Abstract:

Small and Medium Enterprises (SMEs) are the backbone of economic development for every nations around the world. In Malaysia, the contributions of SMEs are needed in supporting the development of the country toward achieving a status of developed country in 2020, including the advancement in the payment system. Small-Medium Enterprise Corp. Malaysia (SME Corp.) through Digital Malaysia project which was established with an aim to enable the adoption of e-payment among SMEs including microenterprises. The current level of adoption of e-payment system among Malaysian SMEs are still low than the target. This study focuses on investigating the adoption of e-payment among SMEs in Malaysia. The objectives of this study are to identify drivers for use of e-payment among SMEs, to investigate the level of adoption the use of e-payment among SMEs and to investigate the perception of SMEs in Malaysia on e-payment. Drivers for the adoption of e-payment among SMEs were identified via STEEPV approach which is an acronyms for (Social, technological, Environmental, Economic, Political and Value. This is an internationally recognized tool for brainstorming used in conducting Technology Foresight worldwide. The other two objectives of this study were achieved through a quantitative research approach with the use of survey questionnaires as the main instrument for data collection. Survey was conducted among top level managers or owners of SMEs in the area of Batu Pahat, Johor. Response obtained from a total of 60 respondents were analysed using Statistical Package for Social Science (SPSS). This study provides new understanding of drivers for the adoption of e-payments among SMEs in Malaysia as well as new knowledge and understanding of the adoption of e-payment among SMEs in Malaysia. This study will encourage the development of suitable approach in increasing the use of e-payment system among SMEs in Malaysia.