Consumer trust and adoption of Point Of Sales of selected business organisations in Lagos State Nigeria

Abstract

Nigerian payment systems are cash-driven, and it is the main mode of payments for several transactions. However, the Point of Sales (POS) which is meant to encourage cashless economy as against the cash-centered operations is challenged with issue of trust and security. This study examined the consumer trust and adoption of POS of selected business organizations in Lagos state, Nigeria. The study adopted a cross-sectional survey research design. The population of the study consisted of individual SMEs who are users of POS in the selected sectors and business organizations in Lagos State with population figure of 11,663 and sample size of 2,059. The respondents were randomly sampled from the selected organizations where the data were collected. A validated questionnaire was used. A total of 2,059 copies of the questionnaire were administered, with a response rate of 77.1%. The Cronbach’s alpha coefficients for the constructs are 0.727 for adoption of POS and 0.810 for customer trust and 0.758 for POS security. The data were analysed using descriptive and inferential (Pearson Product Moment correlation) statistics. The findings revealed that there was a significant relationship between customer trust and Adoption of POS (r=0.373; p<0.01) and POS security and Adoption of POS (r=0.437; p<0.01). The study concluded that customer trust had significant and positive relationship with adoption of POS of selected business organizations who are SMEs in Lagos State, Nigeria. The study thus recommended that stakeholders should ensure that security and trust are two important considerations in order to enhance the adoption of POS of selected business organizations in Lagos state, Nigeria.