IMPACTS OF ELECTRONIC PAYMENT SYSTEMS ON THE CONSTRUCTION INDUSTRY IN TANZANIA: THE CASE STUDY OF ARUSHA DISTRICT COUNCIL
Abstract
Purpose of the Study: This study examined the impacts of electronic payment systems (EPS) on the construction industry in Tanzania, using Arusha District Council (ADC) as a case study. with operational and socio-economic outcomes among construction stakeholders.
Statement of the Problem: Despite the increasing adoption of EPS in public sector operations, limited empirical evidence exists regarding their operational and socio-economic implications within the construction industry, particularly in local government projects in emerging economies.
Methodology: The study adopted a quantitative cross-sectional research design. Data were collected from 85 respondents, including contractors, financial institution representatives, and government officials, using structured questionnaires. Ordinal logistic regression analysis was employed to examine relationships between EPS features and perceived performance outcomes.
Findings: The findings indicate that transaction security, ease of use, traceability, and appropriate levels of anonymity were positively associated with operational efficiency, transparency, and user satisfaction. However, moderate security controls and higher user engagement requirements were negatively associated with user experience.
Conclusion: The study concludes that EPS have significant potential to enhance efficiency, transparency, accountability, and trust within the construction sector when supported by secure, user-friendly, and well-coordinated implementation frameworks.
Recommendation: The study recommends strengthening user-oriented system design, improving digital payment training and awareness, and streamlining administrative procedures to maximise the operational and socio-economic benefits of EPS within the construction industry.
Keywords: Electronic Payment Systems (EPS), Construction Industry, Operational Efficiency, Transaction Transparency, Digital Payment Governance
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