ELECTRONIC PAYMENT SYSTEMS AND PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A CASE OF EQUITY BANK, NDEEBA BRANCH

Abstract

This study aimed at establishing the relationship between electronic payment systems and financial 
performance of commercial banks in Uganda, with specific focus on Equity Bank, Ndeeba Branch. As a 
way of achieving this research purpose three research objectives were formulated and these included; to 
establish the relationship between Mobile banking and financial performance at Equity bank, Ndeeba 
branch, to assess the relationship between internet banking and financial performance at Equity bank, 
Ndeeba branch, to examine the relationship between Electronic cards and financial performance at Equity 
bank, Ndeeba branch. The researcher employed a cross sectional research design for the study.  A cross 
sectional design was adopted because it enabled a researcher to obtain both qualitative and quantitative data 
at the same time. The study population was 60, and comprised top Management (10), finance staff members 
(35), and (15) field staff members (Equity Bank Ndeeba branch records, 2024) from which 52 respondents 
were sampled using Krejcie and Morgan (1970) table for sampling. Both purposive and simple random 
sampling techniques were used in this study. Validity and reliability of the questionnaires were established 
through expert judgement and pre-testing respectively. Data was analyzed using Special Package for Social  
Scientists (SPSS). Frequencies and percentages were used to analyse respondents’ profiles while mean 
values and standard deviations. Correlation and multiple regressions were also used to establish the 
relationship between the research variables. Pearson’s correlation between mobile banking and financial 
performance at Equity bank illustrates that there is a strong positive relationship between the two variables 
with r = 0.655. Pearson’s correlation between internet banking and financial performance at Equity bank 
illustrates that there is a strong positive relationship between the two variables with (r)= 0.635. Findings of 
the study showed the relationship between electronic cards and financial performance at Equity bank shows 
that there is a weak relationship between the two variables is (r) = 0.470. The study recommends that Equity 
Bank should expand its mobile banking services by adding new features and targeting specific customer 
segments while promoting adoption through awareness campaigns and incentives. Equity Bank should focus 
on enhancing its internet banking platform with advanced features like personalized dashboards, automated 
financial tools, and seamless integration with other digital services.