EFFECT OF ELECTRONIC PAYMENT SYSTEMS ON REVENUE COLLECTION IN PUBLIC SECTOR

Abstract

This study sought to examine the effect of electronic payment systems on revenue collection in the public sector focusing on Tanzania National Parks Authority, Arusha. Specifically, study assessed the effect of electronic billing systems, online payment gateway systems and Point-of-Sale systems on revenue collection. Institutional theory and the Information Systems Success Model were employed in this study. This study was guided by a positivism philosophy and employs a quantitative research approach with a descriptive research design. The study used a sample of 147 employees from TANAPA, and respondents are selected using a simple random sampling technique. Primary data were collected using a questionnaire for the study. The quantitative data gathered from the survey are processed and analyzed using descriptive and inferential statistics, utilizing the Statistical Package for Social Sciences (SPSS) version 26. Findings unveiled that electronic billing systems have significantly increased the accuracy of revenue calculations, hence streamlining the invoicing process and resulting in faster revenue collection. The study found that online payment gateway systems have made it more convenient for taxpayers to settle their obligations while moderately reducing payment delays and contributing to an increase in the overall volume of revenue collected. Findings of this study revealed that POS systems have expedited the processing of revenue transactions, reduced instances of revenue leakage and mismanagement, while also enhancing the accuracy of revenue capture and recording. The findings revealed a positive correlation between electronic billing systems, online payment gateway systems, Point-of-Sale Systems and revenue collection. The study recommends that TANAPA enhance its electronic billing systems with features like automated error detection and real-time notifications. It also suggests improving the user interface of online payment gateway systems for better usability. Additionally, TANAPA should invest in security measures for Point-of-Sale systems, including encryption and biometric authentication, to prevent revenue leakage. Future research should compare electronic billing systems across public sector institutions in Tanzania to optimize revenue collection.