Advancing Electronic Payment Systems Adoption in Iraq: A Hybrid Model Integrating Variance and Process approaches for Efficient Implementation and Impact Analysis

Use of electronic payment (e-payment) systems is growing throughout the developing world. However, the spread of this technology has been markedly slower within Arab states; particularly in Iraq, where the population has been hesitant to adopt e-payment services. Iraq is a post-conflict country with a unique mix of complex social, cultural, technological, and political factors, resulting in low adoption rates. Therefore, this thesis intends to determine the interplay of factors that impact technological implementation and consumer preferences to adopt and use Electronic Payment Systems (EPS) in Iraq. This research follows a mixed methodology approach, embracing qualitative and quantitative methods. Quantitatively, an integrated version of Davis’s Technology Acceptance Model (1989) was applied to formulate hypotheses. Data was collected from Iraqi merchants through a survey instrument, and multiple regression analysis had been managed to examine the hypotheses. Qualitatively, an analysis had been adopted to determine Iraq’s progress in establishing and promoting EPS. In this regard, the research involved collecting valuable information utilizing semi-structured interviews with acknowledged Iraqi EPS experts working in EPS providers, and thematic analysis was undertaken. EPS providers can use the proposed theory from this analysis to improve their existing systems and design new initiatives.

The research findings have numerous theoretical and practical contributions. In terms of theoritical contributions, the research involved the design of a new framework to complement variance and process models. Through the resulting framework, researchers will be able to interpret the quality of EPS and identify the factors that impacting upon its adoption from process and functional perspectives. The practical contributions of the current research are seen in a series of deployable strategies recommended for regulatory agencies, such as the Central Bank of Iraq and other key stakeholders, which can catalyze migration towards e-payment systems in Iraq and contribute to renewed economic development. Furthermore, such findings and recommendations can be used to develop strategies in other post-conflict contexts where e-payment system adoption could be better optimized.