| Abstract: | E-commerce grows rapidly and provides an opportunity for companies to increase sales over the internet. Accordingly, this study aimed to assess the challenge and benefits of E-payments system in Ethiopia commercial banks. This study used mainly primary data and it used secondary sources like NBE e-payment directive and others .292 usable questioners were returned from the total 399 with the response rate of 73 % Discriptive research design as applied and Stratified sampling was conducted using SPSS. This study found that from the majority of surveyed customers preferred to mobile banking and they accepted that it acclaimed the most cumbersome e-payment challenges. On other hand, using Pearson’s chi-square, this research concluded that the perception of surveyed customers about the most favorite of e-payment method and the most cumbersome e-payment system in commercial banks are not independent of the composition of age, educational level, marital status and service experience. In addition, this study found that the major problems included limited e-payment services, lack of awareness about existing e-payment, laws and obsolete legal frameworks, poor learning and development of e-services, low salary scale of workers and lack of learning from previous traditional operations. The main benefits of e-payment customers perceived involved in ease application of technology, assurance of banking integrity, helpful for personal and business needs, rapid trading responses, swift transactions and convenience. The data shows that the overall perceived level of challenges of e-payment was almost around 51 % for of the surveyed customers which can be the prioritized point of focus for commercial banks intervention. Thus, commercial banks may increase banking technology adoption rates; it includes planning to introduce a new product in the market, conduct current market research, find out the best the compatibility attributes the perspective of citizens and services providers. |
