FACTORS AFFECTING THE ADOPTION OF POINT OF SALE TERMINALS BY BUSINESS ORGANIZATION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA POS MACHINE

Abstract

transaction is risky and cumbersome and unhealthy for any economy. To changes this scenario different banks introduce different technology based transaction system. Among the initiatives is the introduction of Point of Sale (POS) to business organizations. This paper investigates the factors affecting adoption of POS by organizations in Addis Ababa (south and east district), using the Technology Acceptance Model2 as the theoretical framework. The study adopted survey design by sampling 132 organizations that have adopted POS,using questionnaire as the research instruments and the analysis made based on 117 collected questioners. The results reveal that the adoption of POS terminals by business organization mainly affected by internet connection, unable to print a receipt, the existence of cash based transaction and taking long time for reconciliation by the banks. On the other sidethe easily accessibility and usefulness of the POS machine affects the adoption of the POS terminals positively. The adoption of POS is different from business to business. From those business restaurant and hotel and super market are uses the machine better than other business organization. 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 Addis Ababa districts, East and South, and commercial bank of Ethiopia POS machine therefore; the findings may not be generalized to the entire country.