TITLE

ASSESSING THE EFFECTIVENESS OF DEBIT CARDS

IN DELIVERING SATISFACTION TO MCA STUDENTS

BY
TAKONDWA MSOSA

A dissertation submitted in partial fulfilment of the

requirements for the Degree of Bachelors of Banking

School of Commerce

Supervisor
MR. PAUL CHIMENYA

Submission date

i
 DECLARATION
I, Takondwa Msosa, hereby declare that this dissertation represents my own work
which has been done after registration for the Bachelor of Banking and Financial
Services (BBFSM) degree at Malawi College of Accountancy and has not been
previously submitted to this or any other institution for a degree, diploma or other
qualifications. Where work that form part of other research papers or any source,
proper citation was included. I accept responsibility for the conduct of the procedures
that might be found to be contrary to the provided guidelines.

Takondwa Msosa

Signature: _____________________________________

Date: _________________________________________ (day, month, year)

ii
 CERTIFICATE OF APPROVAL
I hereby declare that this dissertation according to my knowledge is
the student’s own work
and effort and it has been acknowledged where other sources of
information were used. This
dissertation has been submitted with my approval as a supervisor.
NAME OF SUPERVISOR : ____________________________
SINGATURE OF SUPERVISOR : ____________________________
DATE OF APPROVAL : ___________________ (Day, Month, Year)

iii
 ACKNOWLEDGEMENTS
First and foremost, I would love to give my thanks to God for
allowing me to be able to write this dissertation and guiding me
throughout tis process. I sincerely thank my parents for paying my
school fees and my family for their continuous support. I am also
grateful to my supervisor for providing timely guidance whenever I
was stuck right from development of my research proposal to the
final stage despite having other people to attend to as well. Finally, I
extend my appreciation to (data source) for the data that they
provided for this study. Without contributions of the mentioned
persons, this dissertation would have been a big challenge to me
and even too difficult to complete. I say, thank you.

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ABSTRACT

v
 TABLE OF CONTENTS

CONTENTS
TITLE............................................................................................................................i

DECLARATION..........................................................................................................ii

CERTIFICATE OF APPROVAL.............................................................................iii

DECLARATION.........................................................................................................iv

ACKNOWLEDGEMENTS.........................................................................................v

ABSTRACT.................................................................................................................vi

TABLE OF CONTENTS..........................................................................................vii

LIST OF TABLES......................................................................................................ix

LIST OF FIGURES.....................................................................................................x

LIST OF ABBREVIATIONS AND ACRONYMS..................................................xi

CHAPTER ONE...........................................................................................................1

Introduction..............................................................................................................1

Background to the study..........................................................................................4

Statement of Research Problem..............................................................................5

Research Objectives.................................................................................................6

General objective......................................................................................................6

Specific objective......................................................................................................7

Research Questions..................................................................................................7

Significance of the Study..........................................................................................7

Limitations................................................................................................................8

Conclusion.................................................................................................................9

CHAPTER TWO.......................................................................................................10

Introduction............................................................................................................10

Definitions and explanations of terms..................................................................10

vi
 Theoretical Framework.........................................................................................11

Relevance to the Study.......................................................................................11

Assumptions of the SERVQUAL Model...........................................................12

Implications of the SERVQUAL Model...........................................................12

Limitations of the SERVQUAL Model.............................................................13

Empirical Literature..............................................................................................13

Conceptual Framework.........................................................................................17

Debit card usage and Student Satisfaction.......................................................17

Conclusion...................................................................................................................18

CHAPTER THREE...................................................................................................19

Introduction............................................................................................................19

Participants and Location of the Study................................................................19

Research Design and Methods..............................................................................19

Sampling..................................................................................................................20

Quantitative sample size.....................................................................................20

Qualitative sample size.......................................................................................20

Recruitment of Study participants........................................................................20

Data Collection Tools.............................................................................................21

Preparation of Data Collection Tools................................................................21

Data Collection........................................................................................................21

Analysis of Data......................................................................................................21

Quantitative Data Analysis................................................................................21

Qualitative Data Analysis...................................................................................21

Ethical Considerations...........................................................................................22

Conclusion...............................................................................................................22

vii
viii
LIST OF TABLES

ix
LIST OF FIGURES

x
 LIST OF ABBREVIATIONS AND ACRONYMS

ATM Auto Teller Machine

DDBL Dutch-Bangla Bank Ltd

GOI Government of India

SDGs Sustainable Development Goals

MCA Malawi College of Accountancy

POS Point of Sale

WWII World War 2

xi
 CHAPTER ONE
Introduction

Banks play a crucial role in the economy. They fulfill their duty by encouraging the
mobilization of funds within a country, acting as a financial intermediary that takes in
funds from those with money called deposits and lends the same funds to those who
need funds in the form of loans. In short, the bank acts as an intermediary between
savers and users of capital. In order to carry out their role effectively, banks offer a
wide array of financial services in order to attract and retain customers. These other
financial services include; payments, settlements and fund transfers, foreign exchange
transactions, savings and investment services, payroll services, financial advice,
investments and bill finance, safe-deposit boxes. In order to be able to provide all
these services, the bank is required to perform certain function in the economy which
include but are not limited to; deposit acceptance function, the investment function,
attracting temporarily available resources from individual and corporate customers,
investment function, lending function, and commercial function.

In regards to the payment systems in Malawi, the Payment Systems Act states that
someone shall not establish or operate a payment, clearing and settlement system or
service, remittance services including electronic money transfer services, mobile
payment services or issue payment instruments without a license. The use of cards as
a form of transferring money is included in this definition where a card is defined as
any card including an Auto-Teller Machine (ATM) card, point of sale card, debit card,
credit card or stored value card, used by a consumers to effect an electronic fund
transfer, electronic payments or withdrawals. ([Link], 2017)

A debit card which is also known as a check card or bank card, is a plastic card that
provides the cardholder electronic access to their bank account of their financial
institution (Mynuddin, 2017). It looks very similar to a credit card but it is different in
function. A debit card directly deducts money from your checking account. The limit
on how much you can carry in your debit card is determined by how much money is

1
available in your bank account unlike credit cards which have credit limits imposed
based on credit score and individual circumstances. Debit cards eliminate the need for
holding cash as it is mostly used to make purchases although only at merchant
locations with Point-of-Sale (POS) systems which allows them to buy goods and
services and it also allows consumers to get cash from an Auto-Teller Machine
(ATM). Debit card is a great tool which makes consumers’ lives easier by providing
easy access to cash while transacting.

Taking into account this document which talks about the Payment Systems in Malawi
which was published around the 1990s, it is safe to assume that debit cards have been
a part of our economy since around that time (THE PAYMENT SYSTEM IN
MALAWI, n. d.). National Bank of Malawi (NBM), Standard Bank, First Capital
Bank Malawi, New Banking Society (NBS) and FDH Financial Holding Limited are
all examples of banks in Malawi that offer debit cards to their customers. As result,
the impact that debit cards have had on Malawians has been widespread due to their
readily availability. Debit cards provide consumers with a much more convenient way
to make their purchases as most retailers and other providers accept debit cards as a
form of payment, making it easier to effect payments without carrying money
everywhere they go and this is especially true for large sum payments. This point ties
directly to the next point, which is that debit cards provide their cardholders with a
newfound level of security when it comes to handling funds because they can only be
used by the cardholder for transactions and reduces the need to carry money wherever
they go which can easily be stolen. Debit cards can also be a great budgeting tool
when compared with their counterpart credit cards by ensuring that the cardholder is
only allowed to spend the money that they have in their bank account while also
making it easier to track the expenses generated from spending. Debit cards are also
easily accessible as mentioned beforehand as many banks offer them and due to the
fact that there is no need to fill a lot of paperwork or need for a good credit score.

However, even though debit cards are very advantageous to the cardholders, they do
not come without their own faults and shortcomings. Some common challenges
associated with the use of debit cards for example include limited fraud protection.
Now this refers to circumstances where if the debit card is stolen and the thief knows
the PIN or any other sensitive information, they are capable of spending the money
linked to your bank account. If a debit card is stolen, the cardholder must immediately

2
contact the bank in order to freeze their account to prevent funds from being accessed
by the thief. Another disadvantage, although rare, are network issues. An unstable
network or internet connection can disrupt transactions made by consumers or prevent
them from withdrawing money from ATMs which provide an overall dissatisfying
experience with the service. Merchant issues especially problems associated with their
payment processing system associated with the specific banks can also lead to the
same transaction issues. Another disadvantage are the overdraft fees where if the
cardholder spends more money that what is available in their bank account they incur
associated costs related to that transaction. Another disadvantage also is that use of
debit cards does not build or contribute to a good credit score. This is because the use
of debit cards does not involve money but because of this, it makes it harder for debit
cardholders to qualify for loan applications such as mortgages where good credit is an
important requirement. Some debit cards also come stipulated with spending limits
which can be restricting to the cardholder, infringing on their consumer freedom or
spending privileges. As a result of all of these compounding factors, it is not a
surprise that customers would be dissatisfied with the service they are receiving,
which can lead to reduced usage or adoption of debit cards by customer as well as less
advocation by current users to get others to start using them as well. All of this leads
to reduced revenue generated for the bank, less than what could be achieved if the
service offered was of a higher quality.

Key concepts for this research study include debit cards, customer satisfaction and
financial literacy. Debit cards are plastic cards that provides the cardholder electronic
access to their bank account of their financial institution. Customer satisfaction is an
emotional or cognitive response based on the expectations about a product or the
consumption experience of it. And finally, financial literacy which will focus on
looking at how well MCA students manage their finances and how debit cards help
with that. Basically, their capability of budgeting and avoiding overdraft fees.

With the increased development of technology in recent years as well as the shifting
mindset towards holding large sums of cash, debit cards have provided a viable
alternative for convenient transacting. This research aims to focus on the effectiveness
of debit cards in delivering satisfaction to customers, specifically students at MCA
when it comes to transacting on a daily basis. This can help provide insight to banks
on how this specific demographic of their customer base perceive their products

3
allowing for them to implement change and improvement. Satisfaction of banking
products such as debit cards can be ascertained in many ways, such as looking at the
depth of usage, width of usage, and growth of usage which can inform the bank on
whether their product is underperforming or not. The research will be conducted on
the Blantyre MCA main campus and will involve students who have experience with
the use of debit cards.

Background to the study

There have been many studies relating to the customer’s satisfaction of debit cards all
across the globe. However, to the emergence of other digital products such as e-
wallets, mobile banking and the like, less studies are being conducted.

The history of payment cards in general starts in the late 19 th century where
department stores were beginning to formalize the procedures for offering credit to
unknown borrowers. This is because offering credit to customers was one way to
boost sales volume and bind shoppers to their stores (Lauer, 2020). They found
themselves in a tough spot while trying to figure out how to identify the
creditworthiness of borrowers at the time, considering there was no infrastructure put
in place to help them obtain the relevant financial information related to borrowers to
allow them to make informed decisions such as the credit score system that we have
today. They also needed to find a way to collect their settlements and ensure they are
paid on time and in full. These problems were solved by introducing new credit
checking policies and recordkeeping systems for accounting and billing. During the
early 20th century, the department stores started to hand out credit tokens which linked
customers with their respective store accounts. These were essentially the first
payment cards and they included engraved name plates, key fobs and paper wallet
cards.

The first universal credit cards issued by a third party intermediary emerged in the
1950s shortly after the World War 2 (WWII) came to an end. This card was made by
The Diner’s Club at it allowed the cardholders to be able to use them at a variety of
restaurants and businesses which were a part of national network (Lauer, 2020). In
1958, American Express, Carte Blanche and the Bank of America all introduced their
own plastic cards. The Bank of America rebranded themselves as Americard in 1966,

4
and further rebranded themselves to what is now known as the Visa network. Another
national system, the Interbank Card Association which was formed 1966 also
rebranded itself as Mastercard in 1979. During this time, many other banks were
experimenting with their own community charge card services.

Debit cards first rose to the scene around the 1960s when a bank in the United States
known as the Bank of Delaware launched a pilot project of the product. From then on,
other countries in America also started working on similar projects in the 1970s. By
the 1980s to the 1990s, there was a large number of debit card users in America and
this growth was accompanied by increasing popularity of ATMs. . Now, debit cards
have become so prevalent in our economies that they have surpassed the use of
banking cheques in many countries. There has also been a noticeable decrease in cash
transactions globally.

Although widespread, the development of these debit cards in different countries

happened in isolation from each other, leading to incompatibility of one country’s
system with another. However, many initiatives have been made to allow for
compatibility. In Malawi, there are network systems such as VISA and Mastercard
which provide the relevant infrastructure for processing transactions, they are also
accepted in over 200 countries and territories. Banks such as the National Bank of
Malawi (NBM), Standard Bank, First Capital Bank Malawi, New Banking Society
(NBS) and FDH Financial Holding Limited leverage these systems in order to offer
the debit cards that are used by customers.

The quality provided by debit cards is what will be assessed in this research as
whether or not it delivers satisfaction to students at MCA. MCA is an undergraduate
college that offers degree programs in areas such as Banking, Accounting, Marketing,
etc. It has three branches in the major cities of Malawi and has been accredited by
NCHE as an institution qualified to provide an opportunity to provide higher learning
to those who seek it. It is at this institution that the research will be conducted.

Statement of Research Problem

Debit cards are a financial product that essentially allows the user to carry their bank
account in their pocket. It allows the customer to transact more freely at markets with

5
POS through the use of a plastic card which is connected to the bank account allowing
for transfer of funds available in the account to occur. However, things do not always
pan out as smoothly as described. This is because customers may face many
difficulties while using debit cards such as poor connectivity, misplacement of debit
cards, and durability of debit cards, poor customer service and many more. All these
things create a negative experience associated with the product and all these need to
be analysed when it comes to assessing the satisfaction of customers. This research,
although conducted multiple times before, can still be quite insightful by focusing on
a much more niche perspective by considering the subjective experiences of MCA
students with using debit cards. A study conducted in the United States expressed that
the younger generation use debit cards way more than older generations and that the
main reason for debit card usage is convenience (Borzekowski, Kiser and Ahmed,
2006). Another study conducted in Rwandan commercial banks found that factors
such as responsiveness, reliability and assurance greatly increased customer
satisfaction in e-banking (Annet Murekatete and Twesigye, 2024). Another research
showed that student use debit cards had a positive effect on their consumption
behaviour because of increased efficiency of making payments and the number of
promos and discounts offered by banks (Fatmasari et al., 2019).

Research Objectives

The primary objective of this research is to understand the effectiveness of debit cards
in delivering satisfaction to customers, specifically focusing on students who learn at
MCA in order to provide banks with insight on how MCA students perceive the
quality of the product offered.

General objective

The general objective of this research is examine the effectiveness of debit cards on
bringing satisfaction to MCA students. This can give banks an insight to the
effectiveness of debit cards in regards to this specific demographic.

6
Specific objective

The following are the specific objectives of the research which will help to achieve
the general objective:

1. To assess the effectiveness of debit cards in delivering satisfaction to MCA

students
2. To explore the benefits associated with using debit cards for transactions
3. To analyse the challenges that come from adopting debit cards in daily life

Research Questions

The following are the research questions to the study:

1. How effective are debit cards in delivering satisfaction to MCA students?
2. What are the benefits associated with using debit cards for daily transactions?
3. What are the challenges that come from using debit cards in daily life?

Significance of the Study

This study is important as it can act as a source of information that can be generalized
to apply to other Malawians in the same demographic. This can give banks insightful
information as to how Gen Z’s perceive the debit cards and can help them implement
the necessary changes in order to ensure that their satisfactions are met. This can in
turn increase the profitability of banks because the more customers are satisfied, the
more they will use the product and become ambassadors of the bank, getting others to
use the product as well. It also quantifies the satisfaction of current users allowing for
a less biased rating as compared to if they asked people they were in close contact
with only.

This study can also be informative to other college students who have been wondering
whether to get debit cards or not as it clearly outlines the benefits and any
disadvantages with using them. With prices of goods consistently on the rise and as
well as a general increase in the cost of living, this would require students to carry
more money on them. This especially true when it comes to grocery shopping,
because even though mobile money is now widely used, it cannot be used to effect

7
purchases at grocery shops such as Chipiku or Shoprite or make purchases at
restaurants. This can create an undesirable situation in regards to security because as
the economy continues to get worse, the poor are put between a rock and a hard place,
leading them to result to criminal activities such as robbery. Pair this together with
college students carrying more money around and this can lead to a series of violent
confrontations on the streets and other public spaces. Debit cards in this case which
can be used both at grocery stores and restaurants can provide a much better and safer
alternative than to needing to carry more money. Also the chances of accidentally
dropping or losing money on the way to spend it is quite high, and debit cards which
are easier to carry around reduce that risk.

This research can also help policy makers develop strategies to promote and regulate
debit card usage and cashless transactions as a whole.

Limitations

The study faces plenty of limitations and restrictions that will affect the findings at the
end of the research which are out of the researcher’s control. They include:

1. Time constraints

There will not be enough adequate time to comfortably collect, analyze and report the
data and findings. To overcome this, critical areas of the research will be prioritized to
ensure the research is completed on time.

2. Sampling technique

Due to constraints on time and resources, the sample will only be taken from MCA
students which may not fully be representative of the general population of college
students. To combat this, purposive sampling will be used in an effort to select a fair
number of students from different years and programs who have the relevant
experience to contribute to the research to promote diversity.

3. Nature of the data

The data collected will be based on subjective experiences, which may be biased due
to exaggeration or omission of certain details. To overcome this a mixed methods

8
approach will be used which will include secondary data from bank reports to
increase reliability of findings.

4. Data collection method

The study will involve the use of questionnaires and semi-structured interviews to
collect information from MCA students. The use of questionnaires comes with its
own challenges which include time constraints, willingness of participants to answer
questionnaires, and a lack of depth or opportunity to expand on certain questions, and
potential misunderstandings when answering questions. These issues will be corrected
by making the questionnaire concise and clear reducing the chance of
misinterpretation, allowing the participants to complete them with ease and allowing
for a flexible timeframe to complete the questions.

Conclusion

This chapter focused on introducing the research topic which aims to determine the
effectiveness of debit cards in providing satisfaction to MCA students. It also looked
at the role of debit cards which is to eliminate the need of consumers to hold physical
cash and provide a higher level of convenience when making transactions. The
research objectives were also discussed and clearly divided into the general objective
and subsequently the specific objectives. Additionally, the chapter also touched on the
research questions, highlighting the questions that will be answered as the research is
conducted and also explained the significance of the study to banks, college students
and policy makers and also listed any limitations that might be encountered whilst
pursuing the research. The next chapter will look into a comprehensive view of the
literature surrounding the topic and exploring the theoretical and empirical framework
related to the effectiveness of satisfaction delivery of debit cards.

9
 CHAPTER TWO

Introduction

In this chapter I will discuss the relevant definitions and key concepts concerning the
research. Next, the theoretical framework of the study will be explained, along with
the empirical framework which both determine how information is interpreted. The
chapter will also include a conceptual framework to visually illustrate the
relationships between key variables in the study. I will also review similar literature
related to debit card usage and customer satisfaction to provide background to the
research. At the end of this chapter, there is a summary that highlights the key points
of the chapter.

Definitions and explanations of terms

According to Mynuddin, they define ‘‘debit card’’ as a plastic card that provides the
cardholder electronic access to his or her bank accounts at a financial institution
(Mynuddin, 2017).

Customer Satisfaction can be defined as a key performance indicator of the activity

of a firm or corporation (Mynuddin, 2017). Mwatsika defines ‘‘Customer
Satisfaction’’ as an emotional or cognitive response based on the expectations about a
product or the consumption experience of it (Charles, 2014). Murekatete borrows a
definition from Albinson who exaplains ‘‘Customer Satisfaction’’ to be a sort of
emotional response to the difference between what customers expect and what they
receive regarding the fulfilment of some need, goal or desire. In the context of this
research, customers’ satisfaction will be measured from the viewpoint and
experiences of MCA students (Annet Murekatete and Twesigye, 2024).

An MCA student for the purposes of this study refers to any student pursuing higher
education at MCA, whether pursuing an undergraduate degree or a professional

10
degree on the Blantyre campus. This includes students regardless of the method of
learning, i.e. weekday students and weekend students. The only other qualifier is that
students must be a part of Gen z due to the purposes of this study.

According to (Francis and Hoefel, 2018), Gen Z is a term used to describe children
loosely born around the years of 1995 to 2010. Generations are shaped by the contexts
in which they emerge into, a digital world being the one for Gen Z’ers. It refers to the
generation that grew up with the digital world, and from a young age have been
exposed to mobile phone systems, the internet and social media and social networks.
As a result of this, this has created a group of people who are hypercognitive and are
comfortable with collecting and cross-referencing many sources of information,
integrating both online and offline experiences. This generation is also more open to
understanding different kinds of people and is also comfortable for individual truths to
be different for everyone.

Network systems. A debit payments network is a system that provides a set of rules
as well as a technological infrastructure for that allows buyers and sellers to conduct
safe, secure and real-time transactions (Fiserve, 2023). It basically facilitates the
payment between a buyer and a seller. Global debit card network systems include;
Visa, Mastercard and Discover brands. Those that can exclusively be used in America
include; Fiserv-owned debit netwroks, Accel, STAR, NYCE, Pulse and Shazam.

Theoretical Framework

The SERVQUAL is a model used to measure the difference between what customers
want and the perception of what they receive. It is a combination of the two words
Service and Quality. The model was developed by A. Parasuraman, Leonard Berry,
and Valarie Zeithaml and was published in 1988. It is a perpetual process to be
continuously carried out which involves the following 5 principles; Reliability,
Responsiveness, Assurance, Empathy and Tangibles which all have an impact on
customer satisfaction.

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Relevance to the Study

The SERVQUAL model is relevant to the study because at the end of the day the
level of satisfaction of customers is one way of knowing whether a product or service
has been delivered effectively or not. Therefore, it is important to understand the
various elements that affect MCA students' satisfaction with debit card services, as
this satisfaction directly relates to the quality of banking interactions.

1. Reliability: Students depend on debit cards for consistent service, including

accessibility and functionality during transactions.

2. Responsiveness: Banks’ ability to resolve issues, such as network failures or lost

cards, impacts satisfaction.

3. Assurance: Security measures, such as fraud protection, are vital for building trust
in debit card usage.

4. Empathy: Personalized customer service, like understanding student-specific needs,

enhances the user experience.

5. Tangibles: Physical elements, such as the card’s durability or the availability of

ATMs, affect perceptions of quality.

Assumptions of the SERVQUAL Model

The SERVQUAL model assumes that by providing services that closely match or
exceed the expectations of customers, the bank can provide quality service to
customers which in turn can help it obtain competitive advantage.

For instance, students expect reliable and seamless transactions without significant
disruptions. The physical and operational features of debit cards (e.g., network
reliability) significantly influence satisfaction. Service failures (e.g., poor customer
support) lead to dissatisfaction, regardless of other positive factors. If factors such as
these are accounted for and improved upon, this can result in high customer
satisfaction and loyalty.

12
Implications of the SERVQUAL Model

Banks must prioritize reliability and responsiveness to maintain a high level of student
satisfaction.

Improving empathy through personalized services could address unique student

needs.

Enhanced assurance (e.g., better fraud prevention) can increase trust and usage among
students.

Limitations of the SERVQUAL Model

While the SERVQUAL model is useful, it has several limitations:

1. Static Nature: It assumes that customer expectations are stable, which may not
account for changing preferences among students over time. This can be overcome by
using periodic surveys which can capture shifts in expectations and preferences.

2. Context-Specific Factors: The model does not fully address technological aspects
(e.g., network stability) specific to debit cards. This can be overcome by integrating
technology-focused models, like the Technology Acceptance Model (TAM), can
complement SERVQUAL.

Empirical Literature

(Mynuddin, 2017) conducted this research and its primary purpose was to identify the
factors and attributes that affect the adoption of debit cards due to the recent increase
in the number of people using debit cards in Bangladesh. They define a debit card as a
plastic card that provides the cardholder with electronic access to his or her bank
account. They also state that the debit card acts as a substitute for cash and cheques by
providing an easier medium of making transactions on a daily basis, making it a great
financial tool. They also state that the debit card is seemingly a powerful economic
engine that stimulates growth and generates new opportunities, providing all the more
reason to study it. The research was carried out using a questionnaire, which involved
around 239 people from Dutch-Bangla Bank Ltd (DBBL) who took part. Customer

13
Satisfaction in this research was defined as a key performance indicator of the activity
of a firm or corporation. It was strongly emphasized that satisfaction of customers had
a big role to play into determining whether people would use debit cards Therefore, it
has been recommended that if banks want to maintain a competitive place in the
industry, banks must give great attention to service quality which directly impacts
customer satisfaction. At the end of the study, the researchers found out that there are
many factors that influence customer satisfaction which include, utility bill payment
and transaction transparency, transaction through POS, new opportunities by
advertisement, social image, service quality, and speedy and faster transactions.

(Truong, Phan and Tran, 2020) conducted a study where their main focus was to
identify the determinants of customer satisfaction when using debit cards. The
researchers felt that even though there has been a visible increase in the use of
payment services through debit cards, the quality of the services provided were not
lackluster and left more to be desired by customers. This study involved about 428
customers. By applying Exploratory Factor Analysis (EFA) logistic regression and
linear regression, they found that service features and price of products were the key
determinants in determining satisfaction. Service features include aspects such as;
money safety, money availability, privacy security, account security and network
which were perceived as very important. This agrees with Afroza’s research as money
availability was also important and customers’ perception of the quality of debit card
service were very much affected by the poor network service. However, the findings
on this research were heterogeneous and dependent upon the manner in which the
customers were grouped together, i.e. different groups exhibited different results. The
customers were grouped into customers who use debit cards for everyday purchases
and those who use debit cards for high-value transactions. Those customers who used
debit to make daily purchases of products and services in stores or online were more
affected and thereby influenced by factors such as product price and features of the
debit cards. On the other hand, customers who work for public agencies and mostly
use non-cash transactions to high value purchases were not as affected by product
price and features.

14
(Annet Murekatete and Twesigye, 2024) carried their study in order to find the effect
of e-banking adoption on customer satisfaction and loyalty in commercial banks in
Rwanda. Murekatete’s objectives were to find out to what extent e-banking affects
customer satisfaction and loyalty and to also identify the factors that increase
satisfaction. The research was conducted at the Bank of Kigali, was descriptive in
nature and involved 400 participants including both staff and customers of the bank.
The researchers state that the study is important because understanding and meeting
customers’ expectations and being different from competitors is what is necessary to
be able to survive in today’s global economy. To be able to do this, a bank must
prioritize customer satisfaction. They go on to list all the challenges that customers
face with the current state of debit cards which negatively impact satisfaction with the
services. For example, slow internet connection speeds and the lack of internet
availability in different areas of the country negatively impact satisfaction. Other
problems include those associated with faulty infrastructure, for example, machine out
of order, machine out of cash, no printing statements, cards getting blocked, payment
of hidden costs driving up expenses, lack of technicians who can quickly solve broken
down ATM related issues, and many more. Using correlation analysis, they found that
responsiveness, reliability, assurance and tangible aspects all paid a significant role in
determining happiness of the customer. However, e-banking adoption and tangibility
played the biggest role in customer satisfaction. Therefore, if banks want to increase
their customer satisfaction and loyalty and subsequently their revenue, they must
focus on these factors.

The research conducted by (Fatmasari et al., 2019) done to observe how the
consumption behaviour of students is affected and influenced by E-money and debit
cards. The researcher had the preconceived notion that students do not usually use
debit cards to make daily transactions. And when conducting the research where the
data for the research was collected using questionnaires and then analyzed using
multiple linear regression models, it was found that when used partially, debit cards
did not influence the consumption behaviour of university students. In fact, some data
showed that there was some negative correlation, probably pointing to the fact that
debit cards can be used as an effective tool to save and develop a budgeting habit.

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However, when used to facilitate more transactions in respect to cash, they found that
debit cards increase the consumption and spending habits of these students due to the
ease of making transactions and efficiency that comes with using a debit card.
Considering these findings and those from Borzekowski which basically found
students are more likely to adopt debit card usage, this stresses the importance to
ensure that university students must become financially literate so that they do not
over-consume to the point where it becomes detrimental to their financial health.
(Borzekowski, Elizabeth and Shaista, 2008) in this research mainly focused on
observing consumer patterns and preferences. Open-ended questionnaires were used
and it was found that younger people, educated people and women are more probable
to use debit cards. It was also found that most people adopt debit card usage because
of its convenience over other forms of cash payment.

(Wina Sari Asmara, Raden Hebat Kurnia and Alfi rochmi, 2024) also conducted a
study in order to determine if debit card usage has any impact all on the consumption
or spending behaviour of students at the Faculty of Economics and Islamic Business
Batang Hari Islamic University. They state that technological advancements such as
the coming of debit cards and use of cashless make it easier for Indonesian people to
do transactions. The research was quantitative in nature and found similar results to
Fatmasari’s study. It was found that Debit cards have a significant effect on the
consumption behaviour of students as well.

The Government of India (GOI) in an attempt to achieve Sustainable Development

Goals (SDGs), has been taking many initiatives in order to end poverty in the country.
One of the many initiatives involves supporting the banking and financial institutions
to help increase access to various banking and financial products and services to all.
That includes access to debit and credit cards. (Biradar, 2024) conducted research to
determine the demographic-based factors that affect the usage of debit cards and
credit cards in India in order to provide insight and help policy makers come up with
appropriate guidelines to banks and other financial institutions. The study involved
collecting data from all the banks and financial institutions in India about cardholders.
According to (Biarda, 2024), the electronic card payment system is a good method of

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payment because of its many advantages, for example; it is time saving, convenient
and user-friendly. However, it is true that it comes with its disadvantages as well,
which include; concerns about cyber security, online fraud, and misuse of personal
information. The study found many factors that influenced the adoption of debit cards
among the people in India. They found that people with high education levels, those
who lived in urban areas, received regular wages and salaries, and had a high value of
financial assets were more likely to use debit cards in India as well as younger people
such as students. They also found that senior citizens and women were less inclined to
use debit cards in India, which contradicts the findings of Borzekowski, who found
that women were more likely to use debit cards. The study however, found that social
groups and one’s religion do not affect the use of debit and credit cards. The study
recommends banks and financial institutions to take more initiatives to promote the
usage of debit cards in rural areas in India. They must also create more awareness
about debit and credit cards and educate people on the benefits associated with them,
increase the number of ATMs in the country, and also reduce the annual fees charged
on issuing debit and credit card especially in rural and remote areas to increase
adoption. The cards should also be made more user friendly to cater to senior citizens
and women who are not tech-savvy.

Conceptual Framework

Debit card usage and Student Satisfaction

Accessibility

Availability
Effectiveness
Reliability

Convenience
Benefits
Security Customer
satisfaction
Network issues
Challenges Dependent Variable
Card loss
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Poor customer
service
 Independent Variables

In the diagram above, Customer satisfaction is the Dependent variable. It is affected

by the Independent variables which include the effectiveness, benefits and challenges
associated with debit card usage. More specifically, these include accessibility,
availability, reliability, convenience, security, network issues, card loss, and poor
customer service. All of these factors play a role in influencing the overall fulfilment
and positive experiences associated with using debit cards.

Conclusion

This chapter’s main focus point was Literature Review and it talked about several
aspects of the research in great detail such as the theoretical framework, empirical
literature and conceptual framework. Definitions of key terms were provided, a
theoretical framework was also provided to underpin the study and there was a section
dedicated to empirical literally in order to focus on previous research findings. The
conceptual framework was constructed to show the relationship between customer
satisfactions and independent variables that fall under the effectiveness of debit cards
in carrying out their designed function, benefits of debit cards, and challenges faced
when using them. The next chapter will look at the research methodology including
the research design, data collection methods, and analytical techniques that will be
used in the study.

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 CHAPTER THREE

Introduction

This chapter talks about the participants, research design and methods, sampling
techniques, data collection methods, data analysis techniques, and finally the ethical
considerations surrounding the research that will help in determining debit cards
impact on customer satisfaction.

Participants and Location of the Study

The people involved in the study will be students at MCA because the main focus of
the study is to determine the effectiveness of debit cards at providing satisfaction to
this specific demographic. The study will be conducted at the MCA Blantyre campus.

Research Design and Methods

The research philosophy adopted is a Pragmatic nature. I choose this philosophy as it

is very flexible and allows me to take different approaches to answering my research
questions based on what is the most effective. It is advantageous as I would also like
to account for both information that can be quantifiably expressed as well as include
subjective experiences of the participants, i.e. observable phenomena and subjective
meanings both qualify as acceptable data.

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The research approach will mostly be deductive in nature deductive but will also
include inductive elements. Deduction will be more dominant to benefit from the
large amount of literature surrounding the topic and also make efficient use of the
limited time available to do the research for practicality’s sake. The research strategy
to be used is a mixed-methods one which combines both qualitative and quantitative
methods to gain a more comprehensive understanding of the research problem. This
will be done by combining both interviews and questionnaires in the research. The
time horizon for the research will be cross-sectional due to the lack of time available
to carry it out.

Sampling

Quantitative sample size

Assuming 20 students both in weekday and weekend classes use debit cards per
semester, the estimated total number of debit card users is 40 students x 8 which is
equal to 320 students.

320 students therefore, becomes our sampling frame and due to the lack of response
rate, I will use the formula N / 1 + N(e2) where,

N is the sampling frame

e is the margin of error which in this case is 5%

= N / 1 + N(e2)

= 320 / 1 + 320(0.052)

= 177 students

Therefore, my sample size is 177 students

Qualitative sample size

For this research, 12 students will be sufficient across the 4 years and 4 semesters
respectively.

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Recruitment of Study participants

The purposive sampling technique will be used. This is because it will allow me to
target those students who use debit cards on a regular basis and it will also help me
include participants from year 1 to year 4 from both weekday and weekend classes. It
is also cost-effective which will help keep my expenses within budget.

Data Collection Tools

Preparation of Data Collection Tools

Questionnaires will be used along with interviews and audio recorder and these will
help achieve our research objectives by allowing us to collect the necessary
information concerning customer satisfaction. This will be done by allowing us to
capture their opinions on the accessibility, availability, reliability, convenience,
security, network issues, card loss, and poor customer service of debit cards.

Data Collection

Questionnaires will be administered physically and the interviews will be conducted

on the MCA Blantyre campus. As for secondary data, reports from the National Bank
of Malawi will be analyzed.

Analysis of Data

Quantitative Data Analysis

Descriptive statistics: This will include processes such as calculating the mean
satisfaction scores of the participants as well as finding the standard deviation
associated to see how values are spread about the mean.

Inferential statistics: This will involve regression analysis which will provide insight
into the factors which affect customer satisfaction and to what extent.

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Qualitative Data Analysis

The responses from participants will be analyzed in order to identify patterns in the
feedback. This will be done using the data analyst approach developed by Miles and
Huberman which goes as follows; data reduction, data display, and then drawing and
verifying conclusions.

Ethical Considerations

1. Informed consent. Participants will be fully briefed about what the research is about
before participation.

2. Voluntary participation. Participants will be allowed to withdraw from the research

at any point in time if they feel it necessary.

3. Confidentiality. All information obtained from participants will be used only for
research purposes and the personal information and identities will be safeguarded.

4. Authorization. Permission to carry out the research will be obtained from MCA.

Conclusion

This chapter detailed the methodology for investigating the effectiveness of debit
cards in delivering satisfaction to customers, including research design, sampling,
data collection and analysis methods along with ethical considerations.

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HARI. Jurnal Cakrawala Ilmiaj, 4(4), pp.275-284.

Biradar, J., (2024). Factors Affecting Debit Card and Credit Card use in India:
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