating with your audience. And if you’re not
creating meaningful connections, you may end up alienating your customers and losing business
over time. When customers are dissatisfied, that means there are opportunities for you to
improve. As you make changes to increase satisfaction, you’ll steadily build trust and loyalty
with buyers. Even when customer satisfaction is already strong, continually measuring it helps
you understand why and where you stand apart in your industry. Then, you can double down in
those areas to keep Satisfaction levels high.
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3.4. Measure customer satisfaction in 5 ways

3.4.1. Customer surveys

Customer satisfaction surveys are a perfect place to start because they’re fast and easy to
complete. Usually, they’re sent to customers at the end of an interaction with a business.

The surveys should be quick and painless so that customers are willing to fill them out. We
recommend keeping surveys to three questions (at the most) and offering a mix of rating-scale
and open-ended questions.

Depending on the questions we ask, surveys help us to calculate customer satisfaction in three
ways:

 customer satisfaction score,

 Customer Effort Score
 Net Promoter Score.

3.4.1.1. Customer satisfaction (CSAT) scores.

. CSAT score helps us to assess the quality of customer support, products, or services. We collect
this metric using a short and simple survey. To calculate CSAT this show as that the customer
are satisfied on the service.

SATISFIED CUSTOMERS
CSAT =
TOTAL CUSTOMERS

CSAT: is customer satisfication

The satisfied customers:are sum of the customers who respond agree(A) and strong agree(SA).

Total customers: are those customers we asked on field.

SA: strong agree SD: strong disagree

A: agree D: disagree N: neutral

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Table8. Show the contribution of electronic payment on customer satisfaction

respondent SA A N SD D CSAT %

I am satisfied with electronic payment 10 20 2 2 4 0.75 75

Electronic payment is goods 8 26 1 1 4 0.80 80

Using electronic payment saves time 11 18 3 2 6 0.725 72.5

I am happy with the services offered 10 18 4 2 6 0.70 70

Boulangere et alimentation de gisenyi ltd

Boulangere et alimentation de gisenyi Ltd. 12 22 1 2 3 0.85 85

employées are willing to help

Boulangere et alimentation de gisenyi Ltd. 13 14 2 1 10 0.675 67.5

Employees handle our complains timely

Electronic payment provides good privacy 12 16 6 2 4 0.70 70

Average CSAT 0.74 74

Source: Primary Data, 2022

The above table shows that 75% of customer who are satisfied with electronic payment. Also
80%of customer who say electronic payment system is good. Also 72.5% of customer who says
using electronic payment saves time. Also 70% of customer who are happy by service offered.
Also 85% of employees willing to helps customer. Also 67.5% of employees handling complain
timely of customer. . Also 70% of customer says enterprise provide privacy of the card. This
means 74% of customer is satisfied with service of electronic payment system.

3.4.1.2. Customer Effort Score (CES)

CES reveals how easy it is for consumers to resolve an issue, get an answer, or complete a task.
This metric can be used as a high-level indicator of customer satisfaction because the easier the
experience is, the more satisfied and loyal customers tend to be.

Table9. Show the calculation of customer effort score

 55

Question SA A N SD D CES %
Do customer report issue coursed by e- 20 15 5 0 0 0.875 87.5
payment solved
Time taken to get answer is fast 18 19 3 0 0 0.925 92.5
Process of report the issue is it easy 17 21 2 0 0 0.95 95
Average of CES 91.66
Source: Primary Data, 2022

The above table shows that the customer effort score is very good in Boulangere et alimentation
de gisenyi ltd 87.5% of customer solved their issue of electronic payment system faced. 92.5% of
customer show that their get the answers on the issue very fast.95% of customer show that the
process of reporting there is easy and fast. That means this enterprise has customer care to their
client

3.4.1.3. Net Promoter Score (NPS)

NPS captures customer satisfaction by asking buyers how likely they are to recommend your
company, products, or services to others. Satisfied customers are naturally going to promote your
brand to friends, family, and colleagues. “When your customers are happy, they brings you anew
customers.

number of promoters
Percentage of promoter= ∗100
number of suevey responses

number of detractors
percentageofdetractors= *100
number of survey responses

Table10. Show the net promoter score

questions SA A N SD D %of %of % of

promoted detractor NPS

Service of e-payment is easy and 7 15 3 6 9 55 37.5 17.5

fast

Do you appreciate our service of e- 12 16 2 3 7 70 25 45

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payment

Information on e-payment are easy 8 19 3 5 5 67.5 25 42.5

to understand

Average NPS 35

Source: primary data

The above table shows that’s the customer of Boulangere et alimentation de gisenyi ltd are
happy with the service of electronic payment system and also can bring the new customer
because are satisfied 35% of our customer are going to promote our enterprise to their colleagues
and other family.

3.4.2. Focus groups and advisory boards

While surveys are helpful for gauging customer satisfaction, Boulangere et alimentation de
gisenyi ltd often organize Focus groups and advisory boards enable to connect with consumers
directly and learn more about their needs, motives, and behaviors. Focus groups we prepare
generally one-time meetings where a small group of customers provides feedback on the current
or future business offerings. An advisory board is similar, but the same group gives feedback on
an ongoing basis rather than just once. To set up a focus group or advisory board, start by
establishing their objectives. We need feedback on a specific product or service? We need to
know how we can improve our customer support. Then, we set a time and location for the
meeting. Before meet create an agenda so we can keep discussions. In order to knows the needs
of customers. Then customer waits the reactions and responses later.

3.4.3. Social media

Social media gives you 24/7 access to customers’ opinions about our brand and service. Reading
reviews, posts, and direct messages which help as to assess customer satisfaction.

We use the social sentiment tool, such as Facebook to track positive and negative comment
reactions and messages to know the customer needs. In order to keep them satisfied.

Formula of sentiment score:

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number positive−number negative comments∧reaction

Totalsentimen tscore= *100
total number of comments∧reaction

Table11. Show the social media comment

customer positive negative Sentiment score%

Comment/reaction 17 5 70.59
Source: primary source

The above table shows that’s the sentiment of customer is (70.58%) this show that the customer
has positive understanding on our service.

3.3.4. Response rates

In today’s fast-paced and connected world, consumers expect quick answers, so your response
times can heavily influence customer satisfaction. Boulangere et alimentationde gisenyi ltd has
reduce response and resolution times, the more has improve the customer experience and, in turn
of customer satisfaction.

total t ime of all resolved issues

averageresolutiontime=
total of resolved issues

Table12. show the issue reported

Customer issue Time taken to solve it Customer issue Average resolution time
Total Received issue/solved 10hrs 4 2.5hr

The above table shows that the average time to solve the issue of customer is 2hrs and 30 min
means that every issue received can’t go beyond 2hrs 30min.

3.3.5. Churn rate

We use this measurement when we want to see churn decrease, or at least stay stable, over time.
If your churn rate starts to grow significantly, it may indicate that something is causing
dissatisfaction among your customer base. To calculate customer churn rate, we this formula:

total time of all resolved issues

averageresolut iontime=
total number of resolved issues
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Table13. Show the loose of customer

Lost customer Total customer Churn rate%

January 15 400 3.75

February 13 410 3.17

March 9 410 2.19

average churn rate 3.04

Source: primary source

The above table shows that’s churn rate of Boulangere et alimentationde gisenyi ltd is decreasing
every month and also the customer are increasing means that the customer are satisfied with the
service and product.

Conclusion of second hypotheses

The results above finding on second hypotheses shows that the customer are satisfied because
the customer satisfied scores (CSAT) is 74% means that the customer are satisfied.Also91.66%
of customer effort score (CES)this the way customer gets answer when their reported issue. Also
35% of net promoted score (NPS) shows how customer likely they recommend our service of
electronic payment to other’s. Also focus groups and advisory boards where we set the meeting
with customer and discuss with them and give their suggestion. Also 70.59% of positive social
media comment. Also 2.5hrs responses rate this the time they can’t go above to solve the issued
faced by customer. Also 3.04% churn rate mean the rate of losing customer is very low. The
second hypothesis is well done means the customer are very satisfied with the service of
electronic payment system Boulangere et alimentation gisenyi ltd.

3.4. GENERAL CONCLUSION AND RECOMMENDATIONS

This part titled general conclusion marks the final stage of the researchers’ findings of study
work entitled “The impact of electronic payment system on customer satisfaction in SME case
study Boulangere et alimentationde gisenyi ltd.(2019 - 2021)”.

Electronic payment system is one of the services that are used in payment of goods and service
in Rwanda is used in many businesses with a help of corporation of banks. The researchers
 59

would like to assess on the marking research of that service. We considered Boulangere et
alimentationde gisenyi ltd as the case study.

This research aims to achieve the following specific objectives:

 To access how electronic payment system is conducted in Boulangere et alimentationde

gisenyi ltd
 To access the contribution of electronic payment system to the customer satisfaction

In order to answer to this objective the researchers had to formulate the following questions:
 How is electronic payment system conducted in Boulangere et alimentation de gisenyi
ltd?
 Is there an impact of electronic payment system to the customer satisfaction?

After analyzing the data and the responses from the respondents, the researchers have passed to
the verification of hypotheses.

 Electronic payment system is effectively conducted in Boulangere et alimentation de

gisenyi ltd
 Electronic payment system impact positively to the customer satisfaction

The following indicators can prove that in Boulangere et alimentation de gisenyi ltd has five
way of paying service and goods

 The first objective which was to access how electronic payment system is conducted in
Boulangere et alimentation de gisenyi ltd. The electronic payment is available at any time
with different ways of paying mobile payment, debit card, credit card, smart card this
show that e-payment is conducted effectively and the increase of sales through e-payment
and the adoption new customers are increased day to day based on the report of in
Boulangere et alimentationde gisenyi ltd (2019-2021).
 The second objective which was to access the contribution of electronic payment system
to the customer satisfaction. The electronic payment has increase the satisfaction of
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customer that has been provided and proved by the report of Boulangere et
alimentationde gisenyi ltd.
Customer satisfaction (CSAT=0.74) means that customer are satisfied with the service electronic
payment system because measure how satisfied customer is with our service and it’s one of most
important drivers of revenue because it gauges the emotional impact of your interaction with
customer. Customer effort score (CES=91.66%) means that customer are happy with the service
of electronic payment system. Net promoted score (NPS=35%) that means that loyalty customer
is very high can be ambassadors to their friend and family and loyal customer are an asset to any
enterprise are great way to keep the business running. Sentiment score (70.59) mean that
customer has positive understanding on our services. Churn rate of January, February and March
was decrease month to month mean that number of lost customer is decreased which is a good
thing to enterprise with low churn rate.
3.5. Suggestions to Boulangere ET alimentation de gisenyi ltd
The researchers also after this research study, they would like to suggest Boulangere et
alimentationde gisenyi ltd some suggestions related to our research topic and better improvement
of their market research.

 To continue to implement different strategies which are the source of the performance;

 To increase the salaries of subordinate employees. Because it is up to them to implement

all strategies taken by the management. According to the achievement of company we
have been that in considering target annual and it achievement the company goes beyond
of its targets. Is the commitment of employees;

 To increase the number of sales

 To improve the good climate among employees

 To improve the internal & external communication among staff and subordinates’
employees in order to improve the decision making effectively and efficiency.

3.6. Recommendations for further researchers

The researchers also suggest to the further researchers and students suggestions related to our
research topic to do during their final academic research:
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 Impact of electronic payment system on the increase of sales in small and medium
enterprise.
 Contribution of electronic payment on profitability of small and medium enterprise.

REFERENCE

 Kamaruzaman, K. N., Handrich Y. M., Sullivan F. (2010). e-Commerce Adoption in Malaysia:

Trends, Issues and Opportunit
 E-Money. (2013). Introduction to electronic payments. Retrieved from
http://blog.e-money.com/the-history-ofelectronic-payments-
 Hord, J. (2005). Electronic payment systems. Retrieved
fromhttp://communication.howstuffworks.com/electroni c payment2.htm,on 10/06/2015
 Centeno, C. (2002). Building security and consumer trust in internet payments: The potential of
“soft” measures- Report EUR20278 EN. Spain: Institute for Prospective Technological Studies. 

 Kalakota, R., & Whinston, A. B. (1997). Electronic commerce-A manager’s guide. Reading,

MA: Addision-Wesley.
 https://www.mlsu.ac.in/econtents/1470_Research%20Methodolgy%20and%20Types%20of
%20Research-converted.pdf
 Linck, K., Pousttchi, K., & Wiedemann, D. G. (2006). Security issues in mobile payment from
the customer viewpoint. Proceedings of the 14th European Conference on Information Systems,
(ECIS 2006), Göteborg, Schweden,
 Patton, M. A., & Jøsang, A. (2004). Technologies for trust in electronic commerce. Electronic
Commerce Research, 4, 9–21.10.1023/B:ELEC.0000009279.89570.27
 https://www.tandfonline.com/doi/full/10.1080/1331677X.2017.1305791
 https://www.ijsr.net/archive/v6i10/ART20177390.pdf
 https://hal.archives-ouvertes.fr/hal-02546796/document]
 https://www.zendesk.com/blog/measure-customer-satisfaction
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 https://www.mlsu.ac.in/econtents/1470_Research%20Methodolgy%20and%20Types%20of
%20Research-converted.pdf
 https://www.researchgate.net/publication/
335827941_Reliability_and_Validity_of_Research_Instruments_Correspondence_to_kubaiedwi
nyahoocom
 https://www.simplypsychology.org/questionnaires.html]
 https://www.researchgate.net/publication/303329794_Adoption_of_e-
Payment_Systems_A_Review_of_Literature
Questionnaire for employees and customers of Boulangere et alimentation de gisenyi ltd
Dear sir/madam
RE: requesting for answering attached.
Our names are Mazirungu Merci and Umuhoza Soleil we are undergraduate student at Kigali
Independent University (ULK) Gisenyi campus, and we are doing research whose title is “Impact
of electronic payment system on customer satisfaction in Boulangere et alimentation de gisenyi
ltd. So you have been selected randomly to participate in this research, and to answer to the
present questionnaire. The researcher would like to insure you that the answers will only be used
for the study’s purpose, and will be treated with high confidentiality. Therefore, I kindly request
you to answer all questions in choosing the one which seems to you correct, putting in a suitable
place(y). You should not write your names anywhere on this page.
Personal identification
Please indicate your identification by putting x or y in the suitable cage.

1. Are you male or female?

 male
 female
2. What is your age?
 Under 18
 18-29
 30-44
 45-59
 60+
 63

3. Do you use Internet Banking?

 No
 Yes
4. What is your level of education?
 not educated
 primary
 High school
 Bachelor’s degree
 Masters
5. Professional experience
 Less than 1year
 1 year
 2 years
 3 years
 above
6. If you have never used internet banking, what are the main reasons? (Check all that apply)
Never heard of Internet banking
 Concerned about security (don’t trust online banking)
 Don’t get on with the technology
 Don't see any real value in having this type of account
 Too new. I would like to see how it works, then I may open an account
 Not available through my ban
 Others
7. How often do you use the following payment methods?
Payment Never Yearly Monthly Weekly
methods

cash

Credit card
 64

Debt card

Mobile payment

8. Whatare your reasons for choosing electronic payment system? 

 Convenience (24 hours service, anywhere connectivity)
  Safe and secure
 Easy to pay
 No service charge

9. What for you are the main advantages of using electronic payment system?
 Fast and easy
 secure
10. Which of the following have happened to you?
 Do you think that using electronic payment system makes your life easier?
 Have you read the banks online security procedures? (This would have been sent to you in the
post or shown to you electronically when you signed up for your account or it’s available
online.)
 Have you ever lost money due to digital fraud (e.g. Credit card stolen, online bank account
hacked)?
 Have you ever had cash lost or stolen?
11. Overall analysis of e-Payment (digital and online payment) systems.
question disagree Strong disagree agree Strong agree

E-Payment
systems save you
time and
money.

e-Payment
systems are
better than cash
 65

E-Payment offers
a greater choice
for consumer and
merchant in the
way they send
and receive
payment.