An Assessment of the Influence of Payment Gateways on the Success of Small and Medium Enterprises (SMEs) in Jamaica

Abstract

Introduction: Despite its inherent challenges, E-commerce has increased online opportunities for SMEs in Jamaica. Ushering in an era of secure, online-facilitated payment gateways that have accelerated operational efficiency, resulting in significant business success.

Objective: The study explores the impact of payment gateways in Jamaica, focusing on three key areas: to evaluate the influence of payment gateway choice on customers' satisfaction with Small and Medium Enterprises (SMEs); to assess the role of payment gateway features for the transaction of speed and convenience on customer satisfaction; and to explore the link between payment gateway experiences and customer brand loyalty to SMEs.

Methods and Materials: Employing a quantitative approach, a sample of 1,067 participants was selected utilising purposive sampling. Data was collected using the Survey Monkey online platform.

Findings: The results indicated that 63.3% of participants frequently use debit card payment methods, signifying that online transaction expediency is vital to the Jamaican populace, with 71.6% expressing satisfaction with online shopping. Logistical challenges pose a significant problem, showing 35.6% of delivery delays and 27.1% of high shipping costs for SMEs.

Conclusion: To enhance customer retention and create value for the growing segment of online shoppers, SMEs should prioritise delivery reliability, competitive pricing and investment in secure payment systems.