Abstract

This research sought to evaluate the role of electronic payment systems in financial institutions using a case of a Savings Bank in Zimbabwe. The research objectives were; to find the types of electronic payment systems used by the savings bank, to assess the role of electronic payment systems on operations of the savings bank and to find the merits and demerits of using electronic payment systems in savins banking. This research used a descriptive survey design. The findings were based on data obtained from 20 savings bank employees, 40 savings bank customers and five savings bank top managers from Causeway and Bindura branches. Questionnaires and face to face interviews were used to obtain primary data and secondary data was obtained through studying information from internet online publications, textbooks as well as latest newspaper articles. The study found out that the types of electronic payment systems that was offered by the savings bank were; Real Time Gross Settlement (RTGS), ATMs, credit cards, cell phone banking, western union money transfer, Eco cash and telegraphic transfers. It was also found that the adoption and use of electronic payment systems affected such issues as; convenience, product and service variety, cost reduction, speedy payment, security and accessibility. The researcher also found that the demerits of electronic payment systems were safety, flexibility, reliability, cost reduction, independence and speed and the challenges facing companies seeking to invest in electronic payment systems like the savings bank in the study were; high set up costs, web thievery, auditing challenges and long query solving time. It was thus concluded that electronic payment systems investments were important to savings banking business operations. Electronic payment systems, if properly implemented and utilized resulted in positive results on the profitability of the bank. The major recommendations resulting from this study were that the banks properly imp