consumer trust and adoption of point of sales of selected ... · for several transactions.however,...

International Journal of Applied Science - Research and Review ISSN 2394-9988

2018Vol.5 No.2:4

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Research Article

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DOI: 10.21767/2394-9988.100069

Akerejola Williams1*, Asihkia Olalekan U2 and Soetan Timothy2

1 Synergy Systems Limited, Ajao Estate, Isolo-Lagos, Nigeria

2 DepartmentofBusinessAdministrationandMarketing,BabcockUniversity,Ilishan, Remo, Nigeria

*Corresponding author: Dr Akerejola Williams

[email protected]

Synergy Systems Limited, Ajao Estate, Isolo-Lagos, Nigeria.

Citation: WilliamsA,OlalekanUA,TimothyS(2018)ConsumerTrustandAdoptionofPointofSalesofSelectedBusinessOrganizationsinLagosStateNigeria.ApplSciResRevVol.5No.2:4

Consumer Trust and Adoption of Point of Sales of Selected Business Organizations in

Lagos State Nigeria

AbstractNigerianpaymentsystemsarecash-driven,anditisthemainmodeofpaymentsfor several transactions. However, the Point of Sales (POS) which ismeant toencouragecashlesseconomyasagainstthecash-centeredoperationsischallengedwith issue of trust and security. This study examined the consumer trust andadoptionofPOSofselectedbusinessorganizationsinLagosstate,Nigeria.

Thestudyadoptedacross-sectionalsurveyresearchdesign.ThepopulationofthestudyconsistedofindividualSMEswhoareusersofPOSintheselectedsectorsandbusinessorganizations inLagosStatewithpopulationfigureof11,663andsamplesizeof2,059.Therespondentswererandomlysampledfromtheselectedorganizationswherethedatawerecollected.Avalidatedquestionnairewasused.Atotalof2,059copiesofthequestionnairewereadministered,witharesponserateof77.1%.TheCronbach’salphacoefficientsfortheconstructsare0.727foradoptionofPOSand0.810 for customer trust and0.758 forPOS security. Thedatawereanalysedusingdescriptiveand inferential (PearsonProductMomentcorrelation)statistics.

ThefindingsrevealedthattherewasasignificantrelationshipbetweencustomertrustandAdoptionofPOS (r=0.373;p<0.01)andPOSsecurityandAdoptionofPOS(r=0.437;p<0.01).

ThestudyconcludedthatcustomertrusthadsignificantandpositiverelationshipwithadoptionofPOSofselectedbusinessorganizationswhoareSMEsinLagosState, Nigeria. The study thus recommended that stakeholders should ensurethatsecurityandtrustaretwoimportantconsiderationsinordertoenhancetheadoptionofPOSofselectedbusinessorganizationsinLagosstate,Nigeria.

Keywords:Customertrust;AdoptionofPOS;E-payments;Cashlesspolicy

Received: April09,2018; Accepted: May17,2018; Published: May25,2018

IntroductionItisobservedthatthereisaglobaladvancementintechnologicaldevelopment; Nigeria is not left out of this advancement.InformationandCommunicationsTechnology (ICT)hasevolvedand has become a vehicle for technological growth in theeconomy of many societies as it has unarguably made lifeeasier [1-4]. Therefore, the global acceptance of Informationand Communications Technology as well as its usage haveattracted and received the interest of researcherswho are onregular basis out to proffer solutions for problems related to

technology development for decades [5-11]. This developmenthadencouragedfurtherresearchontheutilisationandbenefitsof ICT to several nations in order to improve their economicdevelopment[1,9,10].

Thetechnologyacceptanceisabouthowpeopleacceptandadoptsometechnologyforuse.TheuseracceptanceoftechnologyhasfurtherbeenexplainedasthewillingnesswithinausergrouptoemployITforthetasksitisdesignedtosupport[12].

InthelightoftheindustrysituationsnecessitatingtheintroductionofPOS,itiswidelyrecognizedthatPOSwhichisregardedassafe

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andefficientretailpaymentsystemsenhancedtheeffectivenessof the financial system, boost the consumer confidence andfacilitatedthefunctioningofcommercebyBusinessInformationSystem. Since Nigerian consumers largely depended on theuseofcashtoconducttransactions,theintroductionofPOSbyorganizations in the country is expected to ease the carriageof large sumofmoneyby consumersandalso toenhance theeffectivenessoforganizationsandtransactionsfromitmustbesecure and trusted. In this regard, it has been observed thatfundsthatcirculateoutsidethebankingsectorsareover90%[13]reasonsareattributabletolackoftrust,andsecurityespeciallyfromthebanktodestinationsandtransactionsgeneratedfromit.

In a recent study, evolution of technology for use in financialtransactionsposesalotofchallengesasquestionsaroseregardingthestabilityoftheinstrumentinguaranteeingtheefficiencyandeffectiveness ofmonetary policies of nationsworldwide. Fromhistory,differentpaymentsystemshavebeeninusee.g.bartersystemwas common, but incidences of double coincidence ofwant necessitated the use of money. However, technologicaldevelopmentgaverisetotheuseofsuperiorinstrumentsasthetechnologydeveloped.A littleoverthreedecadesago, theuseofcashinmakingpurchasesintheUnitedStatesofAmericahasdeclined,andincreasinglyadoptstheuseofelectronicpaymentssystems. However, developing economy like Nigeria are stillat the introductory stage of the use of alternative paymentsplatformas recently introducedby themonetarypolicymakerofNigeria,theCBNStudieshaveshownthattheuseofcashfortransactionsmadeforpaymentsofgoodsandservicesinmanynationsoftheworldisriskyandcomplex,andisgraduallygivingway to alternative payments platform, this is because moneyoutsidethebankcannotbesubjectedtofinancialregulationsandoperationalproceduresbyregulatoryagency,andthis limittheabilityoftheregulatortoachievethesetobjectives[13].

IntheCBNreportscitedinAdeotiandOshotimehin[14],thecostofcashmanagementwashugeandareasfollow:in2009,CBNwassaidtohavespentthesumofN114.6b,thisrosetoN135bin2010,andN166bin2011,andanestimatedsumofN196bwasprojected for2012, tomanagecurrencyproductionandservices, these amounts are substantially large and require anurgentattentiontoaddressthesituation,andcouldbereducedtoaminimallevelshouldtheeconomyembracecashlessandotheralternative payments system especially POS. This would thenreducethecostofprintingcurrencies,costoftransportationofcash,costofsortingcurrencies,andalsoreducesecuritycostofmanagingtheprintedcurrencies.AlthoughanaverageNigerianbusinessman prefers cash transactions and will embrace analternativeiftheyarewellinformedoreducatedofitsbenefitsandassuredofitstransactionalintegrity.ThisthereforepromptedtheFederalgovernmentcomingupwithpolicythatreducesthevolumeof cash in the economyusing Lagos as thepilot state.Despite the acceptance and increase in the use of alternativepaymentsplatform(e-payments),theadoptionrateofPOSwaslow,and this isattributable to lackof trustandsecurity issues[15-17].This study is therefore imperativeto identifysolutionsneededtoreducethesechallenges.

Inspiteoftheachievementsrecordedsofarintheimplementationof the cashless policy of Federal Government of Nigeria, it isobservedthattosustaincustomerusageofe-paymentsplatformespeciallyPOShasbeendifficult.ThisisaboutdataobtainedfromCBNreleasese-paymentsstatisticsfortheperiod2012-2016[18]whichindicatesthatdespitetheintroductionofcashlesseconomywith itsattendantbenefitsthefollowingdatarepresenting lowpenetrationofPOScomparedtoATMwasgiveninTable 1.

Reasons as given by CBN for low adoption of POS include butnot limited to lack of trust and security of the transactions,thisobservationalso indicated thatmanybuyersofgoodsandservicesstilldothatbycash,thisbringsaboutenormousriskandhighcostof cashmanagement it alsobringsabout inefficiencyand corruption [19,20]. Similarly, as reported by Adeoti andOshotimehinthegeneralincreaseintheadoptionrateofelectronicpaymentsinstrumentsandtherateofgrowthofadoptionofPOSarestill lowcomparedwithanothere-paymentsplatformsuchasATM.AmongthefactorsidentifiedasresponsibleforthislowadoptionofPOSinNigeriaislackofadequateinfrastructurethatis required to run POS, irregular network connectivity hencecannotbetrusted,andsecurityofnetworkcommunications.

Another issue of concern in the adoption of technology in anorganization is security; this has been stressed in an articlechallengestotheefficientuseofPOSterminals inNigeria[15].The author asserted that the efficient use of POS terminals inNigeria will reduce the security challenges arising from fraud,androbberyoccasionedbywithdrawalofcashbyunsuspectingcustomers from the bank. The importance of security ofcommunication over the network as the network becomesavailable to thepublic isalsoof immense importance, just likesecurityonsmartcardadeviceusedinPOSterminalhasbecomeacriticalissueasvarioustransactionsinvolvingexchangeofdataandthosethroughtheinternetmustbewellprotected.

Thisistopreventunauthorizedaccesstocriticaldataandotherinformationofgreatimportancebyfraudstersandhackerswhodailyattemptsbreakingintosystems,bytheadoptionofPOSinanorganization[21]SimilarresearchworkdonebyEbietomereand Ekuobase [17] also agreed that security has become animportantissueinadoptingtechnology,securitybytheseauthorsinvolved access to the network resources since unauthorizedaccess could impact negatively on the enterprise as well asthecustomersand thereforediscourages its adoption.A studyindicatedthatrelyingontraditionalsecuritycontrolhasbecomeobsoletesuchasphysicalaccesscontrols,securityguardsatthegate of the organization securing their assets, processes andcommunications(Tarimo).

The complex nature and the possible intelligence of hackersmakes it mandatory for adequate security applications to be

Payment channel Transactions volumeATM 470,894,452

Cheques 9,764,546Web 10,499,911POS 47,743,919

Table 1 Volumeoftransactionsforselectede-paymentsplatform.

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installedoneachlayersofPOSoperations,inordertodiscouragethemisuseofthetechnology,sothedeviceconnectedtoitmustbe well secured. Other security issues to be considered andwhichareof immense importance forconsumeradoptionsareanonymous and privacy, which relate to use access to criticalpersonalinformationofcustomersandpurchaserecords[22-24].

Following issues raised above, it is also pertinent to considertrustwhichinpreviousresearchworkplaysamajorrole inthetechnologydeployment.Geffen[25]definedtrustasaconfidentbeliefinfavorableexpectationsaboutwhattheotherpartywilldo. Inorderwords,a favorableexpectationof theadoptionofPOSwillencourageitsuse.Trustwillhavepositiveimpactonaconsumer’sintentiontowardsusingPOSforfinancialtransactions.Attempt toanalyze the roleof trust in thedeploymentofPOSterminal in an organization have been made, Dixit and Dattanotedthatfactorslikesecurityandprivacyandtrustamongotherfactors increase the acceptance of technology deployment inIndia.Itisalsoarguedthatthefacetofaceinteractioninbusinesstransactioninvolvingelectronicpaymenthasmadetheplaceoftrustinitsadoptionimportant(CarterandBelanger;GliberandBalestrini).

Trust may have positive impact on the customer’s intentiontowardsusingPOS forfinancial transactions [13]whichmay inturn increase the customer base in an organization inNigeria.CreatinganawarenessoftheimportanceofPOSdeploymentinanorganizationhasbecomeamajorfactortoencourageitsuseandespeciallyinlinewiththehighnumberofilliteratepopulationwithin the Nigerian society and vast numbers of unbankedpopulation and porous banking systems. The majority of theunbanked population are illiterate and will therefore dependon the few literates for their transactions through the POSwhichmaymakethemvulnerableonthescruplesfewliteratestherefore there is the need for serious customer assurance ofnon-negativityinthisrespect.

Theoretical FoundationThe definition of theories according toWacker is that itmusthavefourbasiccriteriawhichareconceptualdefinitionsthatareapplicable variables, domain limitations i.e. where the theoryapplies, relationship building and predictions. Theory buildingisvery important inthesensethat itprovidesaframeworkforanalysisandalsoneededforpracticalproblemsolving.

AnumberoftheorieshaveevolvedtoexplainadoptionofPOSinanorganization,thesetheoriesincludetechnologyacceptancetheory [5]TheoryofReasonedAction (TRA)TheoryofPlannedBehavior (TPB). The unified theory of acceptance and use oftechnology (Venkatesh, Morris, Davis and Davis), DiffusionTheory (Rogers) and Social Cognitive Theory (Bandura). Thelistedtheories formthebedrock for theadoptionofPOS inanorganization.

Attributes of trust from Figure 1 shows that confidentialityand integrity are important elements of trust while perceivedconfidentiality refers to ability of the system to protect theinformation resource of POS, this is done by ensuring that no

access isgiventoawrongperson.That isconfidentiality is thepropertyofaninformationsystemthatensuresthattransactioninformation cannot be viewed by unauthorized persons, soperceivedstrengthofconfidentialitywouldhaveapositiveimpactonaconsumer’strust inadoptionofPOS. Integritymeansthattheinformationandsystemshavenotbeenalteredorcorruptedby external and unauthorized parties, integrity of data wouldhaveapositiveimpactonaconsumer’strustinPOSadoption.

Authentication ensures that the parties to the transactionsare not impostors and are trusted (Merz). Before businesstransactions can be performed on the POS, the Participatingentitiesmustconfirmtheidentityofeachother.Thisisachievedbyusingnetwork-basedauthenticationprotocolsandPIN.Thiswould also have a positive impact on trust constructs for POSadoptioninselectedbusinessorganizationsinLagosstate.

Authorization: Proceduresmust be provided to verify that theusercanmaketherequestedpurchasesorpayments(Merz).ThisisusuallyensuredbytheuseofPINandPasswordstovalidatethe authority of the provider to the services or transactionsrequestedtobeperformed,hencebeforepaymentsaremadeattheuseofPOS,authorizationprocessesmustbeactivated,andthisisalsoapositivecomponentoftrust.

The Theory of Reasoned Action’s causal relationships in theTechnology Acceptance Model (TAM) were used to explaintheadoptionbehaviourof individuals in relationto technologyadoption such as POS. This study also follows their cue andappliesthemodelinthedomainoftheadoptionofPOSadoption.Using the TAM as the framework for this study, a conceptualmodelofusertrustandPOSadoptionispresentedinFigure 1, whichencompassesthekeyfactorsinensuringusertrustofPOSadoptionandthepositedresultingoutcomesofintentiontousePOS and actual adoption of POS. This also includes the pathsbetween Trust andPerceivedeaseof use, trust andperceivedusefulness, Perceived ease of use and intention to use andPerceivedusefulnessandintentiontousethetechnology.

Literature Review and Hypothesis DevelopmentInexaminingtheimplicationsofadoptionofPOS,itisnecessaryto review how customers trust and POS security relates withtheadoptionofPOSofselectedbusinessorganizationsinLagosstate, Nigeria.

Theintentionofearlierinventorsofcashregisterwastocreateasystemthatwillbeusedforrecordingcashtransactionstopreventemployee from tampering with the profit of the organization[26], this device soon became a tool for financial transactionsasitissuesreceiptsfunctioninglikesalesaswellaskeepingtherecords and the reports generated from it. Improvements oftechnologyovertheyearsgaverisetowhatistodayreferstoasPOS.

Cumbersomeness and risky nature of reliance on cash-basedeconomyinanysocietynecessitatestheadoptionofPOS,becausemoneyoutsidethebankscannotbesubjectedtoregulatoryand

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operational procedures and the ability of monetary policy toachievesetobjectivesinthepresenceofsizeablecurrencyoutofBankislimited[13]thissimplymeanstheadoptionofPOSsignifytheacquisitionandusageofPOS.

POSasdefinedbysomenotableresearchersisthatitisadeviceusedforrecordingtransactionsinastore,whichcanbesaidtobeamodern-daycashregister(Shari).Gilaniniaetal.[27]definedPOSasadevicethatisinstalledinthecenterofthesaleofgoodsand services instead of paying cash by physical transportationofmoney, the transactionamount fromanaccountholder i.e.customerisdeductedfromtheiraccountelectronicallyusinganelectroniccard,whilethecardacceptor(seller)ispaid.Therefore,in this study, POS can be described as a device deployed in amerchant locationwhere users swipe their electronic cards inordertomakepaymentforpurchasesorservicesasagainsttheuseofcash.

Conceptually,therearebenefitsattributabletotheuseofPOS,for example, World Bank says globally, the use of electronicpaymentssystemswasstrategictofast-trackinggrowthamongthenationsallovertheworld’sfinancialsectors.AworldbodyliketheWorldBankstatedit,itshowsitistrueandthefollowingbenefitsareexpectedtobederivedfromtheuseofthisplatform[27]. Faster transactions, that is, reducing queue at the pointof sale; improvinghygieneon site, that is, eliminatingbacteriathrough the spread of notes and coins; increase sales; cashcollectionmadesimpleand;managingtheentitlementsofstaff.

Otherbenefitsincludebutnotlimitedtothefollowing:improvescustomerservices,suchasremovestheneedforinvoice,chequesclearance etc; Allow purchase and instant payments throughthe point of sale; discount to allow online purchases etc. Theutilizationof theelectronicpayments systemswill alsobenefitstakeholders’ e.g. For consumer; itwill reduce risk of carryinghuge cash, increase convenience, more service options andcheaperaccesstobankingservices;organizations;itwillleadtofasteraccesstocapitalaspaymentsarealmostimmediate,reducerevenueleakageandreducecostofhandlingcash;government;increase in tax collections and economic development; Banks;efficiency through electronic payments systems, reduce costsofoperationsandincreasebankingpenetrations[28].Thelisted

benefitsnotwithstandingifthesystemisnotproperlyconfiguredtowork efficiently, itmay be dead on arrival, especially if theinfrastructuresarenotproperlydeployed.

Information usage by many organizations has become like asourceofmarketingtoolusedinacompetitiveenvironmentsuchasNigeria [29] and then sustained competitiveadvantage [30-32].Theusersof informationdistinguish itself fromthose thatdonotuseitbytheleveloftrustusershaveinproducersoftheinformation,whenanorganizationusesoradoptPOS,itshowsithasameasureoftrustontheuse.McknightandChervany[33]definedanddescribedtrustintechnologyasmoreencompassingthan the interpersonal trust constructs used in some study oftrust. The positions of these authors stem from the fact thattrust is a situation of acceptance under risk believing that theobjectistrue.Someauthorsstatedthatthemostbasicdictionarymeaningoftrustistodependorrelyonanother[33].Thus,ifonecandependonan IT’s attributesunderuncertainty, then trustintechnologythatisPOSadoptionisaviableconcept.Trusthasbeenfoundtoinfluencetheperceivedqualityofoutputderivablefromthedevicebeingintroducedintothemarket,andthelevelofcommitmenttotheutilizationoftheproduct.

As amental attitude, faith is like the attitude of trust, thoughthe concepts differ in an importantway. Faith can be seen asan emotionally charged, unquestioning acceptance; it doesnot requireevidence [34]. It iswhat is leftwith if all cognitivecontent is removed from trust [35]. Trusthasbeendefinedasrecognizingandacceptingriskindecisionmaking,inrecognizingrisk one identifies evidence for possible negative outcomesof the situation. One also willfully accepts the recognized riskbasedonevidencethatapositiveoutcome ispossible.Trust isanexpectationbasedoninconclusiveevidenceandistolerantofuncertaintyorrisk[34].TrustintheadoptionofPOSisthereforeexpected to produce positive outcome, hence the researcheragreedandadoptthisdefinitionoftrustbyHartandKinship[34]thattrustisanexpectationbasedoninconclusiveevidenceandistolerantofuncertainty.Onthisview,anattitudeisformedthattheoutcomeof the situationwill bepositive, but this attitudehaslittleornoevidentialbasis,ornoevidenceisconsidered.Thementalattitudeoftrustdoesinvolveanamountofdeliberation.

ConceptualframeworkoftrustmodelforPOSadoption.Figure 1

Confidentiality

Integrity

Authentication

Authorization

Trust in the adoption of POS

Intention to Use

Perceived Ease of Use

Perceived usefulness

Risk


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POSSecurityisdefinedasathreatwhichwhenbreachedcreatesanunpleasant situationwith thepotential to causeharmsuchas economic hardship to data or network resources or in theform of destruction, disclosure of unauthorized informationandmodificationofdata,denialofserviceandor fraud,wasteand abuse [36]. Under this definition, in the context of onlinebanking or electronic payments systems, threat can be madeeither throughnetworkor data transaction attacks or throughunauthorizedaccesstotheaccountbymeansoffalseordefectiveauthenticationoruseof stolenPOScards.According toMilind[37],securityriskisasignificantimpedimenttotheadoptionofonlinebankingande-paymentssystems.

Banksandcardmanufacturershaveoverthepastdecadesbeeninvolvedinprocessingoffinancialtransactionelectronically.Therecent technological developments in the field of e-commercehave opened up other areas of development in the electronicpayments system. First, the prospects of electronic commerceover the internet are creating a large demand for electronicpaymentmethodsforopennetworks.Second,theintroductionofnation-wideelectronicpursueschemesiscreatingmanymoreopportunitieswheresmartcardscanbeusedforcost-effectiveoff-line payments. There is need for adequate security in POSelectronicallyasthedeviceisusedbasicallytotransactfinancialbusinesses.

Inanarticlepublished in theNationnewspaperofSundayJuly16, 2017, on Cashless policy: Nigerian count losses in billions,it was revealed that though POS cannot be said not to workeffectively,butthattherearechallengeswithbandwidthofthetelecommunicationsserviceprovidersarisingfrominfrastructuraldeficiencies.Someofthesechallengesaremanmade,forexampleitwaspositedthatsomesupermarketattendantsaresabotagingthecontinuousworkingofPOSbymakingcustomersbelievethatPOSisnotworkingasitsupposedlydeniedthemoftipsorfreeleft-overcashofN 20 or N40fromcustomers[38].

Inanarticlereportedinanationaldailynewspaper,therewasalotofconcernaboutsecurityinbankingapplicationincludingtheuseofPOS,thishaveputwideembraceofe-paymentchannelsinabeyance.InarecentsurveyconductedbyVisaInternationalshowed thathighnetworthaccountsholdersneitherownnoruseATMcards thechannelsofcommunicationswithPOS.ThestudyalsorevealedthatpeoplethatearnbelowN 500,000.00perannum,whoform47%of its respondentsownandareregularusersofdebitcards,thesealsoincludesforonlinepurchases.Itshowedtherefore,that,thehigherpeopleearnthelesstheyownandusedebitcards.This impliesthatmajorityoftherichthinkthatavoidingdebitcardsisthebestwaytostayprotectedfromonline fraud. According to experts, some of these technologyadoptersincludingbanksareusingoutdatedMicrosoftWindowsoperating system, which is vulnerable to hacking for theiroperations.Thisispartlyresponsibleforthefraudrelatedissuesandbyextensionsecurityvulnerability.

Themainobjectivesofthisstudyaretoexaminetheconsumertrust and adoption of POS of selected business organizationsin Lagos state, while specifics objectives are to assess therelationship between customer trust and adoption of Point of

SalesofselectedbusinessorganizationsinLagosStateandalsotoevaluatetherelationshipbetweenPOSsecurityandadoptionofPointofSalesofselectedbusinessorganizationsinLagosState.Inanattempttocomeupwithacceptableconclusionsthestudytestedthefollowingnullhypothesis:

H01:ThereisnosignificantrelationshipbetweencustomertrustandadoptionofPOSofselectedbusinessorganizationsinLagosState, Nigeria.

H02: There is no significant relationship between POS securityandadoptionofPOSofselectedbusinessorganizationsinLagosState, Nigeria.

Currall and Judge defined trust as an individual’s reliance onanother party under conditions of dependence and risk. Thissupposed that making payments through electronic channelssuchasPOSmustbewithsomeleveloftrustthatthetransactionswillhitthevariousaccountsaccordingly.StudieshaveshownthattrustissignificantlyrelatedtoadoptionofPOSinLagoshenceitisnotedthattransactionsmademustnotbedeniableeitherbytheoriginatoror thebeneficiaryof thetransactions.Trusthasalsobeen described as an influential factor on consumer activitiesandhencesuccessofe-bankingservices(Ganesan,LingChaiandPiew).However,someauthorsdonotseethesignificanceoftrusttoadoptionofPOSinanorganization.Therefore,hypothesisiiiisherebystatedasfollow:Customertrustdoesnothavesignificantrelationship with adoption of POS in selected organizations inLagos state.

There is preponderance of academic work that links securityissuestothelowadoptionofPOSinanorganization,itisnotedthatthekeyrequirementsforsecuringfinancialtransactions inelectronic environment include confidentiality, data integrity,authentication,andnon-repudiation[23,24,39]allofwhichareconcernedaboutsecurityofelectronictransactionsandbecauseof the vulnerability of the data [39] asserts that security issuein the use of POSmust be taken seriously. Pandy in his workenumeratessomeofthesecuritychallengesthatcouldnegativelyaffecttheadoptionofPOS,however,thereareotherstudiesthatdo not see the significant relationship between POS securityand adoptionof POS in anorganizations. Basedon the above,hypothesisIIwasintroduced.

MethodologyThis study employed a cross-sectional survey research design,employing well validated questionnaires as themain researchinstrument.This is consistentwith theviewofMann [40]whonoted that many cross-sectional studies are completed withquestionnaires and few others employ interviews to collectdata.SimilarstudiesonadoptionofPOShaveemployedacross-sectionalresearchdesign[13,15].

ThepopulationofthestudyconsistedofallSmallandMediumEnterprise (SMEs)who are themain users or adopters of POSinLagosstateandthecollaborativesurveyconductedbySmallandMediumEnterprisesDevelopmentAgenciesofNigeriaandNational Bureau of Statistics in 2013, put the population at11,663inLagosstate.TheSMEsaredivided intosectorswhich

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aremanufacturing,mining andquarrying, accommodationandfood services (Hotel services), agriculture, wholesale/retailtrade, constructions, transport and storage, Information andcommunications technology, education, administrative andsupport activities, arts, entertainment and recreation, otherservicesactivities,watersupply,sewage,watermanagementandremediation act (SMEDAN) and the sampling unit is individualSMEs operating in Lagos state that uses POS. The total copiesofquestionnairedistributedwas2,059and1587werereturnedrepresentingabout77.1%ofresponserate.

Pilot studywasconductedusingsmall segmentsof thesampleinordertoconfirmthevalidityandreliabilityoftheinstrument.The Cronbach’s alpha coefficients for the constructs are 0.727foradoptionofPOSand0.810forcustomertrustand0.758forPOSsecurity,showingthereliabilityoftheinstrumentwhiletheinstrument was subjected to content validity-expert opinionvalidityasusedbyOsuagwu[41].Expertsinacademics,especiallythose in management, marketing, ICT validated the researchinstrument, in addition to expert opinion from some top-levelorganizational executives that work in the retail and bankingindustries.

Theanalysisof the studywas conductedusingdescriptiveandinferential statistics done through correlation and regressionanalysis,specifically;PearsonProductMomentCorrelationwasusedtomeasuretherelationshipbetweenthestudyvariables.

Data Analysis, Results and Discussion Table 2 showsresponsesbyrespondents in thequestionnairesdistributedandgivenasfollows:

Statement 1 from the Table 2 shows that 575 respondentsrepresenting 41.5% strongly agreed that there is high level ofconfidentiality in POS, 876 respondents representing 52.7%agreedwith thestatement,while98 respondents representing4.7%fairlyagreedthatthereisindeedhighlevelofconfidentialityinPOS,19respondentsrepresenting0.7%fairlydisagreedand19respondents representing 0.5% disagreed with the statement.This implies that majority of the respondents representingabout 97% agreed with the statement and that high level ofconfidentiality in POS is ameasure of customer trust andwillenhanceadoptionofPOSinselectedorganizationsinLagosstate.

Responses to Statement 2 in the Table 2 shows that 675respondentsrepresenting48%stronglyagreedthatthereishighlevel of integrity in POS, 741 respondents representing 43.9%agreedwith the statement, and168 respondents representing8.0% fairly agreed with the statement while 3 respondentsrepresenting0.1%fairlydisagreedwiththestatement.Therefore,majorityoftherespondentsrepresentingabout99%agreedwiththestatementthereishighlevelofintegrityinPOSandmeasurescustomertrustinPOS,thereforetransactionsgeneratedfromitcanbetrusted.

Responses to Statement 3 in the Table 2 shows that525 respondents representing 38.1% strongly agreed thatimplementationofPOSwillensuredatasecurity,917respondentsrepresenting 55.5% agreed with the statement, and 119

respondentsrepresenting5.8%fairlyagreedwiththestatementwhile3respondentsrepresenting0.1%fairlydisagreedwiththestatement and 22 respondents representing 1.1% disagreed.Therefore,majorityoftherespondentsrepresentingabout98%agreed with the statement that implementation of POS willensuredatasecurity.

Responses to Statement 4 in the Table 2 shows that 654respondents representing 41.2% strongly agreed that POSenablesuser’sidentificationandconfirmationbeforeusage,811respondents representing 51.1% agreed with the statement,106respondentsrepresenting6.7%fairlyagreed,8respondentsrepresenting 0.5% fairly disagreed and also 8 respondentsrepresenting0.5%stronglydisagreedwith thenotion thatPOSenablesuser’sidentificationandconfirmationbeforeusage.Thisthenmeansthatmajorityoftherespondentsrepresentingabout97%agreedthatPOSenableuseridentificationandconfirmationbeforeusageandthereforemeasurescustomertrustinPOS.

Responses to Statement 5 in the Table 2 shows that 622respondentsrepresenting44.5%stronglyagreedthattransactionmadeinPOScannotbedeniedbytheconsumerswhoperformthe task,865 respondents representing51.6%agreedwith thestatement,62respondentsrepresenting3.0%fairlyagreedand19 respondents representing 0.7% fairly disagreed with thestatement while 19 respondents representing 0.2% stronglydisagreed with the statement. Therefore, majority of therespondents representing about 97% agreed that transactionsmadeinPOScannotbedeniedbytheconsumerwhoperformedthetaskandmeasurescustomertrustinPOS.

Responses to Statement 6 in the Table 2 shows that 563respondentsrepresenting40.9%stronglyagreedthatPOSusageis highly trusted, 781 respondents representing 47.3% agreedwith thestatement,243respondents representing11.8%fairlyagreed with the statement. Therefore, all respondents whoparticipatedinthestudyagreedthatPOSishighlytrusted.

The response fromparticipating respondents inTable 3 showsthefollowing:

Statement 1 in Table 3 indicates that 832 respondentsrepresenting 57.8% strongly agreed that experience is animportant components of adoption of POS in an organization,while647participatingrespondentsrepresenting37.5%agreedthat experience is indeed a goodmeasure of adoption of POSin an organization, while 86 respondents representing 4.0%fairlyagreed,however,19respondentsrepresenting0.8%fairlydisagreed that experiencehas apositiveeffecton adoptionofPOS inanorganization.Therefore,majorityoftherespondentsrepresentingover98%agreedthatexperienceisagoodmeasureofadoptionofPOSinanorganization.

Response to Statement 2 in Table 3showsthat854respondentsrepresenting 58.9% strongly agreed that innovativenessdetermines the adoption of POS in an organization,while 657respondentsrepresenting37.8%agreedwiththestatement,57respondents representing 2.6% fairly agreed, 19 respondentsrepresenting 0.7% fairly disagreed. This show that majorityof the respondents representing about 98% agreed with the


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statementthatinnovativenessisameasureofadoptionofPOSinanorganization.

The opinion of the respondents in Statement 3 in Table 3 indicates that 1112 respondents representing 74.2% stronglyagreed that availability of infrastructure enhances adoptionof POS in selected organizations, showing the importance ofinfrastructureavailabilityindeterminingtheadoptionofPOSinanorganization,also422respondentsrepresenting23.5%agreedwiththestatement,similarly53respondentsrepresenting2.4%fairlyagreedthat infrastructureiskeyinadoptionofPOSinanorganization. Therefore, the entire participated respondentsagreedwiththestatementthatavailabilityofinfrastructureisanimportantvariableinmeasuringtheadoptionofPOSinselectedorganizations in Lagos state, hence stakeholders is to ensure

infrastructureisinplaceinordertoenhancedadoptionofPOS.

Response to Statement 4 in Table 3 indicates that 835respondents representing 57.2% strongly agreed that ease ofuse of POS enhances its adoption in an organization, and that740respondentsrepresenting42.2%agreedwiththestatement,12respondentsrepresenting0.5%fairlyagreedthateaseofuseofPOSenhancesitsadoption.Therefore,theentireparticipatedrespondents agreed that ease of use of POS enhances itsadoption,theorganizationssaddlewithdeployingthemachinearetoensureabilitytoimpactknowledgewitheasetocustomerinordertoencourageitsuse.

Similarly, the opinion of respondents in Statement 5 inTable 3 indicates that 679 respondents representing 47.9% of the

S/N Variables SA A FA FD D SD

1 ThereishighlevelofconfidentialityinPOS575 876 98 19 19 -41.5% 52.7% 4.7% 0.7% 0.5% -

2 ThereishighlevelofintegrityinPOS675 741 168 3 - -48.0% 43.9% 8.0% .1% - -

3 ImplementationofPOSwillenhancedatasecurity525 917 119 3 22 -38.1% 55.5% 5.8% .1% 1.1% -

4 POS enables user’s identification and confirmation before usageenhancesitsadoption

654 811 106 8 8 -41.2% 51.1% 6.7% 0.5% 0.5% -

5 TransactionsmadeinPOScannotbedeniedbytheConsumerwhoperformthetask

622 865 62 19 - 1944.5% 51.6% 3.0% 0.7% - 0.2%

6 POSusagecanberelieduponforfinancialtransactions563 781 243 - - -40.9% 47.3% 11.8% - - -

Table 2 Respondents’responsesoncustomertrust.


1 ExperienceisanimportantinfluenceinadoptionofPOSinanorganization832 647 86 22 - -57.8% 37.5% 4.0% 0.8% - -

2 InnovativenessinfluencestheadoptionofPOSinanorganization854 657 57 19 - -58.9% 37.8% 2.6% 0.7% - -

3 AvailabilityofinfrastructureenhancesadoptionofPOSinanorganization1112 422 53 - - -74.2% 23.5% 2.4% - - -

4 PerceivedEaseofuseofPOSinfluencesitsadoption835 740 12 - - -57.2% 42.2% 0.5% - - -

5 PerceivedusefulnessofPOSinfluencesitsadoption679 803 105 - - -47.9% 47.2% 4.9% - - -

6 EaseofcommunicatingthebenefitsofPOSinfluencesitsadoptioninanorganization628 870 70 19 - -39.6% 54.8% 4.4% 1.2% - -

7 SkillrequirementsofusersofPOSinfluencesitsadoption679 809 99 - - -47.8% 47.5% 4.7% - - -

8 CustomermotivationswillenhancetheadoptionofPOSinanorganization892 584 111 - - -61.4% 33.5% 5.1% - - -

9 GovernmentandregulationscanenhancetheadoptionofPOSinanorganization728 698 161 - - -51.4% 41.0% 7.6% - - -

10 SecurityofPOSwillenhancedtheadoptionofPOSinanorganization1051 439 97 - - -70.9% 24.7% 4.4% - - -

11 CustomerTrustonPOSwillenhanceitsadoptioninanorganization597 895 95 - - -44.5% 55.5% 4.7% - - -

12 InformationqualityobtainedfromtheuseofPOSwillenhanceitsadoption562 790 235 - - -40.8% 47.8% 11.4% - - -

Table 3 Respondents’responsesonadoptionofPOS.

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participated respondents strongly agreed that perceivedusefulnessofPOSenhancesitsadoption,while803representing47.2%agreed,105respondentsrepresenting4.9%fairlyagreedwith the statement. Hence, all the participated respondentsagreedthatperceivedusefulnessisameasureofadoptionofPOSinanorganization.

Responses to Statement 6 in Table 3 indicates that 628respondents representing 39.6% strongly agreed that easeof communicating the benefits of POS to its potential usersinfluencesitsadoptioninanorganization,while870respondentsrepresenting 54.8% agreed, 70 respondents representing 4.4%fairly agreed and 19 respondents representing 1.2% fairlydisagreed with the statement. This then means that majorityof the respondents representing 98.8% agreed that ability tocommunicate the benefits of POS to its users enhances itsadoption,thisshouldbedoneinordertoenhancetheadoptionofPOSofselectedbusinessorganizationsinLagos.

Statement number 7 in Table 3 showed that 679 participatedrespondents representing 47.8% strongly agreed that skillrequirements of users enhances the adoption of POS in anorganization,also,809respondentsrepresenting47.5%agreed,while99 respondents representing4.7% fairlyagreedwith thestatement, showing that the entire participated respondentsagreedthatskillisarequiredmeasuretoadoptionofPOSinanorganization.

Statement 8 in Table 3showsthat892respondentsrepresenting61.4%stronglyagreedthatcustomermotivationisanimportantvariableinadoptionofPOSinanorganization,584respondentsrepresenting33.5%agreed,while111respondentsrepresenting5.1% fairly agreed that customer motivation measures theadoption of POS in an organization. It shows therefore thattheparticipated respondents agreed that customermotivationenhancestheadoptionofPOSinselectedorganizationsinLagosstate;stakeholdersarethereforetoensureadequatemotivationin order to enhance the adoption of POS of selected businessorganizationsinLagos.

Statement9inTable 3showsthat728respondentsrepresenting51.4% strongly agreed that Government and regulationsenhancestheadoptionofPOSinanorganization,698respondentsrepresenting 41% agreed,while 161 respondents representing7.6% fairly agreed that government and regulationsmeasurestheadoptionofPOSinanorganization.Itshowsthattheentirerespondents agreed that government and regulations indeedenhancetheadoptionofPOSofselectedbusinessorganizations

in Lagos.

Statement 10 in Table 3showsthat1051participatedrespondentsrepresenting 70.9% strongly agreed that security of POS is animportant variable in adoption of POS in an organization, 439respondents representing24.7%agreed,while 97 respondentsrepresenting4.4%fairlyagreedthatsecurityofPOSmeasurestheadoptionofPOSinanorganization.ItshowsthereforethatalltheparticipatedrespondentsagreedthatsecurityofPOSenhancestheadoptionofPOSofselectedbusinessorganizationsinLagos.

Statement 11 in Table 3showsthat597respondentsrepresenting44.5%stronglyagreedthatcustomertrustenhancestheadoptionofPOSinanorganization,895respondentsrepresenting55.5%agreed, while 95 respondents representing 4.7% fairly agreedthat customer trust measures the adoption of POS in anorganization. It shows that theentire respondentsagreed thatcustomertrustindeedenhancestheadoptionofPOSofselectedbusinessorganizationsinLagos.

Statement 12 in Table 3showsthat562respondentsrepresenting40.8%stronglyagreedthatinformationqualityisameasureoftheadoptionofPOSinanorganization,790respondentsrepresenting47.8%agreed,while235respondentsrepresenting11.4%fairlyagreedthatinformationqualitymeasurestheadoptionofPOSinanorganization.ItshowsthattheentirerespondentsagreedthatqualityofinformationgeneratedfromPOSenhancesitsadoptionofselectedbusinessorganizationsinLagos.

Comparing the interpretation of the responses inTable 2 and Table 3,itshowsthatcustomertrustenhancestheadoptionofPOSinanorganization.

Table 4 shows the significant relationship between customertrust and adoption of POS in an organization. The correlationcoefficient (r) of customer trust to adoption of POS in anorganizationis0.373andthesignificancelevelis0.01(p˂0.01).TheTable 4showsthatthep-value is0.000,which is lessthan0.01. The null hypothesis was then rejected, and alternativehypotheses accepted and concluded that customer trust onPOShasasignificantrelationshiponadoptionofPOS inLagos.Conclusion can then be drawn that high level of trust bycustomersonPOSwillenhancedtheadoptionofPOSofselectedbusinessorganizationsinLagos.Sincethecorrelationcoefficientispositive,itindicatesthatthereisapositivelinearrelationshipbetweentheindependentvariableandthedependentvariable,anyincreaseinthevalueofcustomertrustwillcorrespondinglyleadstoanincreaseintheadoptionofPOSofselectedbusinessorganizationinLagos.

Adoption of POS in an organization Customer trust

AdoptionofPOSinOrganizationtestPearsonCorrelation 1 .373**

Sig. (2-tailed) .000N 1587 1587

Customer trustPearsonCorrelation .373** 1

Sig. (2-tailed) .000N 1587 1587

Correlationissignificantatthe0.01level(2-tailed)

Table 4 PearsonproductcorrelationforcustomertrustandadoptionofPOSofselectedbusinessorganizationsinLagosstate.


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Table 5showsresponsesbyrespondentsasfollows:

Statement 1 from the Table 5 shows that 350 respondentsrepresenting26.7%stronglyagreedthatdatasecuritywillenhancesecurity capabilityofPOS,while988 respondents representing62.7%agreedwiththestatement,144respondentsrepresenting7.3%fairlyagreed,51respondentshowever,representing1.9%fairlydisagreedand54respondentsrepresenting1.4%disagreedwiththestatement.Thisimpliesthatmajorityoftherespondentsrepresenting about 93% agreed with the statement that datasecurityenhancesPOSsecuritywhichinturnaidtheadoptionofPOSofselectedbusinessorganizationsinLagos.

Responses to Statement 2 in Table 5showsthat389respondentsrepresenting 29.7% strongly agreed that software securitywillaid the security of POS, 900 respondents representing 56.5%agreedwith the statement, and276 respondents representing13.9% fairly agreed with the statement while 22 respondentsrepresenting 0.3% strongly disagreed with the statement.Therefore,majorityoftherespondentsrepresentingabout98%agreed with the statement that software security will aid thesecurityof POSwhich in turnenhance theadoptionof POSofselectedbusinessorganizationsinLagos.

ResponsestoStatement3inTable 5showthat525respondentsrepresenting38.1%stronglyagreedthatabilitytosecurecriticaldata in POS enhances its security capability, 918 respondentsrepresenting 55.5% agreed with the statement, and 119respondentsrepresenting5.8%fairlyagreedwiththestatementwhile3respondentsrepresenting0.1%fairlydisagreedwiththestatement and 22 respondents representing 0.5% disagreed.Therefore,majorityoftherespondentsrepresentingabout98%agreedwiththestatementthatabilitytosecurecriticaldatainPOSenhancesitssecuritycapability.

Responses to Statement 4 in the Table 5 shows that 656respondents representing 47.5% strongly agreed that security

acrosscommunicationsnetworkisameasureofsecurityofPOSoperations, 714 respondents representing 43.1% agreed withthestatement,173respondentsrepresenting8.4%fairlyagreedwith the assertion, 22 respondents representing 0.8% fairlydisagreed and also 22 respondents representing 0.3% stronglydisagreedwith the notion that security across communicationnetworknecessarilymeasuresecurityofPOS.This thenmeansthatmajorityoftherespondentsrepresentingabout96%agreedthatsecurityacrosscommunicationnetworkmeasuressecurityof POSandwill enhanceadoptionof POSof selectedbusinessorganizationsinLagos.

ResponsestoStatement5inTable 5showsthat616respondentsrepresenting 44.1% strongly agreed that physical security ofPOSmeasuresPOSsecurityandenhancesadoptionofPOS,876respondentsrepresenting52.2%agreedwiththestatement,73respondentsrepresenting3.5%fairlyagreedand22respondentsrepresenting 0.3% strongly disagreed with the statement thatphysicalsecurityofPOSwillencourageitsadoption.Therefore,majority of the respondents representing about 97% agreedthat physical security of POS is a measure of security of POSoperations.

ResponsestoStatement6inTable 5showsthat823respondentsrepresenting 36.3% strongly agreed that different layers ofsecurityareameasureofPOSsecurityandenhancesadoptionof POS, 606 respondents representing 52.7% agreed with thestatement, 117 respondents representing 6.2% fairly agreed,19 respondents representing 1.2% fairly disagreed and 22respondents representing 1.2% strongly disagreed with thestatement that different layers of security will encourage itsadoption. Therefore,majority of the respondents representingabout95%agreedthatdifferentlayersofsecuritywillmeasurePOSsecurityandenhancedtheadoptionofPOS.

Responses to Statement 7 in Table 5showsthat576respondentsrepresenting 42.5% strongly agreed that there is high level of


1 DatasecuritywillenhancesecuritycapabilityofPOS350 988 144 51 54 -26.7% 62.7% 7.3% 1.9% 1.4% -

2 SoftwaresecuritywillaidPOSsecurity389 900 276 - - 2229.3% 56.5% 13.9% - - 0.3%

3 AbilitytosecurecriticaldatainPOSenhancesitssecuritycapability.525 918 119 3 22 -38.1% 55.5% 5.8% 0.1% 0.5% -

4 SecurityacrosscommunicationnetworkwillnecessarilyleadstoadoptionofPOS.656 714 173 22 - 2247.5% 43.1% 8.4% 0.8% - 0.3%

5 PhysicalsecurityofPOSwillencourageitsadoption.616 876 73 - - 2244.1% 52.2% 3.5% - - 0.3%

6 DifferentlayersofsecuritywillencouragePOSusage.823 606 117 19 - 2258.1% 35.7% 5.5% 0.7% - 0.3%

7 ThereishighlevelofconfidentialityinPOS576 836 99 19 19 3836.3% 52.7% 6.2% 1.2% 1.2% 2.4%

8 Non-disclosureofpersonalinformationinPOSwillenhanceitssecurity.675 741 168 3 - -42.5% 46.7% 10.6% 0.2% - -

9 Availabilityofsuperioranti-hackerssoftwaretoprotectthenetworkwillenhancePOSsecuritycapability.

549 592 246 181 - 1942.2% 37.9% 12.6% 7.0% 0.2%

Table 5 Respondents’responsesonPOSsecurity.

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confidentialityinPOSandmeasuressecurityofPOSoperations,836respondentsrepresenting46.7%agreedwiththestatement,99 respondents representing 10.6% fairly agreed with thestatement, 19 respondents representing 1.2% fairly disagreedwiththestatement,19respondentsrepresenting1.2%disagreedwith the statement and 38 respondents representing 2.4%stronglydisagreedwiththestatement.Therefore,itshowsthatmajorityoftherespondentsrepresentingabout89%agreedthatthereishighlevelofconfidentialityinPOSadoption.

Responses to Statement 8 in Table 5showsthat675respondentsrepresenting 42.5% strongly agreed that non-disclosure ofpersonal information in POS will enhance its security, 741respondentsrepresenting46.7%agreedwiththestatement,168respondentsrepresenting10.6%fairlyagreedwiththestatement,3 respondents representing 0.2% fairly disagreed with thestatement.Therefore,itshowsthatmajorityoftherespondentsrepresenting over 99% agreed that non-disclosure of personalinformationinPOSwillenhancethesecuritycapabilityofPOS.

ResponsestoStatement9inTable 5showsthat549respondentsrepresenting34.6%stronglyagreedthatavailabilityofsuperioranti-hacker’s software to protect the network will enhancePOS security capabilities, 592 respondents representing 37.3%agreed with the statement, 246 respondents representing15.5% fairly agreed with the statement, 181 respondentsrepresenting 11.4% fairly disagreed with the statement, while19 respondents representing 1.2% strongly disagreedwith thestatement.Therefore,itshowsthatmajorityoftherespondentsrepresentingover98%agreedthatavailabilityofsuperioranti-hacker’s software to protect the network will enhance POSsecurityofselectedbusinessorganizationsinLagos.

Comparing the interpretation of the responses inTable 5 and Table 3clearlyshowsthatPOSsecurityhasapositiverelationshipwithadoptionofPOSofselectedbusinessorganizationsinLagos.

POSsecuritydoesnothavesignificantrelationshipwithadoptionofPOSofselectedbusinessorganizationsinLagos.

Table 6showsthesignificantrelationshipbetweenPOSsecurityandadoptionofPOSinanorganization.Thecorrelationcoefficient(r)ofsecurityofPOStoadoptionofPOSinanorganizationis0.437andthesignificancelevelis0.01(p˂0.01).TheTableshowsthatthep-valueis0.000,whichislessthan0.01.Thenullhypothesiswas therefore rejected,andalternativehypothesesareherebyaccepted and conclude that POS security has a positive andsignificantrelationshiponadoptionofPOSofselectedbusinessorganizationsinLagos.ThisshowsthatfortheadoptionofPOSin an organization to be enhanced there must be adequatesecurityof itsoperationsand this securityoperationhadbeendefined to include but not limited to items listed in Table 5. Since the correlation coefficient is positive, it indicates thatthereisapositivelinearrelationshipbetweentheindependentvariableandthedependentvariable,anyincreaseinthevalueofPOSsecuritywillcorrespondinglyaffecttheadoptionofPOS inselectedorganizationsinLagosstate.

Findings inthisstudyrevealedthatthere isaconsiderableandpositivebutweakrelationshipbetweencustomertrustandPOS

adoptionofselectedbusinessorganizationsinLagosstate.Trustisaninfluentialfactoronconsumers’activitiesandhencesuccessofadoptionofanytechnology,thisisasGanesansuggeststhattrust createsconsumersactivity, in thiswise theactivity is theadoptionofPOSandthedeviceisusedforgeneratingfinancialtransactionswhichiscriticalineverybusinessactivities.AdoptersmusttrustthattransactionsmadefromPOSaresecuredwithoutgivingachancetosuspectanyformoffraudulentactivitiessothatuserscanbeencouragedtoembraceandadoptthetechnology.AlltheparticipatedrespondentsagreedthatPOSusageishighlytrustedwhichagreedwithresearchesdoneinthepast.

Inaresearchconductedtherehasnotbeenadequateinformationon the effect of trust on technology adoption globally [42].Similarly, a studywas conducted and shown that winning thetrustofpotentialcustomersofonlinebankingby theadoptionofPOSposesalotofchallengesandwouldthereforerequireareassuranceofitswellsecurenetwork[43].Whentrusthasbeenproperlyestablishedprospectiveusersarelikelytobeencouragedtoadopt thenewtechnology (POS)whichmayeventually leadtoefficiency in theoperationsof theorganization.Thisagreedwiththerespondentresponsesfromstatement3andstatement4,wheremajority viewpoint is that POS implementationswillenhancedatasecurityanduser identificationandconfirmationarerequiredtomaketrustwhichisanindependentvariableformeasuringcustomertrustandadoptionofPOSinanorganization.

Furthermore, trust has effect on users’ willingness to engagein technology adoption such as POS which involves exchangeof money and sensitive personal information (Muniruddenn).Known theory earlier described in chapter two the Theory oftechnologyacceptancemodelwhichpositsauser’sadoptionofnewinformationsystemisdeterminedbythatuser’sintentiontousethesystemwhichinturnisdeterminedbytheuser’sbeliefabout thesystemarising fromtrust theusershason itsabilityto perform its intended operations with less doubt about itscapability. In theworkof (Ayo,Adewole andOni), TechnologyAcceptanceModel(TAM)wassaidtobesuitablefordetermininge-commercebutmaynotfullydeterminetheusers’intentiontoadoptthetechnology,amodificationtoTAMwassuggestedandrefertoitasextendedTAMwithintegrationoftask-technologyfitmodelwiththeconstruct‘trust’tobetterpredictconsumers’adoptionofe-commerce.Thissuggeststhat‘trust’isstatisticallysignificantandpositiveintheadoptionoftechnologysuchasPOSinanorganization.

The findings also indicate that high level of confidentialities,integrityofPOS,datasecurity,transactionsperformancewithoutdenialbyusers, identificationandconfirmationofusersbeforeacceptance of the transactions are all significantly positive toadoption of POS in an organization in Lagos. The positive andstatisticallysignificantrelationshipsbetweencustomertrustandadoption of POS in an organization especially as an importanttool in Lagos current economic system of cashless economy,operatorsmuststrivetoensureeverythingthatneedsbedonetoattractthetrustofthecitizenryinembracingPOSisdone.

Similarly,otherpreviousstudieshavealsorevealedthatonlinetrust and prior online purchase experience are factors that


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influence behavioral intention and subsequent adoption oftechnologyinanorganization(Lu,CaoandYang)whichinessencesupporttheeffectoftrustinoperationofPOSanditsadoptioninanorganization.

In the work of Lewicki and Binker, trust, develops over time.Trustisaprecursorofattitudeandplantoact.TrustinthebankofferingthePOSorATMserviceisanimportantbehaviouralbeliefthat directly affects customer’s attitude towards the adoptionbehavior. As cost-benefit paradigm greatly influences peoples’attitudinalbeliefsandoutcomejudgements,trustcanbeadirectdeterminantofattitudeandbehavior[5].Again,trustincreasestheconfidentialityofbusiness relationshipanddetermines thequality of transaction between buyers and sellers, technologyanditsadoptionwhichexplainsthemajoritypositiveresponsetostatement2,statement5andstatement6.

A reviewof theacademic literatureshowedthat trustbuildingattributeshaveemergedfromantecedentsoftrust(Bhattacherjee,Landesberg and Zeisser). Mayer, Davis and Schoorman foundthat in a dyadic relationship, there are three critical attributesthatthetrusteemustpossesstoengendertrust;theseareability,integrityandbenevolence.However,theseindependentfactorstogetherwiththetrustor’sinherentpropensitytotrustformanenvironmentinwhichtrustisdeveloped.Thetrustvariableinthisstudy has attributeswhich includes confidentiality, undeniabletransactionsmade, ability to identify and confirm transactionsbeforetheyaredoneandalongwiththeattributesstatedbytheaboveresearcherconfirmsthesignificanceandpositivityofthevariabletrustinadoptionofPOSinanorganization.

Theempiricalfindingsofthisstudyarealsoinconsonancewithsome theories [44]. In the theory of diffusion of innovation,a componentof it involvespayment systemsecurity forwhichlack of consumer perceived security and trust are one of themain barriers to electronic andmobile commerce transactions[45]. The key requirements for secure financial transactions inelectronic environment include confidentiality, data integrity,authentication, and non-repudiation [23] all of which can belinkedwithdetailsofTable 5withmajorityofrespondentsfallinginlinewiththeassertionbytheirresponse.Othersecurityfactorsimportant for consumer adoption are anonymity and privacy,whichrelatetousepoliciesofcustomers’personalinformationand purchase records [22,23]. Suffice it to say therefore thatthe adoption of POS in an organization in Lagos state shouldtake into consideration the provision of adequate security ofall components involving the implementation of POS in anorganizationend-to-end.

InanewspaperreportofSeptember2015onCyberAct:Makingit work for e-payments, the lack of recourse for consumersencourages theperpetrationofcybercrimes forfinancialgains,securities and privacy concerns are also contributive factor,especially for the less aware customers of banks [46], in thefirst half of year 2015, analysis of NIBSS revealed that 1,544fraudcaseswerereportedwithanattemptedvalueofN134band actual loss valueofN 654.4m, specifically, looking at theelectronic frauds (ATM, POS, internet banking, e-commerce) atotal of N 926mwasattempted. Itwaspointedout therefore

that,toencouragewidespreaduseandacceptanceofelectronicchannelslikePOS,theperceivedandactuallevelsofconfidencemustbehigh,whilesecurityshouldnotbecompromised[46].

Table 6showsthesignificantrelationshipbetweenPOSsecurityandadoptionofPOSinanorganization.Thecorrelationcoefficient(r)ofsecurityofPOStoadoptionofPOSinanorganizationis0.437andthesignificancelevelis0.01(p˂0.01).TheTableshowsthatthep-valueis0.000,whichislessthan0.01.Thenullhypothesiswas therefore rejected,andalternativehypothesesareherebyaccepted and conclude that POS security has a positive andsignificantrelationshiponadoptionofPOSofselectedbusinessorganizationsinLagos.ThisshowsthatfortheadoptionofPOSin an organization to be enhanced there must be adequatesecurityof itsoperationsand this securityoperationhadbeendefined to include but not limited to items listed in Table 5. Since the correlation coefficient is positive, it indicates thatthereisapositivelinearrelationshipbetweentheindependentvariableandthedependentvariable,anyincreaseinthevalueofPOSsecuritywillcorrespondinglyaffecttheadoptionofPOS inselectedorganizationsinLagosstate.

Looking at the responses by respondents as contained in theTable 5, findings revealed that there is an agreement with astudythattheefficientuseofPOSterminalsinNigeriawillreducethe security challenges arising from fraud, and armed robberyoccasioned by withdrawal of cash by unsuspecting customersfromthebank[15];theyalsoharpedontheimportanceofsecurityof communication over the network as the network becomesavailabletothepublic[36]thatexplainedabout97%respondentsview on the agreement that security across communicationsnetworkwillnecessarilyleadstoadoptionofPOSinLagosstate.Similar researchwork done by Ebietomere and Ekuobase [17]also agreed that security has become an important issue inadoptingtechnology,securitybytheseauthors involvedaccesstothenetworkresourcessinceunauthorizedaccesscouldspeltdoomto theenterpriseand thereforediscourage itsadoption,thetechnologyshouldensurewellsecuresystemstoencourageitsuseandcontributingto itsadoption inLagosstatethis is inagreementwiththeresultofstatement4and9inTable 5 and statement 10 in Table 3.

SecurityonsmartcardadeviceusedinPOSterminalhasbecomea critical issue because any application involving data sharingand transactions through the internet must be well secured,the security of smart cardwhich is available to users and areamenable to fraudsters, hackers, clever outsiders, maliciousinsiders or even dedicated and well funded enemies must bewellsecuredtoencouragetheadoptionofPOSinanorganization[21].

Pandy enumerated someof the security challenges that couldposeorslowdowntheadoptionofPOSinanorganization.ThemajoroneistheuseofmobiledevicetomakepaymentsatthePOS, this presents a complex security challenge, fortunately,thereareseveral toolsandtechnologiesavailabletoovercomethese challenges to fortify mobile payments at the POS, thisincludesmartcards(chips),encryptionandend-to-endsecurity,

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tokenization, and authentication and identity management.Thisexplainedmajorityrespondents’viewsinthisstudy;hencein order to encourage the adoption of POS in an organizationsecurity challenges must be highly tackled. Historically, POSterminalsprovidersfocusedonencryptingPINsatthePOS,butnot the actual card account data, today, more POS terminalproviders are focused on end-to-end security and overalldatabasesecurity[17].Lookingatthestatement6onthe Table 5,closeto52%oftheparticipatedrespondentsstronglyagreedthat the availabilities of different layers of security in POSwillencourageitsadoption,thiscorrespondwithend-to-endsecuritycapabilitystatedbythestudy.

Amedu stated that the concept of electronic banking whichincludestheuseofPOSwillassureamorecompellingbusinessforbetterefficiencies,speed,conveniencesandsecurity.Theseare said to be the trends in more advanced economies ofEuropeandAmericaandcanaswellbeimplementedinNigeriaif adequate enabling environment such as perceived adequatesecurityofthedeviceisassuredascanbeseenintheresponsesin Table 5above,thisissupportedbytheextrinsicmotivationinmotivationaltheorywhereusersadoptedasystembecauseofitsinherentbenefits, if security isnotassured,usersmayunlikelyadoptsuchsystem,thisunderscoretheimportanceofsecurityinadoptionofPOSinselectedbusinessorganizationinLagosstate.

The empirical finding of this study is also in consonancewithsome theories [44]. In the theory of diffusion of innovation,a componentof it involvespayment systemsecurity forwhichlack of consumer perceived security and trust are one of themain barriers to electronic andmobile commerce transactions[45]. The key requirements for secure financial transactions inelectronic environment include confidentiality, data integrity,authentication, and non-repudiation [23] all of which can belinked with details of Table 5 with majority of respondentsfallinginlinewiththeassertionbytheirresponse.Othersecurityfactors important for consumer adoption are anonymity andprivacy, which relate to use policies of customers’ personalinformation and purchase [22,23]. Suffice it to say thereforethattheadoptionofPOSinanorganizationinLagosstateshouldtake into consideration the provision of adequate security ofall components involving the implementation of POS in anorganizationend-to-end.

InanewspaperreportofSeptember2015onCyberAct:Makingit work for e-payments, the lack of recourse for consumersencourages theperpetrationofcybercrimes forfinancialgains,

securities and privacy concerns are also contributive factor,especially for the less aware customers of banks [46], in thefirst half of year 2015, analysis of NIBSS revealed that 1,544fraudcaseswerereportedwithanattemptedvalueofN134band actual loss valueofN 654.4m, specifically, looking at theelectronic frauds (ATM, POS, internet banking, e-commerce) atotal of N 926mwasattempted. Itwaspointedout thereforethat,toencouragewidespreaduseandacceptanceofelectronicchannelslikePOS,theperceivedandactuallevelsofconfidencemustbehigh,whilesecurityshouldnotbecompromised[46].

Conclusion and RecommendationBased on the research analysis, hypotheses testing andinterpretationofresultsitwasobservedthatcustomertrustandPOSsecurityhaspositiverelationshipwiththeadoptionofPOSofselectedbusinessorganizationsinLagos.

ConclusionThe result of the analysis of this study shows the importanceof the adoption of POS of selected business organizations inLagos.Aside stressing the importanceof customer trustwhichwasidentifiedasanimportantelementoftherequirementsforadoptionofPOSofselectedbusinessorganizationsinLagosstate,there is theneed toensure theprovisionofadequatesecurityofthedeviceandthetransactionsmade.Ithasbeenidentifiedthat the adoptionof POS in an organizationwas promptedbythequestfortheuseofanalternativemodeofpaymentstotheuseofcash,asitisthemainmediumofexchangeforgoodsandservices inLagosstate.ThechoiceofPOSwhichisadeviceforelectronicpaymentssystemswasalsotoreducetheriskinvolvedin carryingcashand theattendantconsequencehavingknownthatthisdeviceisusedbasicallyforprocessingpaymentswhichdoesnotinvolvedtheuseofcashandthereforeshouldbeseento be well secure and trusted. The adoption of POS in Lagosstatewill also reduce thevolumeof cash tobeprintedby theagencyresponsiblefortheprinting;thiswillreducetheamountofmoneyspentincashmanagementwhichcanbechanneledtoother uses.

Literaturereviewedindicatedthatthoughcustomersembracedthe adoption of POS but relative to other e-payments devicessuch as ATM its adoption rate is low, and reasons have beengiven to include lack of customer trust and security issues.Therefore,itisimportanttoensuretheseareasareadequatelyaddressed by various stakeholders including the government.Though challenges to the adoption of POS were identified to

Adoption of POS in an organization POS security

AdoptionofPOSinOrganization

PearsonCorrelation 1 .437**

Sig. (2-tailed) .000N 1587 1587

POSsecurityPearsonCorrelation .437** 1

Sig. (2-tailed) .000N 1587 1587

Correlationissignificantatthe0.01level(2-tailed).Source:Fieldsurvey,2016

Table 6 PearsonproductcorrelationforPOSsecurity.


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include unauthorized charges to payment cards, cards relatedfrauds, failure to properly execute funds transfer instructions,unauthorized use of stolen cards among others but thesechallenges are seen not able to negate its adoption, howeverlowinitsadoptionrate.Thisstudyhasshownthatoneimportantdeterminants of adoption of POS is customer trust and theanalysis in data presentation confirms the importance of thisvariable, so to encourage would be adopter of POS and thetransactionstobegeneratedmustbewelltrustedandsecured.

ItispertinenttostatethattheadoptionofPOSinanorganizationcan increase its operational effectiveness which could alsoaid the attainment of major organizational objectives in theorganization.Suchobjectivesincludeitsprofitability,increaseincustomerbase,expansionintheoperationoforganization,newproductdiscoveries,reductionincostofdoingbusiness,etc.

PriorknowledgeofsimilarproductssuchasATMwithitsfailurerate which include cash dispensing error, fraud etc., has thepotentialofdiscouragingtheadoptionofPOS,thisunderpintheimportanceofcustomertrustandsecurity,asitwouldencouragetheadoptionofPOSinLagosstate.

RecommendationsTheresultoftheanalysisofthisstudyshowstheimportanceoftheadoptionofPOSofselectedbusinessorganizationsinLagosstate.TheimportanceofcustomertrustasapanaceaforadoptionofPOScannotbeoveremphasizedand therefore the followingrecommendationsaremadebasedonfindingsinthisstudy.

OperatorsareencouragedbasedonthefindingsinthisstudytoensurethesecurityofPOSasthisisfoundtohaveapositiveandsignificant relationship with adoption of POS by ensuring thatPOSsecurityfromloggingintothedevicetoactualtransactionsaregood, theyarealso toensuredatagenerationand reports

are freeof doubts that is trusted, as customer trust alsohavesignificantrelationshipwithadoptionofPOSinthisstudy.

It is recommended to government based on the findings inthis study where POS security was found to be positive andsignificantly related to the adoption of POS, that securing theentiresetupwithlayersofsecurityapplicationsatdifferentlevels,securingthedatatransactions,softwareandhardwaresecurity,provisionofanti-hackerssoftwaretoprotecttheentirenetworkshouldbe implemented, thiswill improve the issueof trustbyconsumerandencouragetheadoptionofPOSinLagosstate.

Trustisaninfluentialfactoronconsumers’activitiesandhencesuccess of adoption of any technology, this is as Ganesansuggested that trust creates consumers activity, in this wisethe activity is the adoption of POS and the device is used forgenerating financial transactions which is critical in everybusinessactivities.Itisrecommendedthatforadopterstotrusttransactionsgeneratedfromthedevice,itmustsecurewithoutgiving a chance to suspect of any form, especially fraudulentactivitiessothatuserscanbeencouragedtoembraceandadoptthetechnologywhichisPOS.

The telecommunications industries have been deregulatedthereforebasedonthefindingsinthisstudy,itisrecommendedto operators in this sector to ensure that communicationsdevice iswell secure to encourage its adoption in Lagos state,for exampleprovisionof securityon thenetwork connectivity,hardwareandsoftwarethatdrivesit,andinternetconnectivity.

It is recommended to stakeholders that from time to time itupdatesitsapplication,especiallytheoperatingsystemsasnewupgradecouldhavefacility toyankofforpreventattackon itstransactions in order to reduce vulnerability. Collaborationsamongplayers in the industryare recommended towiden thegap between attempted fraud and actual loss to fraud that isreductionofsuccessrateoffraudattempt.

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