Developments in information technology and the internet have made a substantial contribution towards the transformation of traditional systems of cash and cheque payments to one of electronic transfers. Research regarding e-payment systems have focused on the influence of economic factors with respect to the organisational and consumer perspectives. There has been no research regarding the economic factors effecting the adoption of e-payment systems in Libya covering both organisational and consumer perspectives. This paper provides insights into the role of economic factors in the adoption of e-payment systems through the use of grounded theory. Semi-structured interviews were used for the data collection process, which enabled participants to express their opinions, concerns and feelings about the main economic factors that were believed to affect the adoption of an e-payment system. Data was analysed using the Straussian approach to grounded theory with the ‘Standard of living’ emerging as a new factor which contributes to the existing body of knowledge specific in this field concerning the adoption of an e-payment system in terms of the level of quality of life; the availability of employment; the quality of the education level; income; cost of goods; and economic and political stability.
The findings of this research will support decision maker(s) in Libya (the government, telecommunication companies and banks) in deciding to facilitate the development of E-payment system in Libya and devise methods to enhance its adoption by Libyan users.