Adoption of Contactless Payment Systems at ZB Bank, Harare

Abstract

This study investigated the adoption of contactless payment systems (CPS) at ZB Bank, Harare. The purpose of the study was to establish the current levels of CPS adoption at ZB Bank and to examine the factors influencing this adoption, thereby providing an empirical basis for strengthening the Bank’s digital payment strategy. The study examined the relationship between three independent variables (technological factors, organisational factors and environmental factors) and one dependent variable (the level of CPS adoption at ZB Bank). The research was guided by an integrated theoretical framework combining the Technology Acceptance Model, the Unified Theory of Acceptance and Use of Technology, the Diffusion of Innovations theory and the Technology-Organisation-Environment framework. The study employed an explanatory research design with a case study strategy, collecting quantitative data from 298 respondents out of a target sample of 335 employees and high-value customers in Harare, yielding a response rate of 88.96%. Descriptive statistics on the dependent variable revealed that while 78.5% of respondents were aware of ZB Bank’s contactless payment systems, only 45.3% had ever used them, with usage frequency considerably lower than that of network-led mobile money and traditional bank cards. Reliability analysis confirmed high internal consistency across all constructs measuring the independent variables, with Cronbach’s Alpha values ranging from 0.85 to 0.91 and Principal Component Factor Analysis validated the three-factor structure of technological, organisational and environmental influences. Correlation analysis showed significant positive relationships between independent variables and the dependent variable, with technological factors exhibiting the strongest correlation (r = 0.68). Multiple regression analysis revealed that the three independent variables collectively explained 55.5% of the variance in the dependent variable, with technological factors emerging as the strongest predictor (Beta = 0.485), followed by organisational factors (Beta = 0.320) and environmental factors (Beta = 0.180). The findings indicated that users highly valued transaction speed and convenience but perceived security features less favourably, while organisational areas requiring improvement included employee training and resource allocation. The intense competition from established mobile money platforms was identified as a significant environmental challenge. The study concluded that there is a statistically significant relationship between the three independent variables and the level of CPS adoption at ZB, rejecting the null hypothesis. Recommendations for ZB Bank include enhancing security communication, expanding merchant acceptance, strengthening employee training, developing differentiated marketing strategies and leveraging social influence.