Digital payment services, product quality and financial performance of e-commerce businesses in Uganda. A case of Jumia Uganda limited.

Abstract

The purpose of this study was to examine the relationship between digital payment services, product quality, and the financial performance of e-commerce businesses in Uganda, focusing on Jumia Uganda Limited. The study specifically assessed the influence of mobile money payments, online payments (Jumia Pay), and debit/credit card usage on financial performance and evaluated the combined effect of these digital payment methods. The study was grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology Acceptance Model (TAM). A correlational research design guided the study, employing a quantitative approach to test the hypothesised relationships. The study population consisted of 462 Jumia Uganda staff across various departments. Using Krejcie and Morgan’s (1970) sample size determination table, a sample of 210 respondents was selected through stratified random and systematic sampling techniques, achieving a 79% response rate. Data were collected using structured questionnaires and analysed using descriptive statistics, correlation, and multiple regression. The findings revealed that mobile money payments, Jumia Pay, and debit/credit card usage each had a positive and statistically significant effect on financial performance, with mobile money and Jumia Pay exerting the strongest influence. Product quality was also found to be a significant predictor of financial performance but did not significantly moderate the relationship between digital payment services and financial outcomes. The study concludes that digital payment services are vital contributors to financial performance within Uganda’s e-commerce sector. It recommends the wider adoption of digital payment systems, increased investment in product quality, and improvements in payment infrastructure. The study contributes to the growing literature on digital finance in emerging markets by providing empirical evidence on how digital payment systems influence financial performance. Future research should explore customer-level adoption factors, conduct comparative analyses across different e-commerce platforms, and apply longitudinal designs to assess changes over time