Behavioral intention to adopt cashless policy among SMES in Kano, Nigeria

Abstract

This study investigates the determinants of cashless policy adoption among Small and Medium Enterprises (SMEs) in Nigeria, focusing on the influence of social influence, facilitating conditions, trust, and digital literacy. Grounded in an extended Unified Theory of Acceptance and Use of Technology (UTAUT) framework, the study adopted a quantitative approach using a structured questionnaire. A total of 216 SME respondents were selected through a purposive sampling technique, ensuring that participants had relevant experience with digital payment systems. The research instrument underwent expert review and pilot testing to ensure content validity and clarity. Data were analyzed using SPSS for descriptive statistics and reliability assessment, while Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the structural model. The findings revealed that social influence, facilitating conditions, trust, and digital literacy significantly impact the behavioral intention to adopt the cashless policy. These results underscore the combined role of social, infrastructural, and individual factors in shaping adoption decisions among SMEs. The study contributes to theoretical advancements by extending the UTAUT model and offers practical insights for policymakers and financial service providers seeking to improve digital financial inclusion. Limitations include the cross-sectional design and non-random sampling. Future research should consider longitudinal approaches and broader sampling to enhance generalizability.