The Impact of Financial Technology in the Operations (Payments/Collections) of SMEs in Nigeria

Abstract

This study examines the impact of Financial Technology in the Operations (Payments/Collections) of SMEs in Nigeria. The study conducted a survey of 120 Small and Medium Scale Enterprises across the four (4) identified geo-political zones in Lagos state. These SMEs with employment ranging from 2-10 employees in the fashion, educational, online merchants, pharmaceuticals, automobile, cosmetics, agro-allied, printing, bakery, eatery, I.T. firms and retail enterprises. This was done in such a way that the four axes were represented, each axis having thirty (30) SMEs. One hundred (100) Questionnaires were found useful for the purpose of the study representing 83% of the total questionnaire distributed. The data was analyzed using inferential statistics. The study reveals that Financial Technology (FinTech) has great impact on the economy, and therefore contributing positively to national development. It also discussed the benefits and risks of embracing and investing in FinTech. In order to remain sustainable and profitable in business in this 21st century, it was recommended that the financial authorities and government embark on massive campaign and support of emerging FinTech organizations as well as embracing FinTech in its operations. Also, the SMEs are highly recommended to adopt FinTech payment channels in their operations.