Factors Affecting Adoption of Point of Sale Terminals by Business Organisations in Nigeria

Nigerian payment system is cash-driven because cash is the main mode of payment. Cash based transaction is risky and cumbersome and unhealthy for any economy. The Central Bank of Nigeria introduced a cash policy in 2011 to ensure that cash-based transactions are kept to the barest minimum. Among the initiatives is the introduction of Point of Sale (POS) to business organisations. This paper investigates the factors affecting adoption of POS by organisations in Lagos and Ibadan metropolis, Nigeria using the Technology Acceptance Model2 as the theoretical framework.

The study adopted survey design by sampling 200 organisations that have adopted POS in Lagos and Ibadan metropolis using questionnaire as the research instruments. The results reveal that subjective norms and perceived ease of use have significant relationship with adoption of POS machine by the organisations. However, the characteristics of the organisations, image and perceived usefulness do not have significant relationship with adoption of POS. The study provides a guide to banks on the factors they need to put into consideration when deploying POS machine. The study has some limitations, one of which is that the population was limited to only two states therefore, the findings may not be generalised to the entire country.