An analysis of alternate/e-payment channels in commercial banking in Uganda: a case study of Absa Bank (U) Ltd

Abstract

The move towards alternate/e-payment channels has been adopted by commercial banks all over the world. This study sought to assess the alternate / e-payment channels in commercial banking in Uganda. The study objectives were; determining the factors influencing the choice of Alternate / e-payment channels in commercial banks in Uganda, establishing the legal Framework needed for the adoption of e-payment channels in commercial banks in Uganda and identifying the challenges in adopting Alternate / e-payment channels and identify possible strategies of increasing alternate channel adoption in commercial banks. This study also adopted the descriptive design. The sample size of the study was 70 respondents and a response rate of 81.4% was attained. Data was collected using structured questionnaires. Data was analyzed using Statistical Package for Social Sciences (SPSS), windows and Microsoft Excel, descriptive statistics and graphs were used to analyze the data. The study established, that the majority of the respondents use the different alternate / e-payment channels to carry out the day-to-day business transaction in the commercial banks though on the small scale basis. The study established that, many customers are vulnerable online while using the alternate / e-payment channels to threats and attacks, frauds, safety and other risks that they found on the internet. The study concluded that majority of the respondents actually use the different alternate / e-payment channels to carry out the day to day business transaction in the commercial banks though the usage is still on the small scale. Also, the study concluded that many customers are vulnerable online while using the alternate / e-payment channels to threats and attacks, frauds, safety and other risks that they found on the internet. The study also recommended that the commercial banks in Uganda should do more sensitization of the population about the different alternate / e-payment in place to let the public aware of these platforms and be able to use them. Also, the government in conjunction with the commercial banks have to come together and stipulate strong laws and terms and conditions to help protect the customers while using these alternatives for their daily online transactions, the internet connection in Uganda should be upgraded to enhance the usability of the alternate / e-payment channels since these platforms work online with internet. Areas for further research put forward are; customer satisfaction and alternative/e-banking channels in commercial banks, influence of organizational culture on the adoption of the alternative banking channels