E-PAYMENT CHALLENGES AND OPPORTUNITIES IN COMMERCIAL BANK OF ETHIOPIA

Abstract

This study was initiated with the aim to assess the challenges and opportunities of e-payment service at Commercial Bank of Ethiopia (CBE). A descriptive survey design entertaining a mixed approach was adopted. Quantitative and qualitative data were collected through administering a self-completion questionnaire distributed to 168 sample respondents. The study enjoyed a 92% response rate. Analysis performed on the collected data revealed the existence of various external environmental factors standing as challenge for e-payment implementation and expansion including inadequacy of ICT infrastructures and legal framework; lack of sufficient government policy enforcement for implementation and growth of e-payment service; low literacy rate among customers, and fear of security risks due to increasing cyber-crimes globally. But, such factors alone can’t halt the growth, expansion and development of the bank’s e-payment service, given its internal strengths as confirmed by respondents and the opportunities already observed or to surface in near future including the newly introduced directive of NBE specifying cash withdrawal limits, the new e-commerce law, partial liberalization of the telecom industry, fierce competition among local providers, increased service acceptance among communities, etc. In general, the future is bright even in worst case scenario of Ethiopia. The current COVID-19 scenario in the country which is forcing bank customers to familiarize themselves with and utilize alternative (electronic) banking channels is a proof. So, with more investment and proactive approach in the years to come, CBE can enjoy the tangible and intangible benefits of e-payment in a way it has never seen before. But, support from and collaboration with key stakeholders like the government, national security agencies, telecom service providers and other banks operating in the country is a must.