SMALL

This study examined the impact of digital payment systems on the growth of small businesses in Benin City, Nigeria. The research specifically focused on three major components of digital payment systems: Automated Teller Machines (ATMs), Point of Sale (POS) terminals, and online banking transactions. The study was motivated by the increasing global shift toward cashless transactions and the limited empirical research on how such technologies influence small business development in emerging economies like Nigeria. A survey research design was adopted, and data were collected from 100 small business owners and managers in Benin City using structured questionnaires. Descriptive and inferential statistical tools, including multiple regression analysis, were employed to analyze the data with the aid of the Statistical Package for Social Sciences (SPSS). The findings revealed that ATMs, POS terminals, and online banking transactions have a significant positive impact on small business growth in Benin City. Specifically, ATMs facilitate quick access to cash, POS terminals enhance customer patronage and reduce cash-handling risks, while online banking improves financial management and business efficiency. However, challenges such as network instability, high transaction charges, ATM cash shortages, and cybersecurity concerns were identified as barriers to optimal utilization. The study concluded that digital payment systems play a crucial role in promoting the growth and sustainability of small businesses by improving operational efficiency, customer satisfaction, and profitability. It recommends that banks and telecommunication firms enhance network reliability, reduce transaction costs, and strengthen security frameworks. Additionally, financial institutions and government agencies should intensify awareness and provide training to small business owners to ensure wider adoption and effective utilization of digital payment systems.